Today, Governor Rick Perry gave his State of the State address to the 82nd Legislature. He summed up Texas’ accomplishments while also offering several proposals on government efficiency.
“The state of the state is still strong,” Gov. Perry said. He noted several accomplishments of Texas, such as consecutive increases in sales taxes and job gains, stating the “core elements of our economy are strong, and Texas is still the envy of our nation.”
Perry did acknowledge that Texas is facing some tough choices, which he said can be overcome by “setting priorities, cutting bureaucracy, reducing spending and focusing on what really matters to Texas families.” He clarified two points on the budget: 1) the budget should be balanced without raising taxes and 2) the Rainy Day Fund must be protected as emptying the fund could leave us “ill-equipped to handle bigger emergencies in the future.”
Other highlights of his speech included:
Mandates – Local and Federal
Local
Gov. Perry addressed concerns of local unfunded mandates when he said, “While we’re at it, let’s be sure we’re not burdening local authorities with unfunded mandates, because they’re facing their own budget challenges.”
Federal Government
Education – Gov.Perry asked lawmakers to inquire when speaking to the U.S. Congress, “How can I help Texas by ending federal mandates or easing the growth of Medicaid costs?” Gov. Perry then said, “ask them about their progress on repealing the Doggett amendment that is taking more than $830 million from Texas schoolchildren and teachers right now.”
EPA – The Governor pointed out in his speech that Texas has “created a predictable regulatory environment,” highlighting Texas’ flexible permitting program by noting that “between 2000 and 2009, this program helped Texas achieve a 27% reduction of statewide ozone levels, more than any other state. NOx has fallen by 53-percent and almost every metropolitan area is meeting the current air standard.” He further urged legislators to enlist U.S. Congress member’s support “in our ongoing battle with an activist EPA.”
Health Care Reform – Gov. Perry briefly outlined in his speech the need for solutions from the federal government such as block grants. In the Governor’s Budget, Perry said in his opening letter, “our state budget challenges are being exacerbated by the federal health care mandates passed by the 111th Congress and implemented by the Obama Administration. The changes to Medicaid – including the increased costs to states and federally mandated caseloads in the Medicaid program, a decrease in the federal government’s cost share for the program, and restrictions on changing the structure of the program – threatens the financial health of our state and will force the state to consider cuts to key priorities important to Texans. Texas must have flexibility to administer Medicaid, and other programs, to serve those with the highest needs while continuing to fund budget priorities, such as public education and public safety. I am committed to resisting federal encroachment and will continue to urge Washington to allow our state to exercise creativity and flexibility in designing our Medicaid program and managing Medicaid dollars. This flexibility is not only vital to balancing our budget this session, but to also ensuring the state’s long-term financial health.”
Government Efficiency
Gov. Perry proposes suspending certain non-critical agencies for two years (reconsidering next biennium or possibly abolishing altogether) and consolidating the functions of at least 21 agencies, putting them into the responsibility of 11 agencies.
- Suspend Texas Historical Commission
- Suspend Commission on the Arts
- Suspend Board of Professional Geoscientists
- Suspend Board of Professional Land Surveying
- Consolidate the Texas Facilities Commission
- Consolidate the Department of Assistive & Rehabilitative Services
- Consolidate Public Safety Licensing Agencies
- Consolidate the Texas Department of Housing & Community Affairs
- Consolidate the Texas Department of Rural Affairs
- Consolidate Health Regulatory Agencies
- Consolidate the Office of Public Utility Counsel
- Consolidate Certain Regulatory Agencies into the Texas Department of Licensing & Regulation
Other Points
The Governor also highlighted judiciary and border issues, and urged Lawmakers to move quickly on the emergency items he has submitted: voter ID, eminent domain, the sonogram bill and abolishing sanctuary city policies.
In higher education funding, Gov. Perry proposed a four-year tuition freeze, locking in tuition rates at or below the freshman level for four years and challenging Texas institutions of higher education to develop bachelor’s degrees that cost no more than $10,000, including textbooks.
Governor’s Budget
The Governor also released his proposal for state spending today, which he highlighted during his State of the State speech. The governor traditionally submits a budget to the Legislature every year, but the legislature does not have to enact any of it. The governor’s main budgetary authority comes from his veto ability, including a “line-item” veto.
The consolidation and elimination of the agencies listed above would save the save over $55 million. Additionally, Gov. Perry offered the following proposals for additional savings and sources of revenue (more detail on the proposals can be found in the Governor’s Budget 2012-13):
- Institute a 10% Surcharge for Spouses of State Employees Eligible for Health Insurance Elsewhere (saving $11 million)
- University of Texas Medical Branch Correctional Managed Care Savings (saving $30 million)
- Sale of the Sugar Land Central Unit Prison (generating $30 million in additional revenue)
- State Outstanding Debt Collections (generating $141.1 million in additional revenue)
- General Land Office Land Sales (generating $200 million in additional revenue)
The Governor also has proposals for the following priorities and initiatives:
|
Governor’s Priorities & Initiatives |
|
|
Governor’s Priorities & Initiatives** |
Amount |
|
Emerging Technology Fund |
$15,000,000 |
|
Film & Video Game Incentive Program |
$20,000,000 |
|
Regional Planning & Criminal Justice Assistance Grants |
$10,200,000 |
|
Economic Development & Tourism |
$11,300,000 |
|
Statewide Inspector General |
$35,700,000 |
|
Sex Offender Monitoring |
$500,000 |
|
Disaster Contingency Fund |
$25,000,000 |
|
Expanded Virtual School Network |
$5,000,000 |
|
Debt Service for the Issuance of Cancer Bonds |
$14,500,000 |
|
Provide T-STEM Related Scholarships |
$50,000,000 |
|
Increase Number of T-STEM Academies |
$32,000,000 |
|
Governor’s Priorities & Initiatives Total |
$219,200,000 |
|
Tax Reductions & Incentives |
Amount |
|
Small Business Tax Exemption |
$150,000,000 |
|
Tax Credit to Employers Assisting Dropouts Earning a High School Diploma or Equivalent |
$5,000,000 |
|
Tax Reductions & Incentives Total |
$155,000,000 |
|
Total: Governor’s Priorities, Initiatives, Tax Reductions, & Tax Incentives |
$374,200,000 |
|
**Amounts shown represent the request above amounts within HB 1 as introduced. In addition, the Governor’s Base Budget requests the same Unexpended Balance and Transfer authority that is currently granted to the Legislature. |
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To view the Governor’s Office budget, please visit, http://governor.state.tx.us/files/press-office/Governor-Budget-2012-13.pdf
To view the governor’s full remarks, please visit http://governor.state.tx.us/news/speech/15673/
To view biographies for Gov. Perry’s guests for the speech, please visit http://governor.state.tx.us/sots/faces