House Appropriations Votes Out HB 275

Last week, Bee wrote about the significance of HB 275, which Chairman Jim Pitts introduced to the House Appropriations Committee. HB 275 would appropriate money from the Economic Stabilization Fund ("Rainy Day Fund") to fill a budget deficit that exists in our current biennium (2010-2011). Read the article here. 

Yesterday, March 15, the House Appropriations Committee voted to use $3.2 billion from the Economic Stabilization Fund to balance part of the $4.3 billion budget deficit. The vote came after a tense meeting the previous day when Gov. Perry's representatives failed to appear before the committee. Pitts had invited the Governor's Office to publicly testify before the House Appropriations Committee that Gov. Perry would support using money from the RDF to close the deficit. 

The formal meeting on March 15 began an hour and a half late, but finally got started when Chairman Pitts read a press release from Gov. Perry ok-ing the use of the Economic Stabilization Fund. "We have worked closely with state leaders and lawmakers to balance the current budget, which includes using a one-time amount from the Economic Stabilization Fund to help our budget deal with the impact of the national recession." You can read the full press release here.

As stated, the current budget deficit is actually $4.3B, but as a part of a deal with Gov. Perry, the House Appropriations Committee only voted to use $3.2B with an additional $800m coming from previously called for cuts and $300m in new revenue that the Comptroller certified because of an increase in sales tax revenue. 

Gov. Perry drew ire from some lawmakers when he said that no money from the Economic Stabilization Fund should be used to close the $27B projected revenue shortfall in the 2012-2013 bieenium. This means that around $6B will be left sitting in the Fund as lawmakers slash funding to public and higher education; health and human services for the poor and disabled; and the criminal justice system. 

HB 275 will next move to the House floor for a vote by the whole chamber.