Closing current gap
Lawmakers dipped into the rainy day fund for about $3.2 billion, the amount blessed by Perry to help meet a part of the shortfall due to a deficit this fiscal year.
They also made about $700 million worth of cuts to close the current fiscal year's budget gap.
To help ease the rest of the shortfall through the next two years, they used what Democrats called "funny money," including leaving up to $4.8 billion in projected Medicaid costs unfunded. Lawmakers are hoping for a federal waiver that would allow another $700 million in Medicaid savings.
The accounting maneuver of pushing back a state school payment would provide about $2 billion.
Budget staff said other revenue raisers, such as allowing unclaimed property to revert more quickly to the state, will yield more than $1 billion. Lawmakers also are assuming that school property values will rise, freeing another $800 million.
The budget would ease some of the deepest cuts originally proposed by the House, which passed a bare-bones budget that would have shorted school districts about $8 billion compared with what they could expect under current formulas and made Medicaid reimbursement rate cuts to nursing homes that threatened closure of many facilities.
Rep. Sylvester Turner, D-Houston, said, "This budget is shaky at its best. And for all of our conservative friends: No taxes, true. No rainy day fund, true. But the deferrals, deficit spending ... and funding that's questionable, all exist."
Sen. Mario Gallegos, D-Houston, added, "My school districts right now are gearing up for tax hikes to cover these cuts."
Read more:
http://www.chron.com/disp/story.mpl/metropolitan/7585876.html#ixzz1Qsb1TC4q
Closing current gap
Lawmakers dipped into the rainy day fund for about $3.2 billion, the amount blessed by Perry to help meet a part of the shortfall due to a deficit this fiscal year.
They also made about $700 million worth of cuts to close the current fiscal year's budget gap.
To help ease the rest of the shortfall through the next two years, they used what Democrats called "funny money," including leaving up to $4.8 billion in projected Medicaid costs unfunded. Lawmakers are hoping for a federal waiver that would allow another $700 million in Medicaid savings.
The accounting maneuver of pushing back a state school payment would provide about $2 billion.
Budget staff said other revenue raisers, such as allowing unclaimed property to revert more quickly to the state, will yield more than $1 billion. Lawmakers also are assuming that school property values will rise, freeing another $800 million.
The budget would ease some of the deepest cuts originally proposed by the House, which passed a bare-bones budget that would have shorted school districts about $8 billion compared with what they could expect under current formulas and made Medicaid reimbursement rate cuts to nursing homes that threatened closure of many facilities.
Rep. Sylvester Turner, D-Houston, said, "This budget is shaky at its best. And for all of our conservative friends: No taxes, true. No rainy day fund, true. But the deferrals, deficit spending ... and funding that's questionable, all exist."
Sen. Mario Gallegos, D-Houston, added, "My school districts right now are gearing up for tax hikes to cover these cuts."
Read more:
http://www.chron.com/disp/story.mpl/metropolitan/7585876.html#ixzz1Qsb1TC4q