Major Cuts to Education Proposed (TX)
January 19, 2011
Republicans have said they don’t want to raise taxes but when it comes to balancing a budget that has a shortfall between $15 and $27 billion – major cuts are being proposed to the tune of $14 billion.
Some of the biggest cuts are to education totally nearly $5 billion.
In the first draft of the two year state budget – lawmakers have proposed cutting $771 million from Texas colleges and universities.
$100 million would be slashed from universities like Texas A&M University and the University of Texas at Austin.
The draft generally eliminates financial aid for new college students and ends funding for four community colleges that are outside the Central Texas area.
The proposed cuts for public schools and a proposal to allow larger class sizes could clear the way for school districts to lay off thousands of teachers.
Meanwhile just hours before the proposed budget cuts were released Lt. Governor David Dewhurst said during his inauguration speech, lawmakers will boost education this year.
"Our public education is the key to our success, a quality education makes a child realize their dreams," said Dewhurst.
The draft calls for cutting $2.3 billion in state general revenue funds from Medicaid, the Children’s Health Insurance Program and other health and human services.
The Texas Historical Commission would see its funding drop by almost 80 percent.
The cuts could amount to nearly 9600 state jobs lost over the next two years.
While lawmakers are proposing cuts they are also proposing new fees – like a $30 per month tobacco user monthly premium surcharge for state employees and retirees.
The Texas Attorney Generals Office would impose new fees on services that deal with child support.
Revenue generated from the new fees would total nearly $70 million dollars for the state.
One item that’s not being cut but instead raised is the Texas Enterprise Fund.
Governor Perry uses this economic development fund to lure businesses to Texas. It would triple to $151 million dollars – part of that increase comes from unspent balances in the account.<br /&g t;
While the proposed cuts do not raise taxes the state is also not dipping into the Rainy Day Fund.
The final budget won’t be finalized until next summer when the Governor signs it.