Texas state budget (2010-2011)

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Note: This article was last updated in 2011. Click here for more recent information on state budgets and finances.


Gov. Rick Perry signed a $182 billion 2-year budget (Sept.1, 2009, to Aug. 31, 2011) with a projected $9 billion Rainy Day Fund on June 19, 2009. The FY 2010-2011 biennium budget of $182.3 billion spent $1.6 billion less in general revenue than the previous biennium. Comptroller Susan Combs acknowledged that Texas would show a $1.3 billion deficit at the end of the budget year[1], which was up dramatically from the July 2010 estimate of a shortfall of up to $18 billion dollars.[2] Others estimated the shortfall at $28 billion.[3]

It was estimated that the state faced a budget shortfall of between $15 billion and $27 billion over the coming two years.[4] On May 16, 2011, the Senate approved use of approximately $4 billion from that Rainy Day Fund to cover shortfalls in the state budget.[5]

Texas had a total state debt of $81,128,512,515 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.[6]

2011 State spending & deficit in billions[7]
Total spending Healthcare Education Protection Nat resources Econ dev Regulatory General government Stimulus
$182 $59.7 $75.5 $10.8 $3.5 $20.7 $.84 $5.4 $12
2011 Local spending & deficit in billions[8]
Total spending Pension Healthcare Education Welfare Protection Transport Deficit
$153.3 $1.5 $13.3 $45.3 $3.1 $12 $10 $255

Budget background

See also: Texas state budget and finances

The Texas state budget was implemented for two-year durations by the Legislative Budget Board. Agencies develop their appropriations requests in the first year, the legislature approves the General Appropriations Act in the second year, and the budget was implemented over the next two years.[9] By constitutional mandate, Texas operates under budgets set for two-year periods.[10]

Texas' fiscal year runs from September 1st to the following August 31st of an odd-numbered year (for example, September 1, 2009 - August 31, 2011).[11] Since 1978, the state constitution had required the State Comptroller to create an itemized estimate of the incoming revenue that would be available to the state for spending in the upcoming two-year fiscal period (biennium).[12] This estimate was submitted to the Governor and the legislature and was used as a baseline to ensure that appropriations did not exceed incoming revenue.[13] Once an appropriation bill was agreed on by both houses of the legislature, it was sent to the State Comptroller for certification that there would be sufficient incoming revenue to cover the bill's appropriations.[14] If the Comptroller concludes that there was not enough money to cover the proposed spending, the bill was sent back to the legislature where any spending in excess of anticipated revenue must be approved by a 4/5 vote in each house.[15]

Once a bill was certified by the Comptroller, the bill was sent to the Governor for review and signature; the state constitution grants the Governor a line-item veto.[16]

The regular legislative sessions begin the second Tuesday in January every odd-numbered year and convene for not more than 140 days. The governor may call the legislature into special session as deemed appropriate. Special sessions were limited to issues specifically stated in the governor’s call and may meet up to the 30-day maximum.[17]

The Governor submits a recommended budget the 30th day of the regular legislative session. The Legislative Budget Office was responsible for fiscal notes, not the Executive Budget Office. Legislative Budget Board (the legislature’s budget agency) coordinates statewide performance measures and compiles reports.[18]

The state had a constitutional cap on spending, using the growth of the state's economy, which was determined by the Legislative Budget Board (run by the Gov, Lt Gov, Speaker and Comptroller).[19][20]

In January of odd-numbered years. at the start of the legislative session, the comptroller provides an official estimate of state revenue for the coming two years, and that figure was the amount lawmakers can spend when they write the state budget.[21] Sen. Kirk Watson sent the comptroller a letter in September 2010 requesting an update to her official estimate of how much money the state would collect during the current two-year budget cycle as well as a forecast of the state's revenue outlook over the next two years.[21]

Budget Figures, 2000-2009

The following table provides a history for Texas' budget and actual expenditures from 2000 to 2009.

Biennium Term Estimated/Budgeted Amount Actually Spent
2000-2001 $101.8 billion[22][23] $101.9 billion[24]
2002-2003 $114.1 billion[25] $115.9 billion[26]
2004-2005 $118.2 billion[27] $126.6 billion[28]
2006-2007 $138.2 billion[29] $145.1 billion[30][31]
2008-2009 $167.8 billion[32][33] n/a

Breakdown of Sources of Revenue

The following table breaks down the state budget by sources of revenue for the 2008-2009 term.[34]

Source of Revenue Percentage of Overall Revenue
Tax collections 52.1%
Federal income 31.1%
Miscellaneous 9.8%
Licenses, Fees & Fines 7.9%

Breakdown of spending by area

The following table breaks down the state budget by areas of spending for the 2008-2009 term.[35]

Area of spending Percentage of Overall Spending
Education 44.4%
Health & Human Services 31.6%
Business & Economic Development 12.2%
Public Safety & Criminal Justice 6.2%
General Government 2.4%
Natural Resources 1.9%

Accounting principles

The Texas State Auditor's Office (SAO) was the independent auditor for Texas state government. The SAO operates with oversight from the Legislative Audit Committee (LAC), a six-member permanent standing committee of the Texas Legislature. The LAC consists of the Lieutenant Governor, the Speaker of the House of Representatives, one member of the Senate appointed by the Lieutenant Governor, and the chairmen of the Senate Finance Committee, House Appropriations Committee and the House Ways and Means Committee.[36]

Susan Combs was elected Texas Comptroller of Public Accounts in 2006. The Comptroller was the chief steward of the state’s finances, acting as tax collector, chief accountant, chief revenue estimator and chief treasurer for all of state government.[37][38]

Credit Rating Fitch Moody's S&P
Texas[39] AA+ Aa1 AA+

See also

Texas state budget and finances


Footnotes

  1. ↑ The Texas Tribune "Documents Reveal Deficit in Texas State Budget" Aug. 18, 2010
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named daunting
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ax
  4. ↑ The Wall Street Journal "Budget Battles Roil Straitened States" Feb. 25, 2011
  5. ↑ Businessweek "Texas Senate OKs nearly $4B from Rainy Day Fund" May 16, 2011
  6. ↑ State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
  7. ↑ Texas Budget Source Spending, State Budget by Area
  8. ↑ USA Spending, State Guesstimated* Government Spending
  9. ↑ Texas Legislative Budget Board, Budget 101
  10. ↑ Legislative Budget Board, History (dead link)
  11. ↑ Senate Research Center, Budget 101
  12. ↑ Legislative Budget Board, History
  13. ↑ Senate Research Center, Budget 101
  14. ↑ Senate Research Center, Budget 101
  15. ↑ Legislative Budget Board (dead link)
  16. ↑ Senate Research Center, Budget 101
  17. ↑ Texas State Senate, "Citizen Handbook: How the Texas Legislature Works," February 2007
  18. ↑ National Association of Budget Officers, "Budget Processes in the States," 2008 (dead link)
  19. ↑ Comparison of Spending Limits (dead link)
  20. ↑ Texas Monthly
  21. ↑ 21.0 21.1 The Austin American-Statesman "Lawmakers seek answers on Texas' budget outlook" September 8, 2010
  22. ↑ Legislative Budget Board, Fiscal Size-up 2008-09 Biennium, March 2008 (dead link)
  23. ↑ Legislative Budget Board, Fiscal Size-up, March 2008 (dead link)
  24. ↑ Legislative Budget Board, Fiscal Size-up, January 2002
  25. ↑ Legislative Budget Board Fiscal Size-up, 2002-2003 Biennium, January 2002
  26. ↑ Legislative Budget Board, Fiscal Size-up, March 2008 (dead link)
  27. ↑ Legislative Budget Board, Fiscal Size-up, 2004-2005 Biennium, Dcember 2004
  28. ↑ Legislative Budget Board, Fiscal Size-up 2008-09 Biennium, March 2008 (dead link)
  29. ↑ Legislative Budget Board, Fiscal Size-up 2006-207 Biennium, December 2005 (dead link)
  30. ↑ Texas Budget Source, Fast Facts about Texas Spending
  31. ↑ Legislative Budget Board, Fiscal Size-up 2008-09 Biennium, March 2008 (dead link)
  32. ↑ Texas Budget Source, Fast Facts about Texas Spending
  33. ↑ Legislative Budget Board, Fiscal Size-up 2008-09 Biennium, March 2008 (dead link)
  34. ↑ Texas Budget Source, Budget by Area
  35. ↑ Texas Budget Source, Budget by Area
  36. ↑ Texas State Auditor's Office Web site, accessed November 13, 2009
  37. ↑ Texas Comptroller of Public Accounts Web site, accessed November 13, 2009
  38. ↑ CAFRs
  39. ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
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