While politicians are bragging about a balanced state budget, the 'Texas Miracle' and the state's heady economic growth, a new study shows just the opposite, News Radio 1200 WOAI reports.
A study by the private group 'Truth in Accounting' shows, far from being balanced, the state budget is $69.3 billion in debt, groaning under unfunded long term liabilities from money borrowed to pay for highways; to the big culprit, pension and retiree health care benefits for teachers and state employees.
"The only include the cost that you currently pay, not the costs that you have incurred," Truth in Accounting President Sheila Weinberg said of the study.
In fact, far from having a vigorous economy, Truth in Accounting gives Texas a 'D,' placing us with basket case states like West Virginia and Connecticut.
She says that is an 'accounting loophole' which has allowed politicians to deceive voters into thinking the state's budget is balanced when it actually is now.
"Dishonest accounting gimmicks to pretend that the budgets are balanced, when in reality they are putting the state billions and billions of dollars in debt."
And Weinberg says her study only covered the unfunded liabilities of the state, and didn't count the debts being quietly rung up by city governments for the unfunded liabilities of police and firefighters, as well as city employees.
She says retirement benefits are part of an employee's compensation, and she blasted the accounting rules that allow them not to be counted in the budget.
"These earned pension benefits and health care benefits are part of the employee's compensation package," she said, saying they should go onto the budget with the employee's paychecks and health care benefits."
The paychecks do go into the budget, because they have to be paid immediately."
Weinberg says local and state governments have an 'out of sight out of mind' attitude toward long term pension and retirement benefits. But she says these benefits are a key part of employee compensation, and steps need to be taken to make sure they are accounted for.
Right now, Weinberg says the average Texas taxpayer owes $8600 to cover these state debts that we're not told about. That is up from $7700 last year, as the state's unfunded debt continues to balloon.
And Weinberg says the biggest challenge will to convince private sector taxpayers, very few of whom receive pensions any more, to pay higher taxes to pay for a benefit they personally will never receive.
"Are those taxpayers going to be willing to pay taxes for those benefits that have to be paid, but they are not going to receive any goods or services for those taxes?"