Gov. Rick Perry is showing no signs of ending his presidential bid in the face of low poll numbers, and is instead investing $1 million in ad time in Iowa in advance of the caucuses three weeks away. A new survey done for the Perry campaign shows him in third place in Iowa but also found that the race is far from settled: 67 percent of respondents admitted that they may change their mind before the vote, and with 67 percent of likely caucus-goers saying they view him favorably, Perry may be the beneficiary of those that are on the fence or not strongly committed to another candidate. Most conversation in that campaign has focused on Perry's newest commercial.

As a crucial deadline loomed for investors in Austin’s Formula One track, the group reached a deal with the race’s founder, Bernie Ecclestone, to keep the race on schedule. The F1 council kept the race, set to launch November 2012, on the books, and construction on the racetrack, which stalled last month over negotiations, was set to resume immediately. The state of Texas has committed $25 million a year to the race, claiming that the investment will result in increased tax revenue. One race per year has been scheduled for 10 years. Comptroller Susan Combs, who earlier promised the promoters a check in advance of the first race, now says the state won't contribute until after that first race is run in November 2012.

An El Paso businessman convicted of fraud and bribery has made thousands of dollars of campaign contributions across the state, and beneficiaries are now grappling with how to handle the money and the politics. No law requires them to return the money, but Lt. Gov. David Dewhurst and U.S. Sen. John Cornyn, who were recipients of Robert Jones’ largesse, said they would donate his contributions to charity. Gov. Rick Perry received at least $80,000 in contributions from Jones but has yet to say how he will handle the funds.

Three hospitals, 44 clinics and a dialysis center make up the Hospital District of Harris County, and the facilities are over capacity. One-third of the adult population in Harris County has no medical insurance and relies on the district for care. The system is flooded with calls, and patients face a choice between long waits or no access to primary care doctors. Dr. Robert Trenschel, who oversees the clinics, quantified the problem by analyzing data from system records. His research showed that doctors employed by the district sustain patient loads that are over the recommended maximum.

After months of negotiations, the University of Texas Medical Branch in Galveston has reached an agreement with the Texas Department of Criminal Justice to continue providing medical services throughout the state’s prisons. UTMB has been providing about 80 percent of health services for the state’s inmates but had complained that it was losing money on the deal. The new contract calls on the Legislative Budget Board to make funds available to reimburse UTMB on a cost basis. The UT Board of Regents and the TDCJ must approve the contract.

A study initiated by the BP oil spill in 2010 has resulted in a pledge of $50 million from the federal government to pay for environmental restoration along the Texas Gulf Coast. The U.S. Department of Agriculture’s Natural Resources Conservation Service will oversee programs designed to restore ecosystems and help the Gulf Coast area become more resilient in the face of natural or man-made disasters. The funds will be distributed over the course of three years and are targeted at three Texas watersheds: the Kuy Creek-Guadalupe River, the Guadalupe River-South Guadalupe River and the Hynes Bay-San Antonio Bay.

The City of Arlington revised its rules governing gas drilling. A new ordinance was passed unanimously, 7-0, after officials spent a year ironing out new regulations that will require drillers to install safeguards near drilling sites but also simplify the permit process, allowing faster turnaround time to begin drilling.

If Texans are strapped for cash, they haven't cut back on lottery tickets. Record sales of $3.8 billion were reported for the year, with the state’s share hitting $1.02 billion. Lottery officials said the bounty was the result of strong sales of instant tickets and the growing popularity of Powerball.