
As the 81st Legislative Session approaches the midpoint concern continues to grow over a possible special session. One topic of discussion with Texas Insiders persists as to whether Governor Rick Perry will call a special session.
The 2009 Legislative Session began with delays from the outset from both the House and the Senate. The effective change in House leadership came on January 4 2009 only a week before Secretary of State Hope Andrade swore in the Legislature on January 13 2009. Texas Insider recalls no change in recent years of House leadership this close to the beginning of session.
With the late change arose delays in members preparing and adopting rules followed by visits with the new Speaker about preferences for committee assignments thus forcing the new Speaker to announce committees later than usual in mid-February.
While Appropriations Chairman Jim Pitts has great familiarity with budget issues until committee assignments were made Pitts had no members of his committee or actual authority to begin developing decisions for a budget. Stakeholders seeking additional funding waited to find sponsors for appropriations requests hoping to capitalize on committee assignments.
If that was not enough concern over revenue from the stimulus package brought by President Barack Obama and passed only a few weeks ago has created new issues and tensions between Obama supporters and conservatives. Rules procedures and even amounts for federal funds from the stimulus package have yet to be determined by an Obama administration that has not filled appointments for many of the staff tasked with determining these rules and funding levels.
House and Senate budget writers continue to develop a budget with very little concrete information on the stimulus package giving reasonable cause for legislators to doubt approval of a budget based on contingencies from the federal government.
For his part Governor Rick Perry placed himself at the center of the budget discussion by stating his opposition to acceptance of $555 million in federal funds for unemployment insurance. Governor Perry faces a difficult dilemma whether to accept additional federal funds and change current unemployment law opening the door to potential additional spending in future state budgets; or to refuse additional federal funds for the unemployed and related changes to benefits thus requiring the Texas Workforce Commission later this year to increase taxes on employers in order to comply with federal requirements.
Senate and House members now must decide whether to follow Governor Perrys lead thus facing an unpalatable choice to increase taxes on employers or to oppose Governor Perrys decision and align themselves with President Obama in increasing benefits to the unemployed and increase state spending.
Texas Public Policy Foundation budget expert and former House Appropriations Committee Chairman Talmadge Heflin hopes an agreement will be reached helping legislators avoid a special session and any increases to unemployment taxes or changes to state unemployment law. In Heflins visits with House and Senate members two groups on opposing sides have emerged one in favor of increased unemployment benefits unemployed and another opposed to acceptance of the Obama money with the requisite strings attached.
Conservatives hold an advantage in the current vote count according to Heflin and hold a natural advantage in special session with time limits working in favor of those opposed to increases to spending and taxes.
There are other reasons Governor Perry should consider in his battle towards a special session. The Texas Constitution prohibits fundraising by any state elected officials while a legislative session is at work. Any other candidate either elected to a federal office or not currently elected like Senator Kay Bailey Hutchison may accept contributions throughout the year.
Senator Hutchison has already announced cash on hand amounts greater than the Perry Campaign and further delay could hinder Perrys ability to compete with Senator Hutchison for campaign funds.