House Appropriations met on February 9th to discuss the state economy and the House budget recommendations.

John Heleman, the Chief Revenue Estimator in the Comptroller’s office, gave testimony similar to the testimony he had given previously to the Senate Finance Committee. Heleman noted the economic outlook is still challenging in Texas. He went over key sectors of the economy in Texas which include a review of sales tax receipts, noting that sales tax in the retail sector was up. However, he cautioned this increase is off an extremely low base, compared to the recession. He said the state is collecting sales tax at a rate that is somewhat less than was collected in fiscal 2008. Heleman noted that much of the decline of franchise tax was due to the recession. The tax is making a slow recovery and is projected to be $4.3 billion in 2012-13. He also reiterated that the Rainy Day Fund will end in fiscal year 2013 with $9.4 billion (assuming no appropriations are made out of the fund.)

The Legislative Budget Board (LBB) spent approximately 15 months working on the funding recommendations. In their analysis, LBB reviewed and attempted to reduce cuts that may bubble up and impact the state government. It is also anticipated some reductions will have a negative impact on local government. The LBB will provide an analysis to members of the committee that will give a clear understanding of what the impact will be on local government.   

Chairman Jim Pitts (R- Waxahachie) began the hearing by reviewing the subcommittees and agenda for the next few weeks. He instructed the subcommittee to assume no additional revenue and to look at the core mission of each agency as part of the subcommittee deliberations.

There will be 4 budget subcommittees that cover the following articles:

  1. Article II – Health and Human Services
  2. Article III – Education
  3. Article I – General Government, IV – Judiciary,  V – Criminal Justice
  4. Article VI – Natural Resources, VII – Business and Economic Development, VIII Regulatory

It is anticipated members on the subcommittees will be announced by end of this week and will begin public hearings this Monday, February 14th.  The full Committee of House Appropriations expects to meet on February 21st to go over subcommittee recommendations.  As the agencies present before the committee, their presentations will be posted at HAC_LBB_Agency_Presentations.

House Appropriations will meet at 7a.m., this morning, Thursday, February 10th to go over Medicaid program, Foundation School Program, and the Prison system which should provide of broad overview which will include a discussion of population growth.    

The following meeting schedule for the subcommittees has been posted:

Article III – 7:00 AM, Monday, February 14 in JHR 140

  • Texas Education Agency
  • School for the Blind and Visually Impaired
  • School for the Deaf
  • Special Provisions For the School for the Blind and Visually Impaired and the School for the Deaf
  • Teacher Retirement System
  • Optional Retirement Program

Article II – 7:00 AM, Monday, February 14 in E1.030

  • Department of Assistive and Rehabilitative Services
  • Special Provisions Relating to All Health and Human Services Agencies
  • Health and Human Services Enterprise

Articles I, IV,& V – 7:00 AM, Monday, February 14 in E2.030

  • Texas Ethics Commission
  • Facilities Commission
  • Veterans Commission
  • Library and Archives Commission
  • Commission on State Emergency Communications
  • Comptroller of Public Accounts
  • Fiscal Programs – Comptroller of Public Accounts
  • Fire Fighters’ Pension Commissioner
  • Pension Review Board
  • Historical Commission
  • Bond Review Board
  • Preservation Board
  • Public Finance Authority
  • State Office of Risk Management
  • Workers Compensation Payments
  • Commission on the Arts
  • Cancer Prevention and Research Institute of Texas

Articles VI, VII, & VIII – 7:00 AM, Monday, February 14 in JHR 120

  • Department Housing and Community Affairs
  • Texas Lottery Commission
  • Department of Transportation
  • Department of Motor Vehicles
  • Texas Department of Rural Affairs
  • Texas Workforce Commission
  • Reimbursements to the Unemployment Compensation Benefit Account
  • Special Provisions Relating to Business & Economic Development
  • Commission on Environmental Quality
  • Soil and Water Conservation Board
  • Water Development Board
  • Debt Service Payments – Non-Self Supporting G.O. Water Bonds