by PETER MALOF
Special to the Hays Free Press
With new signs that Texas is recovering from the recent recession faster than expected, social-services advocates are calling on lawmakers to reverse some of the more painful budget cuts implemented last year. But state leaders so far are showing few signs they will change course, warning that another downtick in revenue is still possible.
Budget officials reported to legislators recently that this year’s tax revenues higher than expected. It’s some of the best news the state has seen in a long time, according to Linda Bridges, president of the Texas American Federation of Teachers.
“The state revenue situation is very rosy, and there will be more money there when the Legislature convenes in January,” said Bridges. “So, Health and Human Services, education, a lot of that funding can be restored and should be restored.”
Texas Comptroller Susan Combs announced on Aug. 8 that state sales tax revenue in July was $2.05 billion, up 10.1 percent compared to July 2011. August sales tax allocations are up 4.2 percent compared to a year ago.
“Business spending in the oil and natural gas industry and other sectors continues to be robust,” Combs said. “That spending, along with increases in consumer sectors such as retail trade, continues to boost sales tax collections. State sales tax revenue has now increased for 28 consecutive months.”
However, the report from the comptroller’s office also said the revenue growth rate could slow next year, noting that the state’s economy is susceptible to world markets. Lieutenant Governor David Dewhurst responded by expressing hope that the windfall could pave the way for new tax cuts, but he said, more likely, the money will be used to maintain spending on a growing population. Lawmakers, meanwhile, have instructed state agencies to prepare for further cuts in the next budget.
Bridges says leaders who last year described the budget axe as a regrettable-but-necessary tool for coping with a $27 billion shortfall should now begin repairing ailing institutions. She thinks public schools are a good place to start: state education aid was cut by $500 per student.
“Pre-kindergarten – cut; programs for struggling students - cut; larger class sizes; schools closed down; 30,000 educators lost their jobs. Twelve thousand of those were teachers. I mean these are things people care about,” Bridges said.
She says the better-than-expected economic picture shows that last year’s decision to slash the budget without tapping the state’s “Rainy Day Fund” was rash. The comptroller’s report estimates that the fund will swell to more than $8 billion next year.
State Rep. Jason Isaac said he would like to increase school funding but cautioned that looming Medicaid costs will likely curtail such efforts in the 2013 legislature.
“It’s going to be very difficult to find new money,” Isaac said. “My focus continues to be to help alleviate some of the mandates placed on school districts to help them reduce their costs.”
Mandates that Isaac sees as costly burdens on districts include standardized testing and the Fitnessgram data required by the state. Isaac said some districts have purchased new software just to help with that reporting.
Kim Hilsenbeck contributed to this story.
