Deficits, Shortfalls and the Texas Budget Gap

Some liberals are criticizing Governor Perry by saying "Texas has a $18 billion deficit." Correction: Texas does NOT have an $18 billion deficit. Texas has a balanced budget requirement in its State Constitution; it's not allowed to run into the red. Texas has a projected shortfall of up to $18 billion for the next biennial budget. It may come in that high, it may come in lower.

Texas has almost doubled the state budget in the past 10 years; in the 2002-2003 budget cycle, a $10 billion gap was closed with overall spending that went up over the prior 2-year cycle. The 2008-09 Texas budget increased over 15% from the 2006-07 biennium - from $145.1 billion to $167.8 billion. The FY 2010-2011 biennium budget increased again to $182.3 billion. We had large budget increases in the 'good years' and low growth in the lean years.  We can see this trend in Texas Budget Source on education.

With education the largest part of state funding, we will need to look at ways to improve efficiencies there without impairing performance. We'll need to be fiscally conservative to keep spending in control to bridge that gap between spending and projected tax revenues.  The Texas budget gap was closed in 2002 without raising taxes and it can be done again. In the next budget cycle, I'll work to ensure the shortfall does not become red ink and the taxpayers won't bear the brunt of bridging the gap.

See The Sunshine Review for more Texas state budget facts and figures.