BUDGET

In response to the Great Recession, the Legislature chose to make extensive cuts to school funding instead of using the Rainy Day Fund to protect Texas school children, putting the state’s economy and long-term prosperity in jeopardy.

State and local funding for preK-12 education is 11.2 percent below 2008 levels in Texas after adjusting for student growth and inflation, according to a report released by the Center on Budget and Policy Priorities, a non-partisan policy research organization based in Washington, D.C.

On August 22, the first Legislative Budget Board-Governor’s Office public hearing on funding requests for the 2014-15 biennium was held at the Capitol. These hearings will continue through September and are the one opportunity for the public to comment on budget proposals for education, health care, and other critical state services before the regular legislative session starts in January 2013. This paper contains the scheduled hearings for the agencies overseeing key state services for low- and moderate-income Texans, and all of us.

Texas one of six states studied in detail

(AUSTIN, Texas)�"The State Budget Crisis Task Force, a national blue-ribbon group convened by Richard Ravitch and Paul Volcker to study state tax and budget issues, released its recommendations today at a press conference in Washington, D.C.  Texas was one of six states studied in detail. We have closely followed the work of the task force.  Several of its recommendations are important for our state.

On June 4, the Governor’s Budget Office and the Legislative Budget Board issued budget instructions to state government agencies, state courts, and public higher education institutions. For most state services, these instructions define the General Revenue (GR) baseline for the coming 2014-15 biennium at the reduced funding levels established by the 2011 session’s budget cuts. Because these instructions do not allow the baseline to grow enough to cover population growth or cost inflation �" what “current services” proposals would require �" they keep Texas on the wrong path by concealing the true consequences of an ever-growing population. Agencies and universities must also describe how they would cut GR spending by another 10 percent. The Legislature will use the baseline proposals to write the draft budget bill it will consider in 2013.

Executive Director F. Scott McCown on Texans for a Conservative Budget Coalition’s “Real Texas Budget Solutions: 2013 and Beyond.”

During the legislative session, we recommended that the state spend the Rainy Day Fund to prevent damaging cuts to vital state services, particularly public education. The Rainy Day Fund is a constitutional fund designed to save money in good times to pay ongoing expenses during bad times when revenue is short. After the economy improves, and revenue rebounds, general revenue once again pays for ongoing expenses. During the 2011 legislative session, with billions available for appropriation from the Rainy Day Fund, the state had no need to cut spending on public education�"the proven path to good-paying jobs. Unfortunately, the state cut public education spending by $5.3 billion.

The center on the President’s budget released yesterday:

“The center applauds the President’s budget for the significant progress that it would make toward reducing deficits without undermining our economic recovery or balancing the budget on the backs of the poor and middle class."

2011 was a big year, with a fierce battle at the Capitol for Texas children and famillies, numerous honors and awards, the release of our Better Texas Film, and our 25th Anniversary Legacy Luncheon, where we announced we will be expanding to a new space on North Lamar.