Low Spending Growth
The $182 billion biennial budget’s “All Funds” budget represents a 7.4 percent increase over the 2008-09 biennial budget. This is an increase of just 3.7 percent per year, in line with the Legislative Budget Board's 3.5 percent recommendation.

Growth below the Population plus Inflation Formula
The 7.4 percent growth figure is particularly significant because it is below the rate of growth that would be permitted if growth in state appropriations were limited to the sum of population growth plus inflation. The Legislative Budget Board calculations show that the sum of population growth and inflation for 2008-09 is 8.18 percent. At 7.4 percent, the proposed budget growth is below this benchmark for conservative fiscal policy.

Rainy Day Fund Intact
The around $9 billion Rainy Day (budget stabilization) fund was left intact - a major priority for conservatives. This will help ensure that the state is prepared for budget shortfalls or emergency appropriations in the future.

Given the current economic downturn, the state might have to address a budget shortfall in 2011. It is fiscally responsible to keep a balance in the Rainy Day Fund allowing for any shortfall in 2011 to be met without raising taxes.

Stimulus Funds NOT Used to Permanently Grow Government
Stimulus funds were kept in a separate article of the budget.

This approach will strictly limit the use of stimulus money to one-time only purchases and construction projects. Stimulus money will not be used to fund on-going, recurring services.

This ensures the stimulus funding appropriated for 2010-11 will not be a part of the base budget next biennium. Stimulus funds were used for education purchases in an appropriate manner (one time purchases with no recurring costs), which reduced Education spending by $588 million in Article 3.

Other Conservative Victories
Fiscal conservatives can point to several significant budget items, including:

• $87.1 million in All Funds is for border security operations including 66 additional personnel at the Department of Public Safety.

• Virtual school network funding increased by $18 million.

• Requires the Legislative Budget Board to undertake a study to evaluate the effect creating a constitutional and statutory spending limit based on the sum of the rate of population growth and the rate of monetary inflation.

• The budget leaves a surplus of approximately $250 million.

Much of this information came from the Texas Conservative Coalition of Texas Legislators.