Gov. Rick Perry has said the Rainy Day Fund should be preserved as an insurance policy against natural disasters, but Texas can't actually dip into it until the next legislative session — in 2013.

The debate over whether job creation in Texas economy is a "mirage" or a "miracle" raises several questions: What jobs do Texans commonly hold right now? How much do those jobs pay? And what jobs is Texas creating?

The latest Texas jobs numbers will be released today, and a positive report would bolster Gov. Rick Perry's economic message on the campaign trail. Ben Philpott of KUT News and the Tribune reports on the battle to define just how well the Texas economy is doing.

Gov. Rick Perry likes to rail against the Obama administration's "failed" federal stimulus program, but he and state lawmakers have more than $17 billion in fed-stim dollars to thank for the last two balanced Texas budgets.

The House Ways & Means Committee is considering several bills that have the same mission: to make permanent the franchise tax exemption for businesses that report $1 million or less in gross revenue. 

Talk has resumed in the Senate — albeit quietly — about a so-called quality assurance fee, a revenue generator that would effectively tax hospitals to prop up the state’s cash-strapped Medicaid program.

At the Tribune's New Day Rising symposium on Feb. 28, four public policy experts talked about criminal justice, education, health care and other issues and the impact of the coming Hispanic majority.

State Rep. John Zerwas, R-Simonton, is no fan of "Obamacare." But he told his House colleages this afternoon that if they don't set up a health insurance exchange — one of the tenets of reform — by 2014, the federal government will do it for them.

We liveblogged this morning from the Austin Club, where the subject of today's TribLive was health care: the costs — and solutions — for Medicaid, payment reform in Texas vs. the federal health overhaul, and what kind of hit Texas' neediest patients will take. 

We need a balanced approach that uses our reserves and adds revenue. And we have to start by casting aside wishful thinking; we are writing the 2012-13 budget, with higher costs and increased enrollment in education and health care services — not some past budget.

The budget draft filed last week provided the first glimpse at the kind of deep cuts that state agencies could see in the next biennium. As Matt Largey of KUT News reports, advocates are particularly worried about what the final budget could hold for the agency that protects children from abuse and neglect.

It's not hard to find strange bedfellows in the Texas Legislature when the bills start flying. Republicans and Democrats frequently cross the aisle to support legislation that they feel will help their constituents. As Ben Philpott of KUT News and the Tribune reports, the same could be true as lawmakers try to figure out how to balance the state budget.  

Texas ranks 34th nationally in childhood well-being, has the third highest teen birth rate and is experiencing a rapid increase in child poverty, according to new numbers released today by the Annie E. Casey Foundation KIDS Count data center.

M. Smith's interview with the new chair of the Texas GOP, Philpott on Republicans and Tea Partiers living in harmony, Aguilar on Immigration and Customs Enforcement's not-yet-released strategic plan, Ramshaw's tragic tale of out-of-state kids in Texas treatment centers, Grissom on how budget cuts could impact juvenile justice, Stiles' awesome new population app, Galbraith on the decline of the Ogallala Aquifer, Hamilton's interview with the commissioner of higher education and the debut of Hu's new video debate series: The best of our best from June 14 to 19, 2010.

If history is any guide, the Legislature will turn to accounting illusions to mask large portions of a budget shortfall of at least $11 billion. Trouble is, such trickery is a bet on the economy roaring back to life — and that's no sure thing. 

Every candidate vying for a legislative seat knows what lies ahead in 2011: a budget shortfall of at least $11 billion, probably higher, and state agency cuts to save as much of that amount as possible. But new revenue is a possibility as well, even if lawmakers are expert at the old sleight of hand, employing creative accounting and semantic trickery to avoid stepping on that political third rail, the tax hike.

Behind the fiery health care rhetoric is a measure expected to dramatically expand Texas’ Medicaid program, adding up to 1 million adults to the state’s insurance roll — but at a steep cost. Texas will have to come up with hundreds of millions of dollars in new revenue to foot its share of the bill.

The Texas Workforce Commission spent nearly $50 million during the last two years on day care centers and in-home childcare providers with troubled track records — including sexual and physical abuse, kidnapping, and leaving infants to suffocate and die in their cribs. A Texas Tribune review found that at least 135 subsidized facilities had their licenses revoked or denied by the Department of Family and Protective Services in 2008 and 2009 and had their funding immediately suspended.