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State leaders on guard as economy slows
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| Texas Gov. Rick Perry, right, greets Sam Pack, left, as John Esparza, center, looks on, as they begin a meeting with leaders of key trade associations Wednesday in Austin. They discussed the national economic situation and its impact on their industries. Mr. Pack is with the Texas Automobile Dealers Association. |
By Kelley Shannon
AUSTIN – Gov. Rick Perry and the state comptroller warned Wednesday that the national economic crisis is starting to seep into state government, but they said Texas is in better position than most states to weather the storm.
Slower sales tax growth and other financial factors, like sagging public pension funds, are among their concerns and will be awaiting lawmakers when the Legislature convenes in January. Comptroller Susan Combs will tell legislators immediately before the session how much state money is available to spend.
“Our state will not go untouched,” Combs said of the national recession, as she presented online ways for the public and elected officials to better watch over government spending. “I don’t think it’s a mystery that sales tax revenue is down from a robust growth.”
Two years ago sales tax was growing at a rate of 12 percent, and now that has slowed to 5 percent, she said. The state has been helped by sales in the energy sector, but sales tax revenue is softening at some individual retail stores, Combs said.
Texas has been spared the housing downturn that hit some regions of the country, in part because home prices didn’t skyrocket to “stratospheric” levels as they did in other states, Combs said. She said the number of home foreclosures in Texas is relatively low compared with other places, like Nevada.
At a separate event Wednesday, Perry met privately with representatives of the auto, retail and restaurant trade associations to see how the economic crisis is affecting their industries. Before the meeting, Perry told news reporters that Texas has created a business-friendly environment and that it must keep working to create jobs and maintain its competitive edge in the difficult national economy.
Perry, who joined other governors in meeting with President-elect Barack Obama on Tuesday and praised Obama for reaching out to consider states’ needs, said Texas is one of only nine states with a budget surplus.
However, only part of Texas’ projected $11 billion surplus was uncommitted to spending, and now costs from Hurricane Ike and Medicaid enrollment growth are likely to take up that money.
Perry said budget constraints resulting from the economic slowdown could make it difficult to return surplus money to taxpayers, as he’d once hoped. But he said “it’s a wise conversation to have for future legislators, future executives of the state – to have a tool, if you have a surplus ... to be able to redistribute that back to the people.”
He said he and some legislators are concerned state general revenue could be needed to shore up public pension funds, such as the retired teachers fund.
Slower sales tax growth and other financial factors, like sagging public pension funds, are among their concerns and will be awaiting lawmakers when the Legislature convenes in January. Comptroller Susan Combs will tell legislators immediately before the session how much state money is available to spend.
“Our state will not go untouched,” Combs said of the national recession, as she presented online ways for the public and elected officials to better watch over government spending. “I don’t think it’s a mystery that sales tax revenue is down from a robust growth.”
Two years ago sales tax was growing at a rate of 12 percent, and now that has slowed to 5 percent, she said. The state has been helped by sales in the energy sector, but sales tax revenue is softening at some individual retail stores, Combs said.
Texas has been spared the housing downturn that hit some regions of the country, in part because home prices didn’t skyrocket to “stratospheric” levels as they did in other states, Combs said. She said the number of home foreclosures in Texas is relatively low compared with other places, like Nevada.
At a separate event Wednesday, Perry met privately with representatives of the auto, retail and restaurant trade associations to see how the economic crisis is affecting their industries. Before the meeting, Perry told news reporters that Texas has created a business-friendly environment and that it must keep working to create jobs and maintain its competitive edge in the difficult national economy.
Perry, who joined other governors in meeting with President-elect Barack Obama on Tuesday and praised Obama for reaching out to consider states’ needs, said Texas is one of only nine states with a budget surplus.
However, only part of Texas’ projected $11 billion surplus was uncommitted to spending, and now costs from Hurricane Ike and Medicaid enrollment growth are likely to take up that money.
Perry said budget constraints resulting from the economic slowdown could make it difficult to return surplus money to taxpayers, as he’d once hoped. But he said “it’s a wise conversation to have for future legislators, future executives of the state – to have a tool, if you have a surplus ... to be able to redistribute that back to the people.”
He said he and some legislators are concerned state general revenue could be needed to shore up public pension funds, such as the retired teachers fund.
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tired of rino's like sadler wrote on Dec 4, 2008 8:47 AM: