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Mr. Good hair continues to jabber jaw away re: his surplus that he was able to maintain and "balance" Texas' budget after draconian cuts to teachers and services.
The real truth is simply due to Texas' meet every two years Legislature system, the grand canyon size hole in the budget just isn't visible to those who only like to look over a hill sitting down.
Even Republican's in the Legislature know this to be true, yet the attempt to ride Mr. Good hair's coat tails...and drag down Texas at the same time. People have always maintained that Texas is insulated to a point from most economic shocks that occur in America. But that is completely about to change.
Just ask a Republican state legislator why $6 billion of taxpayer money sits in the bank as teachers lose their jobs. The likely answer? Because it’s already accounted for.
“We’ve got to get the message right. There’s been a lot of misinformation out there that there’s $6 billion in the fund that’s not been used. It’s been used,” said Rep. Charles Perry, R-Lubbock and no relation to the governor.
But what about the governor’s remarks in New Orleans?
Lawmakers have already drawn down $3.1 billion of the fund’s roughly $9.5 billion reserve to cover a deficit in the current budget. Then, to make the 2012-2013 budget balance, the state’s projected share of expected Medicaid costs is underfunded by $4.8 billion — for many, a conservative estimate.
That means when lawmakers come back in two years — and without a change in federal law diminishing the state’s obligation to Medicaid or an increase in Rainy Day revenue from an improved economy — they will need most of the remaining $6 billion to pay another past due bill.
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“Effectively they’ve used it,” said Bill Hammond, president of the Texas Association of Business and a former state lawmaker. “They just aren’t going to fess up until January of 2013.”
“They have used the entirety, depending on how Medicaid finally shakes out,” Hammond said, adding that, of the $9.5 billion, about $9 billion has been committed.
Ceteris Peribus...all things remaining the same as they are today, and even with the $4.8 billion as a best case scenario...Texas will be flat broke in 2013. One can only hope that economic conditions improve dramatically in the next two years.
Well maybe folks relocating should not consider Texas then since we are in such dire straits.
I dunno..maybe California is better off financially ?
FYI..glad to see the article mentioning medicaid funding because many folks think we should just use ALL the rainy day fund today and give it to education.
They don't think there's other mandated funding we have to account for. Medicaid funding takes precedence over education funding and that's a sad fact.
What is wrong with saving money for a bill that is due soon?
Many could learn what responsibility is, from this little exercise in spending restraint.
Because America is not run that way. Spend now, worry about paying later is the mantra that resonates through this land.
We pay our bills and cut when the revenue isn't there and take a bit out of savings when we need to.
In another time this would have been lauded as sound financial politics.
But today..we should have spent the whole wad of money in one fell swoop and don't worry about tomorrow's bills.
What is wrong with saving money for a bill that is due soon?
Many could learn what responsibility is, from this little exercise in spending restraint.
I am not so sure about responsibility and spending restraint but hypocrisy yes.
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Texas Gov. Rick Perry likes to tell Washington to stop meddling in state affairs. He vocally opposed the Obama administration's 2009 stimulus program to spur the economy and assist cash-strapped states.
Perry also likes to trumpet that his state balanced its budget in 2009, while keeping billions in its rainy day fund.
But he couldn't have done that without a lot of help from ... guess where? Washington.
Turns out Texas was the state that depended the most on those very stimulus funds to plug nearly 97% of its shortfall for fiscal 2010, according to the National Conference of State Legislatures. Texas balanced budget with stimulus money from Washington - Jan. 23, 2011
He is not even a good fake, rail against the stimulus then take the money and claim I have a surplus and then run for President. How and why do people fall for leaders like Perry?
I am not so sure about responsibility and spending restraint but hypocrisy yes.
He is not even a good fake, rail against the stimulus then take the money and claim I have a surplus and then run for President. How and why do people fall for leaders like Perry?
Texas took that stimulus money just like all the other states but we didn't spend all of it.
That's when we got in trouble...we didn't spend all of it right there, right then on "creating new jobs" that would only last one year.
But there were 2 stimulus funds we did not accept..Race to the Top and UE for part time workers because they had strings attached that would have required the state to bow to new unfunded Federal mandates.
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