(Austin, TX)Senator Rodney Ellis (D-Houston) today sent the following letter to Governor Rick Perry asking him to add reviewing tax loopholes, Medicaid expansion and college costs to the special session agenda:
June 11, 2013
Governor Rick Perry
Office of the Governor
P.O. Box 12428
Austin, Texas 78711
Dear Governor Perry:
The 83rd Legislative Session closed with work still left to be done on several important issues beyond just redistricting. As you consider adding additional subjects to the special session agenda, I hope you will keep an open mind and ask the legislature to find solutions on cataloging and reigning in wasteful tax expenditures, expanding access to affordable health insurance, and making college more affordable to Texas families.
As you proudly point out, Texas continues to grow rapidly, with more and more Americans and businesses choosing to make our state home. But that growth comes at a cost, as more people mean more schools, more roads, more hospitals and more services. Texas is at a budget crossroads; tax increases are ruled out, so each session we struggle to find the revenue to meet our growing needs and to invest in the very things that will continue on our success. With these challenges, it is critical that we know exactly how every tax dollar is used. To this end, I urge you to add review of over $44 billion in state and local tax loopholes to the special session call.
During the session, the Senate unanimously approved just such a study to identify and review Texas’ tax preferences, ensure that they are carrying out their intended purposes, and advance more efficient and effective economic policy. Unfortunately, this provision was removed in the dead of night, protecting these special interest tax subsidies in a cloak of darkness and secrecy while adding hundreds of millions of more tax giveaways to the code. It is time to shine the light on these loopholes, but it will require your assistance and leadership.
Another challenge that will determine Texas’ future success is addressing the staggering health care crisis facing our state. Texas has the highest uninsured rate in the nation, with one in four Texans lacking any health insurance at all and, according to a new report, 54 percent lacking any meaningful coverage. There are more uninsured in Texas – 6,080,000 – than the entire populations of Alaska, Delaware, the District of Columbia, Montana, North Dakota, South Dakota, Vermont and Wyoming combined – 6,021,410. And our Medicaid program currently spends less than the national average per enrollee and also reimburses doctors, hospitals and other providers less than the national average. We can provide insurance to 1.5 million Texans if we act now on the Affordable Care Act, but we must get to work now.
Providing health care access to 1.5 million Texans does not just make moral and social sense, it makes economic sense. Two recent studies show just how good a deal expanding Medicaid would be for Texas. According to an economic analysis by the Perryman Group, Texas would see a return of $1.29 for every $1 spent on Medicaid expansion, and the burden on local governments would be reduced by $1.21 for every dollar the state spent expanding the program. Furthermore, Medicaid expansion would create approximately 300,000 Texas jobs per year for the next decade, and will reduce the $5 billion per year Texas hospitals pay in uncompensated care. These costs are currently passed on to all Texans in the form of higher prices, as well as a direct tax in areas that have hospital districts. I hope you will address this crisis by adding this important issue to the special session call.
Finally, the rising cost of college continues to be a serious challenge to Texas families. Since tuition deregulation was passed in 2003, the cost of tuition and fees at state colleges and universities has increased by 90 percent, and has risen even more at some of our top institutions.
While some of us warned this would be the outcome, those who supported tuition deregulation assured Texans price spikes would not happen. It is past time for the legislature to stop abdicating its responsibility to Texans on higher education and make the tough decisions on tuition. I believe there is more than enough support in the legislature to explore new ideas on college affordability and end tuition deregulation.
I know you believe that tuition deregulation was the right thing to do in 2003, but it has long since outlived its usefulness and has become a significant barrier for Texans trying to afford college. I urge you to add a review of tuition deregulation and college affordability measures to the special session call.
I sincerely hope you will take these important issues into consideration as you deliberate whether to expand the call for the 1st Called Special Session of the 83rd Texas Legislature. Hard-working Texans deserve no less than a full and open debate on these critical matters.