Senate passes its budget

Let the damning with faint praise for this jerry-rigged excuse for not adequately funding our needs yet not eviscerating them as badly as last time begin.

Adjusted school spending chart from Rep. Gene Wu

The Texas Senate approved a $195.5 billion two-year budget Wednesday, with Democratic state Sens. Wendy Davis of Fort Worth and Sylvia Garcia of Houston voting against the spending plan.

Senate Bill 1 spends $94.1 billion in general revenue — the part of the budget lawmakers have the most control over — a 7.7 percent increase over the 2011 budget. Spending would increase in most areas, including education and health care, but still drew criticism from those who argued that more spending is needed in light of the size of last session’s budget cuts and the amount of money now available.

“We did what we had to do last session, but we can be proud of what’s included in this budget,” said the chamber’s chief budget writer, state Sen. Tommy Williams, R-The Woodlands.

Even those who supported the bill said it remains a work in progress. The budget leaves untouched nearly $12 billion available in the state’s Rainy Day Fund. Members in both the Senate and the House are eyeing the fund for proposed water infrastructure and transportation projects.

The House Appropriations Committee is expected to vote on its version of the budget Thursday, with that version likely to reach the House floor in early April. Both chambers will then appoint conference committees to formally meet and resolve differences between the two proposals.

Williams said after the vote that he expected there would be more agreement than differences between the House and Senate budgets.

Davis offered the sharpest criticism of the proposal, accusing Republican senators of using an ongoing school finance lawsuit as an excuse to avoid properly funding public schools this session. Senate Bill 1 adds about $1.5 billion in funding to public education. Lawmakers cut $5.4 billion from education last session. Various lawmakers have predicted that the lawsuit will prompt a special session on school finance in 2014.

“We are expected to fix the finance problem, and I believe that we can start to do that work today,” Davis said.

Sen. Davis’ statement on SB1 is here. She wasn’t the only critic of the bill.

Williams acknowledged the Senate’s budget wouldn’t bring school funding back to levels that existed before lawmakers whacked $5.3 billion from basic aid and grants in 2011. But Williams, R-The Woodlands, said senators put back nearly $1.4 billion. He predicted higher property values and economic growth would allow lawmakers to fill more of the hole before the session ends in late May.

“While we still have a ways to go, we can make more progress as this whole process moves forward,” said Williams, who heads the budget-writing Senate Finance Committee.

Sen. Rodney Ellis, D-Houston, though, gently chided Williams for worrying more about staying within a constitutional spending limit and preserving state savings than about educating children. The state is expected to have nearly $12 billion in a rainy day fund by August 2015. GOP leaders currently plan to spend about $4 billion of it to create two infrastructure improvement revolving-loan funds.

“If there are the votes to go into the rainy day fund for water or for transportation, I will be one advocating we also use the rainy day fund to help those children,” said Ellis, who ran the budget panel in the 2001 session.

Ellis said the budget falls about 3 percent short of funding current services enough to cover population growth and inflation.

The embedded chart, courtesy of Better Texas and Rep. Gene Wu, is a reminder that we’re still behind on what we had been spending on public education. I do hope that more will be added as the process continues and better revenue estimates come in, but there won’t be a game-changer. A statement from the Texas AFT is here, a statement from the TSTA can be found at BOR, a statement from Sen. Jose Rodriguez is beneath the fold, and Stace has more.

State Senator José Rodríguez today released the following statement regarding Senate Bill 1:

Senate Bill 1 is an improvement from the last budget cycle. It contains items that are important for Senate District 29, such as tuition revenue bonds for UTEP and Texas Tech, as well as items that positively impact the state as a whole. This budget increases Medicaid reimbursement rates to pre-2011 levels, and overall spending on mental health services and graduate medical education. These funding increases will help increase access to care in a state with highest uninsured rate in the nation.

Nonetheless, this budget neither fully restores the cuts from 2011 nor adequately funds for population growth and inflation. For example, El Paso schools will only gain about a quarter back from what they lost in 2011. It also doesn’t expand Medicaid, which is fiscally irresponsible.

The good news is that we are still in the beginning stages of the budget process, and there will be several opportunities to fund these priorities as the session continues. I will continue to work to advance the ball on education and to find a solution to the Medicaid expansion stalemate.

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