Texas Senate Unveils Rival $79.7 Billion Budget Plan (TX)

January 26, 2011

The Texas Senate on Tuesday proposed its $79.7 billion two-year budget planthat shrinks spending by 9.9 percent — just like the House plan — but spendsmore on education and assumes more Medicaid aid.

Neither plan withdraws cash from the state’sRainy Day Fund, despite a two-year deficit estimated as high as $27 billion bylocal newspapers.

Texas politicians, including RepublicanGovernor Rick Perry, have vowed to close the shortfall without raising taxes,though various fees would rise under the House plan that was issued last week.

The state Senate budget, which must bethrashed out with the House’s proposal, includes an extra $500 million ofFoundation School Program aid, which is the main source of dollars for schools.Under the House plan, this program would fall $953 million to $32.8 billion.

The Senate, whose agenda is commanded byRepublican Lieutenant Governor David Dewhurst, offers teachers $200 million inincentive pay and an extra $200 million for competitive grants for variousprograms, including finishing high school.

Other education initiatives included $229million for college or university programs linked to scholarships, loans,medical residencies or nursing shortages.

And $175 million would go to general academicinstitutions, while $139 million would help community colleges with grouphealth insurance.

The state’s Department of Criminal Justicewas another winner in the Senate’s budget plan; It would get $203 million forparole and probation supervision and other items.

The Senate budget bill would partly pay forall of this additional spending by predicting the state will get an extra $1billion of federal aid for Medicaid, which is the federal-state health plan forthe poor, disabled and elderly.