Budget Deficit May Be On The Horizon For Texas
by TexasGOPVote on July 10, 2010 at 4:12 PM
The Economist reports that the State of Texas could be facing an $18 billion budget shortfall over the next 2 years. According to the article, the 2006 business tax, ehich was meant to raise funding for public education, has not raised as much money as expected, leaving the state short several billions of dollars every year.
According to the article "The projected size of the two-year shortfall has been creeping up, from $11 billion to $15 billion; $18 billion is last month’s estimate from the state’s Legislative Budget Board. Democrats worry it could be even larger, perhaps $20 billion. The $18 billion figure is already around 10% of the state’s budget for the next two years."
However, the news is not all grim. Governor Perry has already started making cuts in the state budget to help off set the short fall. Governor Perry, along with Lt. Governor Dewhurst have directed state agencies to cut budgets by as much as 10%.
One thing to note is that the article seems to praise Bill White for calling Governor Perry out on the Governor's monthly housing expense. The article does not, however, explain that Bill White's Houston routinely ran $1.5 billion deficits and accumulated $18 billion of debt under Bill White's, umm, "leadership."