Texas lawmakers reach budget compromise

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http://www.statesman.com/news/texas-politics/texas-lawmakers-reach-budget-compromise-1501253.html

The hotly contested budget bill is headed to the House and Senate floors for final votes this weekend after months of legislative drama.

Weighing in at $172 billion, the 2012-13 budget is 8 percent lighter — $15 billion — than the current two-year budget. The state's general revenue spending, meanwhile, dropped 2 percent.

"This was one of the most difficult tasks I've ever been involved in," Senate Finance Chairman Steve Ogden, R-Bryan, said Thursday, shortly before House and Senate negotiators signed off on House Bill 1.

Lawmakers must take an up-or-down vote on the bill; they cannot change the committee's plan.

Ogden said it was not obvious at the beginning that the two chambers, whose budget offerings were $12 billion apart, could come together.

A continuing disagreement over how to distribute state payments to public schools, however, still could send legislators into a special session. With their vote Thursday, the budget negotiators approved a provision that makes the entire $37 billion appropriation for school aid contingent upon a finance deal being struck. That move eliminated the option of doing nothing, which would have kept funding at current levels even though the state would run out of school money in February 2013.

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Higher education

Early outlook: The big question was how extensive cuts would be.

In the end: Basic formula funding for academic universities is down 10 percent, although how that affects individual campuses depends on recent enrollment growth. The state's outlay for financial aid is going down sharply.

Texas Grants, the state's main financial aid program for low-income students, are being cut by $55 million — 77,300 students will get a grant, compared with the current 106,000.

University of Texas funding for special projects is down 25 percent.

Community college funding for instructional purposes remains flat even as enrollment has climbed 20.4 percent.

State workers

Early outlook:9,300 state jobs were eliminated under the initial budget proposal and state employees faced significant benefits changes.

In the end:How many employees will lose their jobs is unclear, but the number has dropped substantially from January estimates.

State continues to pay full cost of an employee's health insurance premium and half the cost for dependents. Dependents' premiums increase 8 percent in September.

Retirement contributions from the state will be at the constitutional minimum of 6 percent in the first year and jump to 6.5 percent the next year, down from the current 6.95 percent. Employees will put in 6.5 percent both years.

Proposals to eliminate longevity pay and institute mandatory furloughs were nixed.


Criminal justice 
and public safety

Early outlook:Senate and House predicted steep cuts to criminal justice and public safety programs.

In the end:For the most part, those areas of the budget survived with less pain than other areas.

Public education

Early outlook:School districts feared 100,000 layoffs and school closures.

In the end:The situation has improved, though state will not fully fund schools' enrollment growth.

School districts get $4 billion less in school aid than they are owed under current law.

Money for textbooks essential for new high-stakes standardized tests is included.

Student Success Initiative, which aids students struggling to pass state tests, is reduced from 
$293 million to $36.5 million.



Health and human services

Early outlook: House's proposal for dramatic cuts to Medicaid and other health spending raised the prospect of closed nursing homes, mental health clinics.

In the end: Most cuts were averted by underfunding Medicaid.

Medicaid reimbursement rates for nursing homes and doctors were unchanged. Hospitals will take an 8 percent cut.

Medicaid will need an estimated $4.8 billion infusion in 2013, a problem for the next legislative session.

State health department spending on family planning was cut 
$73 million, or two-thirds.