Texas Gov. Proposes Infrastructure Upgrades, Tax Cuts

Tom Warne Report, 2 February 2013

Governor’s News Release – January 29, 2013

AUSTIN, Texas – The governor of Texas is answering the call of the local business community and going against the years he spent building tea party support by urging the Legislature not to spend the state’s Rainy Day Fund: now saying the state should tap into the fund, to the tune of $3.7 billion. In his State of the State address, Gov. Rick Perry said the state has exercised spending restraint and has a bright enough outlook that it can afford to cut taxes as well as make a major investment in water and roads.

Gov. Perry is calling on the Legislature to provide at least $1.8 billion in tax relief and pass a constitutional amendment to allow the state to give money directly back to taxpayers. To fund his proposals, he urged lawmakers to use $3.7 billion from the Rainy Day Fund for a one-time investment in water and transportation infrastructure programs.

“Our bank balance is healthy, our economy is growing, our future is limitless,” Perry told a joint session of the Legislature. As the longest serving governor in Texas history, Perry gave no mention of Democrats’ idea to use money from the fund to reinstate public education funding which was cut by $5.4 billion in 2011 due to the slow economy and a $27 billion budget shortfall.

“While we cannot – and will not – raid the fund to meet ongoing expenses, we also shouldn’t accumulate billions more than necessary,” Perry said. “That’s why I support a move to utilize $3.7 billion from the Rainy Day Fund for a one-time investment in infrastructure programs.”

I thought the quote: “Our bank balance is healthy, our economy is growing, our future is limitless” to be such a contrast to other states right now. You know who they are. The fundamentals are simple: Violate fiscal fundamentals and your bank balance isn’t healthy, your economy isn’t growing and your future is very limited. This is not only a state problem but also a problem at all levels of government in our nation. TW

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