Meghan:

The federal stimulus dollars used for education were lawfully used for education, and we not diverted for other purposes.  As introduced, and before the stimulus money became available, the proposed 2010-11 budget was in the red.  We simply could not divert money we did not have in the first place. 

Texas used the stimulus education money, as many other states did, to avoid cuts to public schools—which was one of stated purposes of the federal legislation.