1. Budget Update: Where We Stand Eva DeLuna Castro Senior Budget Analyst Center for Public Policy Priorities May 13, 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, Budget Approved by the House Requested GR Proposed GR, HB 1 General Revenue Shortfall HHS$ 31.0 b$ 22.0 b- $9.0 b-29% Education 56.4 b 43.6 b - 12.8 b-23% Criminal Justice 9.2 b 7.8 b - 1.4 b-15% The rest 6.2 b 4.2 b - 2.0 b-32% TOTAL$102.8 billion$ 77.6 billion- $ 25.2 billion-25%

7. GR Shortfall, Senate Budget Requested GR Proposed GR, HB 1 General Revenue Shortfall HHS$ 31.0 b$ 22.3 b- $8.7 b-28% Education 56.4 b 49.1 b - 7.3 b-13% Criminal Justice 9.2 b 8.4 b - 0.8 b- 9% The rest 6.2 b 4.4 b - 1.8 b-3% TOTAL$102.8 billion$ 83.8 billion*- $ 19 billion-18% *Includes $2 b Foundation School Program delayed payment

9. “Worst Case” Children’s Budget

10. Inflation-Adjusted Spending Per Student

11. Doctors Taking Medicaid Patients, 2010

12. Dallas County Impacts (biennial) School Finance Changes: SB 22: $384 million reduction vs. current law. Enough to fund 4,700 ISD jobs, with private-sector impact of 6,600 jobs. House plan is twice as bad, plus $45 million lost in preK-12 grants. Health & Human Services: Senate reduces funding by $773 million, 12% less than is being spent in 2010-11. Current services requires $1.8 billion more (of which $1.1 billion is federal funds)

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 School Aid Deferral (not in HB 1) $2 billion Federal stimulus for education $0.8 billion HB 3640: Tax Speed-Ups $1 billion Use Rest of Rainy Day Fund $6.3 billion TOTAL $10 billion (HB 1 already assumes $100 million+ in fee increases, plus 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: http://www.facebook.com/#!/bettertexas http://www.facebook.com/#!/bettertexas YouTube: http://www.youtube.com/user/CPPPvideo http://www.youtube.com/user/CPPPvideo Twitter: CPPP_TX