Texas braces for budget cuts as economy, Medicaid, spending decisions collide
AUSTIN — The budget cushion that Texas has long enjoyed is vanishing.
Medicaid spending is higher than expected. The economy is cooling. Last year's tax cuts and the decision to move billions of general-purpose revenue into highways will dramatically shrink the pool of money available for budget writers in next year’s legislative session.
Fears are mounting that lawmakers will have to cut spending deeply, especially if, as in most recent years, they don’t want to heavily dip into the state’s rainy day fund or raise fees. Any tax increase is almost certainly off the table in a solidly conservative Legislature.
“It is going to be a very challenging session,” said Texas Taxpayers and Research Association president Dale Craymer, a budget watcher who advised former Govs. Ann Richards and George W. Bush. “There will clearly be budget cuts.”
Read more: http://www.dallasnews.com/news/politics/headlines/20160901-texas-braces-for-budget-cuts-as-economy-medicaid-spending-decisions-collide.ece
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