The Nation - News from Sept. 28, 1986

The Texas House approved $582 million in spending cuts and an $869.2-million temporary tax package to cope with the oil slump that has left the state with a projected $2.8-billion deficit. The cuts would mean the loss of 1,981 state jobs, 1,460 of them in higher education, and would erase next year’s 3% state employee pay raise. The temporary tax package would raise the sales tax from 4 1/8% to 5% and would add 5 cents to the dime-per-gallon gasoline tax. Both would take effect Jan. 1 and expire Aug. 31. Speaker Gib Lewis said he had been assured that the Senate would approve the tax increase. It also must approve the spending cuts.