by ED STERLING
After passage of the American Taxpayer Relief Act of 2012 by Congress on Jan. 1, “98 percent of Americans and 97 percent of small businesses will not see their income taxes go up,” President Obama said.
The Act, signed by the president on Jan. 2, extends unemployment benefits for two million Americans who are looking for work, makes no cuts to Social Security and Medicare and expands Medicaid benefits. But the Act postpones Congressional action on budget “sequestration” for two months, leaving question marks over the accounting and social intricacies of how much to cut or tweak entitlements and how much revenue to raise. So, the short- and long-term impacts on states remain unclear.
Dynamics of decisions made at the federal level add to the complexity of deliberations state lawmakers enter Jan. 8, when the 83rd Session of the Texas Legislature convenes. Systemic state budget deficits in recent years have left Texas unable to avoid shortfalls. In 2011, Texas resorted to using federal “stimulus” dollars to overcome a $6 billion budget deficit. In 2012, sales tax revenues flowed in at healthier rates, and the state comptroller soon will release her biennial revenue estimate, giving lawmakers some idea of how much cash they will have to meet the needs of Texas.
Thirsty constituents, cattle, crops, industry are sure to be addressed this session. Widespread and chronic lack of water pose problems looking for legislative solutions. And yes, Gov. Rick Perry on Dec. 28 extended his drought emergency proclamation of July 5, 2011, to a majority of Texas’ 254 counties.
Those multi-billion dollar cutbacks on education in the 82nd Session of the Legislature will be addressed, and so will Medicaid. If Texas refuses to meet the required match to receive federal Medicaid funds by rejecting the Medicaid expansion, the Lone Star State could lose billions of federal dollars.
To that, Gov. Perry stated in a newspaper editorial published in July: “We have no interest in following the federal directive to expand our Medicaid ranks by over a million (people), and we are also rejecting calls to establish a so-called ‘state’ insurance exchange designed and ruled by federal guidelines, many of which have yet to be written. Neither of these is the proper role of the federal government and both represent brazen intrusions into the affairs of states.”
Even if the Texas Legislature passes health care reform to cover more of its lower-income and older residents, the governor wields the veto pen. It takes a two-thirds vote in each house of the Legislature to override a veto.
Ed Sterling works for the Texas Press Association and follows the Legislature for the association.
