For Texas kids, the state budget will be the most important bill that lawmakers work on during the upcoming Texas legislative session.
State leaders will need to make the right call on the million-dollar decisions about individual programs — and the billion-dollar decisions about their approach to the budgeting process in the midst of global pandemic and the state’s revenue shortfall. Given the challenges Texas already faced before COVID-19 struck — and the fact that the pandemic has exacerbated the uninsured rate, mental health challenges, child abuse risks, student learning loss, stress on parents and teachers, and families’ economic hardship — it is critical that state leaders and advocates go into the next session aiming to fully fund state services for children and families. In particular, the Legislature should fully fund health services during this public health crisis. And the Legislature should maintain the commitment it made to school funding during the last legislative session.
Remember, policymakers have multiple tools available for dealing with the revenue shortfall while continuing funding for important services. Options include tapping the Rainy Day Fund, using accounting maneuvers such as delaying a Foundation School Program payment, lobbying Senators Cruz and Cornyn to pass a robust pandemic relief bill, using CARES Act federal funding Texas already received, and considering other revenue sources.
State agencies recently revealed their Legislative Appropriations Requests (LARs), outlining their budget requests for the next session. Here are the links to the full LARs for some of the key agencies as well as the agencies’ presentations on their LARs: DFPS LAR and slides; TEA LAR; DSHS LAR and slides; HHSC LAR; TJJD LAR; and TWC LAR.
We were concerned to see that the recent hearings on the LARs shed virtually no light on the budget requests. A process that typically features hours of discussion, questions, and public input was over in a matter of minutes this year, with room for little more than a few perfunctory comments from state agency heads. Going forward, it will be important for legislators, advocates, and others to insist on a more transparent and open process for considering the budget and other bills.
We’re also alarmed by proposed cuts in the LARs. We recognize this is just the beginning of the budget process, and there will be opportunities to boost funding in these areas before the final budget is completed. Nonetheless, we’re concerned that the LARs propose cuts to maternal health, Early Childhood Intervention (measured in funding per child), the Texas MedCARES program (which targets child abuse and neglect), and other areas and fail to include funding for school-based student mental health support. More details are below.
Fortunately, there is at least an opportunity to submit written feedback regarding the LARs. Comments should be submitted, either as a PDF or Word document, to [email protected] by the deadline assigned to each section of the budget. Testimony on the Texas Workforce Commission LAR, for example, is due by November 19th, while testimony on education and health and human services agencies is due by Thanksgiving (November 26).
We are still analyzing the LARs and crafting the formal feedback that we will submit. But in the meantime, we wanted to share a few key takeaways about the LARs and the funding decisions that state leaders will make in the coming months.
Maternal Health: We’re glad to see that the DSHS LAR request continued funding for the TexasAIM initiative, a maternal care coordination pilot, and public awareness activities to prevent maternal mortality and the HHSC LAR includes continued funding for “cost reimbursement” for Healthy Texas Women and the Family Planning Program. However, we’re concerned to see that the HHSC LAR’s total funding request for women’s health programs represents a cut of $4.5 million compared to the current biennium (rather than the increase needed to keep up with a growing population). Considering Texas already significantly limits women’s access to health coverage, at a minimum we need to ensure that the current programs are adequately funded. Additionally, we are very concerned that state leaders are still considering proposed HHSC cuts for this year that could make it more difficult for Texans to enroll in Medicaid for Pregnant Women and Healthy Texas Women (as well as Children’s Medicaid and other programs).
Health Coverage: We’re pleased the HHSC LAR includes the usual request for additional funding for Medicaid and the Children’s Health Insurance Program (CHIP), two programs that are particularly important now as the state’s uninsured rate grows even higher during the pandemic.
Child Protection (CPS and foster care): The DFPS LAR contains a placeholder for preparing for the 2018 Family First Act to take effect in Texas, as the agency defers to the Legislature for direction on how to address what is arguably the biggest child protection issue facing the state next year. To stop child fatalities and abuse within the foster care system and respond to federal court orders, the DFPS LAR seeks a small funding boost and the HHSC LAR includes an Exceptional Item request for additional funding at Child Care Licensing (CCL). However, additional funding and policy changes will be needed to address foster care. Finally, we’re pleased to see the DFPS LAR includes an additional $10 million to prevent child abuse and neglect, but we’re alarmed that the DSHS LAR eliminates funding for the Texas MedCARES program, which aims to improve the prevention, assessment, diagnosis, and treatment of child abuse and neglect.
Early Childhood Intervention (ECI): We’re concerned that the HHSC LAR maintains the same $339 million that is provided for ECI in the current biennium. Since the number of children enrolled in ECI is projected to rise, the LAR translates into a reduction in per-child funding in the next budget. As our new report shows, Texas is already providing less ECI funding per child in the current budget compared to 2012-2015. The Legislature will need to increase ECI funding for infants and toddlers with disabilities in order to bring the program into compliance with federal law and finish restoring the funding that was cut in previous sessions.
Children’s Mental Health and Substance Use: We’re pleased to see the HHSC LAR protects the significant gains made in the last decade to provide community-based mental health services to children and adults. The agency requests that the Legislature continue general revenue funding levels for outpatient services, community grant programs, the Youth Empowerment Services (YES) Waiver Program, and for the agency to provide training and technical assistance to Community Resource Coordination Groups (CRCGs). State funding for substance abuse prevention, intervention, and treatment services appears to remain level in the HHSC LAR, but the number of youth receiving such services each month is projected to decline, presumably due to lapses in federal funding.
Youth Justice: We are pleased the TJJD LAR includes continued funding for mental health services grants to local juvenile probation departments and other programs that keep kids in their communities. However, the proposed elimination of community-based prevention and intervention program funds and reductions to commitment diversion initiatives must be avoided. The Legislature will need to grant TJJD’s Exceptional Item request to restore funding for these and other programs identified for funding cuts within the agency’s base budget. We’re pleased to see additional Exceptional Item requests that would serve youth with intense mental health needs, girls, and young offenders in smaller-setting facilities; and to assist families in addressing trauma and behavior issues, family housing issues, family reunification services, and parenting skills as part of enhanced re-entry services.
School-based Support for Student Mental Health: Over the last few years, even before the COVID-19 pandemic injected so much instability and stress into children’s lives, the Legislature, TEA, school districts, and others have recognized that student mental health is key to children’s success inside and outside the classroom. While the TEA LAR notes the importance of comprehensive school mental health strategies in achieving the state’s educational goals, the agency does not request funding to assist districts in addressing student mental health. Unfortunately, the TEA LAR does not request funds to continue the School Safety Allotment (SSA) established by the Legislature in 2019 with a $100 million appropriation that could be used to provide districts with direct support of mental health strategies. Legislative leadership is needed to ensure schools are prepared to address the stress and trauma stemming from COVID-19 and other adversities that disrupt student learning. The Legislature can leverage both the SSA and TEA’s Exceptional Item regarding targeted interventions to support comprehensive school mental health strategies that will prevent students in distress from falling behind in school.
School Funding (including for early childhood): In light of the way the pandemic has disrupted learning, including for English Learners and other students in early grades, we are pleased to see the TEA LAR Exceptional Item request to support educators, school materials, and targeted interventions. Additionally, it will be important to recognize that student enrollment is unstable during pandemic, especially in pre-k and kindergarten. Districts receiving funding for early learning strategies from HB 3, which were designed to be funded based on enrollment, should be held harmless until enrollment stabilizes.
Child Care Subsidies: The Workforce Commission’s child care budget is funded almost entirely by the federal government with relatively little state funding support, so the TWC LAR largely allocates those funds. We're glad that TWC leadership has communicated to TWC commissioners that during the next biennium they intend to use the federal funds to support and improve pre-k partnerships, the workforce registry, implementation of the state’s quality rating and improvement system, Texas Rising Star, and much more. Moving forward, the Legislature will need to take greater responsibility in supporting child care providers outside the subsidy system and making child care more affordable for Texas families.
We look forward to working with legislators, partners, and others to ensure the Legislature funds the services that Texas kids and families need to get through these difficult times.