The Texas Department Of Aging said it would not consider a bid from a nonprofit that has a “unique mission to help people and their families.”
The move follows an announcement by the state that it would cut the department’s budget by $1.9 billion over the next three years to help pay for pension and health care costs for the state’s 1.4 million retirees.
The department said the funding cuts would help reduce retiree medical costs, reduce administrative expenses and help fund a range of community services for the elderly.
State Sen. Carlos Uresti, R-Lubbock, said the state should be focusing on fixing its aging population rather than expanding its department.
“You’re not going to make a dent in this problem unless you’re addressing the root causes,” he said.
“You can’t have a state department of health that is so dependent on a $1 billion per year pension that it can’t provide health care and basic necessities to the people that need it.”
The department had already been hit with a $2.5 billion budget shortfall from the cuts announced in October and announced in January.