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What’s the Lege going to do with the revenue?

Not as much as it should, of course, because the Lege never comes close to doing as much as it should. It’s a question of whether they’ll try to address some real problems, or just engage in an orgy of tax cutting.

BagOfMoney

Texans can expect tax relief, a laser focus on border security and more efforts to fight traffic congestion when a cash-flush Legislature convenes in January.

The budget priorities line up with campaign promises from Republican state leaders and lawmakers, who handily won their spots with a message of keeping state government lean while carefully weighing any additional spending for its benefits.

At least some outnumbered Democrats also appear to be on the tax-relief bandwagon, as the state welcomes the prospect of having $5 billion or more in greater-than-expected revenue when the current two-year budget period ends. Anticipated economic growth is expected to yield billions more, with the caveat that uncertain oil prices must temper expectations.

The tax-relief issue “crosses party lines,” said Senate Finance Committee Chair Jane Nelson, R-Flower Mound. “Property taxes are really something that people would like to address.”

Besides property-tax relief – pushed by Sen. Dan Patrick, the incoming lieutenant governor – the potential for cutting the state’s business tax has been highlighted by Attorney General Greg Abbott, the governor-elect.

The devil, as always, is in the details of a state budget that totals $200 billion in the current two-year fiscal period, including state and federal funds that are largely spoken for before lawmakers convene. Education and health and human services alone take up nearly three-quarters of the total.

“I fully expect there to be some tax relief. The question is, what’s the nature of it?” said Rep. John Otto, a Dayton Republican who serves on the House Appropriations Committee.

[…]

What’s clear is that despite the billions of greater-than-predicted dollars awaiting lawmakers’ allocation, the list of programs that can use more money is far longer than the dollars can cover, especially in light of a spending cap on certain general revenue.

“It’s sort of easy when there’s not a lot of money. You just say we haven’t got the money,” said Rep. John Zerwas, a Richmond Republican who serves on the House Appropriations Committee. “Whereas now, I call it kind of a food fight. You’ve got a lot of food on the table, and people are going to start grabbing for it and trying to make sure they get their programs funded at a level that they want.”

Simply keeping current levels of services to a growing population would cost an additional $6 billion to $7 billion in state general revenue, said Eva De Luna Castro of the Center for Public Policy Priorities, which focuses on services important to middle- and lower-income Texans. That’s without addressing the lingering cuts from 2011.

“All we’re hearing about is tax cuts. Nobody is talking about, ‘What did we cut out of the budget in 2011?’ ” she said. “I don’t think it’s exaggerating to say that our future economy and prosperity are at stake. We need good roads but we also need good schools and universities.”

If you think that last bit is just the usual liberal happy talk, you should see what the Texas Association of Business’ wish list for the legislative session looks like. They expect to spend the next six to eight months fighting against the people they just supported for election on these issues, because that’s how they roll. “Border security” is a huge boondoggle for which all indicators are always that we should keep doing what we’ve been doing, which is to say to spend more and more and more on it. And no, the feds aren’t going to cover that check no matter how nicely Greg Abbott asks the President for it. As for property tax “relief”, the proposals put forth by Sen. Kirk Watson and others to increase the homestead exemption would be the most equitable way of doing this, which means it is also the least likely way of it happening. But I suppose anything is still possible before the session begins, just like the possibility than your favorite NFL team can go 16-0 while training camp is still going on. We’ll see what happens when the games start getting played for real.

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