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Stimulus-Critic Rick Perry Only Able To Balance His State’s Budget Because Of Stimulus

Posted by on May. 26, 2010 at 1:13 PM
  • 10 Replies

Stimulus-Critic Rick Perry Only Able To Balance His State’s Budget Because Of Stimulus

Back when the economic recovery package (i.e. “the stimulus”) was being debated, a handful of Republican governors garnered headlines by rejecting various portions of the funding. One of the loudest critics of the legislation was Gov. Rick Perry (R-TX).

At the time, Perry said rejecting the money “was pretty simple for us. … We can take care of ourselves.” “I am so concerned about the belief that has gained a foothold in our national consciousness that the best and only way to solve our nation’s problems is to drown them with taxpayer dollars,” Perry also said, adding that, with regard to the stimulus, Texas should “look a gift horse in the mouth.”

The Texas state legislature eventually pushed Perry to accept the money, but even in his official acceptance letter, Perry wrote that “I believe there are better ways to reinvigorate our economy and believe [the bill] will burden future generations with unprecedented levels of debt.” However, as the Wall Street Journal noted this morning, the stimulus is the reason that Texas currently has a balanced budget:

[T]he economic downturn is catching up with Texas. Sales-tax revenue started falling in February 2009 compared with the previous year, and only started to recover a bit in April of this year. Although Mr. Perry has railed against the federal economic-stimulus program, billions of dollars from that initiative helped Texas legislators balance the current budget.

Texas faces an $18 billion shortfall in its next two-year budget, which amounts to 20 percent of the total. And Perry’s refusal to consider tax increases is setting the state up for draconian cuts. “There is no way that they will be able to come up with $18 billion in cuts,” said Eva DeLuna Castro, a senior budget analyst at the Center for Public Policy Priorities. “They would have to shut down our prison system.”

Perry is not the only governor to rail against the stimulus while relying on it to balance his budget. Gov. Tim Pawlenty (R-MN) called the stimulus “incoherent” and “largely wasted,” but still used it to fix one-third of his state’s budget hole.

According to the latest report from the Congressional Budget Office, the stimulus not only helped states stave off budget cuts, but also raised GDP by between 1.7 and 4 percentage points, lowered the unemployment rate by 1.5 percentage points, andcreated up to 2.8 million jobs. This is 250,000 to 500,000 more jobs than projected. CBO estimates that the stimulus will be responsible for up to 3.7 million jobs by September.


 BabyFruit Ticker

by on May. 26, 2010 at 1:13 PM
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Replies (1-10):
Joqui
by Joqui on May. 26, 2010 at 1:14 PM

I keep hearing this:

Texas faces an $18 billion shortfall in its next two-year budget, which amounts to 20 percent of the total. And Perry’s refusal to consider tax increases is setting the state up for draconian cuts.

That is really going to suck...

BleedinHeartMom
by on May. 26, 2010 at 1:16 PM

I am soo sick of Mr Good hair..He has done nothing good for Texas..I cant wait for Bill White to get elected..

SxyMartini
by on May. 26, 2010 at 1:18 PM

I wish they would just secede already. Good riddance!

morningdove831
by on May. 26, 2010 at 1:21 PM

Politics in general has become a nauseating topic. 

norwegianwood
by Platinum Member on May. 26, 2010 at 1:22 PM

 When people want a SERIOUS discussion on funding and spending and fed versus state's rights...then it can be discussed. The fact is that the feds mandate a lot of spending by states that they have no RIGHT to mandate; and they don't enforce immigration laws--I believe that TX is a border state--that cost states billions annually....

P

LauraKW
by "Dude!" on May. 26, 2010 at 2:28 PM


Quoting BleedinHeartMom:

I am soo sick of Mr Good hair..He has done nothing good for Texas..I cant wait for Bill White to get elected..

Amen :)

stormcris
by Christy on May. 26, 2010 at 2:59 PM

Now that is funny....amazing how he took it even though he opposed it. 

And its not just Texas...MN did it too


norwegianwood
by Platinum Member on May. 26, 2010 at 3:05 PM

 You do realize how many things the feds mandate onto the states that are unfunded, right? You do understand that some--certainly not all--of a state's costs are impacted by mandated public policies driven, but without funds to enforce COST states billions annually? Right? And, immigration would be ONE situation that TX has to cope with that the feds don't enforce, but which impacts the schools, hospitals, roads, police forces, fire depts, rescues, housing, entitlements overseen by the feds like medicare, medicaid, unemployment etc etc...

P

Quoting stormcris:

Now that is funny....amazing how he took it even though he opposed it. 

And its not just Texas...MN did it too


 

stormcris
by Christy on May. 26, 2010 at 3:14 PM

Yes, I am aware. But, if they did not want it then why allow the mandate. They can contest all no vote mandates in court and if it was voted on then the people were represented. Them taking this money that is supposed to be paid back is their choice however. States are the point of contention for immigration. It is first the states job, then the feds, as it is currently set up. States are supposed to be sovereign entities first and foremost and the republic came forward with the laws and policies and they accepted them and chose to stick with the republic. 

Quoting norwegianwood:

 You do realize how many things the feds mandate onto the states that are unfunded, right? You do understand that some--certainly not all--of a state's costs are impacted by mandated public policies driven, but without funds to enforce COST states billions annually? Right? And, immigration would be ONE situation that TX has to cope with that the feds don't enforce, but which impacts the schools, hospitals, roads, police forces, fire depts, rescues, housing, entitlements overseen by the feds like medicare, medicaid, unemployment etc etc...

P

Quoting stormcris:

Now that is funny....amazing how he took it even though he opposed it. 

And its not just Texas...MN did it too


 


BleedinHeartMom
by on May. 26, 2010 at 3:20 PM

I'm still trying to figure out where all the lottery money that was suppose to help schools is going..

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