Tuesday, June 18, 2019

#TXLEGE: One interesting, modestly positive, note deeper in the budget

"Wealth gained by dishonesty will be diminished,
But he who gathers by labor will increase."
Proverbs 13:11

From the Trib story on Abbott signing the budget:
Other portions of the budget didn’t see as much growth. The $84 billion for health and human services programs is up just 1% from the last two-year cycle, and Medicaid, the federal-state health insurance program for the poor and disabled, is facing a $900 million cut.

[Note: Emphasis added.]

What's interesting about this is, for as much of an insaneo spending spree as they went on over education, there was no equivalent on health care.

From a macroeconomic perspective, if the state were to get serious about health care and Medicaid costs, conceivably we could absorb a rather large increase in education spending.  That's not to say that the other problems in the system would go away.  But it is to say the impact on economic growth could be contained.

Of course, all of this would require several years to play out.

Bottom Line: Probably won't amount to much, but it is a situation worth keeping an eye on....

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