Texas Budget Update – Action Needed!

Posted on April 6, 2011. Filed under: Economy, government, Politics, Texas | Tags: , , , , |


 

Today was spent in Austin speaking with legislators.  It was most discouraging to realize what is about to happen with the budget and rainy day (Economic Stabilization)  fund.  As many of you know, I originally thought we had a reasonable solution with deep cuts and a small portion of the rainy day fund to be used.  This was based on the House making every available cut prior to using the rainy day fund.   I am completely reversing my original view, based on the new data gained by speaking with numerous legislators and staff.

The House has passed the budget bill.   Early next week they will vote on using 3.1B of the Rainy Day Fund (Economic Stabilization Fund) to facilitate a balanced budget.   The House did not make enough cuts and want to use part of the Rainy Day Fund to achieve a balanced budget as required by Texas law.  The next stop is the Senate.

Today we discovered the Senate will unveil a budget  proposal of their own that makes fewer cuts to the budget.  Why?

This is not a comfort to taxpayers who supply the revenue to the state . If legislators are unable to make difficult choices, perhaps they should not be on the finance committee.  We have a 30B dollar price tag coming in the next session for Medicaid predicated on new federal rules increasing the number of eligible participants.  The current bill for Medicaid is approximately 16B.  It is imperative to cut  discretionary spending and preserve the Rainy Day Fund.  The next Biennium there will not be a safety net to help us, other than increasing state revenue possibly with additional taxation.

The hallways were crowded today with special interest groups including a lot of unions and community action groups.  The throngs of people were inside the legislative offices and spilling out by the dozens into the hallways.  Numerous buses were parked outside.  It appeared there are many special interest groups who are definitely making their “votes” heard in the capitol, which will likely result in future burdens to Texans.  Is this why the House and Senate are reluctant to make necessary budget cuts?  WHY are we funding an arts commission when there is a large shortfall?  Why do we still have dozens of other discretionary programs being funded?  The Economic Stabilization Fund should not be used when there is so much waste remaining in the budget. 

If the Senate passes their proposal, the bill will go to conference as a final step.  This means Senate and House committee members will negotiate and arrive at a final budget.  This changes everything.  The current budget passed by the House, was not the strongest possible budget, but is better than what will be offered by the Senate. 

What can we do, to ensure the Senate understands our expectations of making all the necessary budget cuts?   The list of individuals below are the members of the finance committee.  Call them and say you expect deeper budget cuts than the House bill and that we do not want them to touch the Rainy Day Fund.  Ask them to remember Texans are on tight budgets due to rising prices of fuel and food.  Texans are making necessary budget cuts in their  finances, and we expect the legislature to reflect the same level of fiscal responsibility.  There isn’t a good reason to risk the future of Texans by continuing to fund programs not critical to the running of the State.  Let’s ensure we have a voice in the Senate plan.

Please call the following people from the Senate Finance Committee and say you want deeper cuts in the Senate Bill and not to touch the Economic Stabilization Fund:

Chairman:  Steve Ogden    512-463-0105

Vice-Chair:  Juan “Chuy” Hinojosa  512-463-0120

Members:

Bob Deuell   512-463-0102

Robert Duncan  512-463-0128

Kevin Eltife  512-463-0101

Craig Estes  512-463-0130

Eddie Lucio, Jr.  512-463-0127

Jane Nelson  512-463-0112

Dan Patrick  512-463-0107

Kel Seliger  512-463-0131

Florence Shapiro  512-463-0108

John Whitmire  512-463-0115

Tommy Williams  512-463-0104

Judith Zaffirini  512-463-0121

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