Proposed state budget cuts could have a major impact on the Austin area.
The first draft, released Tuesday night, would cut about $13.7 billion in state spending. Texas public schools will have to cut their budgets by $5 billion, and 9,600 state workers could lose their jobs.
With state agencies headquartered in Austin, those cuts could hit close to home.
In the two months since Chez Moi Bistro opened on Lavaca two blocks from the Capitol, owner Jasmine Yates has built a steady stream of loyal customers.
“All our business comes from the Capitol; the state employees,” Yates said.
With 9,600 state job cuts being proposed by lawmakers, she believes fewer workers mean fewer people willing to spend money in her restaurant.
“For our business it's going to be a disaster,” Yates said. “If we go now and lay off these people it's going to be hard on them and on us.”
In Tuesday's inaugural speech, Governor Rick Perry told Texans the state had to tighten its belt.
Some lawmakers are speaking out against cutting state jobs. A number of Democrats gathered at the Capitol Wednesday to voice their displeasure.
“That's one less person that's employed and spending the salary they would have had,” State Representative Donna Howard of Austin said. “Obviously there's a huge ripple effect in that we won't have an employed person, a productive person citizen in our community contributing to our economy.”
With more than 50,000 state workers in Austin, Texas State Employee Union representatives think the cuts could run deep in the Capitol City.
“State employee salaries, not to mention state employee pensions, are a very big part of the city's economy locally and it will have a negative impact; there's no doubt about it,” Vice President of the TSEU Mike Gross said. “We have less employees per capita than any other state. There aren't extras, there's no fat to cut.”
Gross says there has to be another solution to the estimated $27 million budget shortfall, rather than laying off workers in state agencies that deal with abused children, health care and the elderly.
These layoffs are not set in stone, they are just part of the proposed budget. No word yet on when lawmakers could pass a final version.
