The Lone Star Economic Focus

Americans for Prosperity—Texas hosted a meeting for bloggers with Texas Governor Rick Perry on March 16, 2011 to discuss Texas’ financial condition with the current budget before the state legislature. The Governor relayed the plethora of over 4,500 bills that the representatives will file this session covering various topics. This will keep the ongoing budget debate churning.

Yet, in the midst of the endless paperwork, Governor Perry emphasized that he will not raise taxes for the 2012-2013 budget. He relayed that Texas’ conservative values have allowed the state to produce a job friendly environment where employers are not over regulated and over litigated. This economic culture has provided Texas with the number one status for relocation in the last four years. Perry expressed that the state’s viability remains so because of the philosophy that “money does better in people’s hands than government’s.” In essence, Governor Perry expressed the governments role as pertaining to four areas: 1) Keep the economy strong, 2) Keep taxes fair and low, 3) Accountable programs, and 4) Secure borders.

After Governor Perry’s remarks, the call opened up for the following questions and the Governor’s responses (please note that this information is paraphrased from the discussion):

· Melissa Clothier: With the staff increases in pay and teachers needing work, how does the state handle this? The problem resides in the schools using stimulus funds for ongoing expenses. The Texas’ government is not going to micro manage school districts. The schools were warned. Texas is not going to fund new programs created under momentary stimulus funds. Texas does not have the resources to do so and will make reductions where needed. The schools need to also allow for cutting teachers who do not meet the standards. The state will use the legal amount of the Rainy Day Fund; however, the government will not go beyond this amount because we have to save the fund for natural disasters.

· Jason Moore: Is there coming a time when states will enforce their rights and nullification? Texas is pushing back on the centralized, federal government. The first example is when the federal government pushed back on the Texas EPA permitting process that has proven beneficial in cleaning air of which former Texas Governor Ann Richards and former President Bill Clinton approved. The Obama Administration is trying to gain central control. In response, Texas is suing. The second example is Texas joined the 25 other states in the lawsuit against Obamacare of which is headed to the Supreme Court.

The federal government’s powers are few and enumerated. States and the people have the most power. Instead of control, allow states to compete and put their programs in place. Let the people make a choice instead of the centralized concept of one-size fits all. The right approach is to push government back into the box, which are constitutional limitations.

· Rob Wilson: Advice for faculty in higher education who are helping students? Faculty and higher education create innovate ways to implement research and create opportunities for wealth. Allow the faculty the opportunity to create ways to maintain the wealth from the research they generate.