Texas Gov. Rick Perry agreed Tuesday to dip into the state reserve fund to plug the state budget hole for this fiscal year, but with a caveat: He won’t touch the rainy-day fund again. The governor agreed to use $3.1 billion of the $9.4 billion in reserves to cover a deficit in the current two-year budget, which ends Aug. 31.
However, he promised not to take money out of the fund again to fill the projected $23 billion hole for the next budget, the Austin American-Statesman reported
"I remain steadfastly committed to protecting the remaining balance of the rainy-day fund, and will not sign a 2012-2013 state budget that uses the rainy-day fund," Perry said.
Leaving the $6 billion in reserves means lawmakers will have to make deep cuts in spending across the state government.
Democrats criticized the governor for the decision to leave most of the money in the reserve fund saying it would cause painful cuts in state services.
© 2014 Newsmax. All rights reserved.