The Nation : Texas House Trims Deficit

The Texas House approved $582 million in spending cuts and an $869.2-million temporary tax package to cope with the oil slump that has left Texas with a projected $2.8-billion deficit. Both must be approved by the Senate. The cuts would mean the loss of 1,981 state jobs, 1,460 of them in higher education, and would erase next year’s 3% state employee pay raise. The $869.2-million temporary tax package would raise the sales tax from 4.125% to 5.25% and add five cents to the 10-cent-a-gallon gasoline tax. House members voted 86 to 61 for the sales tax increase and 78 to 68 for the gasoline tax increase, both of which would take effect Jan. 1 and expire Aug. 31.