| **UPDATE*** Eye on Williamson reported very early this morning that Senator Ogden knows that Perry will use the Rainy Day Fund: But the most interesting part was when he was asked about whether or not Perry will cave in on using the Rainy Day Fund. Here's what he said, when asked in Gov. Perry is still on the other side of that issue (spending the RDF:Well he is and he isn't. I've talked to him privately. I've also listened to his public statements and they're more nuanced then they're being portrayed. And at the end of the day the Governor's position I believe, in fact I know is..(Ogden chuckles)..Until I'm convinced you guys have scrubbed this budget as much as possible and as much as the voters want to, don't start spending the Rainy Day Fund. But that's different then were never going to touch it. Ed. note: A big h/t to our friends at Eye on Williamson, who had this two weeks ago. Five major Texas conservative groups -- Texans for Fiscal Responsibility, the Texas Conservative Coalition, Americans for Prosperity-Texas, the Free Market Foundation and the Texas Public Policy Foundation -- have all advocated for use of the Rainy Day Fund dollars in the 2012-2013 budget. In fact, all the groups predicted there would be a budget shortfall the Legislature had to confront this session, and that the money should be used to "prevent or eliminate a temporary cash deficiency in general revenue." If that runs against everything that you've heard in the news, it's because the groups advocated for the use of the Rainy Day Fund in a letter dated March 31, 2009, during the last session. From a copy of the letter, which is still posted on the Texas Conservative Coalition website: The balance in the Economic Stabilization Fund should continue to accumulate and be held in reserve to address future potential shortfallas as a consequence of the current economic downturn. Comptroller Susan Combs has warned that the impact of the financial crisis will be felt not in the 2010-2011 state budget, but two years from now as the 82nd Texas Legislature writes the 2012-13 budget. Retaining the entire balance in the Economic Stabilization Fund is important so that the state does not have to cut essential programs or raise taxes in response to an anticipated budget shortfall in 2011.
The fact that all groups oppose use of the Rainy Day Fund now -- and given the fact that the state's economic situation panned exactly as they predicted -- goes to show how much politics, and not public policy, actually goes into their decision making process.Today, Governor Rick Perry will meet with Texas Republicans to, among other things, urge them to not use the Rainy Day Fund for the current budget process. As Peggy Fikac wrote in the Houston Chronicle: Perry will be talking about the same topic today when he meets with the House Republican Caucus. Perry is not only opposed to new taxes, he says he's against tapping into the rainy day fund savings account. The latter position puts him at odds with some other top GOP leaders and a number of GOP lawmakers. A GOP House leader told my colleague, Gary Scharrer, that nearly all Republicans are ready to pull money from the rainy day fund, and that Perry wants to meet with them to change their minds. Some think Perry's talk against using the fund is his opening gambit in budget negotiations. If he started out saying it was OK to use the fund, those who want to avoid painful cuts could concentrate on pushing for new revenue, and maybe even taxes. At least one observer didn't want to comment, saying, "No one wants to back him into a corner" with the risk of hardening Perry's pronouncements into a veto threat.
As Matt wrote earlier, Rick Perry prioritizes Grover Norquist over meeting with disabled Texans, so I'm not hopeful that the meeting will produce anything of value to most Texans. |
