YNN’s Political Reporter Alana Rocha filed the video report above following the announcement. The topic dominated the Texas Sunset Commission as they discussed needed improvements to several programs.

Deeper budget cuts are on the horizon. Gov. Rick Perry, Lt. Gov. David Dewhurst and Speaker Joe Straus are asking state agencies to plan to reduce spending by 10 percent, in 5 percent increments, for the 2014-2015 budget.

"Unlike Washington where spending increases are automatic, Texas has maintained a balanced budget by forcing government to look for savings first – ensuring taxpayers’ hard-earned money is put to its highest and best use," Dewhurst said in a statement.

A letter, sent Monday by the Legislative Budget Board and the Governor’s Office of Budget, Planning and Policy, gives clear instructions to agency chairs, appellate court judges and higher education chancellors and presidents.




"As a starting point for budget deliberations, an agency’s baseline request for General Revenue Funds and General Revenue-Dedicated Funds may not exceed the sum of amounts expended in fiscal year 2012 and budgeted in fiscal year 2013…Agencies must also submit a supplemental schedule detailing how they would reduce the baseline request by an additional 10 percent (in 5 percent increments) in General Revenue Funds and General Revenue Dedicated Funds," the letter states.

And they could be asked to cut more, should "state fiscal conditions warrant it."

Some programs and agencies are exempt. Agency chairs are asked not to cut funding for the Foundation School Program, or benefits and eligibility in Medicaid, the Children’s Health Insurance Program or the foster care program. Employer contribution requirements for state pensions are also exempt from cuts.

"While our revenue growth has been healthy this year, we must plan conservatively, which is why we have asked agencies to hold the line on spending. By identifying possible spending reductions in the next biennium, agencies can prioritize their most critical functions and programs. These instructions will also leave us prepared for a slowdown in revenues as the national economy struggles to recover," Speaker Straus said in a statement.

You can read the letter for yourself below.