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May 21, 2011

The New Texas Budget and Our Schools

by Fred Martin

The new Texas budget deal means nearly $500 less per student for their education per year.  There are cuts across the board in social services, but don't worry, says Perry, the new budget will "protect Texas taxpayers".  Again.  And that protection increases as a Texan makes more money, unless, of course, you have a son or daughter in the public school system.  We sure hope that the private school system thing works out for Texas soon, because we will all be suffering tremendously in the mean time.



But we can stand proud that our taxpayers give the least for the services that they inherit from their state and local governments.  
Texas' state and local tax burden is currently estimated at 7.9% of income (45th nationally), below the national average of 9.8%. Compared to the 1977 data, Texas had a tax burden of 7.9% (48th nationally), remaining relatively constant. Currently Texas taxpayers pay $3,197 per capita in state and local taxes.
Perry and the Texas legislature were warned about this in 2006, but of course, they knew what they were doing.  Where we put our money is where our values are.  When sacrifices have to be made, you save what's most important and you sacrifice what you don't need.  Many Texas lawmakers clearly feel that our children's education is not a necessity.  They have proven that after years, even decades, of underfunding education regardless of the financial climate.  And we have the S.A.T. scores to prove it.  Texas is ranked 47th there, too.  

Senator Rodney Ellis of District 13 put it this way:

The 2012-2013 budget lowlights include:
  • cuts over $4 billion from Texas schools now (for the current biennium?);
  • cuts $220 million from Texas medical schools;
  • shifts another $2 billion in payments to Texas schools into the 2014-15 budget cycle;
  • cuts $4.8 billion in Medicaid and cuts nursing home reimbursement rates by 3%;
  • counts more than $1 billion from unlikely federal waivers and other rosy scenarios;  
  • slashes higher education $1.5 billion, a 10 percent cut from current levels and $2 billion below what is needed to maintain than current services;
  • eliminates financial aid for over 43,000 students, including 29,000 students who will lose their TEXAS Grant.
For Houston-area schools, the numbers are terrible:
  • HISD receives a $205 million cut;
  • Fort Bend ISD receives a $45.6 million cut;
  • Stafford ISD receives a $3.3 million cut;
  • North Forest ISD receives a $3.1 million cut, and;
  • Alief ISD receives a $22.6 million cut.              

Texas lawmakers finally agree on budget deal

Compromise includes an estimated $15 billion in cuts

The deal hinges on passage of revenue and school finance reform measures, but leaders were pleased after days of tense negotiations. Critics called it shortsighted to cut back spending so much in a growing state.
House Speaker Joe Straus, R-San Antonio, called the budget for the next two years one that is "fiscally conservative and that lives within our means."
Lt. Gov. David Dewhurst, who estimated the deal would cut $15 billion from government spending, said the budget would "protect Texas taxpayers."
But outnumbered Democrats denounced the cuts, including reductions in a school finance reform plan approved Friday night by the Senate to allow the state to spend $4 billion less on schools than would be required under current formulas to cover items such as growth, including an estimated 170,000 additional students.
If the House accepts the school finance plan adopted by the Senate, Houston Independent School District would lose about $225 million over the next two years — roughly an 8 percent cut — or a per-student cut of $428 next year and $490 the following year.
Critics also called into question the solidity of funding mechanisms used to support the scaled-back spending. "This is the House and the Senate coming to an agreement to burn down the house called the state of Texas," said Rep. Garnet Coleman, D-Houston.
Rep. Mike Villarreal, D-San Antonio, said, "Texas loses with this deal. Instead of using the rainy day fund or closing tax loopholes to prevent deep cuts in education, they are relying on smoke and mirrors to make the budget look a little better."

$25 billion shortfall

The state faces a shortfall estimated at more than $25 billion over the next two years when taking into account the money needed to fund the current level of services to a growing population.


The Texas Federation had this to say of the budget deal:
State Budget Deal Makes History of Worst Kind:  Lt. Gov. David Dewhurst and House Speaker Joe Straus announced Friday that House and Senate negotiators have agreed on severe cuts in state funding for our public schools, as part of an overall budget deal that cuts state spending by $15 billion for 2012-2013. That overall cut includes deep cuts totaling $4 billion in state formula aid to public schools, averaging $400 per pupil annually, plus more than $1 billion in further reductions to state grant programs. (In the latter category, the plan entirely wipes out state grant funding for full-day, high-quality pre-kindergarten programs.) Dewhurst and Straus congratulated themselves for making “historic” cuts while supposedly maintaining necessary services under this budget. We beg to differ. “It’s historic all right—making history of the worst kind,” said Texas AFT President Linda Bridges. This budget does a disservice to Texans by making unprecedented cuts in the state’s commitment to our public schools—not even providing the funding needed to keep up with enrollment growth of 80,000 to 90,000 new pupils per year.

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