A day after Texas Governor Rick Perry was sworn into his third full term in office, state lawmakers have been handed a biennium budget proposal that suggests $31 billion in spending cuts.
The cutback is in response to a massive budget shortfall that could be anywhere from $15 to $27 billion over the next two years. The Associated Press has reported the plan suggests $2 billion in cuts from state Medicaid, the Children's Health Insurance Program and food stamps.
Total health and human services spending reductions equate to 7.7 percent, reports Bloomberg, while education is expected to receive a 10 percent cut. Additionally, the proposal suggests a 13 percent cutback in spending on higher education.
Governor Perry has frequently stated that he does not intend to raise taxes in order to balance the budget, stating that such a burden is not necessary and would only harm the state's fragile economic recovery and discourage entrepreneurs from incorporating in Texas.
"We must cut spending to keep our economic engine on track," Perry said yesterday in his inaugural speech. "These tough times dictate government doing more with less."
Tags : incorporation news, taxes, tx
Posted: Jan 19th, 2011