TexasbudgetBUSTERS.com

Use of state and federal funds to purchase wireless devices and laptops for low-income residents in a single county.

Should the State of Texas purchase wireless devices and laptops for low-income persons in a single county with money dedicated for providing low-interest rate home loans?

The Texas Department of Housing and Community Affairs is responsible for improving living conditions of the poor and homeless through the administration of federal grants for emergency shelters and energy assistance for low-income and homeless persons. The Department of Rural Affairs transfers 2.5% of the annual $82 million federal Community Development Block Grant to the Department of Housing and Community Affairs each year. A budget rider on the Texas Department of Housing and Community Affairs budget requires the portion of the Community Development Block Grant used in El Paso County, as received from the federal government, to be used for the sole purpose of providing internet access, purchasing of wireless devices and laptops, and providing internet training for students and parents.

Eliminate longevity pay for state employees.

Should the Texas suspend longevity pay to state employees to save taxpayers' money?

State employees in Texas are currently entitled to longevity pay based on the length of their total employment with the State. The longevity pay rate is approximately $20 per month for each accrued year of state employment. An employee with 10 to 12 years of state employment receives $100 per month in longevity pay in addition to their annual salary, while an employee with 30 years of state employment receives an additional $300 per month in longevity pay. Longevity pay bonuses to state employees cost the state $159 million per year, according to the Texas Comptroller's 2009 Annual Cash Report.

Longevity pay sets up a system in which state employees are not rewarded for performance, but are instead rewarded for total time spent working for the state. Employees who perform to a level worthy of merit promotions will still receive rewards for their service and initiatives, just like in private industries. Also, I would prefer to cut bonuses rather than employees.

Should the Legislature enact a measure to limit the state budget to the rate of population growth plus inflation?

The current tax and expenditure limitation (TEL) procedure in the Texas Constitution is fatally flawed. Since 1978, when the current spending limit legislation was put into effect, the growth in appropriations has far outpaced the rate of population plus inflation. If a stricter spending limit was put into effect in 1990, Texas could be spending approximately $35 billion less per year, as seen in the following chart, courtesy of the Texas Public Policy Foundation. This savings could allow for significant property tax relief for taxpayers. Enacting simple statutory changes would simplify the current TEL and further restrict the growth of our State government while benefiting Texas taxpayers.

Zero-Based Budgeting

By common practice, there are five different types of approaches to use as a starting point for a state budget: zero-based budgeting, current-services budgeting, program-based budgeting, traditional/incremental budgeting, and performance-based budgeting.

Each biennium, the budget must be based from some number that is generally accepted by the Governor, the Legislature, and the agencies. The definition of the base figures are the starting point for the negotiations during the Legislative Session and the basis for the final budget that is ultimately approved by the Legislature, Comptroller, and Governor.

Zero-based budgeting is intended to disregard current spending and agency operations so the budget for each agency can be "built from the ground up" each biennium. Policy makers would be required to analyze, scrutinize, and justify each program and the effectiveness of the agency each biennium. This form of budgeting is also known as "building blocks" so the Legislature can fund the core functions of each agency starting from a budget of zero each biennium.

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