Texas Used Stimulus to Cover 97% of Its Deficit

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bobalot
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Texas Used Stimulus to Cover 97% of Its Deficit

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NEW YORK (CNNMoney) -- Texas Gov. Rick Perry likes to tell Washington to stop meddling in state affairs. He vocally opposed the Obama administration's 2009 stimulus program to spur the economy and assist cash-strapped states.

Perry also likes to trumpet that his state balanced its budget in 2009, while keeping billions in its rainy day fund.

But he couldn't have done that without a lot of help from ... guess where? Washington.

Turns out Texas was the state that depended the most on those very stimulus funds to plug nearly 97% of its shortfall for fiscal 2010, according to the National Conference of State Legislatures.


Even budget deficits are bigger in Texas

Texas, which crafts a budget every two years, was facing a $6.6 billion shortfall for its 2010-2011 fiscal years. It plugged nearly all of that deficit with $6.4 billion in Recovery Act money, allowing it to leave its $9.1 billion rainy day fund untouched.

"Stimulus was very helpful in getting them through the last few years," said Brian Sigritz, director of state fiscal studies for the National Association of State Budget Officers, said of Texas.

Even as Perry requested the Recovery Act money, he railed against it. On the very same day he asked for the funds, he set up a petition titled "No Government Bailouts."


"Join our fight and add your voice to a growing list of several thousand Americans who are fed up with this irresponsible spending that threatens our future," Perry wrote on his blog on Feb. 18, 2009.

A governor's spokeswoman played down the money's role in shoring up Texas's finances.

"Texas would have balanced its budget regardless of the presence of stimulus dollars," said Lucy Nashed, Perry's deputy press secretary. "This money came from the pockets of Texas taxpayers, and we are committed to getting our fair share of these dollars, which would have otherwise been disbursed to other states."
Difficult years ahead

Unfortunately for Texas, and for most other states in the union, the stimulus safety net has dried up. So they are now facing draconian spending cuts as they try to close yawning budget gaps for fiscal 2012, which starts July 1 in most states.

Texas is in trouble too. State lawmakers last week unveiled an austere budget for the 2012-2013 fiscal years that cuts $31 billion in spending. Schools, colleges, Medicaid and social services for the needy will be hit especially hard.

The state won't replace any of the federal stimulus funds with its own revenues, said Rep. Jim Pitts, who is writing the budget bill for the Texas House. It doesn't have the money. The state comptroller estimated that revenues will be $15 billion less in fiscal 2012-2013 than the previous two-year period.

Gone are the $4.3 billion in stimulus funds for Medicaid and $3.25 billion for public education. The resulting cuts outlined in the budget means schools would likely close and class sizes would get bigger. And because the budget proposes a 10% cut in Medicaid reimbursement rates for doctors, physicians will likely leave the system, making it harder for the poor to get health care.
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Republican hypocrisy has gotten so normal, it's barely even news anymore.
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Themightytom
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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That's not hypocrisy, it's just douche baggery. They don't like paying taxes, so they made sure to recover as much of their money as they possibly could, as opposed to making the same cuts the rest of the nation has been forced to make.

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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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RICK PERRY! *shakes fist*

Other than him being involved, good on Texas. I'd rather see states have a financial interest in the federal government existing than otherwise.
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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What's ridiculous and disturbing is that the use of stimulus money is being combined with a refusal to deal with the state government's structural deficit. That puts the state in a condition of permanent dependancy on the federal government for basic services... but the federal government will not supply those funds under all conditions.
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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What wonderful fucking irony.
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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97%, holy shit. :shock:

Are there any stats for the other states?
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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Jim Raynor wrote:97%, holy shit. :shock:

Are there any stats for the other states?
That's all the article highlighted.
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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Simon_Jester wrote:What's ridiculous and disturbing is that the use of stimulus money is being combined with a refusal to deal with the state government's structural deficit. That puts the state in a condition of permanent dependancy on the federal government for basic services... but the federal government will not supply those funds under all conditions.
For added comedy, the TeaHouse is preparing to cut social spending as far as they can get away with, which will, if passed, really assrape Texas. And yet, rock-stupid Texans will continue to vote Teabag because they wave the flag and the crucifix and guns and feed their delusions that they're oh so independent compared to the rest of "Socialist" America.

I'd like to say that maybe they'll finally learn that civilisation is not a thing that simply, well, happens; that it actually has to be worked to maintain and paid for and that involves taxes and government. But then again, this is Texas. They'll happily live in the third-world shithole their state is about to turn into so long as they get to keep saying "Don't mess with Texas" with a smile.
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Re: Texas Used Stimulus to Cover 97% of Its Deficit

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Texans have their own plans for getting by.
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Accepting government hand outs is wrong, and Texas doesn't "Need" taxpayers help, on the other hand, generating revenue via horny drunken tourists is just The American Way.

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