Don’t Budget Prematurely

Paul Burka, senior executive editor of TexasMonthly is the author of “Is it time to institute annual budget sessions?” He posted it in BURKABLOG on Thursday October 7, 2010. In his article he criticizes people responsible for writing the state budget, not having a clue over when and what measures to take for dealing with the budget shortfall. 

Paul makes a good point that in the best case, the budget processes is completed in June 2011, way two early into the biennium. It makes sense to come up with the budget in the second year of the biennium, when there is more information about the state of the Texas economy. Now there is the question of, is there any motive by the panicked-budget-cutting? Paul, rightfully so, points out that history has shown the current way that the budget is written lends itself to panicked budget-cutting any time that there is a downturn. He thinks the law makers should study the results of taking premature reactions to the budget shortfalls in the past, before start taking drastic measures for the present one.

I agree with Paul on the budget resulting surplus in 2003 only because estimating done by Comptroller Strayhorn proved to be too pessimistic. Legislators did not question the $9.9 billion shortfall, and acted prematurely on cutting the budget unnecessarily. That is an example of political motive, politicians trying to use the budget processes as a tool to score points with their opponents.

Paul is correct saying, Texas is facing a significant budget gap in the 2012-13 biennium. What is less clear is the exact size of the gap the Legislature will face when it convenes in January 2011.

Paul makes a good point, blowing the budget shortfall horn too early is nothing but a tactic to scare the general public into believing that budget cuts have near-apocalyptic implications, and start with 10% cuts and may be more in the future.  In 2003, state agencies added to the rhetoric by inappropriately responding to questions about possible cuts in budgets and programs.

I agree with Paul, we need to wait. The budget gap in the 2011 legislative session will provide the perfect backdrop to enact the necessary changes. When this budget process unfolds, the sky will not fall in 2011 any more than it did in 2003.