The main focus at the State Capitol right now is the state budget. Recently the US Secretary of the Treasury, Jacob Lew astutely described the budget process in saying, “The budget is not just a collection of numbers, but an expression of our values and aspirations.” Every two years in Texas, our elected Legislature holds public hearings in Austin to listen to all of the agencies and interest groups that have some role in showing where Texas expresses its values and aspirations through its budget. If you have several days to study it, click here to see the basic budget documents and related presentations from the Legislative Budget Board: LBB.
It is a huge budget by most people’s standards, authorizing state spending for the next two years with a revenue estimate set by the Texas Comptroller of Public Accounts at $113 Billion in general funds. With additional federal funds and dedicated funds, the total is somewhere in the range of $205-210 Billion. Of course, while this number is big, remember that this budget will impact approximately 27 million people who call Texas home. When the Senate Finance Committee and House Appropriations Committee finish their hearings over the next couple of weeks, they will have listened to presentations about almost every dollar in that budget.
To complicate matters, most of the future revenue and expenditures are very difficult to predict over the course of the coming two years. If the economy continues to be strong, there could be less demand on Medicaid and there will be more sales tax revenue. If the economy goes south, it could be a double whammy by increasing demand for support services while reducing funding. Additionally, the state has an obligation to pay for part of education based on attendance, and estimating the number of children in public schools across this state has traditionally been difficult to correctly hit. These uncertainties explain why every two years the Legislature either is looking at a fairly substantive deficit or surplus. Fortunately this year, they are sitting on a nice sizeable surplus. Which brings us to the big question: when you have a budget surplus in Texas, what is the best way to budget?
In an effort to express Texas’ values and aspirations, there have been numerous recommendations on what to do this year. The discussions have included increasing funding for border security, provide for tax cuts, restoring funding to education from cuts made in 2011, appropriately funding health and human services in Texas, increasing funding for higher education, fixing several budget gimmicks used in previous sessions, and numerous others. At this point, it is tough to see how these competing interests will find common ground as there has only been listening and discussing things in general rather than in specifics. We will know more as the committees start making decisions on the different sections of the budget, and as that happens we will keep you informed. The Alliance is actively communicating with the members of these committees about the importance of health and human services funding, and we talk daily about the impact that these funds have in our region. We collaborate with the efforts of our statewide organizations as well as other Houston groups like One Voice and many other HCHA Members. Most importantly, this is not about just numbers as much as it is an expression of our values and aspirations: improving the health of our citizens and the systems that deliver health care to the sick and injured in our region.