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Texas Gov. Perry Proposes Returning Excess Taxes

Updated: Saturday, August 3 2013, 05:15 PM CDT

Gov. Rick Perry wants to tap the Rainy Day Fund to spend $3.7 billion on critical water and transportation systems in the state.

In his State of the State speech on Tuesday, Perry said there is more money in the fund than is needed, and that the state should not accumulate any more. He said tapping the fund for a one-time investment in infrastructure was needed to ensure a high quality of life.

Perry also called to use road funding only on transportation projects.

The Republican has for weeks called on the Legislature to cut taxes and continue to hold down government spending -- even though Texas' economy is booming. He also called for $1.8 billion in tax relief and said how to do that was still open for consideration.

(Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Texas Gov. Perry Proposes Returning Excess Taxes

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