Legislators contemplate how to spend budget surplus

Richard Higgins
The Signal
The comptroller for the state of Texas reported an estimated $8.8 billion budget surplus for the 2014-2015 budgetary years because tax revenues exceeded budget expectations.

This could be good news for higher education, including University of Houston-Clear Lake, depending where the state legislators direct the budget surplus. Additional funding could provide an increase in faculty and class offerings.

The revenue portion of the budget for the state is estimated from tax and non-tax projected revenue. Sales tax revenue estimates are calculated considering the projected spending habits of new and current residents and tourism. Taxes from oil and gas production, and the so-called sin taxes of alcohol and tobacco sales, are also considered.

Additionally, the non-tax revenue portion includes licenses, fees, fines, penalties, lottery proceeds and income from interest and investments.

The mood in the legislature and state departments funded by the budget is much like a shark feeding frenzy with each department lobbying legislators to support a percentage of the surplus to be directed back into its budget.

During the last legislative session, public education was reduced by a $5.4 billion. Hopes for the restoration of that cut may be tempered because of a current lawsuit concerning the method used to fund public education in Texas.

UHCL is a publicly assisted university and was affected by those cuts. Class offerings were reduced, the hiring of new professors was postponed and the number of adjunct instructors employed were lowered.

Rick Perry, governor of Texas, defined educational initiatives in an address to the Greater Houston Partnership last month.

An initiative supported by Perry, which may direct funds away from higher education, is to increase charter schools in the public school system.

“I outlined a series of initiatives meant to expand options for children in our public schools, expanding public charter schools and creating a scholarship program to give parents more of a choice about their child’s education,” Perry said.

Additionally, Perry wants to lend support for students to earn technical certifications.

“Last fall, I announced an initiative that will bring industries and our technical and community colleges together to create a statewide model that will enable students to swiftly earn their technical certifications, at an affordable cost,” Perry said.

The lone support for higher education Perry has offered is the initiative to increase funding for technical certifications.

It is still early in the legislative session. UHCL administrators are reluctant to speculate as to what will happen during the legislative session.

“I would be glad to share thoughts on this topic in the future,” said Michelle Dotter, UHCL vice president for administration and finance. “It is a little early in the legislative session to get a feel for impact on UHCL. I’ll be in touch.”

There are two options available if funds are allocated. First, the state legislature would allocate some funds that would maintain the status quo with token additions for cost–of–living increases and projected student growth.

Secondly, there is a possibility that UHCL could receive some additional funding for the 2014-2015 budgets. Should the university receive additional funding, there is a plan in place for priority spending of the funds.

Nevertheless, David Rachita, interim dean of students, doesn’t see personnel reductions if the first option is taken by the legislature.

“Unless the bottom fell out for higher education funding, I do not foresee any cuts in personnel even if minor cuts were made across the board,” Rachita said, “Our operating budgets would most likely be affected first before personnel, thus limiting services, programs, events, supplies, etc.”

Darlene Biggers, associate vice president for student services, wants to assess grants and fee revenues, if additional funds are not received.

“It all depends upon other sources of funding such as grants and fee revenues generated by increased enrollment,” Biggers said. We need to increase funds and staffing to prepare for our Four Year Initiative. UHCL has a planning and budgeting process that identifies our priorities. Certainly, I would like to see some of the funds go towards helping us prepare for freshmen and sophomores.”

Additionally, students have concerns and opinions as to how any additional funds should be allocated.

Hidden costs involved with downward expansion are a priority of Sarah Hopson, president of the Student Government Association.

“For any kind of funding increase, I would like to see that going toward downward expansion,” Hopson said. “There may be a lot of things required for expanding student services and programming for the transitioning students, but those costs may not be known and funding will be required.”

“I would like to see the surplus money go towards supplies for the classroom,” Paige Brooks, an undergraduate education major, suggested. “It may be more classroom computers, calculators and equipment for math classrooms or a supply room for students’ use for projects and presentations.”

Education funding, along with other bills, will be considered during this biennial term.

The 83rd legislature is currently in session and will remain in regular session until mid-May.

Opinions concerning the budget can be expressed at http://governor.state.tx.us/contact/.