AUSTIN, Texas -- The Texas House has approved a $178 billion state budget. The package would increase spending by five percent over the next two years and strip the governor's office of its operating budget almost entirely.
The 150-member chamber unanimously approved the the first budget under Speaker Joe Straus early Saturday in a show of newfound House harmony.
The two-year plan relies heavily on $11 billion from the federal stimulus package. That money has helped the state close a multibillion dollar revenue shortfall without cutting into state services.
State spending makes up about 45% of the budget and is about 2.5% less than in the 2008-2009 budget.
In another blow to Perry, the House approved a measure to strip $136 million from his Texas Enterprise Fund if the state doesn't expand unemployment insurance. The expansion would make the state eligible for $555 million in federal stimulus aid.