Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Joe Straus had asked state agencies at the beginning of the year to identify savings and submit a prioritized plan to identify an additional 5 percent savings from general revenue for the 2010-2011 biennium. Most of the proposals cut into operating costs and internal expenses. However, some also proposed implementing hiring freezes and/or eliminating capital projects.
According to the Legislative Budget Board (LBB) the total amount of proposed reductions would have saved $1.7 billion. However, with the exemptions, LBB shows the savings total of $1.2 billion.
Among cuts approved by the leaders is a reduction in reimbursement rates for doctors and other health care providers who treat Medicaid patients. This decision has drawn criticism since a reduction in the reimbursement rates and human service programs could discourage providers from taking new Medicaid patients and cost Texas federal matching funds.
Link for LBB Target Adjustments: http://www.lbb.state.tx.us/External_Links/Expenditure_Reductions/Reductions_With_Adjustments_Targets_0510.pdf
Link for Detailed LBB Target Adjustments: http://www.lbb.state.tx.us/External_Links/Expenditure_Reductions/Approved_Exemptions_0510.pdf
Links for Original Submissions from Agencies: http://www.lbb.state.tx.us/External_Links/Expenditure_Reductions/Agency_Reduction_Listing_0210.htm