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Strayhorn outlines billions in savings

By Tim McDaniel, Gallery Watch.com

Austin, TX – - With her estimated budget shortfall for the upcoming legislative session to be submitted early next week, State Comptroller Carole Keeton Strayhorn today released "Limited Government; Unlimited Opportunity," this year's eTexas report. The report is aimed at streamlining operational costs of some state agencies as well as completely revamping or eliminating others.

In the face of what many say could be the largest revenue shortage in the past three decades, Strayhorn proclaimed, "The 78th Legislature must resolve this new year to get a better handle on how it spends the taxpayers' money." Citing her past requests for fiscally responsible appropriations from lawmakers, Strayhorn said, "The Legislature dug this hole for themselves. But with these recommendations, I'm handing them a rope."

Many around the capitol are questioning the ability of lawmakers to fund some government agencies and programs without new funding sources, whether through increased fees for some programs or a tax increase. Addressing this increasingly common concern at the statehouse, Strayhorn said to those who are calling for higher taxes or a state income tax, "Hogwash."

In an effort to make state government "leaner, but not meaner," the comptroller's office has identified possible savings and additional revenue of nearly $3.7 billion, including $1.7 billion in general revenue funds for the next biennium. Over the next five years, the savings amount to nearly $7 billion, with more than $4 billion of that savings in general revenue funds. Strayhorn claimed that last session lawmakers ignored 75 percent of the savings she identified, leaving $1 billion in savings on the table.

To alleviate the impending budget problems, Strayhorn highlighted a few items from her report. In what could prove to be politically impossible, Strayhorn proposed merging the Texas Railroad Commission and the Public Utility Commission into the Texas Energy and Communications Commission. Strayhorn, who previously served as a Texas Railroad Commissioner, said, "Twelve of 13 programs at the Commission are duplicated by seven other state agencies." By merging the two agencies and replacing them with a three-member elected board, the comptroller's office claims the state will save $18.5 million annually once implemented.

In another reorganization request, Strayhorn proposed consolidating 24 "bloated" state health and human services-related agencies into five "efficient" agencies. According to the comptroller, this would save the state approximately $9 million.

Strayhorn went on to request the State Aircraft Pooling Board be privatized. Citing safety concerns such as outdated airplanes and a lack of licensed pilots on each flight, Strayhorn said, "I like two pilots and two engines when I fly."

Perhaps the most drastic request was Strayhorn's calling for the abolition of the Texas Department of Economic Development. She claimed the agency has "a history of ineffectiveness and mismanagement" and that their duties should be reassigned to the governor's office. The projected savings from this proposal are estimated at $3.7 million.

Another example of cost-cutting from the comptroller is her proposed postponement of eligibility filing for families to receive Medicaid benefits for their children's health care from every six months as it is now to once every 12 months. Postponing the date set by the 77th Legislature to increase the application renewal time would not deny benefits to anyone eligible but would produce the $282 million saved by removing those families whose income has surpassed the level of eligibility.

The 78th Texas Legislature will convene Tuesday, Jan. 14, when the comptroller's findings could be put to the test. The eTexas report contains 179 recommendations for saving revenue.

 

Gallery Watch.com
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