Gov. Perry Outlines Proposed Budget for Fiscal Year 2008-09
AUSTIN – Today Gov. Rick Perry outlined his 2008-09 budget proposal that establishes a new, higher standard for fiscal responsibility and truth-in-budgeting while meeting key priorities for Texas. The governor’s budget slows government growth, provides $15 billion in property tax relief, allocates $5.4 billion to pay for past accounting gimmicks such as delayed payments and leaves a $4.3 billion balance in the Economic Stabilization Fund untouched.
Gov. Perry proposes a stricter spending cap tied to the average of inflation and population growth. In this session, the governor’s proposed spending cap would be 3.5 percent lower than the current limit. Because the goal of a spending cap is to limit spending, not tax relief, property tax relief would be excluded from the governor’s proposed cap. The governor’s budget complies with this new proposed spending limit.
In total, Gov. Perry’s budget provides $167.3 billion from all funds, including $15 billion in tax relief. Absent tax relief, this represents an increase of $9.8 billion, or 6.9 percent over 2006-07. Spending from general revenue absent tax relief totals $71.4 billion, an increase of $5.8 billion or 8.8 percent over the 2006-07 biennium.
| Highlights of Governor’s Budget Priorities Fiscal Year 08-09 ($ Millions) | |
|---|---|
| PRIORITY | ALL FUNDS INCREASE |
| Fiscal Policy | |
| Eliminate, Return or Use Dedicated Funds (Truth-in-Budgeting) | 1,611.4 |
| Inspectors General | 35.7 |
| Public Education | |
| Senior Citizen Property Tax Relief | 397.0 |
| Excellence in the Classroom | 603.8 |
| Expand Early Childhood and Pre-K Initiative | 80.0 |
| Charter School Facility Construction | 12.0 |
| Children of Incarcerated Parents | 5.0 |
| Higher Education | |
| Performance Incentive Funding | 350.2 |
| Student Financial Aid | 362.0 |
| Texas Nursing Excellence Initiative | 47.0 |
| Health and Human Services | |
| Provider Rate Increases (Return to ‘03 levels) | 574.0 |
| Additional Rate Increase (Hospital Rebasing) | 875.0 |
| Adoption Incentive Program | 1.1 |
| HPV Vaccine | 71.7 |
| Economic Development | |
| Tax Relief | 2,500.0 |
| Emerging Technology Fund | 300.0 |
| Texas Enterprise Fund | 182.0 |
| Use Fund 6 to Enhance Transportation | 1,200.0 |
| Increase Skills Development Fund | 10.0 |
| Railway Relocation Fund | 100.0 |
| General Government | |
| Texas Cancer Research Initiative | 130.0 |
| Healthier Texas Initiative | 750.0 |
| Improve State Procurement and Facilities Management | (42.3) |
| Create the Texas Health Professions Commission | (2.5) |
| Disaster Trust Fund | 50.0 |
| Film Incentives (one-time) | 20.0 |
| Increase State Support for the Arts (one-time) | 29.0 |
| Recruit Faith-Based Foster Care Families | 3.0 |
| Criminal Justice and Public Safety | |
| Fund Texas Homeland Security Plan | 100.0 |
| Increase Correction Capacity and Diversions | 184.3 |
| Increase Support to the Texas National/State Guard | 0.7 |
| Natural Resources | |
| Texas Emissions Reduction Plan | 183.0 |
| FutureGen | 20.0 |
| Trinity River Environmental Restoration Initiative | 0.5 |
| TOTAL | $10,743.6 |
Governor's Budget 2008-09 Summary [5.2MB PDF]
Governor's Budget 2008-09 [5.2MB PDF]
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