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prada sunglasses men arbitrary caps on noneconomic damage awards invulnerable to challenge in the Texas courts. The Senate has volleyed one substantive bill: SB 14, which would "regulate" homeowners insurance rates by directing the insurance commissioner to keep an eye on them. The industry lobby, howling in anguish at such tyranny, prefers Arlene Wohlgemuth's HB 3346, which would effectively declare the insurance market "free" by definition, King's X.That's not much to show for three months' work, but if things keep going the way they have been, it's just as well. Indeed, a salutary byproduct of the prolonged House debate of tort reform is that less time was available to push bad bills. On these pages, the Chronicle staff delivers a brief status report on things to come, in broad legislative categories: the budget, education, human rights, criminal justice, urban issues, the environment, and so on.Call it an attempt to answer the looming question: How bad will it get?The BudgetBy far the most important thing the 78th Legislature will do or fail to do this session is enact a budget. If you've been with us this far, you know that officially, the state projects a deficit in incoming revenues of $9.9 billion for 2004 2005 and that includes $1.8 billion just to get to the end of this biennium on Sept. 1. Another way to understand it is that Texas, already $1.8 billion in the hole for this year, will have for the next two years about $54 billion in state funds to spend on roughly $62 billion in currently acknowledged needs allowing little or nothing for population growth, inflation, or already long waiting lists in every category. In response, the House Appropriations Committee has drafted a budget of about $58 billion; the Senate Finance Committee is said to be considering the relatively munificent sum of $60 billion. Either of these figures remains several billion dollars below the actual financial needs of existing programs, from education to prisons.Neither chamber has determined where the money will come from that it wants to spend that Texas officially doesn't have. The Republican leadership remains publicly committed to "no new taxes" although with some waffling on expanding