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Texas has a substantial low-income population, high levels of uninsurance, and many foreign-born residents, largely from Mexico. Despite low taxes, the budget passed by the legislature in Spring 2001 included several health care initiatives. These included Medicaid eligibility simplification for children, increased funding for the State Children's Health Insurance Program, higher reimbursement rates for nursing homes, and establishment of a new system of health insurance for public school teachers. The declining economy may curtail further expansions, but, so far, the state has not suffered the extreme fiscal pressures that other states are experiencing.