Impending Budget Crisis

As the upcoming election for Texas governor approaches, few politicians are even mentioning the widening state budget gap. Over the next two years, Texas will face a budget gap estimated to be as large as $21 billion, but candidates Rick Perry and Bill White usually avoid the topic altogether. Instead, the two speak mainly about eliminating waste and increasing efficiency without giving many specifics, in what some have labeled “politics of denial.” There are several different causes of the current budget woes. The recession’s lasting effects have kept revenue at subdued levels. The population of Texas should continue to grow at a swift pace, increasing the demand for expensive government-provided services. “Medical inflation” will continue through 2013. In addition, 80 percent of the budget is allocated to health care and education services, which are difficult to cut. These factors have led to a budgetary shortfall that next year could equal 12 percent of this year’s spending, a level higher than many other states. While both Perry and White have avoided the issue, it is important that Texans stay informed about the looming budgetary difficulties and encourage their representatives to do the same.

Please see the related article, which summarizes the budget situation as well as the candidates views on the matter. This subject is important because solving the budget crisis could affect tax rates, benefits, and other government services that we all use or enjoy.

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/091210dntexbudgetdenial.2b74247.html