Texas Governor Perry Agrees to Close 2011 Deficit Using Reserve

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Texas Governor Rick Perry reversed course and agreed to use $3.2 billion of reserves to close a gap in this year’s budget, while remaining opposed to a similar move in the next biennium.

Perry, 60, and House of Representatives Speaker Joe Straus, a San Antonio Republican, agreed with Comptroller Susan Combs to use reserves to help close a $4.3 billion deficit for the year that ends Aug. 31, according to a joint statement yesterday.