AUSTIN— Lt. Gov. David Dewhurst today praised the 10-member Senate-House Conference Committee for adopting Senate Bill 1, the biennial state budget for 2010-2011.

"This is a sound, fiscally responsible budget that meets our state's priority needs, continues tax cuts for hard working Texans and invests in critical areas such as public and higher education, transportation and health care, to ensure we can meet the challenges of our rapidly growing state," Lt. Governor Dewhurst said.

Senate Bill 1, as adopted by the conference committee, spends $182.3 billion in All Funds for FY 2010-2011, including $80.7 billion in General Revenue. This represents a spending increase over the previous biennium of approximately two-percent annually, well under the rate of inflation plus population growth excluding federal stimulus items. The budget appropriates approximately $12.1 billion in federal stimulus funds. Also included in the budget is a safeguard provision relating to the use of federal stimulus funds, directing state agencies to prioritize one-time expenditures and authorizing the Legislative Budget Board and governor to prevent expenditures that would result in future fiscal obligations to the state.

"Just like families are doing all across Texas, state government is being prudent in these tough economic times by limiting spending and saving money. While virtually every other state is facing a huge deficit and slashing its budget, in Texas we're funding essential services and planning for the future," Lt. Governor Dewhurst said.

Senate Bill 1 also leaves untouched the state's Economic Stabilization ("Rainy Day") Fund so it may be used to fund essential services and balance the budget in 2011.

Several key highlights include approximately $2.2 billion for public education to ensure our public schools have the resources necessary to provide a first-class education. SB 1 also includes $200 million to continue improvements to our State Schools, providing the resources to move some clients back into their homes or communities when they're ready.

The 2010-2011 state budget also puts in place several key transportation provisions to ensure the transportation dollars are spent to reduce congestion on Texas roads by appropriating debt service for $2 billion in road bonds approved by voters November 2007 and returns to TxDOT nearly $400 million in gas tax funds that had been used in other areas of the budget.