House Democrats preparing counteroffer to Senate plan.

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by PAUL J. WEBER and CHRIS TOMLINSON

Associated Press

Posted on May 17, 2013 at 3:23 PM

Updated Friday, May 17 at 3:40 PM

AUSTIN (AP) - A state official close to the negotiations says Texas lawmakers have reached a deal on a two-year spending plan that would restore $3.93 billion to public schools.

The deal reached Friday afternoon also clears the way for taking $2 billion from the state's rainy day fund for water projects. The official spoke on condition of anonymity because the official did not want to speak publicly until lawmakers have been briefed on the deal.

Republicans needed Democratic votes to set up the State Water Infrastructure Fund and they wanted to boost spending on public education by $4 billion. The Republican-controlled Legislature cut $5.4 billion from schools in 2011.

The deal is similar to one announced by Lt. Gov. David Dewhurst late Thursday night.

Both chambers must still vote on the measure

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