By Jennifer Bendery, GalleryWatch.com
Austin, TX –
In an unusual show of team spirit among the state's top leaders, who recently have been more characterized by political mudslinging in anticipation of a heated gubernatorial race and downright dirty disputes relating to school finance reform, the Cash Management Committee met briefly today to authorize the comptroller to issue Tax and Revenue Anticipation Notes (TRAN) for FY 2006 and 2007.
The committee, which is composed of Gov. Rick Perry, House Speaker Tom Craddick, Lt. Gov. David Dewhurst and Comptroller Carole Keeton Strayhorn, took up a resolution to authorize the issuance of TRAN notes of $8.3 billion to meet the temporary cash flow shortfall for FY 2006 and $8.9 billion for FY 2007. This motion depends on the passage of contingent legislation.
In the absence of such legislation, the amount will be limited to $6.2 billion to meet the temporary cash flow shortfall for FY 2006 and $7.5 billion for FY 2007.
Deputy Comptroller Billy Hamilton gave a short technical description of the proposed authorizations. Sixty-two percent of expenses for schools are spent in the first four months of the year, he said. TRAN notes are borrowed to meet the general cash needs, said Hamilton. This year, the issuance of TRAN notes "is unique" because of the timing of the issuance, said the deputy comptroller. Thus, one scenario assumes current law and the second scenario is based on legislative action, he said.
The resolution was adopted and the committee adjourned.
Shortly afterwards, Perry answered questions regarding the likelihood of school finance legislation passing in the remaining days of the current special session. "We've still got some work ahead of us," he said, pointing to property tax relief and funding for textbooks as issues that need to be addressed. When asked if he plans to call a third special session if legislators can't pass school finance legislation during this session, the governor replied, "We've still got a week to go."
Perry said legislators are close to agreement "on the work they've got before them," but are "not as close as they were when they started the session." When asked if he would add tuition revenue bonds to the call of the session, he said legislators are getting into the state of the session "when it is difficult to open the call to anything."