Becca Aaronson, Texas Tribune

Despite Gov. Rick Perry’s firm opposition to a key tenet of federal health reform — expanding the state’s Medicaid program for those with low incomes — Texas Democrats remain optimistic that the 2013 legislative session can yield a deal that brings in billions in additional federal dollars.

It will be a tough sell: No Republican lawmakers have gone on record supporting the Medicaid expansion, which would add an estimated 1.8 million Texans onto the joint state-federal health plan by 2022.

But state Sen. Rodney Ellis, D-Houston, said fiscal conservatives have an incentive to reach an agreement “because the alternative is going to cost us much more economically and dig a much deeper hole in our budget.”