Perry Says He Will Not Sign Budget Without Tax Cut

By: Associated Press
By: Associated Press

AUSTIN, Texas -- Gov. Rick Perry says he won't sign a new state budget that does not include a tax cut.

Perry spoke to reporters Monday after meeting with Republican members of the Texas House of Representatives.

The governor has proposed a $1.6 billion tax cut after the Texas economy bounced back from recession. He said taxpayers deserve some of the state's surplus revenue. But lawmakers have so far not included a tax cut in their budget plans. Legislators have instead opted to boost spending for public schools.

Perry also asked lawmakers to tap the state's Rainy Day Fund to use $2 billion to set up a water infrastructure fund. He said spending regular state revenue was a bad choice, even as conservative activists called on Republican lawmakers to choose that route.

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