http://www.nationalreview.com/exchequer/256614/no-paul-krugman-texas-not-brokeKrugman and the lefty types are falling all over themselves pointing at the "$25 Billion Texas Budget Gap."
Kevin Williamson shows, in part, why their argument is not so solid. One of the better treatments of the situation.
This is one of the bigger chunks:
"Except that Texas doesn’t do shortfalls. Texas starts from scratch: Every year is basically Year Zero when it comes to the state budget — there is no assumption that next year’s funding will match or exceed this year’s, and the state’s constitution explicitly forbids any legislature to tie the hands of a subsequent legislature, financially or otherwise.
When necessary, Texas implements zero-baseline budgets, in order to keep the state living within its means, even if Paul Krugman thinks it beastly."
"...Even the liberal bedwetters over at the Center for Budget and Policy Priorities expect the budget hole to amount to about 10 percent of the whole enchilada, as compared to more than 50 percent in basketcase California.
Of that $11–$15 billion, about $8 billion will be Medicaid..."
Locally, all the school districts are battening down the hatches because they know, given past potential budget shortfalls, that the Ledge will budget to revenues, not spend and then hope for manna from Washington.
