Lawmakers are busy during this interim looking at other possible revenue sources for the next session including eliminating certain tax exemptions, unpaid worker furloughs, a moratorium on new programs and a four-day workweek. There options were all discussed at the Appropriations Committee hearing Tuesday morning. Also mentioned during the hearing were “revenue enhancements,” such as expanded gambling. Both House and Senate leadership have also weighed in on the task before members during the next session.
Straus
As published in the HillCo Client News Flash, Texas House Speaker Joe Straus told legislators Tuesday it’s imperative they close a budget gap without passing new taxes. Straus pointed to the combination of declining revenues and a growing population that will make developing a balanced state budget difficult. “Over the next few years, Texans will face higher federal income taxes and other increases in federal levies,” Straus said. Without endorsing a particular option, Straus suggested the Committee consider ideas such as unpaid state employee furloughs, a moratorium on new programs and a halt to issuing bonds due to the cost of debt. He further cautioned more agency cuts may be forthcoming, “We are going to have to make significant cuts, and the 5 percent that we requested was just the beginning. It was absolutely necessary, but not nearly sufficient.”
“Every cost savings idea must be on the table,” said Straus
Dewhurst
At a morning breakfast forum on Wednesday, held by the Texas Tribune, Lt. Gov. David Dewhurst concurred with the assessment by House Appropriations Chairman Jim Pitts that the state budget shortfall could reach up to $18 billion. Dewhurst also pointed out he spent his first session in the office facing a $10 billion budget shortfall in 2003. “This is not my first rodeo,” Dewhurst said. “I went through it in 2003 and it was a lot tougher in 2003 than it’s going to be in 2011.” He argues it was tougher in 2003 because there was no reserve and the estimated shortfall doubled as they were going into session from $5 billion to $10 billion.
Dewhurst said with more money in the rainy day fund, axing one-time items that were funded in 2009, payments from the state’s Available School Fund that were not available last year and improvement in the economy would help balance the budget. Another expected savings to the budget is the 5% reduction cuts. Dewhurst cautioned that not all agencies were cut by 5%, in some cases waivers were offered to ensure essential programs were not cut. When an inquiry was made if there would be additional cuts made from agencies, Dewhurst replied, “I am not going to take anything off the table.”