AUSTIN, Texas — The Office of the Governor and the Legislative Budget Board have requested state agencies to submit budget proposals that reduce spending by 10 percent. The chief economist at the Texas Public Policy Foundation says this is good news for taxpayers.
"Governor Perry and the LBB are putting fast-growing government on a diet. Every year, Texas families have to reassess priorities and spending habits, and now state government is being asked to do the same thing. The Foundation's research has clearly demonstrated that limiting the growth of government is beneficial to all Texans; lower spending translates to lower taxes, which frees money for productive investment and use in the economy."
Schlomach noted that the current biennial budget, adopted in 2005, grew 18.7 percent over the previous adopted budget.
"That rate of growth is not sustainable. Governor Perry's request of state agencies is fiscally responsible, requiring agencies to look carefully for ways to maximize their efficiency and effectiveness on behalf of all Texans."
When the state faced a $10 billion shortfall in 2003, the governor and legislature utilized a technique known as zero-based budgeting to carefully examine each expenditure to maximize the efficient use of tax dollars. Schlomach said that exercise was partly responsible for lawmakers closing the shortfall without increasing taxes.
"All economies respond well to fiscal discipline, and Texas is no different. We can expect sound budget practices to continue to drive economic growth in Texas, bringing more jobs and a higher standard of living."
Not included in this agency request is a previously adopted employee payraise and debt service for existing bonds. In addition, the reduction does not include legislative commitments to public education, money to maintain prison populations, and funds to maintain the caseloads for federal entitlement programs.