SAN MARCOS - The state's rebounding economy should help Texas avoid another draconian budget session and could help state lawmakers to begin investing in education, transportation and a water plan, state officials told a group of manufacturers on Wednesday.

While it might not be easy to meet the state's needs, given some of the stopgaps the 2011 Legislature used to pass its budget, new taxes don't appear to be on the table.

Texas Speaker Joe Straus and state Rep. Harvey Hilderbran, R-Kerrville, struck an optimistic tone during a meeting of the Texas Association of Manufacturers without committing to new revenues beyond what an expanding economy provides.

Hilderbran, chairman of the House tax-writing committee, said he is "leaning against" a complete overhaul of the state's primary business tax.

"I'd prefer to grow the economy rather than grow government," Straus said in his prepared remarks. He said the Legislature must address a few key issues: improving public and higher education, financing water and transportation projects, and growing the economy.