By J. Lyn Carl, Reporter, Gallery Watch.com
Austin, TX – "I'm not sure there is a word to describe how bloody awful it's going to be," said Lt. Gov. Bill Ratliff of the budget-writing chore that faces the 78th Texas Legislature. Ratliff, a former chair of the Senate Finance Committee, has been in the budget-writing trenches before. But that trench got a little deeper Monday with State Comptroller Carole Keeton Strayhorn's announcement that the legislature's current level of spending could leave the state with a nearly $10 billion budget deficit.
Strayhorn handed the Texas Legislature "a thin checkbook" going into the 78th session of the state legislature, according to Austin political consultant Tony Proffitt. He said the shortfall figure "takes the state from a shortfall to a serious budget crisis."
Strayhorn has predicted a $7.4 billion budget shortfall as legislators get ready to tackle weighty issues in the upcoming session. She said that figure could climb to close to $10 billion if lawmakers continue their current spending habits.
But Gov. Rick Perry and Lt. Gov.-elect David Dewhurst say they are prepared to take on the task.
Perry said Strayhorn's revenue estimate shows that state government is facing what every Texas family faces - difficult decisions on establishing priorities and spending.
"In tough economic times the focus must be on government spending less, not on taxpayers paying more," said Perry. "While some will interpret the comptroller's revenue estimate as a very challenging scenario, I believe the financial outlook presents us with the opportunity to re-examine the core responsibilities of government and how every tax dollar is spent."
Perry cut $500 million from the budget approved last session through a huge number of vetoes. He says he wished he had cut more and has promised to balance the budget without new taxes.
Perry notes that Strayhorn's estimate is that there will be $114.2 billion in total revenue to spend. "We must, and will, set priorities and ensure that every dollar is spent efficiently and appropriately," he said.
Perry has pledged that fiscal responsibility will be a "hallmark" of his administration.
"Nobody said it was going to be easy," said Lt. Gov.-elect David Dewhurst of the budget-writing process, "and it's just become more difficult."
Dewhurst called Strayhorn's estimate "a sobering reminder that Texas has not escaped the national economic slowdown." He said that economy will "make it even more difficult than we expected to protect essential services while living within our means."
Dewhurst said he will recommend a zero-based budget "under which we start with no guaranteed expenditures and then set out the essential services for the people of Texas."
That was also the recommendation of Strayhorn. A zero-based budget, she said, "would make everybody justify every single program."
Ratliff said the concept of starting at zero never seemed to be very applicable but added, "If that helps them in their mindset of where to start, I certainly won't argue the point."
The lieutenant governor said he does not agree with Strayhorn about her assessment that the previous legislature had a spending "party" and the current legislature must now suffer through "the hangover."
"I think Carole would probably agree with me that she tends to a little hyperbole," said Ratliff. "I don't particularly agree with her assessment. We spent money on things like teacher health insurance, children's health, and public and higher education. I don't consider any of those irresponsible.
"I am not going to criticize anybody's methodology in trying to get to an answer. But it's very difficult to think in terms of a zero based budget when you're talking about things like public and higher education and federal health care programs that require state matching funds."