Friday, March 25, 2011

Explosive Budget Cuts for Texas

The Texas Legislature intends bone-crushing budget cuts for health care, human services and education.  Medicaid cuts for the Concho Valley are projected at $153 million.  Tom Green County alone will see a loss of $116 million in Medicaid funding from 2010-2011. 

Nursing home cuts- 33%
Angelo State University- 20%
Health & Human Service cuts (includes Medicaid)- 30%
Texas has experience with a 25% cut in maintenance at BP's Texas City Refinery.  The result was explosive, killing 15 people.  State cuts are more likely to implode safety net providers, already financially stressed.  

Ironically, Texas will help President Obama send 6 million people off Medicaid from 2011-2013, a critical assumption under CBO's scoring of PPACA.

Misery as far as the eye can see, except for private equity underwriters (PEU's) with billions to invest.  Step right up PEU's, buy your Texas hospital or nursing home at liquidation prices!