Budget Hole?

Texas' 2010/2013 budget is at a short fall and there are some money hole's that need to be filled in order to help Texas out. The budget hole ranges from $11 billion to $15 billion.


So where will Texas get the money for the budget? Of course, budget cuts. These cuts include prison guard layoffs, reduced payments to doctors and Medicaid providers. Budget watchers say it is unlikely that legislators will be able to cut their way out of the hole when they return to Austin in January.


Budget cuts won't be the sole solution," said Dale Craymer, president of the business-backed Texas Taxpayers and Research Association. Would budget cuts be enough considering the massive amount needed to fill the budget hole? It would be highly doubtful. So what else is in mind for the legislators?


We see that state Rep. Rene Oliveira, chairman of the House Ways and Means Committee is looking for new money and has begun hearings on the issue. "I'm not going to waste time on tax increases … if the votes aren't there and the governor is going to veto them," Oliveira said. It seems the only way to recover from a budget debt would be raising taxes and not just making layoffs and cutting payments to only doctors and Medicaid providers. Although lawmakers and Gov. Rick Perry signed an Americans for Tax Reform pledge that binds them to oppose ‘any’ and ‘all’ tax increases.


So, will we see the budget recover from its hole without hurting our pockets? Most likely no, but let’s hope something is in the works so Texas doesn’t get into budget trouble again.