By Speaker Joe Straus
Texas Insider Report: AUSTIN Texas By now most Texans are well aware of the significant budget shortfall our state faces as we head into the next legislative session. When businesses face fiscal challenges they look at what is causing the problem and monitor the factors that impact their bottom line. We have to do the same thing in state government.
Last week I had the privilege of addressing a group of business leaders at the Texas Taxpayers & Research Association meeting on this very topic.
Weve been hit with a one-two punch:
- Declining Revenue and
- Increased Spending to meet the demands of our growing population.
Our approach to solving the budget shortfall is simple but not easy.
First we must return to the fundamentals of state government:
- Education
- Healthcare
- Transportation Infrastructure and
- Public Safety
Second we must do more with less and be more efficient and more effective with taxpayer funds.
And third most of all we must make hard choices about our needs"
versus our wants."
The real discussion about our priorities will begin in January when the House introduces the budget. As most of you know the state does have a savings account commonly known as the Rainy Day Fund which could be used in part to balance our budget.
However before we decide whether and how much of the Fund should be spent I strongly believe lawmakers need to have a clear picture of the true cost of running state government.
The proposed cuts may seem drastic and painful but we must make the tough choices now to leave our state in better financial shape down the road.
For this reason I have given the
Legislative Budget Board four key principles from which to develop the base bill:
- We must spend no more than our available revenue
- We must not assume the use of the Rainy Day Fund
- We must limit government and
- We must not raise taxes
As someone who worked at one time in the Reagan Administration I always remember his quote that business isnt a taxpayer but a tax collector meaning when business taxes are raised those taxes are ultimately passed
on to consumers as higher prices. Thats why I have asked members of the House to recommend ways to balance our budget without placing an additional tax burden on Texas families.
While other states continue to experience economic challenges Texas is widely noted as having the best business climate in the nation: Forbes The Economist CNBC and The Wall Street Journal all agree.
So while we will face a significant budget shortfall next session I know that we are up to the challenge.
A 5th-generation Texan Joe Straus represents House District 121 and was elected Speaker of the Texas House of Representatives by his peers at the commencement of the 81st Regular Legislative Session on January 13 2009. Speaker Straus has been a leader on economic issues common sense tax relief & energy efficiency measures and is a San Antonio native.
