Wednesday, March 16, 2011

Update on Budget Cuts

Announced Tuesday, March 15th

Perry agreed to use the Rainy Day Fund to address the 2011 deficit and at the same time vowed not to use it to address th massive revenue shortfall that remains to tackle the 2012-2013 budget.  "We have worked closely with state leaders and lawmakers to balance the current budget, which includes using a one-time amount from the Economic Stabilization Fund to help our budget deal with the impact of the national recession," Perry said.  "I remain steadfastly committed to protecting the remaining balance of the Rainy Day Fund and will not sign a 2012-2013 state budget that uses the Rainy Day Fund."

Texas is facing a revenue shortfall that could reach up to $27 billion over the next two-year budget.  The next budget most likely will see severe cuts in all areas of state government, public education, and low-income and elderly health care programs.

"Today Republican leaders locked in a plan to force up local taxes, makes college more expensive, crowd more kids into classrooms, fire teachers, close nursing homes, and cut basic health services for children and the disabled," said Rep. Mike Villarreal, a Democrat from San Antonio, who is on the House Appropriations Committee.   "Texans have already paid taxes into the Rainy Day Fund, but the governor would rather sit on the people's money than use it to save our schools."

"It is the duty of those elected to government to govern - and it is the duty of those who elected then to hold them accountable.  Now more than ever, Texans must demand that their Legislature craft a responsible, conservative state budget with no further use of the Rainy Day Fund," said Talmadge Heflin, director of the conservative Texas Public Policy Foundation's Center for Fiscal Policy.

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