By Jeff Wentworth
Guest Commentary

Our Texas Constitution requires that state spending each year not exceed revenues or income.

Ensuring that Texas government lives within its means is not always easy, particularly in lean financial years when doing so requires necessary, and often painful, budget cuts. During the 2007 Legislative Session, we legislators were fortunate in that we were able to balance the budget and begin the implementation of $14.2 billion in tax cuts for the 2008-09 biennium. These cuts to Texans’ taxes were partially funded by the new margins tax and the cigarette tax, which together generated approximately $7 billion.

In order to guarantee a $7 billion tax cut through at least 2010 and 2011, we left $7 billion unspent. Of that amount, $3 billion is in the Property Tax Relief Fund while $4 billion is in the Rainy Day Fund.

Add to this some $2 billion in General Revenue and an unexpected growth in sales tax and higher oil and gas prices, and it looks as though Texas will begin the 2010-2011 biennium with a cushion of between $10.7 and $15 billion. That is a cushion that any of us would feel very comfortable sitting on, if it were real. Unfortunately, in budgets, as in life, things are not always what they seem.

The $10 billion to $15 billion represents only one side of the financial equation – the revenue side. It does not take into account the 80,000 new students each year that will enroll in our public schools, nor does it allow for the growth in federally mandated programs, such as Medicaid.

When we factor in a population growth that is greatly increasing the demand for services, as well as the hike in gas prices and utilities costs that are impacting the state, as well as the individual, the cushion isn’t nearly so plump.

In addition, no one knows what the future will bring to Texas. Currently, we are in much better shape than most other states, but that could change.

Texas State Sen. Jeff Wentworth (R-San Antonio) represents District 25, which includes part of Bexar County. He can be reached via e-mail at jeff.wentworth@senate. state.tx.us.