Texas Guts School, Library Tech Funds

The state has killed a program that put $1 billion worth of computers and high-tech equipment into Texas schools and libraries, leaving local officials scrambling for alternative funding.

Perry signed an executive order last month that transfers the daily administration of the TIF board to the Texas Workforce Commission. The last grants are expected to be paid out by March.

The TIF program has been collecting money since 1995 from a fee that Texas cellular phone users pay each month. The fund has allocated about $1.1 billion in grants to schools, libraries, community colleges, universities and health care facilities.

Kathy Walt, spokeswoman for Perry, said $250 million from TIF fees will also be used to help balance the state's budget.

EL - This money was from a tax that was to be used to upgrade schools and libraries, Perry is using the money to cover his budget shortfall.