As lawmakers try to determine what can and cannot be done with the stimulus money, a crucial question has arisen. The purpose of the stimulus money is to help states fill holes in their budget. The question is: Does Texas have a hole–or, to put it another way, will the feds decide that Texas doesn’t have a hole? The issue here is the Rainy Day fund. Texas has socked away $7 billion with more to come. Will the feds say that Texas doesn’t really have a hole, because it could use the Rainy Day fund to fill it? This is a question that is worrying appropriators. Will the feds say, you have to use your own money before you can use our money?
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Weekly dispatches from the middle of the road of Texas politics.
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