After taking into account all actions from the 84th Session, $4.3 billion remains but mostly in dedicated accounts Ursula Parks with the Legislative Budget Board (LBB) told House Ways and Means on Sept. 26. For comparison, last session the legislature started with a beginning balance of $7.5 billion. During the hearing it was noted that the Biennial Revenue Estimate (BRE) from the Comptroller is expected out sometime around or just before the start of the 85th Session and it will provide more details to the Legislature on the revenue it can expect to receive during the next two-year budget period.
In light of planning for the 85th Session budget bill, the LBB and the Governor’s Office of Budget, Planning and Policy are holding hearings with each agency concerning their Legislative Appropriations Request (LAR). These LARs form the basis for the appropriations bill prepared by the LBB and submitted to the Legislature. HillCo Partners has covered several of those proceedings and those hearing reports are published when available on the HillCo Partners website and can be accessed by clients.
Spotlight on TEA and HHSC
Joe Wisnoski, the former TEA Associate Commissioner for state finance who is now with Moak, Casey and Associates pointed out during a committee hearing that even though the FSP was exempt from the 4% reduction, current law funding has caused a $2.2 billion decrease, a total 4.9% decrease in funding. Wisnoski recommended to the members of the Governor’s Office and Legislative Budget Board during the Joint Budget Hearing of the TEA to reinvest savings to the state from the operation of the current law formulas due to strong property value growth.
A joint hearing was held between the Governor’s Budget Office and the Legislative Budget Board to review the Legislative Appropriation Request from the Texas Health and Human Services Commission. HHSC Executive Commissioner Charles Smith explained the proposed budget which included a base request of $75.6 billion for the ’18-19 biennium. The request also included an additional $6 billion in exceptional item requests the agency made their case for. According to Smith, the base request includes Medicaid caseload growth but cost growth was included as a $3.3 billion exceptional item. Smith also explained that the agency would be requesting a supplemental appropriation of close to $1.3 billion, although this number will be adjusted as the legislative session approaches.
