Massive Cuts Possible

They say cut back. We say fight back!
House Speaker suggests state employee pay cuts to close budget hole

. . . . Joe Straus, R - San Antonio, and Speaker of the Texas House of Representatives, said on May 11 that he would rather cut state employee pay than consider any kind of tax increase to help solve a massive budget problem. Saying that "We cannot afford business as usual," Straus said that the state should consider unpaid state employee furloughs and four-day work weeks along with other massive cuts. Jim Pitts, R- Waxahachie and chair of the House Appropriations Committee, has said that the Legislature should also consider ways to increase revenue.
. . . . The most recent reports from the Legislative Budget Board peg the budget shortfall for the next 2-year biennium at $15 to $18 billion. That’s on top of a projected $1.5 billion shortage in the current biennium. The well known “5% cuts” are intended to deal the deficit in the current biennium.

“Perfect Storm” of recession and bad policy created the mess
. . . . The recession is hurting Texas. With sales taxes making up a third of state revenue, any recession bites deep. State tax revenues are running about 10% less than legislators predicted when they wrote the budget in 2009. But the biggest problem is the long-term budget squeeze created in 2006 when the Legislature voted to reduce property taxes by about $7 billion per year and pay the difference out of state funds. The plan was for a redesigned business franchise tax to make up the difference, although plans at the time predicted that the business tax would only bring in about $4.5 billion additional per year. The business tax is actually bringing in about $2.5 billion per year in additional funds, and so the state budget is in the hole for about $4.5 billion per year. The property cut scam combined with the recession have created a crisis for next year that will probably be worse than 2003. This mess is one that anti-government radicals actually like to see: they are always looking for way to starve( and shrink) government services.

Texas state employees already 15% behind the private sector
. . . . An April 2010 analysis by the Center for State and Local Government Excellence shows that state employees in Texas earn more than 15% less than private sector workers in similar jobs. In an interview with Dallas Morning News reporter Robert Garrett, John S Heywood, a co-author of the study, notes that government agencies may have problems retaining employees and says that “Now is not the time for a large-scale rollback in the compensation of state and local workers.”

Our pay is down 20% since 1988
. . . . When pay raises and cost-of-living inflation are taken into account, the average salary for Texas state employees has lost about 20% of its purchasing power since 1988.

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MASSIVE CUTS POSSIBLE AT ANY TIME . . . . . . . . . TSEU Organizer Contact: MIKE GROSS They say cut back. We say fight back! House Speaker suggests state employee pay cuts to close budget hole . . . . Joe Straus, R - San Antonio, and Speaker of the Texas House of Representatives, said on May 11 that he would rather cut state employee pay than consider any kind of tax increase to help solve a massive budget problem. Saying that "We cannot afford business as usual," Straus said that the state should consider unpaid state employee furloughs and four-day work weeks along with other massive cuts. Jim Pitts, R- Waxahachie and chair of the House Appropriations Committee, has said that the Legislature should also consider ways to increase revenue. . . . . The most recent reports from the Legislative Budget Board peg the budget shortfall for the next 2-year biennium at $15 to $18 billion. That’s on top of a projected $1.5 billion shortage in the current biennium. The well known “5% cuts” are intended to deal the deficit in the current biennium. “Perfect Storm” of recession and bad policy created the mess . . . . The recession is hurting Texas. With sales taxes making up a third of state revenue, any recession bites deep. State tax revenues are running about 10% less than legislators predicted when they wrote the budget in 2009. But the biggest problem is the long-term budget squeeze created in 2006 when the Legislature voted to reduce property taxes by about $7 billion per year and pay the difference out of state funds. The plan was for a redesigned business franchise tax to make up the difference, although plans at the time predicted that the business tax would only bring in about $4.5 billion additional per year. The business tax is actually bringing in about $2.5 billion per year in additional funds, and so the state budget is in the hole for about $4.5 billion per year. The property cut scam combined with the recession have created a crisis for next year that will probably be worse than 2003. This mess is one that anti-government radicals actually like to see: they are always looking for way to starve( and shrink) government services. Texas state employees already 15% behind the private sector . . . . An April 2010 analysis by the Center for State and Local Government Excellence shows that state employees in Texas earn more than 15% less than private sector workers in similar jobs. In an interview with Dallas Morning News reporter Robert Garrett, John S Heywood, a co-author of the study, notes that government agencies may have problems retaining employees and says that “Now is not the time for a large-scale rollback in the compensation of state and local workers.” Our pay is down 20% since 1988 . . . . When pay raises and cost-of-living inflation are taken into account, the average salary for Texas state employees has lost about 20% of its purchasing power since 1988.				“Out of balance: comparing public and private sector compensation over 20 years” (full text of study) Download PDF “Straus vows no new taxes” May 11, 2010 “Budget mess got going with 2006 property tax cuts” February 2010 “Texas public sector pay 17% lower than private” April 29, 2010 The following information can be found in the MEMEBERS ONLY section of the website, click tab above and supply password. Letter from Gov. Perry requesting plans of agency heads to find areas to cut TDCJ's, TYC's and HHSC's response/plan for cuts TSEU UPDATE: “Just the facts: hard numbers for state employees” (pages 2 and 4 of the current TSEU Update)