Cutting Texas Down To Size
Texas has a budget shortfall. A big one. It is, after all, Texas, and things are BIG in Texas. The governor's response: "CUT!" And the bureaucracy is doing it, reports the Houston Chronicle.

Gov. Rick Perry and Republican legislative leaders officially began the process of slashing the state budget Thursday, sending state agencies a letter urging immediate 7 percent spending cuts to save $700 million this year. "We must instill fiscal discipline across state government," Perry said. "We must not shy from this challenge. This is the time for bold leadership, innovative solutions and fiscal restraint."

They suggested cuts in government administrative costs, elimination of foreign and most out-of-state travel, a decrease in capital purchases, a hiring freeze and - if need be – layoffs, the Chronicle said, but acute Medicaid services, the Children's Health Insurance Program and the Foundation School Fund, which acts as the main bank account for public schools, will be exempted from cuts.

"Savings achieved now will be key to resolving the state's budget issues for the remainder of this year and for the next biennium," the letter told agencies, directing them to submit savings plans to the leadership by Feb. 6.

Texas Comptroller Carole Keeton Strayhorn released a lowered revenue outlook last week that that nearly doubled the state's estimated budget shortfall to almost $10 billion over the rest of this fiscal year and next fiscal year. Texas must cut $1.8 billion in spending by the end of August to balance its current budget.

No sooner than the fax machine could spit out the high-level directive, budget slashing had already begun. Perry himself pledged to cut the governor's staff by 14 percent, although he did not provide details of how he'd do that. Comptroller Strayhorn's office preempted all others with an announcement early Thursday that she is cutting her budget by 6 percent, or $5 million.

That’s leadership by example.

UPDATE: Here's more on the cuts from the AP.

MORE UPDATE: Speaking of Texas... amen to this.