Insights on the Texas Budget

By State. Rep. Jason Isaac Texas Insider Report: AUSTIN Texas The Texas House of Representatives recently passed the State Budget (Senate Bill 1) which appropriates $193.8 billion over two years and is under the Constitutional Spending Limit. The budget process is long and complicated and its important that legislators and taxpayers alike understand exactly where our money is being spent.   It is funded within available revenue and The budget process is long and complicated and its important that legislators and taxpayers alike understand exactly where our money is being spent. I offered an amendment that would have required that the budget be written in a line-item format in order to increase transparency and provide a clearer picture of where the money was coming from and what it was being used to fund.  The measure would have required the budget to identify the specific program or activity that the money is funding how much is being appropriated and the source of the funds (state federal dedicated non-dedicated etc.).  Unfortunately the amendment was unsuccessful. This amendment would have promoted honesty and transparency and although it was not adopted I hope that a clearer budget format is something that the legislature pursues in the future. Upon reflection of the budget process I wanted to share some thoughts to give you some insight into how the budget really works:

1. The Budget has grown much more than will likely be reported.  Most reports will show the Texas Budget for 2014-15 will increase by 5.6 over the previous period; HOWEVER it is also easy to make a case that it grew 15.8.  How can these both be true?  It all comes down to what number you want to use as a starting point:
   • Actual spending for the last 2 years or
   • Budgeted spending for the last 2 years.
   • When the 82nd legislature left last session they cut $15 Billion from the budget (all funds).  By the time the legislature got back in session the economy had improved tax revenue was up and overall funding in the budget was slightly more than restored.
   • Therefore the official version of the budget starts at a baseline of $183 billion instead of the budgeted $167 billion.
2. It is nearly impossible to stop a program once started.  Despite many attempts during the budget process there was little willingness from the body to consider cutting any of them.  While many appear to do reasonably good things most would not be considered core functions of government by many people.  Even in times of economic prosperity we must be wary of dedicating excessive funds to current programs and spending money to create new ones.  Its very difficult to ever make cuts or eliminate expenditures in the future.
3. Almost every significant decision regarding the budget will be made in conference committee that will work on a compromise between the House and Senate budgets. These members have the final say in what is included in the bill that is ultimately passed. Because of this most of the 267 amendments considered during the budget process are largely irrelevant.  The main control that the rest of us have is a simple up or down vote on the final budget as a whole.
4. While Not Perfect The System Works.  There are very very few similarities between our process in Texas and the one used in Washington DC.
   1. First we actually vote on a budget.
   2. Second Republicans and Democrats actually talk to one another and work out most differences amicably.
   3. Third we do it without COMPLETELY mortgaging our childrens future. One of the first rules of responsible government is Dont spend all the money.  Despite our frustrations the representative government that we have here in Texas generally abides by that rule.

Ultimately Im glad that we passed a balanced budget without raising taxes.  Making responsible spending decisions has allowed us to create a strong economy with money in our rainy day fund money that we can put towards core functions of government like water education and infrastructure. I hope this doesnt scare you too much and gives you a better idea of what happens here in Austin. Id like to thank State Rep. James Frank for allowing me to use some of the above information that his office provided. As always thank you for the honor of representing you. State Representative Jason Isaac serves House District 45 covering Hays & Blanco counties south & west of Austin Texas. Isaac and his wife Carrie have two boys who attend Dripping Springs public schools. Visit ISAACforTexas.com for more information.