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By April Castro
The Associated Press
Friday, January 07, 2005
Dewhurst calls for tax cut, more funds for health, education
AUSTIN - Lt. Gov. David Dewhurst on Thursday predicted that the state would be as much as $2 billion short to maintain current services in the next two-year budget as he laid out billions of dollars in new funding priorities such as children's health care and public education.
Among his priorities, Dewhurst said he wants to put "substantial new money" into public education, while cutting property taxes by a third. Dewhurst has met with senators this week, who he said are nearing consensus on a plan to revamp the way Texas pays for K-12 education.
The Senate plan, he said, wouldn't increase the "overall tax burden" on Texans.
"If we reduce a dollar's worth of local property tax and we replace that dollar with a myriad of different, a menu of other taxes, but we keep it at a dollar ... we have not raised the overall tax rate on Texans," he said.
That menu would likely include a restructured business tax to capture all Texas businesses at a low rate and would increase the cigarette tax.
Dewhurst said he is also working to put as much as $4 billion more in the state's Children's Health Insurance Program and Medicaid.
Another priority of his is putting more money into the state's troubled Child Protective Services program to more effectively protect children from abuse and neglect. He also suggested pay increases for state employees, particularly law enforcement officers.
If his forecast proves true, the shortfall would be far smaller than the budget crisis faced two years ago, when lawmakers were $10 billion short of the funds they needed to maintain services. Comptroller Carole Keeton Strayhorn is expected to announce her official revenue estimate near the start of the legislative session on Tuesday.
Other priorities Dewhurst laid out for the 140-day session include a continued push to reduce homeowners insurance premiums and reviewing tuition rates to ensure college is affordable for Texas students.
"I'm committed to working with the Senate to enact some very good legislation in the session ahead that will help our economy continue to churn forward, and will improve the quality of life of each and every Texan in the state," Dewhurst said.