Posted on 08/01/2010 9:37:44 AM PDT by dragnet2
It’s come to this: The Texas budget outlook has become so bleak that we’re comparing rather favorably to the one state where balanced budgeting goes to die.
People, our budget deficit is now as bad as California’s.
That fact may not sit well with some people—especially in the governor’s office, which loves to bash California and never misses an opportunity to point out how Texas’ low-tax, business-friendly model has led to a more robust economy and sound state finances.
When California faced a $60 billion deficit last year—a shortfall that was bigger than the entire budget of most states—you could almost hear the chortling from the Texas governor’s office. It seemed a handy example of what happens when you put big-spending liberals in charge.
It wasn’t that simple, though. The causes of California’s problems—and Texas’ lack thereof—were varied and complex. And now the states’ budget deficits are looking very similar.
Texas: $18 billion shortfall (estimated) or about 20 percent of state spending.
California: $19.1 billion shortfall (official estimate) or about 20 percent of state spending.
The numbers match up pretty neatly.
You can read a breakdown of California’s proposed budget for next year here.
The days when Texas leaders could mock California—or at least its budget mess—appear to be over.
(Excerpt) Read more at texasobserver.org ...
Er....((affected))
Texas doesn’t have the financial problems that California does. Ya heard it here first!
AUSTIN – Gov. Rick Perry says that where some see an $18 billion budget gap ahead for Texas, he sees a figure plucked from the sky.
"I think it's a number that somebody just reached up in the air and grabbed," Perry said in a TV interview that aired late Thursday.
On Friday, Rep. Jim Pitts, the House's top budget writer, stood by his $18 billion shortfall estimate, which he explained in detail last month while warning colleagues about painful choices they will face next session.
"The testimony of the Legislative Budget Board before the full committee reflected the $18 billion number," said Pitts, R-Waxahachie, head of the Appropriations Committee. He referred to testimony to his panel on May 11 by assistant budget board director Wayne Pulver.
Under questioning by Pitts, Pulver said that last year, lawmakers plugged budget holes with about $12 billion of federal stimulus money and state money left unspent in 2007.
Add $2.5 billion to cover inflation and population growth in the next two years, and a revenue shortage of about $3.5 billion in the current two-year cycle, and $18 billion "is a reasonable number" to forecast for the deficit, Pulver said.
In an interview with Austin's KVUE-TV, though, Perry seemed to scoff at the number – billions more than the largest figure any state GOP leader has used.
"Fill that budget gap, if there is one – which we suspect there will be – with the appropriate reductions in spending, without raising taxes," said Perry, who is seeking a third four-year term in the Nov. 2 election.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Perry: "Fill the budget gap, if there is one" ????
Perry: "Which we suspect there will be"
Huh?
Fill it with reductions in spending? Duh!
That means big cuts in jobs, education, schools, health, services, etc.
http://www.dallasnews.com/sharedcontent/dws/news/politics/state/stories/DN-perrybudget_05tex.ART.State.Edition1.2a0df29.html
Yep. Our Republican Lt. Governor Dewhurst agrees with House Appropriations Chairman Jim Pitts, R-Waxahachie that the state budget shortfall could reach up to $18 billion. (That was in the link that I posted at #99.)
When Gov. Perry says “if” that’s appropriate because we have biennial budgets in Texas. We won’t know how much the shortfall will actually be until the current budget expires in August 2011. It’s estimated to be $18 billion. Perry and Dewhurst have already implemented spending cuts for this fiscal year. Those cuts will reduce that $18 billion shortfall by about $2 billion.
No, it doesn’t necessarily mean big cuts in jobs, education, schools, health, services, etc. Remember we have $10.5 billion in the rainy-day fund that can be applied to the remaining $16 billion shortfall. That would reduce the deficit to $5.5 billion right off the bat.
That $5.5 billion could be addressed in numerous ways. They’ve talked about more tax holidays to generate more revenue and allowing casinos/gambling which will also generate significant revenue. Additional spending cuts are a given. Nobody’s arguing that, but again - we’re nowhere near being bankrupt or needing a federal bailout.
"I think it's a number that somebody just reached up in the air and grabbed," Perry said in a TV interview that aired late Thursday.
On Friday, Rep. Jim Pitts, the House's top budget writer, stood by his $18 billion shortfall estimate, which he explained in detail last month while warning colleagues about painful choices they will face next session.
I ain’t gonna defend it.
What's scary is how many states and cities have seemed to spend themselves or mismanaged themselves into near economic disaster.
Then throw in government unions....Gezzzz
I know. They ran outta OPM!
The liberals and RINOs need to wake up. Smaller government, less spending, and private business are the keys to prosperity. Always have been - always will be.
Speaking of unions ... my dad was in the pipefitters’ union for 35 years. He retired at age 55 four years ago and figured he was all set. Now he’s worried about losing his (underfunded) pension. He could go back to work and have it made because of his seniority, but rather than line the pockets of the union thugs, he’s started a small business.
November just can’t get here soon enough ...
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