The latest economy news from The Texas Tribune.
The proposed budget cuts Gov. Rick Perry laid out in his State of the State speech are more symbolic than lucrative and trivialize the cuts that are being made elsewhere in state services and programs. Full Story
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Gov. Rick Perry told lawmakers Tuesday he is against tapping the state's $9.4 billion Rainy Day Fund to close the budget shortfall: “That approach would not only postpone tough, necessary decisions." Full Story
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Basically, Texas has its own grid to avoid dealing with — you guessed it — the feds. But grid independence has been violated a few times over the years — not even counting Mexico's help during blackouts in 2011. Full Story
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Gov. Rick Perry will challenge the state's colleges and universities to offer a $10,000 bachelor's degree, including books, in his State of the State speech later this morning, according to sources familiar with some of the proposals. Full Story
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At the Texas Education Agency's first appearance before the Senate since the release of a budget that reduces school funding by $9.3 billion, senators called for a "full picture" of the state's spending on public education. Full Story
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Slashing funds for community-based mental health care will hurt taxpayers and degrade the quality of life for thousands of mentally ill Texans and their families, Harris County Jail officials told Texas budget writers today in written testimony for the Senate Finance Committee. Full Story
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Texas leaders aren't talking about secession, after an outbreak of conversation a couple of years ago. But the germ of the idea remains in the anti-federalist talking points that fueled Gov. Rick Perry’s re-election campaign last year and provided the outline for his book, Fed Up! Full Story
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Creative industries — from advertising to dance companies to book publishing — generate $4.5 billion per year in economic activity for Texas, according to a new report released by the Texas Cultural Trust in association with the Texas Commission on the Arts. The report features projects in communities like Amarillo, El Paso, Rockport, Texarkana and the tiny, north central Texas town of Clifton, population 3,795. “It’s more than fluff,” says Amy Barbee, the Trust's executive director. “We want to tell the story that the arts truly are economic development.” Full Story
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For community mental health and retardation centers like Round Rock's Bluebonnet Trails, cuts in the state budget will have a direct effect on the number of people they serve — and help keep in school or employed and out of state hospitals and emergency rooms. For KUT News and The Texas Tribune, Ben Philpott reports. Full Story
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Just how important is full-day pre-kindergarten for the state’s youngest and most disadvantaged kids? Is it more important than after-school tutoring? Than canceling music and art classes? As public school officials brace for a proposed $10 billion less in state funding, that’s one decision they'll have to make. “It's choosing between bad and worse and bad and bad,” says one superintendent. “It's definitely not a good day when we are sitting around talking about whether class size going up could help salvage all-day pre-K, or vice-versa.” Full Story
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Lt. Gov. David Dewhurst announced he will name the Senate's committees on Thursday or Friday of this week, with one exception. He wants the Senate Finance Committee to get going right away, and named that panel this afternoon. Full Story
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The Senate's version of a starting state budget is, at $158.7 billion, $2.3 billion bigger than the House's, but still would chop overall state spending by $28.8 billion, or 15.4 percent, from current levels. Full Story
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Whatever budget lawmakers eventually approve will serve as the working blueprint for the state for the two years starting in September. But the budget released last week isn’t a blueprint — it’s a political document. It marks the shift from the theoretical rhetoric of the campaigns to the reality of government. Full Story
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A proposal by the Obama administration that would grant Mexican truckers greater access to Texas roadways would be a boon for business in the state, supporters say, since three of the top five ports for trade between the U.S. and Mexico are Laredo, El Paso and Houston. But unions contend the plan would cost American jobs. “This cheap-labor program comes at too high a risk and at too large a cost to middle-class American workers who work long, hard hours to help maintain a safe commerce system in our nation,” says a spokesman for the Texas AFL-CIO. Full Story
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In a case that could directly affect Texas' planned budget cuts, the U.S. Supreme Court will decide whether states have the legal right to reduce the rates they pay to health care providers who accept Medicaid patients. Full Story
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As House Appropriations Committee Chairman Jim Pitts, R-Waxahachie, laid out the first grim round of proposed cuts on Wednesday, even some of his Republican colleagues couldn't stifle their objections. House Democrats went a step further, calling the cuts "akin to asking an anorexic person to lose more weight." Full Story
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House Appropriations Chairman Jim Pitts, R-Waxahachie, laid out the grim details of the proposed budget this morning — but said he still thinks lawmakers can be approve the budget during the regular legislative session. Full Story
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The Legislative Budget Board has begun distributing (to legislators — not to the public) its recommendations for how to save money and raise money to help balance the 2012-13 state budget. They plan to distribute copies of the budget itself (again, to lawmakers only) later tonight, and all of the documents will be available online to the public tomorrow morning. The details are still coming in, but here are some of the headlines from the LBB's Government Effectiveness and Efficiency Recommendations. Full Story
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The Legislature's starting budget will apparently include proposals to cancel popular back-to-school sales tax holidays, cut discounts for retailers who remit sales taxes early, allow sales of liquor on Sundays to increase revenue from taxes on alcohol, cut the state's subsidy of dependent insurance premiums for state employees and lower the tax breaks for energy companies that take on certain high-cost gas drilling projects, sources say. Full Story
With some top state leaders warning that Texas' dire fiscal situation will lead to the loss of several thousand state jobs, House budget writers will release their first draft budget today. As Ben Philpott of KUT News and the Tribune reports, big job cuts may be just the beginning. Full Story
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