The Texas budget includes over 200 dedicated funds to support specific public policy areas. Plus, billions of federal dollars sent to Texas must be used for specific purposes like Medicaid, CHIP, and Title 1 schools. How do these factors affect the ability of state legislators to deal with economic crises when they arise? These factors allow federal dollars to be used to replace state spending to meet economic challenges. These factors allow for innovation in meeting the demands of the programs, using dedicated funds. These factors limit the options for how legislators can deal with revenue shortfalls. These factors require legislators to increase revenues in other ways