Texas may have $400 million surplus
January 11, 2005
News from Strayhorn pleases state legislators
Written by Tim Eaton, Scripps Howard Austin Bureau

Comptroller Carole Keeton Strayhorn
AUSTIN - On the day before the state Legislature convenes, state Comptroller Carole Keeton Strayhorn announced lawmakers will have more money to work with than most people had expected would be the case.
Strayhorn released her revenue estimate for 2006-2007 on Monday. She said in a presentation that a $400 million surplus would greet legislators for their first day of work in the 79th Legislative session. The surplus is part of $64.7 billion in available money for the 2006-2007 biennium.
''It's as accurate as it could be,'' Strayhorn said. ''There is a slight cushion.''
The surplus surprised a lot of people in Austin, where many politicians - including Speaker of the House Tom Craddick and Lt. Gov. David Dewhurst - expected a budgetary shortfall of somewhere between $1 billion and $2 billion. Last time, the shortfall was almost $10 billion.
Sen. Bob Duncan, R-Lubbock, whose district includes areas around San Angelo and Abilene, said he was not too surprised by Strayhorn's announcement, adding that he feels some relief with the breathing room.
''We have the realization that we can take some of the edge off the programmatic cuts that we had to make last session,'' Duncan said. ''It gives us a lot more flexibility and freedom to go back and deal with some issues that we weren't able to deal with last time.''
Duncan said Children's Health Insurance Program and Child Protective Services and Adult Protective Services will need lawmakers' attention.
''We're going to able to address some of those issues,'' he said.
Also on Monday, Gov. Rick Perry declared Child Protective Services, along with Adult Protective Services and education, as emergency items. The designation will allow lawmakers to begin hearings almost immediately on the items.
Just as the governor announced the need for emergency legislation, he found himself fighting off attacks from Strayhorn, who some have said may challenge him in the 2006 gubernatorial Republican primary.
Peppered throughout two presentations of her revenue estimate, Strayhorn took shots at Gov. Rick Perry, calling him an ineffectual leader.
''There's no shortfall when it comes to the budget,'' she said a few times Monday. ''There is a shortfall when it comes to the governor's leadership.''
Perry declined to shoot back. Instead, he offered a different view of the budget. He said Strayhorn was low-balling the surplus. It is more like $6 billion, Perry said.
The discrepancy is there because Strayhorn calculated a budget that already has taken into account current spending levels. That is not her job, Perry's press office said: It is the responsibility of the Legislature.
Some lawmaker chalked up the discrepancy to political infighting. But others, including Sen. Troy Fraser, R-Horseshoe Bay, said the numbers are just an indication of a healing economy.
''The fact that we are in the black is extremely good for the start of the new session,'' he said. ''When funds are available for the neediest of Texans, that is good for anyone.''
Like Duncan, he expected money to go toward CPS, APS and education.
Bob Hunter, R-Abilene, also said he is delighted to hear about the surplus.
''That is great news, if we can look to more student financial aid,'' he said. ''It'll be one of my priorities.''
He added he also hopes the public schools will get some money, and teachers will get a pay raise.
Welcomed by news of a surplus, Hunter and other lawmakers have been arriving to Austin over the past few days for today's opening of the 140-day legislative session.
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