(AP) -- AUSTIN, Texas (AP) -- The Texas House has approved a bare-bones $164.5 billion budget.
That's about $23 billion less than the current two-year spending plan. The measure now goes to the Senate.
The House version, approved last night, underfunds schools by almost $8 billion less than state law requires. Medicaid is underfunded by $4 billion. The plan also makes cuts to highways, prisons and dozens of other programs.
The proposal includes a two-year hiring freeze for state agencies, except for emergency hiring needs approved by state leaders.
The House also deleted $100 million in higher fees -- sort of. The charges would be contingent on the approval of separate legislation.
Texas will have at least $9.4 billion in reserves in the Rainy Day Fund.
(Copyright ©2011 by The Associated Press. All Rights Reserved.)
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