State Agencies Ordered to Make More Budget Cuts

We’ve been hearing for a while that the state’s financial situation looks bleak.

Some  have speculated that the budget shortfall could be as much as $18-$25 Million.

Today, Governor Rick Perry, Lt. Gov. David Dewhurst and Speaker Straus ordered state agencies to identify 2.5% savings in the 2011 Fiscal year budget.

Democrats have already voiced concerns that additional cuts will hurt those who most need help.  We’ll have to see what happens.

Here’s the news release and you can find the link to the letter sent to the agencies at the bottom of the page: 

Gov. Perry, Lt. Gov. Dewhurst, Speaker Straus Direct Agencies to Identify

2.5 Percent Savings in 2011 Fiscal Year Budget 

AUSTIN — Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Joe Straus today sent a letter directing each state agency to identify savings of 2.5 percent of their original general revenue and general-revenue-dedicated appropriations for the remainder of the 2011 fiscal year.  

“Texas’ economy remains strong, and as we lead the nation in recovery from the economic downturn, we will continue to ensure that Texans’ tax dollars are spent prudently,” Gov. Perry said. “Identifying these savings builds on our ongoing call to keep government spending in check so that we can balance our state budget without raising taxes and continue to attract businesses that create jobs for Texans.”

 These savings, along with those previously identified for the current fiscal year at the governor, lieutenant governor and speaker’s January request, will be realized through action the 82nd Texas Legislature takes in adopting a supplemental appropriations bill for fiscal year 2011.

 While sales tax receipts have improved since the beginning of the year, reduced spending in the current fiscal year will help prepare for budget reductions that will be necessary to balance the budget for the 2012–2013 biennium.

 To view a copy of the letter, please visit

http://governor.state.tx.us/files/press-office/2_5_Percent_Letter_12-6-10.pdf

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