Center for Public Policy Priorities News

Texas Faces a Struggle to Write a Budget That Meets the State's Needs for 2010-11

Eva DeLuna Castro — 2008-05-12T15:28:34-06:00

The state budget funds critical public systems upon which we all depend. Unfortunately, a realistic analysis of both sides of the state's balance sheet--income and expenses--shows that Texas faces another tight budget in 2010-11. While the state will probably have more available revenue than it did for 2008-09, it will also have more people and higher costs, quickly using up any additional funds. Recently, however, the Speaker suggested that the state might have a $15 billion "surplus" by the end of the biennium, with the Comptroller saying that her most recent estimate projects $10.7 billion. But neither is using the term "surplus" in its ordinary sense. In fact, both estimates include expected balances in the Property Tax Relief Fund, which is already committed to pay for previous tax cuts, and in the Rainy Day Fund, which is reserved for emergencies. In all likelihood, the state will again be unable to fund critical public systems without new sources of revenue.

Building Texas: The 2008 Tax and Budget Primer

Dick Lavine,Eva DeLuna Castro — 2008-05-06T13:14:38-06:00

This up-to-date and easy-to-digest booklet will help you think about the challenges facing us as Texans. Our public systems and structures--such as our public and higher education systems, civil and criminal justice systems, and transportation system--help to make this a great state, securing the common good for all Texans. This new primer discusses what we need to do to maintain our democracy and enhance our prosperity and how to pay for it.

A Central Pillar of Texas Health Care is at Risk: Federal Medicaid Rules Would Cost Texas $3.4 Billion

Anne Dunkelberg — 2008-04-16T17:17:12-06:00

Federal Medicaid officials are trying to impose a number of rules that, if implemented, would make program cuts that would threaten our most vulnerable citizens, limit our ability to serve more low-income children in CHIP, and shortchange taxpayers at the same time. Texas Medicaid officials estimate that these rules would cost Texas Medicaid $3.4 billion in lost federal support over five years. The cuts would force Texas to cut services for children with disabilities and frail seniors as well as support for safety net hospitals, or else raise taxes to make up the lost federal funds. Governor Rick Perry, the National Governors Association, and the National Association of State Medicaid directors all have urged Congress to stop the rules from taking effect, and Congress is now debating bills that would delay the rules for at least a year. In every case, these rules attempt to impose harsher policies than underlying federal law, and in many cases policies that have been specifically rejected by Congress. Read more about the rules and how you can help prevent these cuts (including a letter from Governor Perry urging Congress to stop the rules from taking effect).

A Guide Through the Matrix of HHSC Contracting: Revised

Celia Hagert — 2007-11-09T16:10:03-06:00

The Texas Health and Human Services Commission has released two draft Request for Proposals related to the development and operation of an integrated eligibility system for Food Stamps, Medicaid, TANF, and CHIP. Similar to the now defunct "TAA" contract with Accenture, the RFPs ask vendors to submit their proposals for operating a system of call centers to provide "eligibility support services" for Food Stamps, Medicaid, and TANF; determine eligibility for CHIP-only cases; and provide document processing services through a centralized mail center. CPPP has prepared a contracting matrix that describes these and other major contracting opportunities with HHSC related to the delivery of health and human services, including information on the new Twogether in Texas contract award.

Don't be an April Fool Taken in by a Make-Believe Day

CPPP — 2008-04-10T10:51:13-06:00

Every April, the Tax Foundation releases a report celebrating "Tax Freedom Day." The Tax Foundation was founded in 1937 by the top leadership of General Motors, Standard Oil, and Johns-Manville Corporation. Its focus is to keep taxes low irrespective of the need for taxes in maintaining public infrastructure to support our economy and quality of life. "Tax Freedom Day" is a make-believe day based on disingenuous reasoning that has serious methodological flaws.

Income Inequality on the Rise in Texas

Don Baylor — 2008-04-09T09:48:12-06:00

The gap between the richest and poorest families, and between the richest and middle-income families grew substantially in Texas over the past two decades, according to a new study by the national Center on Budget and Policy Priorities and the Economic Policy Institute. Growing income inequality tears at the fabric of our economy, and shows our public policies are failing to promote shared prosperity. In fact, inequality has accelerated since the late 1990s as incomes have fallen for poor families and virtually stagnated for middle-income families in Texas. (The full report can be found at http://www.cbpp.org/4-9-08sfp.htm.)

College Savings Accounts 101

Don Baylor — 2008-04-09T10:11:55-06:00

An educated and skilled workforce is critical to Texas' economic vitality and competitiveness. 529 College Savings Plans offer important tools for increasing educational levels by improving K-12 student achievement, minimizing dropouts, supporting our lagging financial aid system, and reducing dependence on expensive student loans. Increasing participation in these college savings plans should be a vital component of statewide efforts to increase college enrollment and completion. This policy page introduces college savings plans, how they operate, and why a matched savings policy can move Texas forward.

CPPP's Letter Brief to the Attorney General on School Property Tax Abatements Under HB 1200

Dick Lavine,Scott McCown — 2008-04-09T11:01:05-06:00

CPPP submitted this letter brief to the Texas attorney general explaining that only land owners--not people who are leasing land--are entitled to a tax abatement as part of the Texas Economic Development Act.

HHSC's Proposed Medicaid Waiver: "Affordable" Coverage Should Not Come from Shrinking Benefits

Anne Dunkelberg — 2008-03-18T11:31:53-06:00

As one step to decrease the number of uninsured, in 2007, the Texas Legislature directed the Texas Health and Human Services Commission to request a "waiver" of federal Medicaid laws to allow Texas to use federal Medicaid dollars to fund a health care coverage program that would be allowed to operate in ways not normally allowed under federal law. In developing a waiver, HHSC must balance keeping the cost per person low against the need to provide a decent and affordable standard of care. Top concerns for the low-income uninsured Texas adults who might be served are (1) a package with "bare-bones" benefits; (2) co-payments that are too high for the poorest parents; and (3) no clear policy on whether parents whose benefits run out will be in debt for the additional care they need. Achieving "affordable" care by cutting benefits dramatically (instead of finding a way to provide an acceptable standard of care) raises serious concerns. An overarching concern for all Texans is whether the financing of the proposed program will hurt our safety net hospitals, which are the backbone of the trauma system for every Texan--rich or poor. Finally, the amount of funding available for the new program is uncertain, and so the number of adults who will be able to enroll is also unknown. This policy page makes recommendations for improving the state's waiver proposal and explains how you can voice your concern to state officials.

Testimony on H.R. 5466 � Invest in Kids Act

Tiffany Roper — 2008-03-06T10:24:28-06:00

Policy Analyst Tiffany Roper submitted testimony in support of the Invest in Kids Act, which reforms many outdated federal policies and gives states the ability to significantly improve their child welfare systems -- keeping children out of care and decreasing the amount of time that children who must be in care spend in care.

Payday Lending--Hurting Texas Families

Don Baylor — 2008-02-22T14:18:56-06:00

It's the American Dream that if you work hard you get ahead. But with the high cost of living these days, that isn't always the case. Sometimes families run short of cash and turn to payday loans--short-term loans that give Texans a cash advance on their paychecks, Social Security payments, or veteran's benefits. Millions of families use these loans when they are short of cash, but the high cost outweighs the convenience. Interest rates start at 400 percent APR and can surpass 1,000 percent, and it is typical for a worker to pay $180 in interest on a 10-day, $700 loan. More often than not, the individual is unable to repay the full amount within the short repayment period, and the debt balloons. In fact, most payday lending volume comes from individuals forced by the cost of the original loan to take out another and another. We've seen the devastating impact of subprime lending on the economy. But what do payday loans cost families and communities in Texas?

Testimony on HHSC's 1115 Waiver Concept

Anne Dunkelberg — 2008-02-21T10:13:31-06:00

Associate Director Anne Dunkelberg testified on the Medicaid 1115 waiver concept before the Texas Legislature's Medicaid Reform Oversight Committee.

Child Friendly? How Texas' Policy Choices Affect Whether Children Get Enrolled and Stay Enrolled in Medicaid and CHIP

Anne Dunkelberg — 2007-10-15T15:07:36-06:00

This updated report illustrates the history and consequences of Texas' policies related to children's Medicaid and CHIP, using official state program data. It also summarizes national and state research on the effects of eligibility and enrollment policies, and explains how Texas policies compare to those of other states. The report was funded by the generous support of the Texas Association of Community Health Centers.

Report Card on the Education of Foster Children

Tiffany Roper — 2008-02-11T10:07:33-06:00

The public educates children because of our common interest in ensuring that children become responsible and productive adults and to provide an opportunity to every child to achieve their potential. Unfortunately, several national studies show that we aren't doing a good job educating foster children. Foster children have lower test scores, lower graduation rates, and less post-secondary education. This policy page examines the problem and makes recommendations.

Texas and the Federal 2009 Budget Proposal

Eva DeLuna Castro — 2008-02-01T10:30:58-06:00

On Monday, February 4, the President will issue his 2009 budget, continuing the contentious debate over our nation's budget priorities. The stakes for Texas are considerable: federal spending in Texas in 2005 totaled nearly $149 billion, more than state and local government spending combined ($122 billion). Recent attention has focused on a federal economic stimulus package, but it is the federal budget that determines whether critical areas ranging from health care to environmental protection to education will be strengthened or weakened next year. Congress may also make tax decisions this year that could have a big impact on the country's long-term fiscal health.

Come and Claim It: Texas Economy & Families to Benefit From $5 Billion EITC Stimulus

Don Baylor — 2008-01-31T11:00:57-06:00

Today, Governor Rick Perry issued a proclamation designating January 31st as Earned Income Tax Credit (EITC) Awareness Day in Texas. To read the proclamation, see http://www.uwtexas.org/data/docs/EITC_Procalamation.pdf. The EITC is a refundable federal tax credit for eligible households with earned income no more than $39,783. For the 2008 filing season, the maximum refund is $4,716. As the nation's most successful anti-poverty program, the EITC enables working families to address basic needs while also providing a platform for financial stability and success. Families can apply online for the EITC at http://www.irs.gov/efile/article/0,,id=118986,00.html or by visiting a local Volunteer Income Tax Assistance (VITA) site. To find a VITA location nearest you, see http://www.uwtexas.org/data/docs/Texas_Tax_Preparation_Sites.pdf.

Call to Action to Improve Economic Stimulus Package

CPPP — 2008-01-30T10:35:59-06:00

The Senate is soon to take up the economic stimulus bill. We have urged our Texas Senators to vote against the House bill to give the Senate an opportunity to produce a better bill. If the House bill is defeated, we have urged our Texas Senators to vote for the proposal from the Senate Finance Committee. If an amendment to the proposal is offered for a temporary boost in food stamp benefits, we have strongly urged our Senators to support the amendment. A temporary boost in food stamp benefits is a particularly good economic stimulus for Texas. Our letter to our Texas Senators is posted here as a Full Article. We urge you to contact each Senator with a strong message to support the Senate Finance Committee proposal and a food stamp amendment. You can contact Senator Hutchison at http://www.senate.gov/~hutchison/contact.html. You can contact Senator Cornyn at http://cornyn.senate.gov/public/index.cfm?FuseAction=Contact.Home.

New Report: Lack of Child Abuse & Neglect Prevention Costs the U.S. Over $100 Billion a Year

Lynsey Kluever — 2008-01-29T09:17:42-06:00

According to a new economic impact analysis by Prevent Child Abuse America, child abuse and neglect cost the United States nearly $104 billion a year. Child abuse and neglect are preventable, yet in 2006, nearly 68,000 Texas children--one million kids nationwide--were confirmed victims of child maltreatment. A just-released study by Kids Are Waiting, an initiative of The Pew Charitable Trusts, finds that the unavailability of federal child welfare funding for prevention programs and services is in part to blame. On average, only 10 percent of federal money dedicated for child welfare can currently be used to prevent child abuse and neglect. According to the report, 8% of federal dollars allocated to Texas for child welfare were used for prevention in 2006. Both reports are available at http://www.kidsarewaiting.org.

Child Abuse and Neglect Prevention in Texas and Nationally

Tiffany Roper — 2008-01-29T09:20:08-06:00

The old proverb that an ounce of prevention is worth a pound of cure is especially relevant in terms of prevention of child abuse and neglect. Child abuse and neglect are preventable, yet in 2006, nearly 68,000 Texas children were confirmed victims of child abuse and neglect. Nationwide that number jumps to one million. While the federal government spent over 7 billion dollars on child welfare in 2007, most of the federal funding available for state use is restricted to spending on children who have been removed from their homes and placed in foster care. Little money is left to provide the prevention services that can prevent child abuse and neglect from occurring and children from coming into foster care in the first place.

Today: Do Your Part to Turn Around the Economy by Signing on to National Letters

Anne Dunkelberg — 2008-01-24T10:55:12-06:00

As CPPP stated yesterday, an effective economic stimulus must target aid to those who will be hardest hit by a recession and will most quickly boost the economy by spending to support their families. Today, national groups are asking organizations in Texas and other states to sign on to two letters that would provide timely, targeted, and temporary assistance to those most in need. The first letter calls on Congress to include (1) an increase in the federal Medicaid matching percentage (FMAP), with a requirement that states must maintain eligibility to qualify for the funds and (2) a grant based on population. The second letter urges Congress to boost Food Stamp payments and extend unemployment benefits as part of the stimulus package. The Congressional Budget Office reports that Food Stamps and unemployment insurance would stimulate spending even more quickly than rebates. Congress is reported to have dropped these elements from the stimulus package and would instead boost business tax incentives, which are among the least effective ways to increase economic activity.

Effective Economic Stimulus Package Must be Timely, Targeted, and Temporary

Dick Lavine — 2008-01-23T14:18:13-06:00

The current weakness in the U.S. economy requires a rapid response that targets aid to those who will be hardest hit by a recession. Assistance should reach all working households because they are most likely to immediately put any assistance back into the economy by spending to support their families. This can be accomplished by rebate checks, increased Food Stamp aid, or extension of unemployment insurance, as well as fiscal relief for state governments. Well-designed one-time measures would raise current deficits, but not affect the long-term federal budget outlook. President Bush and congressional leaders are considering various strategies for combatting the growing weakness in the U.S. economy. At the top of their list are rebates for workers, expansion of safety net programs, and tax incentives for businesses. An effective fiscal stimulus is one that is timely, targeted, and temporary.

Creating Foster Care Capacity for Abused and Neglected Children

Tiffany Roper — 2008-01-14T14:18:44-06:00

When the state takes an abused or neglected child from their parent, a court names the Texas Department of Family and Protective Services (DFPS) the legal custodian of the child--essentially making the state the parent of the child. The state must then do for the child what any parent must--provide food, clothing, and shelter. Since January 2007, however, the state has had to keep over 500 abused and neglected children for at least one night, some for more, in a state office or a hotel room. Every region in the state has had to use offices or hotels, though some more than others. This is only one manifestation of a growing problem--the state does not have enough foster homes. This policy page examines this problem and makes recommendations for capacity building.

Community Volunteer Income Tax Assistance Centers Get a Federal Boost; CPPP Develops Local Materials

Celia Hagert,Don Baylor — 2008-01-11T14:45:47-06:00

The recently enacted 2008 federal budget bill includes a boost for community tax centers that help working families file tax returns for little to no cost. The bill authorizes an $8 million matching grant demonstration program for Community Volunteer Income Tax Assistance (VITA) programs through the end of Federal Fiscal Year 2009 (September 30, 2009). Community VITA programs play a critical role in Texas and across the nation by helping lower-income individuals claim valuable tax credits and refunds, including the Earned Income Tax Credit, and the Child Tax Credit. CPPP has prepared a short and user-friendly presentation to educate volunteer tax preparers about the impact of savings on public benefits eligibility, as well as new flyers (in English and Spanish) that volunteer tax preparers can give to their low-income clients when helping prepare their taxes.

Texas Poverty 101

Eva DeLuna Castro,Anne Dunkelberg,Celia Hagert — 2007-10-15T22:30:59-06:00

The term "poverty" is used to describe a condition of economic hardship, but it has a technical definition as well: a specific low-income level for various family sizes. Many social services in Texas use this technical measure of poverty to determine program eligibility. This Policy Brief describes the official federal poverty measure, how it is used, and the extent of poverty in Texas. Shortcomings of this methodology and alternative measures of economic hardship are also discussed.

Comments on the Health and Human Services Commission's Draft Request for Proposal #529-08-0135 for Eligibility Support Services

Anne Dunkelberg,Celia Hagert — 2008-01-08T14:01:48-06:00

Associate Director Anne Dunkelberg and Senior Policy Analyst Celia Hagert submitted comments on the Health and Human Services Commission's draft Request for Proposal #529-08-0135 for Eligibility Support Services. The draft RFP requests proposals from vendors to operate a call center system to support eligibility determination for CHIP, Medicaid, Food Stamps, and TANF. The RFP describes a system substantively similar to the one developed and operated by Accenture under the TAA contract, which was terminated in March 2007. Comments on the draft RFP were due 12/31/07. HHSC has not yet set a date for the release of the final RFP.

CPPP Comments on Texas HHSC Draft Medicaid 1115 Waiver Concept Paper: Submitted to CMS 12/5/07

Anne Dunkelberg — 2008-01-15T12:51:12-06:00

HHSC has submitted a draft Medicaid waiver concept paper to federal Medicaid authorities as part of its implementation of SB 10. This is a major proposal which could potentially create programs to provide health coverage for uninsured Texas adults under 200% of poverty. However, public input is critical to make sure the resulting programs provide good benefits at affordable price, and the program has enough funding to really serve large numbers of low-income uninsured workers. The draft concept paper as submitted on December 5, 2007 leaves so many critical elements undefined and key questions unanswered that it is impossible for CPPP to make a clear statement of support for the document or the HHSC effort at this point in development. HHSC solicited public comments by December 28, 2007 on the concept paper. CPPP submitted comments. Readers interested in requesting copies of comments from other Texas consumer and provider organizations may contact dunkelberg@cppp.org.

CPPP Comments on the TANF State Plan

Celia Hagert — 2007-12-21T11:13:02-06:00

Senior Policy Analyst Celia Hagert submitted the following comments on the TANF State Plan.

CPPP Comments on HHSC's Initiative to Revise Application Forms for Public Benefits

Anne Dunkelberg,Celia Hagert — 2007-12-14T11:35:17-06:00

Associate Director Anne Dunkelberg and Senior Policy Analyst Celia Hagert submitted comments on the Health and Human Services Commission's efforts to revise and redesign the benefit application forms. These comments relate exclusively to Forms H1010 A/B and H1010-E.

Comments Due Soon on Five Key HHSC Documents

Celia Hagert — 2007-12-12T13:47:40-06:00

The Texas Health and Human Services Commission has posted five important documents on its web site for public comment: revision of the applications for public benefits; the TANF state plan; a Medicaid Waiver concept paper; and two draft Requests for Proposals relating to modernization of the eligibility and enrollment system for public benefits. We know this is a busy time of the year for everyone, but we urge you to take the time to submit comments to HHSC on these important issues.

Replacing Property Taxes with Sales Taxes Would be Bad for Texas Businesses, Families, and Public Education

Dick Lavine — 2007-12-12T15:18:03-06:00

Recently, some have proposed that Texas replace local school property taxes by increasing the rate of the state sales tax or expanding the sales tax to more goods and services. Such a tax swap would be a bad deal for businesses, families, and public education. 1) The swap would make Texas businesses less competitive because the higher sales tax would raise the cost of Texas goods and services. 2) Taxes on most Texas families--including middle-class families--would actually go up. Only the wealthiest families would see a tax reduction. 3) At the same time, public education would be hurt. Schools would have one source of revenue, sales, which is less stable than property. With the state paying all the bills, more decisions would be made in Austin, and the link between local taxpayers and public schools would be broken. In addition, local communities could no longer supplement the basic education provided by the state.