The Recession Catches Up with Texas
Governor Perry sent a letter to all state agencies today requesting that we submit a plan to cut spending of state general revenue and general revenue-dedicated appropriations by 5%. These plans are due by February 15. The request was prompted by a forecast of lower state revenue as a result of the recession. In light of a possible revenue shortfall, such a request is reasonable.
The governor does not call for cuts at this time, only that we prepare a plan that prioritizes reductions. More details will emerge in the days ahead, and we won’t know the impact of these actions until later in the year.
Having said that, the University Budget Council will meet as soon as possible to discuss our response to this request. The University of Texas System will submit a comprehensive plan for all component institutions.
I’ll keep the campus posted on new developments in Tower Talk.