How Texas lives within its means
Dewhurst: How Texas lives within its means
David Dewhurst, LIEUTENANT GOVERNOR OF TEXAS
Wednesday, October 21, 2009
Given recent comments about our state’s budget, I feel it is time to separate fact from political fiction. The fact is, in stark contrast to the U. S. Congress, the Texas Constitution requires the Legislature to balance the state budget every two years, and that would have happened with or without any federal stimulus dollars.
In 2007, I led the effort to save $7 billion to balance the revenue shortfall we anticipated this year.
So it’s simply political fiction that stimulus dollars were necessary to balance our budget.
Although we tried to use the federal stimulus dollars on one-time expenditures, in some cases the federal government made us use the money on recurring costs that actually add to the cost of state government.
While other states struggle with overwhelming deficits, Texas has created a model for the rest of the nation to follow that is based on living within its available revenue. The state cut taxes a net $4 billion per year in 2007 while fostering a predictable regulatory environment that allows business to thrive and continue to make Texas the No. 1 job creator in the U.S. over the past two years.
Although this year’s session took place in the context of significant turmoil in the global marketplace and economic upheaval in Texas and across our country, the Legislature successfully shaped a balanced state budget that meets the needs of Texans and sufficiently funds essential programs and agencies through the next two years.
Working together, we crafted and Gov. Rick Perry signed a balanced budget that has left our state prepared to tackle the challenges that lie ahead. Not only did we balance our budget without raising taxes, we cut taxes for more than 40,000 small businesses and left our Rainy Day Fund untouched so we can once again balance our budget in 2011.
The fact remains that Texas is one of only six states whose budget isn’t in the red, even though our state is among the fastest growing in the nation. The state has an unemployment rate well below the national average, it continues to attract jobs from companies that have relocated or expanded in Texas, it has one of the healthiest housing markets in the nation, and Texas cities are consistently recognized for their healthy job markets, high quality of living and resistance to the recession. Here in Texas, we live within our means and create a climate that gives individuals and businesses the opportunity to succeed.
Texas has faced and overcome tough financial situations in the past by tightening our belt, just like Texas families are doing today. In 2003, Texas encountered a $10 billion budget shortfall. Instead of raising taxes, we cut discretionary spending and implemented sound fiscal policies that helped us generate a multi-billion dollar surplus over the next six years, before the national recession hit Texas.
Unlike Washington, we balance our budget every session, control spending, keep taxes low and ensure our children and grandchildren aren’t saddled with the kind of crippling debt that our federal government has irresponsibly created.