By Shelley Kofler, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-815170.mp3
Austin, TX – Governor Perry says he's not sure anyone was prepared for the bad budget news the comptroller delivered Monday. Perry, the Lieutenant governor, and the new Speaker talked with reporters following their first joint meeting. KERA's Shelley Kofler reports that the economy will be a big cloud hanging over this legislative session.
Governor Perry called the comptroller's economic report sobering. On Monday the comptroller said Texas would have 10.5 percent less state revenue- some $9 billion less - to fund the next two year budget.
The Governor said he'll tell state agency heads to pare down discretionary spending.
Perry: Be ready to have intense discussion about budget. It is going to be tight. We expect people to treat agency budgets like personal budgets.
Lieutenant Governor David Dewhurst recalled 2003 when a budget shortfall resulted in elected leaders asking all state agencies to take a 7 percent cut. Dewhurst says the situation isn't that dire yet, but hinted agency cuts might be an option.
Dewhurst: To the extent we can get a one percent reduction, that's $400 million. Two percent, $800 million. That puts us in better shape for 2011.
The Senate's current finance chair Steve Ogden says the biggest unknown right now is the cost of recovering from Hurricane Ike. Debris still blankets the hardest hit areas. In Harris County Ike destroyed almost half the homes. And Senator Ogden says 40 percent of the area parks- big tourist attractions - are damaged.
Ogden: Parks and wildlife told me the other day they need $110 million dollars to go fix the parks
Despite the limited money Ogden says he personally sees a zero chance for a tax increase or big hikes in fees.