Issue Position: Oversee State Budget

Issue Position

The 82nd Legislative Session began with the state facing a $27 billion shortfall stemming from 3 main sources.

The large drop in sales tax collections caused by the downturn in the economy. (The state sales tax accounts for more than half of all General Revenue tax collections.)
The loss of the $13 billion of one-time federal stimulus dollars, approximately $8 billion of which the Comptroller reports went to recurring expenses.

The so-called structural deficit that resulted from the 2006 school property tax compression that reduced local school property tax rates leaving a $14 billion hole to be filled with state revenue. Part of the hole was plugged with surplus funds as well as additional monies brought in via a revised franchise tax (the margin tax) that has consistently underperformed by about $4 billion a year.

HB 1, the General Appropriations Act, cut $15 billion from current services. When you have a budget where roughly 42% goes to public education, 28% to health and human services, and 15% to higher education large cuts in spending inevitably hit these areas hardest.

Far too often conversations about the budget focus solely on whether we need to spend more or less. It's time for a broader discussion about how to spend responsibly which will allow Texas residents to voice their opinions on what services they want government to provide and how they want to pay for them.

Spending decisions must also include a review of ALL the options available for balancing the budget -- cuts, new revenue sources, Rainy Day funds, etc… -- in order to help identify and fund priorities. Yet the state's leadership prevented any meaningful dialogue; dictating that cuts were the only solution on the table.

In short, we need a budgeting process that is open, transparent, and ensures the money we appropriate goes to its intended purpose, and a budget that reflects our economy and reflects the state's current financial status without sacrificing investments necessary for long term economic prosperity.

Source