Investeens

Even though Texas' thriving oil and gas industries have kept it from feeling the worst of the recession, it has still suffered a major drop in the amount of taxes it collects. To avoid having a deficit, it is eliminating $31 billion of spending. The recipients of state money will see significant drops in the amount they receive, including:

Public education: -13%
Higher education: -7.6%

Four community colleges close
60,000 college students lose financial aid 
Health, human, government services: -25%
9,300 government jobs to be eliminated
Payments to doctors for serving Medicaid payments: -10%
Legal defense for those who can't afford it: -15%
Supervision of paroles (those released from jail): -21%

These significant cuts are notable for two reasons: i) The state has a $9.4 billion "rainy day" fund, a pile of cash set aside for emergencies, that is chose not to draw an money from, and ii) Texas has no state income tax and didn't seem to consider putting one in place to solve the problem. Whether you believe this is painful but responsible belt-tightening or an unfair assault on people in need of government services depends on what you believe the role of government is.

See Texas unveils austere budget to tackle huge deficit