Governor Greg Abbott, Lieutenant Governor Dan Patrick and Speaker Joe Straus sent a letter to all state agencies directing them to reduce their budget requests by four percent for the 2018-2019 biennial budget.
Additionally, zero-based budget information will be request from agencies for the 2018-19 state budget. Agencies that desire to exceed the baseline spending level may submit the requests as Exceptional Items. However, the letter also states that agencies with requests for exceptional items should be prepared to suggest a lower-priority program or other cost savings to help offset the increased costs associated with their requests.
Exceptions to the four percent reduction of baseline requests include amounts necessary to:
- maintain funding for the Foundation School Program under current law;
- maintain public safety resources in the border region to help secure Texas;
- satisfy debt service requirements for bond authorizations;
- maintain funding at fiscal year 2017 budgeted levels plus amounts necessary to cover the impact of payroll growth for state pension systems and employee group benefits (not including payroll contributions made by state agencies and institutions of higher education for retirement and group health insurance), though group benefit modifications may be considered;
- maintain funding for Child Protective Services;
- maintain funding for behavioral health services programs; and
- maintain current benefits and eligibility in Medicaid programs, the Children’s Health Insurance Program, the foster care program, the adoption subsidies program and the permanency care assistance program. Baseline requests for these programs should include amounts sufficient for projected caseload growth.
Detailed instructions for the submission of LAR’s are posted on the websites of the Legislative Budget Board (LBB) and the Office of the Governor, including a staggered schedule of submission dates.