Approves fiscally responsible use of Economic Stabilization Fund to close out current budget year, avoid tax increases
by Rep. Erwin Cain, District 3 | March 31, 2011 | Press Release
Austin — Tonight, the Texas House of Representatives passed HB 4 by a vote of 100-46 in order to balance the books for the current budget year as required by the Texas Constitution. The House also passed HB 275 by a vote of 142-2 authorizing a one-time $3.1 billion draw down of the Economic Stabilization Fund (ESF) to pay this year’s outstanding obligations. Rep. Cain voted in favor of both measures.
Cain said, “The Legislature is faced with the painful reality that state government must live within its means. In difficult financial times, we have to tighten our belt just like every family in Texas. The challenge has been to downsize state government in the most fiscally responsible way possible. The House has done that and I’m pleased to have been a part of that effort.”
Governor Rick Perry, Speaker Joe Straus, and Comptroller Susan Combs recently announced their support for closing out the Fiscal year 2011 budget gap with $800 million in budget cuts, utilizing $300 million in increased sales tax collections, and a one-time use of the ESF. Over the last several weeks, approximately $1.1 billion in savings have been identified, mitigating the draw down on the ESF.
“We’ve worked long and hard to find every efficiency possible. In the end, no one is pleased with the choices we have to make. But we were elected to make tough fiscal decisions. We owe it to taxpayers, and most importantly our children and their children, to insure every dollar is spent as responsibly and efficiently as possible.”