Senate Crafts Their Budget Proposal, Promising Not To Increase Taxes

Over the past few weeks, the Texas Legislature has been occupied with constructing a budget for 2012-2013 that will alleviate the current budget shortfalls and not cause problems in the future. The House passed their $164.5 billion budget on April 3, and meanwhile, the Senate has been diligently working to craft their less intense budget plan while upholding their promise not to raise taxes. The Senate budget is alleged to be close to $16 billion more than the House plan.

On Tuesday, April 19, the Senate Finance Committee unveiled $4.8 billion in ideas to help solve the budget deficit. These included anything from accelerated tax collection, property sales, changes in unclaimed property programs, and other measures that can be read in detail at the Texas Tribune’s website. The Senate is not willing to consider deep budget cuts like the House because they want to ensure there is enough funding for their top priorities: public education and Medicaid.

The Senate is set to consider whether or not to use additional funding from the Rainy Day Fund on Wednesday, April 20. However, Governor Perry has already warned he will veto any proposal that uses more money from the $9.4 billion emergency account and the House opposes the idea as well. House Appropriations Committee Chairman, Jim Pitts stated that the House may be willing to support up to $4.5 billion more than what has already been spent if it goes toward education and as long as revenue could be found without increasing taxes.

Nothing has been finalized, but the Senate is scheduled to have their budget plan complete and sent to the House by May 1, leaving bother chambers with one month to compromise. It is important to point out that both chambers of the Texas Legislature have made every effort to solve the state’s budget crisis without raising taxes for the citizens of Texas.

Texas House of Representatives Passes Budget Without Raising Taxes

On April 3, 2011 the Texas House of Representatives passed their budget for the 2012-2013 biennium. House Bill 1 is a $164.5 billion, two-year budget that reduces spending by 3.7 percent from general revenue and 9.7 percent overall, which is approximately $23 billion less than the current budget that ends August 31, 2011. As can be seen in HB 1, the House’s priorities are education, 46 percent, and health and human services, 32.8 percent. This budget was passed without tax increases and focused primarily on cutting administrative costs and reducing overlapping agency functions.

The budget still needs to be considered and passed by the Senate, followed by a conference committee where each chamber of the legislature is represented by five members to discuss and finalize the state budget. Once the Senate and House approve the final bill it will go to Governor Perry for signature or veto.

HB 1 is a significant step toward cutting wasteful government spending without increasing taxes. Texas does not need additional taxation to supplement its budget shortfalls. The House’s proposition reflects this important principle by focusing on cutting costs, not finding new taxes and fees to disguise a serious spending problem.

More can be read about HB 1 at the Texas Insider website:

House Passes HB 1, Budget for 2012-2013 Biennium

Rep. Price: “Without Raising Taxes, House Passes Balanced State Budget for 2012 -2013″

Tea Party Groups Speak Out On Expanding Gambling

Earlier this week, Texas Insider wrote an article following the first House Licensing Committee hearing this year. The hearing prompted an immediate response from an organized faction of five Tea Party groups who wrote a letter to Lieutenant Governor Dewhurst strongly opposing the expansion of gambling in Texas.

The Tea Party groups wrote in support of cutting wasteful spending, but stressed that using casinos and racinos to generate revenue has failed miserably in other states like Illinois, Colorado, and Maryland where revenues generated from casinos were much less than anticipated and not spent on their intended programs. It is crucial that Texas follows the pattern that history has shown and not legalizing gambling in the state because it will only lead to more serious problems in the future.

Please read the full letter and article at Texas Insider’s website.

Vote for Rainy Day spending likely Thursday night

KVUE News
By Martin Bartlett

Before lawmakers can write a state budget for the 2012 – 2013 budget cycle, they must first agree on how to pay the state’s bills which come due in the current budget cycle between now and August; bills like electricity for schools and salaries for teachers.

There is bi-partisan agreement on using money from the state’s Rainy Day Fund. A vote is likely to come Thursday night. How to spend it, though, is a tougher question to answer.

“I doubt that even Lindsay Lohan would subscribe to this bill-paying method,” said State Rep. Roland Gutierrez, D-San Antonio.

Democrats want to avoid cuts to schools, scholarships, and nursing homes. One approach they offered is using more of the Rainy Day Fund between now and August.

Voters approved creation of the Rainy Day Fund in 1988 to “offset unforeseen shortfalls in revenue.”

View the full article.

50 facts about the House’s proposed state budget

Austin American-Statesman
By Jason Embry

Thursday was a big day in the House, with members voting to approve cuts and rainy-day-fund use to close the $4 billion shortfall in the current budget. You can read all about it here.

I’d venture to say today is even more important. Today, House members will vote on the state budget for the next two years, and based on the state’s revenue situation, they will make sizable cuts across state government. Make no mistake: This is a budget that reduces spending and shrinks government.

View the full article

Would Higher Taxes Save Our Schools?

1080 KRLD
By Phyllis K. Smith

As school districts around the state try desperately to close their budget gaps, a lot is at stake including hundreds of local jobs and higher taxes. But who’s to blame and what can we do to secure the future of quality public education?

In these tough times, higher taxes are a tough sell. Many want the state legislature to clean up its mess. Joe Smith with the school finance watchdog group texasisd.com has been to the front lines and said it looks grim.

View the full article.