Texas Asks State Agencies to Tighten Belts

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    NEWSLETTERS

    TK
    AP
    Texas leaders have asked state agencies to trim their budget requests by 10 percent.

    Texas leaders Friday asked state agencies to trim their upcoming budget requests by 10 percent in anticipation of a shortfall that could reach $18 billion.

    The request to lower future state funding proposals comes on top of a May 18 order for agencies to immediately trim 5 percent of their budgets.

    Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Joe Straus said they want agencies, with some exceptions for critical programs, such as Medicaid, to lower their requests for the 2012-2013 budget.

    Officials said the funding requests are due by Aug. 30. The shortfall will top the agenda when legislators reconvene in January.

    Perry said state leadership will continue to identify ways to trim spending, just as families and businesses across the state have done, in order to balance the state's budget.

    The 5 percent budget reductions were expected to save $1.2 billion.