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Budget Update:Where We Stand
Eva DeLuna CastroSenior Budget Analyst
Center for Public Policy PrioritiesMay 13, 2011
What’s the solution when
ideology doesn’t match
reality?
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
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
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)
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%
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
“Worst Case” Children’s Budget
Inflation-Adjusted Spending Per Student
Doctors Taking Medicaid Patients, 2010
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)
Texas Needs A Balanced Approach
to Balancing the Budget
Use the Rainy Day Fund
Utilize All Federal Funds Available to Us
Find New Sources of Revenue
How Can Texas Close
the Revenue Gap?
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)
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
www.txforward.org
Let’s examine our prioritiesLet’s examine our priorities
Let’s make sure Texas’ story is NOT about
shortchanging our kids.
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
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