AUSTIN (January 1, 2013)--When lawmakers return to the Capitol next week, they're expecting a surplus at their disposal, but key Republican leaders and budget observers say that money won't last long or go far despite a rosier economic picture in Texas than in 2011, when the country was still lurching out of recession and the state unemployment rate was above 8 percent.

Lawmakers slashed spending by $15 billion two years ago, including $5.4 billion gutted from public education, but a revived economy has created a revenue surplus that some estimate could exceed $8 billion.

Democrats are hopeful that money can restore the deepest cuts, while Republicans have vowed to hold the line on spending.