Houston Chronicle this July..........
State budget 'ample,' but shortfalls
seen
By CLAY ROBISON
Copyright 2000 Houston Chronicle Austin Bureau
AUSTIN -- Fine-tuning their budget projections, legislative
leaders said Tuesday that state government will end the current
budget period in the black but with an estimated $610 million
shortage for some programs.
"It appears that there will be ample revenue in this state to meet
the current obligations, meet the natural growth in population that
we're having in the state, our population growth in our schools,"
Lt. Gov. Rick Perry said.
"Over and above those obligations, I don't expect much of a
budget surplus."
Earlier, there had been talk of the state ending its current
two-year budget period with a $1 billion surplus. But that talk had
dimmed earlier this week amid predictions that funding for
Medicaid and certain other programs could fall as much as $750
million short of needs.
Perry, after being briefed by the Legislature's budget staff, said
Tuesday that a $610 million shortage was a more accurate
projection, and it was limited primarily to the state's Medicaid and
criminal justice programs.
Medicaid, which provides health care coverage for the poor, is
underbudgeted primarily because of rising prescription drug costs,
Perry said. And the state will need to supplement the criminal
justice budget to pay counties and private jail operators for
housing state prisoners, thanks to a low parole rate that has filled
up state prisons.
Perry said sales tax collections also were running about 2 percent
higher than expected and that some other programs may end up
not spending $150 million of their budgeted funds.
Perry, who chairs Gov. George W. Bush's presidential campaign
in Texas and would become governor if Bush is promoted to the
White House, also defended Bush's and the Legislature's decision
to save enough money from the budget to cut taxes by $1.7
billion.
State Rep. Garnet Coleman, D-Houston, who helped negotiate
the final budget compromise, said on Monday that taxes had been
cut at the expense of meeting all the state's needs.
Despite earlier fears, the health insurance program for retired
teachers won't require additional revenue from the Legislature
during this budget cycle, state Sen. Bill Ratliff, R-Mount Pleasant,
chairman of the Senate Finance Committee, said after being
briefed by budget staffers.
But, he added, the next budget period may be a different story. ................................. BUSH CAN"T EVEN HANDLE HIS OWN STATE'S BUDGET..........GOD HELP US IF HE WINS |
