AMARILLO, TEXAS -- Texas is preparing for a financial crisis, according to the Dallas Morning News today. ProNews 7 told you last week about the budget problems in Texas school districts, but now it seems the Texas budget in general could be facing a problem.
House members recently received homework from Speaker Joe Straus to look at the budget and the states tax situation.
The speaker urges studying up on which tax breaks are no longer useful, and can be eliminated.
So what is the main cause of this deficit issue? State Representative John Smithee says, it's something Texans have struggled with for a while. "The natural gas price, which has reduced revenue to the state and drilling in the state and in fact that is one of the reasons for the comptroller reducing the Rainy Day fund by a billion dollars."
Smithee says the current budget situation is no cause for panic, but if a new Federal health care bill passes, it would require states to spend more money on Medicaid programs and other programs, and with our current economic situation the outcome could be devastating.
