Proving the old adage, "What's not said is often most important", one can begin to see the near future of the Texas economy. Because of a relatively conservative state government, we've been largely spared the dramatic recession that most of the rest of nation has faced. But anyone who thinks that's forever is simply naive, misinformed, or denying reality. Increased federal deficit spending, increased regulation and intervention in the
private sector, new health care and other extensive legislation that expands the role (and cost) of government, and continued high defense
expenditures are national factors even an economy the size of Texas cannot withstand forever.
In the volatile political climate of 2010, there is no real reward for waving the lantern of warning and this blog is certainly not the first to do so. But for the record, I make the assumption that the national economy will not soon turn around. Personal and business taxes will increase dramatically after January 1, further crimping any hope of economic turnaround in the short term. That's a bad combination for a nation trying to recover, but these signs point to more trouble ahead in terms of the national (and thus state and local) economy. So now the trouble comes knocking on Texas' door.
It's fascinating that no politician is discussing the issue. It's also interesting to note that national coverage of Texas continues to be positive because of what has not yet happened (see this recent Heritage Foundation commentary as a good example). It's downright discouraging though, that none are even really hinting at the trouble ahead except in terms of blaming someone else for the situation. From an election standpoint, I understand the strategy. From a citizen standpoint, I hoped for better.
So why a discussion of fiscal policy in a faith based blog? I believe it speaks to issues of responsibility, integrity, and community.
Legislature likely to cut deep to meet possible $25 billion budget gap | Denton Record Chronicle | News for Denton County, Texas | Latest News
private sector, new health care and other extensive legislation that expands the role (and cost) of government, and continued high defense
expenditures are national factors even an economy the size of Texas cannot withstand forever.
In the volatile political climate of 2010, there is no real reward for waving the lantern of warning and this blog is certainly not the first to do so. But for the record, I make the assumption that the national economy will not soon turn around. Personal and business taxes will increase dramatically after January 1, further crimping any hope of economic turnaround in the short term. That's a bad combination for a nation trying to recover, but these signs point to more trouble ahead in terms of the national (and thus state and local) economy. So now the trouble comes knocking on Texas' door.
It's fascinating that no politician is discussing the issue. It's also interesting to note that national coverage of Texas continues to be positive because of what has not yet happened (see this recent Heritage Foundation commentary as a good example). It's downright discouraging though, that none are even really hinting at the trouble ahead except in terms of blaming someone else for the situation. From an election standpoint, I understand the strategy. From a citizen standpoint, I hoped for better.
So why a discussion of fiscal policy in a faith based blog? I believe it speaks to issues of responsibility, integrity, and community.
- First, what is your level of understanding on these issues? Are you too busy to consider your responsibilities as a citizen?
- Second, what does this say about the integrity of individuals in government when there is possible deliberate deception regarding fiscal news?
- Finally, the choice of living in a free society includes decisions about our community - so why should you care about how your money is appropriated and spent?
Legislature likely to cut deep to meet possible $25 billion budget gap | Denton Record Chronicle | News for Denton County, Texas | Latest News
With the next legislative session little more than 11 weeks away, lawmakers' budget aides huddle on Thursdays at the Robert E. Johnson Building near the Capitol – in secret, as is Texas' budget-making norm, but amid more strident than usual warnings about keeping information confidential.
Even as the hired help prepares a menu of unpleasant options for leaders, though, Perry and Lt. Gov. David Dewhurst campaign in full brag mode. The state's two leading Republicans boast that Texas was last into the recession, has dodged major cuts so far and is well-prepared for any challenges because it has pinched pennies.
Comptroller Susan Combs, who sets the limits for how much the Legislature can spend, has declined to lower her January 2009 revenue estimates, even though they wereabout $2 billion too optimistic for the budget year that ended Aug. 31.
Combs, a Republican, made even more rosy forecasts for this year, although sales tax receipts so far don't support them. She is due to deliver her final estimate to the Legislature in January.
Sen. Steve Ogden, R-Bryan, head of the Senate Finance Committee, and House budget chief Jim Pitts, R-Waxahachie, declined to be interviewed about the huge deficit.
The outlook keeps deteriorating.
Earlier this month, a Texas Education Agency official testified that declining property values will force upward – by $2 billion to $3 billion – the state's obligation to public schools. Last week, the Health and Human Services Commission disclosed that federal Medicaid matching money will dip by $1.2 billion more than expected, because Texans' personal income rose in comparison to other states in recent years.
Experts and former officials sized up the developments as meaning that a late-August deficit estimate by senior legislative staff members – $20.6 billion, as reported by The Dallas Morning News – is now on the low side. They say the number has reached $23.8 billion to $24.8 billion, and could go higher if the economy doesn't pick up.
