By J. Lyn Carl, GalleyWatch.com
Austin, TX – Despite spending increases in the proposed Senate version of the state appropriations bill, Democratic members of the Senate Finance Committee today continued to express concerns that the most needy Texans - the frail, the elderly and children - will suffer the most from cuts in some services funding.
However, in order to move the appropriations process along and to get to conference committee as soon as possible, HB 1 was voted out of committee today. No votes were cast by Sens. Elliott Shapleigh (D-El Paso) and Gonzalo Barrientos (D-Austin)
Sen. Jane Nelson, who chaired the Article II work group, said it was difficult to serve the needs of all Texans because of "increased costs of drugs, increased utilization of services, and increased caseloads." Even so, she said, there is still a 4.2 percent increase in spending.
"We worked so hard to restore services to children who are eligible for our CHIP (Children's Health Insurance Program) program," she said. "We did have to make some policy changes," but the package in place is the same as that used in the private sector. "It's real important to let the public know it was so important to this Senate to maintain the services that we currently provide."
"We had some very difficult decisions to make...but we kept in mind that we don't want people who really need assistance to not get that assistance. "We did see the faces of the people who are in need," she said. "We need to hear the stories of people who are living from paycheck to paycheck, small business owners who are having difficulty making ends meet. If we raise taxes, we are going to see those people go out of business."
Nelson said the budget proposal coming out of Senate Finance is a "budget that puts people first...both those who need assistance and those who are paying the bills. We didn't do everything we'd like to do. This proposal...meets the needs of both our needy citizens and our taxpayers who are out there trying to make a living."
Shapleigh responded by saying, "Let's look at the face of that taxpayer." He said many Texans said they would pay more in taxes so the frail and elderly are not put out on the street and so children will continue to have health insurance.
"When we talk about the face of those who will die because of this budget...if Texans knew what the facts were, they would pay a little more."
"Not one grandmother is going to be put out in the street who needs to have state assistance," said Nelson. "Not one child who truly needs state assistance is not going to receive it." She said the work group worked hard to see that those who need assistance will get it and added that if one grandmother is about to be put out on the street because of this bill, "I will personally go get her and take her into my home."
Committee Chair Sen. Teel Bivins (R-Amarillo) said the committee has "no snow days" in dealing with the proposed budget and urged passage of the bill from the committee.
"These are serious issues we are facing," said Sen. Royce West (D-Dallas). "We have made some tough decisions. I would urge the conferees to continue to look for other sources of revenue, continue to look at priorities we have already decided on and if there is a change to re-evaluate those priorities such as transportation (spending) over the frail and elderly...and make a determination if we can reprioritize...we need to do that."
"I agree completely with the concerns expressed," said Sen. Judith Zaffirini. "But for me this is another step in the process. We have clearly identified the areas of priority. We are going to continue to look for money. I am not satisfied in any way with Article II. We have accomplished a lot but not enough. I intend to vote for the bill to keep it moving."
"This is not fun," said Bivins. "I would far prefer that we have a budget surplus instead of a deficit. We don't. These are the toughest choices I've ever been called on to make in the legislature."
I don't think this is the end of the process," said Sen. John Whitmire (D-Houston). "The final chapter has not been written. "Folks left out is not a new phenomenon. As long as we fund state government as we do, primarily through sales tax, we're going to have people not getting the full services that we would prefer."
Prior to the vote, Legislative Budget Board Director John Keel discussed the methods of finance and differences in the approaches to financing in the House and Senate versions. He noted the supplemental appropriations for Medicaid and economic development. The reductions (the 7 percent required by the state leadership for all agencies for the current biennium) are $1.4 billion in general revenue.
"I do understand the revenue expenditures are separate and apart from the spending bill," said Nelson. "I think it would help us a lot at some point soon to have a listing of the items that make up that $1.8 (billion) that we must find."
Bivins said he and Zaffirini submitted a letter to Lt. Gov. David Dewhurst in March regarding polling the Senate and giving a list of items the senators are comfortable with for funding and that he would make that letter available to committee members.
"I know it's a moving target," said Nelson, adding that it still would be helpful to have such a list.
The House Bill, according to Barrientos, cuts 10,810 state employees. He asked Keel how many the Senate version cuts. In 2005, that number would be 222,585, he said. The current figure is 229,950, or a reduction of 7,300 positions that does not include higher education employees. These figures are a result of the caps authorized in the bill, said Keel. He further said approximately 600 were cut for the remainder of the current biennium.
Barrientos also noted that the House version cuts $350 million for textbooks and asked how much the Senate version cuts. Keel responded $200 million was cut in the Senate bill.
Addressing health insurance for retired teachers, Barrientos said the House version has those retirees paying approximately $80 per month more. LBB officials said in the Senate version, it would be approximately a 9 percent increase. Current teachers would face a 33 percent increase on their premiums under the House plan and a 9 percent increase in the Senate plan.
Barrientos also questioned health and human services funding. Addressing immunizations, Barrientos said the House version of the bill would mean 470,000 fewer immunizations and 50,000 fewer would receive Temporary Assistance to Needy Families (TANF) funding. Children's Health Insurance Program (CHIP) funding for the Senate bill would be provided for 370,655 children in 2004 and 229,636 in 2005, pending policy changes on the 90-day waiting period and the six-month eligibility re-application. The change in the caseload, a significant change, is mostly due to policy changes, said LBB officials.
"The bottom line is, we're cutting 100,00 to 125,000 children from health coverage," said Barrientos.
In the House bill, said Barrientos, 17,000 pregnant and low income women lose pre-natal health coverage. The Senate version, said LBB officials, has a new criteria for those served as does the House. Although no concrete figures are available, they said more would be served under the Senate bill, but still thousands would not be covered.
Barrientos also question differences in the two bills relative to care for the sick and elderly, noting 56,000 elderly and disabled Texans lose in-home services in the House bill.