With the Texas economy improving, things are looking good for Texas, but recent budget deficits are stirring up trouble in the Senate. According to Fox 7's article "Texas Economy Better, But Budget Still Short," written on Feb. 21, 2012, legislature budgeted $4.1 billion too little for Medicaid in 2012-2013. Lawmakers must come up with a way to cover for this debt, and Democrats have an idea. The Rainy Day Fund, created to help out when the Texas government faces deficits, will have approximately $7.3 billion in it by this October. Democrats called for a special session to use the fund for the deficit and to use 4 billion out of it on the recent cuts on public schools. However Governor Perry and Republicans disagree. Despite the deficit, consumerism and employment rates are up, and Texas is still growing and recovering.
I found this article interesting because it looks at Texas' budget shortcomings, AND it's economical improvements. It introduced me to the Rainy Day Fund, which I hadn't heard of. I found it comforting to know that our government is prepared and able to make up for budgeting mistakes like this when they occur, instead of raising taxes.
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