House Appropriations Report for 03-14-2011

[Guest guest]

FWDING. AS IS -RE:

 

Dear Advocates:

This 1 hour and nine minute meeting is a textbook case " you go first " - no you go first " , political gamesmanship.

Chairman Pitts is smart enough not to jump off the " Tea Party Cliff " without Governor assurance that he won't pull the net out from under the Republicans and veto HB 275, making him the " darling " of the fiscal conservatives.

Passage of HB 275 which uses $4.3 billion of the $9.4 billion Rainy Day Fund for the shortfall in this biennium's budget pretty well assures that none of the remaining $5.1 billion will be used to offset any of the remaining $22 plus billion deficit in the 2012/13 biennium.

The bottom line is the dirty 7 letter word: REVENUE

You can't balance the budget without more REVENUE without devastating cuts to Medicaid, public shools, higher ed, criminal justice and firing of thousands of state workers.

Though it still is early in the session and the rallies are inspiring the real challenge to us as advocates is how well the grassroots does in visits at the local level. It was never truer ALL POLITICS ARE LOCAL.

Though our services are critical we need to remember that schools, higher ed, prisons and state worker jobs are important too.

Our job is to show some passion about our services. Legislators are nice people that may do some harmful things because they are looking at numbers instead OF PEOPLE. Remember these smiling legislators are the same ones who are threatening your services, your jobs, your business.

After May 31st (unless there are Special Sessions) the budget numbers are fixed until August 31, 2013. Yup this is not a misprint. August 31, 2013 is the end of the next biennium which starts Sept 1, 2011.

So maybe it is time to start getting angry that we are nothing but pawns in Governor 's and the Legislature's political gamesmanship.

Show that anger by visiting your local offices this Friday.

March 22nd - Attendant Appreciation Day (PACT/ADAPT)

April 5th - SILC/TACIL/CTD Rally

April 6th - Texas Forward Rally

Don't Mourn...ORGANIZE!

The ADAPT Community

Sent via BlackBerry by AT & T

RE:

AUSTIN (3/14/11, E1.030, 2:00 PM)

The House Committee on Appropriations, under the direction of Chairman

Pitts, met today in the Capitol Extension for testimony on House Bills 4

and 275.

HB 4

By Pitts. Relating to making supplemental appropriations and giving direction

and adjustment authority regarding appropriations.

- left pending.

HB 275

By Pitts. Relating to making an appropriation of money from the economic

stabilization fund for expenditure during the current state fiscal biennium.

- left pending.

(2:00) The committee convened at 2:00 p.m. Chairman Pitts said the

committee is awaiting representatives from the Governor's Office.

(2:02) Heleman of the Comptroller's Office said sales tax

collections have increased " more than estimated " and yielded an

additional $300 million for this fiscal year (FY11). Responding to

Chairman Pitts, Mr. Heleman said the current biennium shortfall is $4

billion.

(2:04) Chairman Pitts said there will be substitute to H.B. 4, which

will include $50 million in cuts recommended by the governor.

Responding to Chairman Pitts. inquiry of using only budget cuts and no

Rainy Day Funds for the remaining 6 months of the biennium, Mr. Heleman

said any budget cuts would be " exceptionally large. "

(2:06) Rep. Hochberg asked if the next biennium revenue projections are

" based off this year, " Mr. Heleman answered there has been " no change "

for FY12-13.

(2:08) Rep. Giddings detoured the hearing regarding the " Non-Tax

Collected Revenue Survey. " Discussion ensued.

(2:14) Rep. Villarreal inquired about revised estimates for the Rainy

Day Fund due to increased cost of oil, and Mr. Heleman said its estimate

is unchanged.

(2:16) Mr. Heleman informed Rep. Schwertner the " net effect " of H.B. 4

is $800 million.

(2:17) Rep. Giddings returned to the " Non-Tax Collected Revenue Survey. "

Wayne Pulver of the LBB joined the discussion and stated the funds

listed don't require an appropriation to be expended.

(2:22) Responding to Vice Chairman , Mr. Heleman said the Rainy

Day Fund is projected to have $9.4 billion.

(2:24) Discussion ensued regarding the Rainy Day Fund and FY12-13, with

Chairman Pitts asserting his " intention " to not use any Rainy Day Funds

for the next biennium. Responding to Rep. Button, Chairman Pitts said

federal law required the expenditure of ARRA funds; " cuts alone " will

not close the current budget shortfall; the Comptroller is " out of

options; " and warned of furloughing state employees and not meeting

obligations to schools for July and August of this year.

(2:41) Rep. Hochberg asked Rep. Otto about the likelihood of another

budget shortfall (similar to this current shortfall) during next session.

Rep. Otto said his " gut feeling " is there will be another shortfall

in the 2013 session. They offered competing philosophies of the Rainy

Day Fund.

(2:50) Rep. Aycock and Mr. Heleman discussed the 2003 shortfall, in

which $1 billion from the Rainy Day Fund was utilized.

(2:54) Chairman Pitts said " several " attempts to reach the Governor's

Office had been unsuccessful. He stated private admissions had been

made by the Governor's Office of using the Rainy Day Fund and his hope

for a public acknowledgement.

(2:57) Rep. Schwertner and Mr. Heleman discussed the oil and gas revenue

components of the Rainy Day Fund.

(3:00) Chairman Pitts said the committee awaits representatives of the

Governor's Office.

(3:02) Rep. Chisum inquired about property tax valuations and Rep.

King inquired about the Enterprise and Emerging Technology funds.

(3:07) Chairman Pitts said the committee " called every budget person at

the Governor's Office and no one's answering their phone. "

(3:07) Chairman Pitts said the committee's upcoming schedule is to vote

on H.B. 4 and H.B. 275 tomorrow (Tuesday) at 7:00 a.m. and to address

all pending items at 8 a.m. On Wednesday, the committee will send H.B.

1 to the printer and vote out H.B. 1 on " probably " Tuesday, March 21.

The House Committee on Appropriations adjourned at 3:09 p.m.