Texas Strong thanks to good leadership

Texas will experience a budget “shortfall” next session which begins Jan 2011. But we do have money in the bank (the “rainy day fund”) and though we would not propose using it all, we do have that as a cushion. How does the state budget look for next year? We could not have said it better ourselves, so we have left it to Rep. Ken Paxton (R-Dist 70) who wrote which appeared in the Frisco Enterprise:


Statewide budget cuts address financial shortfall - piece By Ken Paxton, St. Rep., District 70 (R-McKinney)

Published: Monday, January 18, 2010 6:14 AM CST - Frisco Enterprise
The Texas Legislative Budget Board, the committee of the Texas Legislature that develops budget and policy recommendations for legislative appropriations for all agencies of state government, projects an $11-12 million budget deficit for the 2012-2013 biennium.


The last time we faced a budget shortfall was in 2003 during the 78th legislative session. As they did in 2003, the governor, lieutenant governor and speaker are once again asking state agencies to cut their budgets by five percent in order to address our budget

shortfall by reducing dedicated appropriations for the 2010 – 2011 biennium.

In a letter to all state agencies and public institutions of higher learning, our State leadership is calling for prudent, efficient reductions that minimize the impact on direct service and is requesting that each of these entities analyze the necessity of all

administrative expenses and purchases.

Reducing direct services should be an option of last resort to eliminate the possibility of

reductions to benefits or client eligibility levels in the Medicaid program, the Children's Health Insurance Program (CHIP) and foster care programs.

Additionally, they are requesting budget cuts that will not affect eligibility staffing, so people in need may access these programs in a timely manner. The programs exempt from this request include the Foundation School Program, Social Security contributions, Teacher and Employees Retirement Systems' pensions, contributions to the Higher Education Fund and debt service for previously issued obligation.

I am proud of Governor Perry, Lieutenant Governor Dewhurst and Speaker Straus for taking proactive steps to reduce government spending when budget constraints are on the horizon. Legislators must also exercise restraint next legislative session and look for additional ways to reduce spending on extraneous programs and services.

I look forward to once again proposing legislation next session to implement a tax and expenditure limitation to further protect our State from the consequences of unbridled spending that has driven California and other states to the brink of bankruptcy.

AFP note: regarding the Spending limit

Texas AFP has long advocated for a spending limit (at all levels of government) which would allow for spending increases equal to the increase in population and inflation, with voter approval needed to exceed the limit. Gov. Perry has embraced the limit, and we are pleased to see Rep. Paxton is again committed to carrying the legislation in the House.