Lawmakers are also debating 5% payroll for the state's largest companies and changes to the 1% property tax cap as Democrats say cuts alone will not fill the budget gap.

Ferguson, a Democrat, told reporters at a news event in the Governor’s Conference Room that in his view, both chambers’ plans depend too much on taxes. Each would rely on a so-called wealth tax, an idea that he noted would likely attract immediate legal challenge if implemented.

Gov. Ferguson said he would veto any spending package with a wealth tax, but may have opened the door for other tax proposals to fill a $16 billion budget gap.