MONEY, MONEY, MONEY… Balancing the Texas Budget in 2012-2013.

MONEY, MONEY, MONEY…

Balancing the Texas Budget in 2012-2013

Where Do Our State Budget $$ Come From?

State Tax Collections - $ 78 billion

Federal Funds - $ 67 billion Fees, Fines, Licenses - $ 14 billion Interest and Investment Income - $ 6 billion Lottery - $ 3 billion State Land Income - $ 2 billion Other Sources - $ 10 billion Total (2 yr budget) $180 billion

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Source: Texas Fact Book, 2010, Legislative Budget Board. State taxes only, does not include local property taxes.

Where Your State Tax Dollar Comes From (2010-2011 2-year Tax Revenue Estimate)

Other Taxes8%

Sales Tax56%

Sin Taxes4%

Gas Tax8%

Franchise Tax11%

Vehicle Taxes8%

Oil/Gas Prod.5%

Total State Tax Revenue = $78 Billion

Source: Texas Fact Book, 2010, Legislative Budget Board. State taxes only, does not include local property taxes.

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Where Do Our State Budget $$ Go?(2010-2011 2-year budget)

Source: Texas Fact Book, 2010, Legislative Budget Board. State taxes only, does not include local property taxes.

Business & Economic

Development11%

Prisons/Public Safety

6%

Health and Human Services

33%

Education41%

Other9%

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Total = $180 Billion

The Texas Budget Deficit, 2012-2013

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The Challenge: Eliminate the Budget Deficit

The Texas budget must be balanced Imagine that you are a Texas State Senator As members of the Texas Senate you must

find solutions that you can live with Options:

Use some or all of the Rainy Day Fund Raise revenue Cut spending

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One Option for Reducing the Deficit: Spend the Rainy Day FundWould you support using some or all of the Rainy Day Fund to reduce the deficit?

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The Rainy Day Fund*

Potential Revenuefor 2012-2013

Beginning balance $8.2 billion

Growth during 2012-2013

$1.4 billion

Total Rainy Day Fund Available

$9.6 billion

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* The Texas Rainy Day Fund comes from a variety of sources with most of the money coming from a portion of natural gas and oil tax revenues.

Closing the Budget Gap: Raise Revenue

Raise Existing Taxes Sales Tax, Franchise Tax, Gasoline Tax, Cigarette

Tax, Motor-Vehicle Tax, Beer Tax Create New Taxes

Soda Tax, Quality Assurance Fee Eliminate Tax Exemptions and Discounts

Sales Tax Holiday, high-cost natural-gas exemption, 10% property tax appraisal cap, optional homestead exemption

Other Revenue Options Allow slot machines in existing gambling sites

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Closing the Budget Gap: Reduce Spending

Cut existing programs (some examples) Education

Cut $25 million in grants to help school districts build science labs (program total is $59.5 million)

Reduce financial aid spending ($50 million) Eliminate dropout prevention for teen parents ($10 million)

Health and Human Services 1% reduction in Medicaid provider payments ($64 million) Temporary hiring freeze from HHS agencies ($8.9 million) Close 50 beds at Terrell state hospital ($27 million) Eliminate services for 8090 seniors or persons with disability receiving Medicaid LTC

services at home ($96.2m)-DADS Reduce comprehensive rehabilitation services by 70% and not provide services to

approximately 840 clients ($23.6 million)- DARS Reduce prevention and early intervention programs by 84% ($73.7 million) Reduce state mental health hospital capacity, community mental health services for

adults and children and substance abuse intervention services ($136.7million) Prisons

$239 million to prison and parole system, including eliminating the substance abuse treatment program.

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Did You Eliminate the Deficit?

How did “the Senate” vote on the Rainy Day Fund?

How did “the Senate” vote on raising revenue?

How did “the Senate” vote on cutting existing programs?

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What Does the Budget Deficit Mean for AARP Members?

Balancing the budget with a large deficit will be extremely challenging

There will be a lot of attention on the big budget items (i.e., Education and Health and Human Services)

Medicaid is a large part of the health and human services piece of the budget and vulnerable to cuts

Medicaid is the primary payer of long term care services like nursing home and care in the community (helps pay for two-thirds of all nursing home stays)

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Protecting Seniors who need Long Term Care

The proposed 10 percent cut to long term care providers would take a heavy toll on consumers who use Medicaid nursing homes and community care.

Places nursing home residents at risk by reducing staff and care for our must vulnerable seniors.

For the seniors who depend on community-based long-term care programs, the rate cuts will make it harder to find people willing to do this important work.

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What Can You Do To Help?

Let your state elected officials know you want them to protect seniors who need long term care.

Protect current funding levels for nursing home and community care. Lets not push seniors from community into more expensive nursing homes.

Your state elected officials:

Your state elected officials: (To Be Completed by ASD for each event)

Texas Senator: Texas Representative:

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Want to Read More About the Texas Budget?

Texas Fact Book, 2010

Texas Legislative Budget Board

http://www.lbb.state.tx.us/Fact_Book/Texas_FactBook_2010.pdf

 Budget 101: A Guide to the Budget Process in

Texas

Senate Research Center, January 2009

http://www.senate.state.tx.us/SRC/pdf/Budget101-2009-web.pdf

Rainy Day Fund: The Texas Tribune, January 7, 2011

http://www.texastribune.org/texas-taxes/rainy-day-fund/

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