Governor Uses Line-Item Veto Power to Eliminate $200 Million in Spending

AUSTIN - Gov. Rick Perry today announced that an agreement has been reached to certify the state's two-year $117 billion budget after negotiations with the comptroller and attorney general.

Comptroller Carole Keeton Strayhorn certified the budget a day after announcing that the spending plan was about $186 million short of balancing. Today, the governor notified Strayhorn that he had used his veto power to eliminate more than $200 million in appropriations from House Bill 2425 and House Bill 3175.

"Passing and certifying this budget has been a difficult task for all involved," Perry said. "But leadership remained united in its efforts to approve a fiscally responsible spending plan that meets the needs of Texans without new taxes."

By vetoing one bill and striking an appropriation related to another bill, the governor achieved the spending reductions necessary to allow the comptroller to certify the budget, paving the way for Perry to sign the bill by the June 22 deadline.

These vetoes will provide cash management appropriations for FY 2004-2005. The governor notified the comptroller of his actions in a letter Friday.

The 2004-2005 state budget will take effect at the beginning of the new fiscal biennium on Sept. 1, 2003.