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Budget Update:Where We Stand
Eva DeLuna CastroSenior Budget Analyst
Center for Public Policy PrioritiesMay 13, 2011
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What’s the solution when
ideology doesn’t match
reality?
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Budget instructions to state agencies
(May 2010)
Agency requests go to LBB & Governor’s
Office (August)
Public hearings before LBB/Gov. (Sept./Oct. 2010)
Governor’s Budget Proposal
LBB Budget Proposal
Comptroller’s Revenue Estimate
Before the 82nd Session Started…
With a few exceptions: 2012-13 “base” = amount of GR
and GR-Dedicated Funds that agency spends in 2010-11,
minus 5%
Four-fifths vote to override
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Committees named
Senate Finance (budget and taxes)
Public hearings (6 subcommittees)
Mark-up
House Appropriations (budget bills)
Public hearings (5 subcommittees)
Mark-up
Committee version to full Senate (up or down vote, Article XI)
Committee version to full House (floor amendments, Article XI)
Conference committee on budget
Legislative Process (82nd)Ways & Means:
taxes
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Conference committee report to House and Senate
Senate House
To Comptroller for certification
To Governor for vetoes
To state agencies (operating budgets)
Final Legislative/Executive Process
Two-thirds vote to override (if still in
session)
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General Revenue Shortfall, Budget Approved by the House
Requested GR
Proposed GR, HB 1
General Revenue Shortfall
HHS $ 31.0 b $ 22.0 b - $9.0 b -29%
Education 56.4 b 43.6 b - 12.8 b -23%
Criminal Justice
9.2 b 7.8 b - 1.4 b -15%
The rest 6.2 b 4.2 b - 2.0 b -32%
TOTAL $102.8 billion $ 77.6 billion - $ 25.2 billion -25%
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GR Shortfall, Senate Budget
Requested GR
Proposed GR, HB 1
General Revenue Shortfall
HHS $ 31.0 b $ 22.3 b - $8.7 b -28%
Education 56.4 b 49.1 b - 7.3 b -13%
Criminal Justice
9.2 b 8.4 b - 0.8 b - 9%
The rest 6.2 b 4.4 b - 1.8 b -3%
TOTAL $102.8 billion $ 83.8 billion* - $ 19 billion -18%
*Includes $2 b Foundation School Program delayed payment
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“Worst Case” Children’s Budget
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Inflation-Adjusted Spending Per Student
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Doctors Taking Medicaid Patients, 2010
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Dallas County Impacts (biennial)School Finance Changes:SB 22: $384 million reduction vs. current law. Enough to fund 4,700 ISD jobs, with private-sector impact of 6,600 jobs. House plan is twice as bad, plus $45 million lost in preK-12 grants.
Health & Human Services: Senate reduces funding by $773 million, 12% less than is being spent in 2010-11. Current services requires $1.8 billion more (of which $1.1 billion is federal funds)
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Texas Needs A Balanced Approach
to Balancing the Budget
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Use the Rainy Day Fund
Utilize All Federal Funds Available to Us
Find New Sources of Revenue
How Can Texas Close
the Revenue Gap?
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Alternatives to Cuts
School Aid Deferral (not in HB 1) $2 billion
Federal stimulus for education $0.8 billion
HB 3640: Tax Speed-Ups $1 billion
Use Rest of Rainy Day Fund $6.3 billion
TOTAL $10 billion
(HB 1 already assumes $100 million+ in fee increases, plus tuition hikes)
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Longer-Term Solutions
Apply Sales Tax to Services $5 billion
Repeal high-cost natural gas tax break $2 billion
“Healthy Texas” taxes $3.5 billion
Hospital quality assurance fee $350 million
TOTAL $11 billion
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www.txforward.org
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Let’s examine our prioritiesLet’s examine our priorities
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Let’s make sure Texas’ story is NOT about
shortchanging our kids.
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CPPP ResourcesCPPP Resources• Research: www.cppp.org • Online data: www.stateoftexaschildren.org• Mobile data: www.tkcmobile.org• Facebook:
http://www.facebook.com/#!/bettertexas • YouTube:
http://www.youtube.com/user/CPPPvideo • Twitter: CPPP_TX