1. Budget Update: Where We Stand Eva DeLuna Castro Senior Budget Analyst Center for Public Policy Priorities June 1, 2011

2. What’s the solution when ideology doesn’t match reality?

3. Budget instructions to state agencies (May 2010) Agency requests go to LBB & Governor’s Office (August) Public hearings before LBB/Gov. (Sept./Oct. 2010) Governor’s Budget Proposal LBB Budget Proposal Comptroller’s Revenue Estimate Before the 82 nd Session Started… With a few exceptions: 2012- 13 “base” = amount of GR and GR-Dedicated Funds that agency spends in 2010-11, minus 5% Four-fifths vote to override

4. Committees named Senate Finance (budget and taxes) Public hearings (6 subcommittees) Mark-up House Appropriations (budget bills) Public hearings (5 subcommittees) Mark-up Committee version to full Senate (up or down vote, Article XI) Committee version to full House (floor amendments, Article XI) Conference committee on budget Legislative Process (82 nd ) Ways & Means: taxes

5. Conference committee report to House and Senate SenateHouse To Comptroller for certification To Governor for vetoes To state agencies (operating budgets) Final Legislative/Executive Process Two-thirds vote to override (if still in session)

6. General Revenue Shortfall, Conference Committee Budget Requested GRGR in HB 1 and HB 4 General Revenue Shortfall HHS$ 31.0 b$ 22.4 b- $8.6 b-28% Education 56.4 b 48.1 b - 8.3 b-15% Criminal Justice 9.2 b 8.2 b - 1.0 b-11% The rest 6.2 b 4.0 b - 2.2 b-35% TOTAL$102.8 billion$ 82.7 billion- $ 20.1 billion-20%

8. “Worst Case” Children’s Budget

9. Inflation-Adjusted Spending Per Student

10. Tarrant County Impacts (biennial) Proposed School Finance Changes: $172 million reduction vs. current law. Enough to fund 2,400 ISD jobs, with private-sector impact of 3,400 jobs. Additional losses because of various grants eliminated or cut (preK, teacher incentive pay, etc.) Health & Human Services: Appropriations level is $840 million, or 17%, less than is being spent in 2010-11 (about $4.8 billion total). Current services requires $1.8 billion more, of which $1.0 billion is federal funds

11. Net State M&O Revenue Change, 2012 and 2013 (million $) % Reduction in 2012 % Reduction in 2013 Arlington ISD-$18.6-3.1%-1.5% Azle ISD-4.4-3.5-7.9 Birdville ISD-7.2-3.1-1.5 Carroll ISD-7.0-4.1-8.8 Castleberry ISD-1.3-3.3-1.5 Crowley ISD-6.7-3.4 Eagle Mt-Saginaw ISD-17.8-4.2-8.4 Everman ISD-1.5-2.9-1.4 Fort Worth ISD-25.5-3.0-1.8 Grapevine-Colleyville ISD-11.4-3.7-8.6 Hurst-Euless-Bedford ISD-19.2-3.6-8.6 Keller ISD-24.1-4.1-6.6 Kennedale ISD-1.2-3.6-1.6 Lake Worth ISD-2.5-3.5-6.9 Mansfield ISD-20.0-3.5-5.6 White Settlement ISD-3.3-3.5-4.6 Source: SB 1811 Legislative Budget Board District “Runs”, May 27, 2011.

12. Doctors Taking Medicaid Patients, 2010

13. Texas Needs A Balanced Approach to Balancing the Budget

14. Use the Rainy Day Fund Utilize All Federal Funds Available to Us Find New Sources of Revenue How Can Texas Close the Revenue Gap?

15. Alternatives to Cuts HB 3640: Tax Speed-Ups $1 billion Use Rest of Rainy Day Fund $6.5 billion TOTAL $7.5 billion (HB 1 already assumes $800 million increase in school property taxes, $100 million+ in fee increases, and tuition hikes)

16. Longer-Term Solutions Apply Sales Tax to Services $5 billion Repeal high-cost natural gas tax break $2 billion “Healthy Texas” taxes $3.5 billion Hospital quality assurance fee $350 million TOTAL $11 billion

17. www.txforward.org

19. Let’s examine our priorities

20. Let’s make sure Texas’ story is NOT about shortchanging our kids.

22. CPPP Resources Research: www.cppp.orgwww.cppp.org Online data: www.stateoftexaschildren.orgwww.stateoftexaschildren.org Mobile data: www.tkcmobile.orgwww.tkcmobile.org Facebook: www.facebook.com/#!/bettertexaswww.facebook.com/#!/bettertexas YouTube: www.youtube.com/user/CPPPvideowww.youtube.com/user/CPPPvideo Twitter: CPPP_TX