Medicaid: Big and Scary, But Not Surprising

Budget writers have known for months—since they first saw the numbers—that Medicaid and various other insurance and health care programs were going to stink up the next budget and stain the current one. And they even had a fair idea about the size of the odors and the spots. They’ve been hearing about drug prices and premiums and caseloads for the better part of the last year. The numbers are big and even alarming, but the problem has been on the radar for a while.

Some of the same people who voted to constitutionally limit state borrowing four years ago have found a way to issue hundreds of millions of dollars in new state highway bonds without counting the new debt against that constitutional cap. Each of the three different types of bonds spelled out in current highway funding proposals would punch a skylight into the legal debt ceiling designed to brake the heavy borrowing that began during the prison-building boom of the 1990s.

U.S. Sen. Kay Bailey Hutchison is seriously considering entering the race for governor of Texas, according to friends and supporters. That’s contrary, mildly, to her 14-month-old pronouncement that she probably would not run against an incumbent governor. But that was during the presidential race. Hutchison herself was up for reelection to the U.S. Senate, and things were more fluid then. There had been no presidential primaries and it wasn’t clear that anybody in Texas politics was going anywhere.

The presidential election lasted too long. Then there was a new governor to swear in and a race in the Senate to name a new lieutenant governor and a mini-diaspora to Washington, D.C. Senate committees were named, then House committees, and everyone paused for the inauguration. Gov. Rick Perry will come back and make a State of the State speech this week and then, at last, this contraption will finally be rolling. It’s been a weird beginning to what could be a weird year.

Things do pile up when you’re away from your desk for a holiday. All that happened during our 17th annual year-end break was the swearing in of a new president and of a new governor of Texas, the election and swearing in of a new lieutenant governor*, a major shakeup (and 24 hours later, an amendment to the shakeup) of Senate committees, and the release of U.S. Census numbers that give Texas two more seats in Congress after the 2002 elections. Oh, yeah, there’s a new estimate on how much money will be available for the next two-year budget. And a mess of people changed jobs.

Wow! Live weather metaphors! Just when the television folk ran out of descriptions for the presidential freeze-frame, it got really cold in Austin. It looked possible that it would drizzle and that the drizzle would freeze on the streets. It was dark and stormy and gray. People came to work late. Then the sun broke through, Al Gore resigned, George W. Bush accepted, and Republicans all over the Capital City started smiling again.

Texas budgeteers are poking around in the seat cushions for $700 million in loose change to try to avoid a politically hazardous vote on spending during the first few weeks of the legislative session.