At this point most grown-ups have come to the realization that current solving budget problems will have to involve both spending cuts and increases in taxes.
The Republican super-majority in the Texas government though has eschewed the increases in taxes that will keep the budget in sound territory over the long run, and this is obvious to everybody.
On the plus side, the State does get a bump in its bond rating.
http://www.statesman.com/blogs/conte...n_texas_b.htmlBy Kate Alexander | Monday, February 21, 2011, 04:36 PM
Texas’ cuts-only approach to its budget shortfall won’t solve the state’s long-term fiscal problems, according to Standard & Poor’s, a major bond rating agency.
“We believe that a balanced approach that includes both revenue enhancements and expenditure cuts has a higher potential of success in preserving the state’s long-term structural budget balance than a strategy that relies solely on expenditure cutbacks,” wrote S&P credit analyst Horacio Aldrete-Sanchez in a report released last week.
Though S&P is not likely to join the Texas Forward coalition, the analyst’s language mirrors that of the education groups, health and human service advocates and faith leaders that have decried the deep budget cuts.
Aldrete-Sanchez also emphasized that the state’s budget hole is not a one-time problem that will go away as the economy improves.
“In our view, the state’s budget imbalance is likely to reappear or persist beyond the upcoming biennium unless other sources of revenue or additional budgetary flexibility are identified to fill this growing funding gap,” the analysis continues.
But new revenue is still not being publicly discussed as Texas seeks to close a budget shortfall topping $15 billion to $27 billion, depending upon who is doing the counting.
Legislative leaders have said they will eliminate that shortfall without increasing taxes or using the rainy day fund, though they have softened recently on tapping at least part of the $9.4 billion reserve account.
The S&P analysis stated that the proposed level of cuts is high particularly for a state that has a low level of per-capita spending already. And those cuts could have significant implications for the local governments, such as school districts, that rely heavily on state money.
None of this threatens the state’s ability to pay its debt, according to S&P, because Texas has comparatively little debt and interest payments are likely to get priority above other spending.
Last edited by RandomGuy; 05-06-2011 at 04:15 PM.
I've long been a fan of raising the state sales tax to 7% and increase the city sales tax cap by .5%. I've also long wanted to scale vehicle registration charges with expected gas mileage of vehicles (especially since gas tax is one area where TX gets screwed by the federal government).
TX definitely needs to do something to raise revenue, especially since many of the proposed cuts are rather insane when looking at what Texas needs to grow and evolve.
The ledge is too busy with bull sonogram bills to actually do anything responsible.
Quite true. Even for a TX legislature, they are coming up with some off the wall stuff to work on instead of planning the states economic future...
It's a good thing they are cutting $34 million in forest service funding during these wildfires.
Personally, I can't wait to be in on the first public meeting with our representative, as he gets to deal with the parents of all the kids who have had their schools closed, and then packed into classrooms with 50 of their closest friends.
Agreed.
The thing is, I'm not aware of any electoral harm that will come to these lamebrains as a result of their emphasis on socially right-wing agendas as opposed to fiscally sane agendas. For most of them, they seem quite comfortable that their cons uents are just as happy as clams to be controlling somebody else's body rather than their own state's fiscal future.
cutting taxes and killing govt will pay for itself. Taxes must never be raised.
-- Repug parrot
I would hope the school funding crisis would snap their tiny agendas like dry twigs.
It is estimated that the US in general is underfunding its infrastructure by something like 60%.
Legalize gambling.
"infrastructure by something like 60%"
History Channel has great show on underfunded public water systems.
Old Europe has been taxing for maintaining aged (100+ years old) stuff a long time, while the UCA has the short-term, expiring luxury of much infrastructure being created since WWII.
However, old cities like NYC and Chicago lose 1/4 to 1/3 of the water they put into their systems.
The electric utility grid, bridges, tunnels, roads, all underfunded, overused, stressed.
DVD or a show
http://shop.history.com/the-crumblin...l.php?p=104694
What's the point of this thread?
To show a bond rating agency says more balance is needed in Texas’ budget approach.
Last edited by ChumpDumper; 05-06-2011 at 02:35 PM.
Speaking oddly, are you.
Cut and paste error. Thanks for pointing it out.Speaking oddly, are you.
It is.
Also never quite the panacea that many think it is.
The 10Bn shortfall is too wide anyhoo.
You know I didn't mean the lottery. Who cares if its not as much as its made out to be. Its an increase in revenue without an increase in taxes. It should be a no brainer.
Saying that gambling is illegal by pointing to the lottery is like pointing to alcohol and saying drugs are legal. Which is another way to make more money, legalize MJ.
Considering that entire thing was a bait and switch where nothing goes where they promised it would....
Good..
Better...
Best...
Class dismissed
TX, like the nation, doesn't have a spending problem, but a revenue problem from bull tax cuts that pandered to the simplistic "everybody hates taxes (but wants the benefits)" and "govt IS THE PROBLEM".
Whether there's a spending problem or not is an idealogical discussion. I for one think there most definitely is, especially on the federal level.
But believing there isn't a revenue problem at the moment is bordering on lunacy.
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