Budget cut bombshell during Gov’s $2 mil black tie bbq

Governor Rick Perry’s words from his inauguration speech still echoes in Austin.

‘We must continue investing in our people, developing young minds, grooming and attracting the best and brightest in the fields of science and medicine, giving individuals the tools and the freedom to prosper,’ Perry declared, as unfortunate news loomed, waiting to be revealed later.

The Governor and some 10,000 party goers tripped the light fantastic during his inauguration festivities last night. A $2 million dollar dance and celebration, paid for by state lobbyists.  Postponed, so as not to dampen party spirits, the new budget proposal was announced late Tuesday. The draft (available online), expected to be filed with the Texas House of Representatives later this week, proposed major budget cuts across the board for state funding.

The state is facing a budget shortfall estimated between $15 and $27 billion. The state constitution requires a balanced budget, and because Republican leaders pledged not to raise taxes, as well as not to touch the state's projected $9.4 billion rainy day fund, that left no choice but wielding the budget axe.

'As legislators do the hard work of trimming agency budgets, the headlines will be dominated by impacted constituencies, but these tough times dictate government doing more with less’, said the Governor during his inaugural address.

Public education will see a 13% budget cut, which would not include funding for the additional 170,000 new students expected to be enrolled over the next two years in TX public schools. Funding for pre-k programs would be dropped, denying access for over 100,000 children from public school. In addition, a 7.6% drop in higher education is slated. Financial aid for incoming freshmen and new students will be generally eliminated. Over the next two years, more than 70,000 students would be dropped from the Texas Grants scholarship program. Some community colleges will also be shut down.

Health and Human serviced will see nearly a 25% budget cut. It’s recommended Medicaid, Chip and food stamps be cut by $2 billion. Also included is a 10% cut to Medicaid provider rates, which is what Dr.’s and hospitals are paid. The draft cuts also include a $241 million dollar cut in state health services, including the Children’s Health Insurance Program and $36 million in assisted living funds and $2 million to the Department of Aging.

The plan would eliminate 9,600 state jobs over the next two years. The Department of Criminal Justice faces $459 million in cuts. More than 3,100 guards, parole officers and corrections employee jobs will be eliminated. Many privately run prisons will be closed and there will be major cutbacks in treatment and rehabilitation programs and medical care.

‘It’s a catastrophe. No financial aid for kids to go to college. No pre-kindergarten for kids to learn their numbers and their letters. Health and human services slashed,” said Rep. Pete Gallego, D-Alpine. ‘No Texan can be proud of this.’