In an attempt to restore greater stability to Texas’ finances, state Sen. Kirk Watson, D-Austin, outlined his three-step plan aimed at providing transparency to the state budget.

Watson addressed a roomful of students, professors and interested citizens at The University of Texas at Austin on Tuesday. Hosted by the Texas Politics Project, the event marks one of Watson’s stops to publicize the plan.

“We need to end the denial and admit that we have a budget problem,” he said. “The plan will require us to take a broad systemic look at the budget and include more people in the process.”

Although the economic climate exposed the budget’s frailty and helped bring about dismal numbers, Watson argued the current estimated $20 billion shortfall is also a result of Texas’ increasing reliance upon shortsighted fiscal decisions over the last decade.

“In my view [the budget crisis] is not entirely a natural disaster,” said Watson. “Certain practices have led us to a big chunk of the shortfall.”

The diversion of billions in funds guaranteed to public programs like roads, parks and hospitals have been diverted by state government to ‘piggy banks’ in an effort to ostensibly balance the budget, contends Watson. These broken promises, totaling more than $3.5 billion dollars, helped create a structural deficit that has landed the state a massive financial setback. Reliance on debt, namely on toll road taxes, inadequate revisions in 2006 to the Business Tax and last session’s “bailout,” accelerated Texas’ push to the monetary brink.

Watson warns the Legislature against dipping into the $8 billion Rainy Day Fund or approving new taxes and fees until meaningful budget accountability and reform measure take place.

Called the Honesty Agenda, Watson’s measure includes a call to increase accountability by changing the rules of the Senate so that the final budget is laid out before the public five days before it is voted on. He also requests the Comptroller issue more frequent budget report updates and recommends that the Legislative Budget Board receive input from everyday taxpayers before major budget changes are made.

The senator hopes to ensure no law is enacted if the money needed isn’t available.

Any special tax or fee (general revenue dedicated funds) would be suspended if they fail to go toward what was initially promised.

Additionally, Watson’s plan urges the “best business minds in the state” to rally together and forge a fiscal agenda that will position Texas to be the economic powerhouse it once was.

Watson pointed to speculation surrounding the budget deficit as a sign something is systemically amiss; figures range anywhere from $20-$28 billion. Watson’s critics, including Gov. Rick Perry, have said legislators need to wait until the usual Comptroller’s estimate is expected in January.

“We don’t really know yet and frankly I think that is one of the symptoms of a business model that doesn’t really work,” said Watson. “We are going into to a Legislative session without a measure of certainty.”

The former mayor of Austin said he is not trying to make the issue a partisan one. The plan, he said, sets out basic reforms that cross party lines.

(Photo: Mary Tuma)