Gov. Rick Perry delivered his State of the State address last Monday, making it clear to lawmakers and the public that he envisions a balanced budget that preserves essential services without requiring raising taxes, and that the final result of the budget crucible will be a streamlined state government and a Texas that continues to be a national economic leader.
"As leaders, we must continue to be fiscally responsible with taxpayer dollars and truly reform our approach to governance," Gov. Perry said. "Our discussions about streamlining state government must be followed by a willingness to act, including consolidating or suspending non-mission-critical entities until the economy improves."
Despite widespread fears among many, especially educators and HHS (health and human services) providers, that the state budget crisis will necessitate steep and painful cuts that aren’t likely to be reversed any time soon, Perry sounded an optimistic note about the state’s economic future.
"As this thing gets rolling, some folks are painting a pretty grim picture of our situation. So I think we need to balance their pessimism with some good news that continues to flow from our comparatively strong economy. Have the doomsayers forgotten that Texas added more jobs in 2010 than any other state? Last year the growth rate of Texas jobs was nearly double the growth rate of any other state."
In making the point, Perry also rejected arguments that the growth in jobs was due entirely to the state’s huge energy sector. “I’m mighty proud of our energy industry, and what it’s done and still does for our state. But our economic strength is built on a much broader base and a much broader group of industry sectors. Our job growth was across a wide variety [of sectors] including business services, health care, construction, manufacturing, hospitality, and of course our substantial energy industry. According to the Brookings Institute, our state has six of the nation’s 20 strongest-performing metros.”
For some, like Speaker of the House Joe Strauss (R-San Antonio), the governor’s commitment to an image of Texas as a state defined by its low taxes and hospitality toward business is cause for celebration. "For over ten years, Gov. Perry has made building the best state economy in America his top priority," said Speaker Straus in a statement. "In today's State of the State address, Gov. Perry renewed his commitment to our shared belief that by holding the line on tax increases and remaining committed to fiscal responsibility, we can emerge from this downturn with even more job creation, a stronger business climate and more opportunities for Texans."
Others were less impressed. Sen. Rodney Ellis (D-Houston) said in a statement: "Governor Perry needs to realize that the campaign is over and slogans and bumper stickers are not going to get us out of this mess…. A 'balanced budget' that places all of the burden on those who can least afford it is not an achievement. We must ensure Texans struggling the most are given a helping hand, not a cold shoulder, and those doing well must bear more of the load. Texas already ranks near the bottom in education resources provided to our communities, and at the top in the percentage of residents without health insurance, and this budget is an express ticket straight to the bottom; Legislators in Mississippi will be saying 'thank God for Texas'.”
A key theme in the governor’s address was that tax dollars are better left in the hands of citizens to create jobs and prosperity. In keeping with that theme, he spoke out in defense of making permanent 2009 tax cuts for small businesses. He also urged against drawing down the state Rainy Day Fund to help with the deficit, an issue that’s shaping up to be a major wild card in budget negotiations.
“Setting aside resources for a rainy day has given us resources that many other states would love to have—and some in our state would love for us to spend dry,” said the governor. “Emptying the savings account to pay for recurring expenses is a bad idea, whether it happens at home, the workforce, or with our state budget. That approach would not only postpone tough necessary decisions, but also leave us ill-equipped to handle bigger emergencies in the future.”
The state’s current fiscal position would seem a big enough emergency for some. Dallas Independent School District is already planning for a worst-case scenario that would require the elimination of almost 4000 positions, the majority teachers. Despite this, “voters have made it clear that they expect government to live within its means just like Texas businesses and families have to,” said Deputy Press Secretary Catherine Frazier. “We are at the beginning stages of the budget process and at the end of the day, we’ll have a balanced budget that protects essential services without raising taxes.”
Gov. Perry also had some thoughts on the affordability of higher education. Despite the looming prospect of state funding cuts for higher education, Perry challenged universities to implement aggressive cost-cutting and efficiency measures in order to make a four-year degree more affordable. He once again proclaimed his support for a four-year tuition freeze at the level a student pays his or her freshman year, arguing that this would make financial planning more predictable for families. He also called for the switch to an outcomes-based funding system, in which a percentage of undergraduate funding would be based upon the number of college degrees actually awarded, rather than just college enrollment, especially for at-risk students and in certain critical fields.
“We’ve experienced enrollment growth over the last two years higher than at any time in Texas history. Our public institutions had 200,000 more students enrolled in 2010 than they did 2008. So let’s be sure those students and their families are getting the best value for their time and money. Change doesn’t come easily or naturally in those big institutions, but it is critical to educational efficiency and effectiveness.”
“Today I’m challenging our institutions of higher education to develop bachelor’s degrees that cost no more than $10,000, including textbooks,” said Perry.
Perry also took some shots at the Obama Administration, sounding Tea Party notes on issues such as healthcare, immigration, the EPA’s effort to take over Texas’ air permitting process, and the 10th Amendment (the “states’ rights” amendment that some Tea Partiers have rallied around). Perry also upbraided the federal government for what he sees as its failure to secure the U.S. southern border with Mexico. In addition, Perry criticized the so-called “Doggett Amendment” of the federal Education Jobs and Medicaid Assistance Act passed last August. The provision requires the governor to certify that emergency funds for public education are used solely to add new funds for education, and not used merely as a substitute for state aid to school districts. Perry has thus far refused to comply.
“The fault with the Doggett Amendment is that it would require the governor to violate the Texas Constitution,” said Catherine Frazier. “The governor is prohibited from binding a future legislature to assure levels of spending in the budget. Texas taxpayers are footing the bill for the education jobs fund, and Texas’ hardworking teachers deserve their share of that money.”
The governor’s closing remarks were a paean to the Lone Star State’s resolve and innovative spirit, which Perry assures Texans will help the state remain strong in the face of present and future challenges.
"Our culture of sturdy pragmatism, forged through centuries of exploration, exertion and endurance, strengthens our resolve and equips us to overcome the challenges we face together," Gov. Perry said. "I believe this will someday be regarded as the Texas century, as our resolve, discipline and commitment to one another carry us to brighter days and blaze a path for other states and even for our federal government to follow."
© Dallas Examiner. All rights reserved.
© Dallas Examiner. All rights reserved.
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