Alarm Building over Budget Cut Threats

Continued claims by our Governor and other key leaders that Texas is doing great financially, cause some of us to scratch our heads, wondering why then are we facing massive cuts?! Throughout 2010, the Governor, Lt. Governor, and House Speaker have asked state agencies to cut spending; 5% in 2010-11, and recently an additional 2.5% for 20100.  For 2012-13, agencies were all asked to identify cuts of an additional 10%, for consideration in the budget process this session.

A recent Policy Page by the Center for Public Policy Priorities describes a sampling of the cuts proposed for the 2012-13 budget; cuts which would impact not only those most vulnerable among us, but average Texans across the spectrum. Here are some notable examples:

• Prevention and Early Intervention (PEI), which provides delinquency prevention, helping youth in crisis, and abuse and neglect prevention services under the Department of Family and Protective Services, will be all but eliminated. Such cuts threaten the safety of thousands of Texas children. (See TNOYS fact sheets discussing these cuts and some of the programs impacted. If you want to help oppose these cuts, consider joining TNOYS or contributing to our efforts!)
• More crowded classrooms in the public schools, weakening the learning environment, reducing achievement, undermining college readiness, and prompting more kids, particularly disadvantaged youngsters in need of individual attention, to give up on school and drop out. More dropouts ultimately will cost every taxpayer more in criminal justice costs and lower Texas’ attractiveness to employers with high-paying jobs.
• Additional university tuition increases too high for many middle- and low-income families to afford. Promising young people will drop out of college, never enroll or take on a mountain of debt to fulfill their dreams. Student financial aid, meanwhile, will be reduced, compounding the problem.
• There are approximately 150,000 disabled and senior Texans on Medicaid home and community services who want to live as independently as possible and age in place. Reductions in Medicaid home and community services will result in many people going into more costly nursing home or other institutional services.
• Thousands of working families will lose access to affordable health insurance for their children because of likely cuts to the Children’s Health Insurance Program, or CHIP.  Many of these kids will end up in public hospital emergency rooms, where treatment is more expensive, and local taxpayers will have to pick up the tab.

As damaging and harmful as they would be, these proposed cuts could be only the first wave of a powerful storm that threatens our prosperity once an actual budget is filed by this Legislature.  For one thing, the 10% agency cuts proposed for the biennial budget would result in savings of somewhere around $4 billion; a fraction of the funds needed to make up for the anticipated deficit!

The Comptroller’s 2012-2013 biennial revenues estimate this week was the first of a series of actions to play out this Legislative Session, which will ultimately illuminate just how serious our condition really is. The revenue projection of about $72 billion is only about $8 billion less than last session.  However, after factoring in factors like population growth, increased costs, and federal stimulus funds not available this session, policy analysts are still saying the budget gap could be as high as $27 billion. 

TNOYS is part of a new coalition – Texas Forward – whose growing list of members represent educators, health and human service nonprofits, and others dedicated to better lives for all Texans.  The coalition believes that our budget crisis cannot be solved with cuts alone, advocating that the Rainy Day Fund should be spent, federal dollars maximized, and that legislators should explore new revenue streams that treat all individuals and businesses equitably.  Download the new brochure and share it; it’s an excellent educational tool about our state’s budget and needs.

Texas Forward promotes an equitable, balanced approach to budget-setting that will spur economic recovery while also keeping pace with the state’s needs. The health, safety and, in some cases, even the lives of millions of Texans are at stake.  Click here for more information, or to become part of this important effort.