Rainy Day Fund, Budget Revenue Estimate, Business Tax

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Rainy Day Fund, Budget Revenue Estimate, Business Tax

Discussions of use of the Rainy Day Fund to relieve the current Texas State Budget crisis have begun at the legislative level.  The Rainy Day Fund was first established for use at the state level when revenue for a state budget was lower than needed to fund basic programs for Texans.  Basically, the state has established a “savings” account for Texas.  Now is the time to use some, if not all, of the Rainy Day Fund. Some Legislators are calling for use of 100% of the amount in the Fund as revenue for the next biennium while others are calling for use of 50% of the fund as revenue.  If the state is not going to us the Rainy Day Fund for the next biennium, then return the money to Texans who have paid taxes to build the fund to its current level.

The Comptroller’s first estimate of revenue for the next biennium was a dismal view of the economic picture of Texas future.  Prior to the serious discussion of revenue for the State Budget, the Comptroller will release another revenue forecast for lawmakers.  If history repeats itself, the “next” revenue forecast will show higher revenue estimates and a much smaller deficit between expenditures and revenue.  Then, Texas Public Schools will have a real sense of the State’s reduction in spending.

Since the Business Tax was created to replace revenue lost in the reduction of local school taxes, the Legislature must address the self-inflicted wound they created.  Instead of an estimated $7 Billion in revenue for the State Budget, the Business Tax has generated $400-$500 million.  Prior to a review of Funding Formulas for public schools, the Legislature should review the Business Tax formula to determine deficiencies in this structure.

Control Costs –Maintain Quality

Since Public Education is labor intensive, controlling costs for materials, supplies, contract services, benefits, utilities, reimbursable expenses, etc. is more important than ever.  There is a very real perception by some people in business and industry that all school districts need to “cut the fat”, “lean their operations”, “learn to operate on less”, and “tighten their belt”.  In fact, since many businesses have downsized, there is a belief that “laying people off” is the only way to send a message of reducing expenses.  A good business does not downsize at the expense of a quality product.  If the quality of a business is diminished during downsizing then the business will collapse.

The production of public education is a participating citizen for society.  Quality is determined by the output of a well-educated community of people.  There is probably some room in every school budget for reductions; however, the quality of the “output” cannot be sacrificed or minimized while the “witch hunt” for escalating cost continues.  Leaner operations can only be achieved through thoughtful consideration, and review, of expenses.

Thought

An organization will survive and thrive through the leadership of well-intended people who serve others.