To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

As the state faces a projected $15-billion to $18-billion budget shortfall — higher than previously projected — Straus wants budget writers to balance the budget without raising taxes.

"We cannot afford business as usual. We're going to have to make significant cuts and the 5 percent we requested was just the beginning," Speaker Straus said.

State agencies have already been told to cut their budgets by 5 percent, which could reduce spending in the current budget by about $1 billion.

Straus told members of the House Appropriations Committee it needs to get creative and start thinking about salary freezes and suspending new programs.

"I do know that every cost savings must be on the table," he said.

While Speaker Straus emphasized making more significant cuts, Appropriations Committee Chairman Jim Pitts said he wants to look at "revenue enhancers," and called on state lawmakers to take a closer look at tax exemptions and gambling.

"I'm going to look at every revenue enhancer we could get, and I think if you go across the border, in Oklahoma and Louisiana, you're going to see Texas cars, and we need to grab that money," Rep. Pitts, R-Waxahachie, said.

Rep. Pitts projects the shortfall will be on the higher end, maybe even $19 billion. But he said new ideas, and tapping into saved money will be necessary.

"It's going to be painful. It's going to be very painful and we have to get 66 votes. If we use any of the Rainy Day Fund, we'll need 100 votes," Pitts said.

Dick Lavine, with the Center for Public Policy Priorities, said all of the Rainy Day Fund should be used.

He said the Speaker's approach to cuts is too one-sided and would continue to hurt working families.

"We're starting from a pretty low level to begin with. There's really not much that can be cut back without hurting somebody who really needs the help," Lavine said.

State lawmakers said they know a band-aid approach isn't going to solve all the state's problems, and expect the process will be painful.

State lawmaker's also received a revenue update from the Texas Comptroller's office Tuesday. Sales tax numbers, which make up about 60 percent of state tax revenues, were up 1.4 percent in April compared to that same time last year.

They also said the number of people employed in Texas remains steady, but needs to increase as more people move into the state.