By J. Lyn Carl, GalleryWatch.com
Austin, TX – Just as Gov. Rick Perry was preparing to testify on his Education Excellence and Property Tax Relief plan before the Joint Committee on Public School Finance this morning, State Comptroller Carole Keeton Strayhorn released a letter to the state's leadership - the governor, lieutenant governor and House Speaker - alerting them and members of the Texas Legislature of a newly certified budget estimate. The comptroller is required to submit an updated budget estimate prior to every legislative session. The Fourth Called Session of the 78th Texas Legislature begins Tuesday.
In her letter, Strayhorn says the revenue situation for state government as the special session is about to begin has "improved" in the last several months.
Strayhorn said she has increased her revenue forecast of December 2003 by $614 million, bringing general revenue-related funds estimates for the 2004-05 biennium to $59.052 billion. The unappropriated amount, said the comptroller, is $727 million.
She also noted that because of higher-than-anticipated natural gas tax revenues, an additional $102 million will be transferred to the Rainy Day Fund.
"As I have stated previously," said Strayhorn, "I believe that building the fund to a prudent balance of $3 billion is essential for Texas to have the highest reputation among the states for fiscal solvency and responsibility."
Strayhorn tooted her own horn in revising the estimate upward, noting that her proposed Project Pay Up that was originally budgeted to generate $50 million has delivered "a whopping $379 million" instead.
She said this windfall leaves "no excuse" for not returning the thousands of children "kicked off CHIP (Children's Health Insurance Program) rolls."
"Appropriating less than half of this gain will restore crucial coverage to our kids, and will draw down nearly triple its weight in federal matching dollars. Let's act now, for the health of our children."
Strayhorn also address Perry's education and tax reform plan. She said the state's current finances "will not begin" to address financing lasting property tax relief and quality education. She said the Perry plan "cannot even be financed within its own terms." She said that in the first five years of the Perry plan, it would accumulate an "unfunded and swelling deficit of more than $10 billion" and produces "zero additional property tax rate cuts" beyond the first year.
The comptroller said she will provide additional analysis of the plan at her press conference today at 2 p.m.