Back to Blog
Texas legislative session 20216/26/2023 ![]() “We know that the take up of things like food stamps, SNAP, is way up because of the pandemic and all the job loss associated with it. “It’s important to emphasize that there are a lot of everyday Texans who do need Medicaid or CHIP,” said Anne Dunkelberg, associate director of Every Texan, a progressive public policy think tank. In their revised 5% reduction plan, the Texas Health and Human Services Commission proposed cutting over 700 full-time employees for “eligibility operations.” These workers determine an applicant’s eligibility for services like Medicaid, the Supplemental Nutrition Assistance Program and Children’s Health Insurance Program. While the proposed cuts are not as drastic as ones adopted in 2011, some advocates are concerned. The agencies and programs exempted from these budget cuts make up a majority of the state’s general revenue funding, according to the Legislative Budget Board. Gov. Dan Patrick and outgoing House Speaker Dennis Bonnen to instruct certain state agencies to prepare for 5% reductions in spending for the current budget cycle. So how can Texas fill the budget deficit?Įarly projected revenue shortfalls prompted Gov. Greg Abbott, Lt. 11 before the new legislative session begins. The comptroller is expected to release the latest estimates by Jan. This becomes the budget cap for the next biennium, which lets lawmakers know how much they have to spend if they don't raise taxes or fees. ![]() When will Texans know how much money the Legislature has to work with?Īhead of each legislative session, the comptroller’s office issues a biennial revenue estimate, which provides a careful estimate of the funds likely to be available from taxes and other revenue sources over the next two years. There are some other funds, both dedicated and not, that are not included in the General Revenue, such as the state highway fund, property tax relief fund and the economic stabilization, or “rainy day,” fund. Some grants have very few restrictions on how the state can spend them, while others impose restrictive guidelines or require matching funds from the state, as is the case with Medicaid. This money comes from the federal government in the form of grants, allocations, payments or reimbursements. ![]() The non-dedicated portion of the General Revenue fund is the state’s primary operating fund.Īnother large source of revenue in Texas are federal funds. The fund represents a little more than half of all state spending and consists of both dedicated and non-dedicated funds. The general revenue-related fund is where sales and most other state taxes and fees go. Together these can be classified into three different categories. Texas earns revenue from a wide range of taxes, licenses, fees, interest and investment income, net lottery proceeds, federal aid and other, minor sources. Where does money for the budget come from? In November, he told lawmakers during a Legislative Budget Board meeting there would be more money to work with in the upcoming legislative session than he previously expected, but he did not provide specifics. In July, Texas Comptroller Glenn Hegar announced that the state was on track to end the biennium with a nearly $4.6 billion deficit. Other revenue streams were down more than 40%. In the second half of the 2020 fiscal year, sales tax revenues, by far the largest part of the state budget, fell by 4.8% as compared with the same time last year. Revenue shortfalls due to the recession that accompanied the coronavirus pandemic will only compound the difficulties of balancing the budget. ![]() What’s different about the next budget debate? Increasing the base wage for community attendants who care for the elderly and people with disabilities can have a dramatic impact on the daily lives of many Texans. For example, previous cuts have kept children with disabilities from accessing important therapy through the state’s Early Childhood Intervention program. While the tome-like General Appropriations Act can seem overwhelming and often abstract, the spending and cuts detailed within it can have immediate and highly consequential effects on Texans’ lives. One of the largest tasks Texas lawmakers will tackle during the 2021 legislative session that begins in January is writing the state budget, which outlines state spending for the next two years.
0 Comments
Read More
Leave a Reply. |