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    How far apart are Texas and California anyway?

    How far apart are Texas and California anyway?

    K. McCaffrey – Whenever someone, particularly one with my political sympathies, asks me about my favorite states in the country, I usually say Florida, because of their lack of state income tax, and Texas, because it has a business friendly climate and some semblance of political sanity. So, I was quite saddened to see a recent headline that puts my confidence in Texas in jeopardy:

    Texas Gov. Rick Perry delights in telling tales of his California “hunting trips” — hunting for businesses ready to flee the Golden State.


    But the latest budget projections out of Texas have sharply changed the discussion: The Lone Star State is facing a budget gap of about $27 billion, putting it in the same league as California among states facing financial meltdowns. The gap amounts to roughly one-third of the state’s budget.”

    The rest of the article has some fascinating details as to where a lot of the budget is going, and the fiscal makeup of Texas. One figure I found particularly pertinent was that Texas lags behind sixteen states in terms of “major research universities, patents produced, high-tech infrastructure and venture capital investment.”

    “Even Perry’s claims of companies that have decamped from California to lay down roots in Texas appear to be overblown. When the Austin American-Statesman looked into the Texas governor’s boast that there were 153 such companies in 2010, reporters found the claim included California firms that stayed put but maybe opened a Texas branch. The newspaper concluded that Perry’s figure was grossly inflated.”

    I’m embarrassed to say that I didn’t know these details before. I still think that Texas is, generally, in the right direction and I believe doing things like encouraging more private businesses will, ultimately, lead to the success and growth they may have been inflating over the past few years. (In any case, that scenario seems more likely in Texas – whereas California’s pension system alone looks like certain doom.)

    While Texas is apparently not immune to budget gaps, at least the government spending in Texas in ’08 was actually a smaller percentage of the economy than spending in ’87. California, on the contrary, had spending grow by 34% in the same period. I’m also quite glad to know that these details are coming to light, now the Governor and legislation can be held accountable for all the rhetoric they have been spewing about Texas as a maverick state without the same baggage of other big states like New York and California.

    Clarification: In no way, shape, or form would I dare say Texas is ill-governed or in peril. Rather, I just found it surprising that they had policies like the 22 child per classroom rule, and that the decamping claim was overblown. It makes me a bit disappointed that they had mismanaged some facets, but I’m sure that they will manage.
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    Comments


    Austin-American Statesmans' motto: "If it happens in Austin it's news to us." The above commentors have done a good job of describing Texas' economic condition.

    You stepped into a political minefield with this one, where liars figure and figures lie. I hope you don't take articles about budget deficits in Texas in the LA Times at face value, that would be naive. This Texas budget debate has been kicking around the internet now for a while.

    Liberals want to spin Texas as just another state in trouble like California or Illinois because Texas has been held up as an example of a low tax well run conservative state, in other words something to be destroyed. Add to that the conflict in Texas politics has come to resemble what was going on nationally in this country in the 1850s. Then throw in a dollop of potential presidential politics because of Gov. Perry and you have a volatile brew.

    The fight right this moment is about budget cuts which will effect Texas state workers, programs and other rent seeking interests. The tax and spend crew wants to break into the $9 billion Texas rainy day fund rather than cut spending to keep the river of Texas tax money flowing downhill.

    More Money Not the Answer to the State’s Budget Woes
    February 07, 2011
    By The Honorable Talmadge Heflin

    "Austin insiders say that additional revenue is needed to close the state’s projected multi-billion dollar budget shortfall. Without the extra income, they claim, lawmakers risk the state’s future fiscal health and prosperity.

    But is that really the case? Is more money the only viable solution?

    Of course not. Just as anyone managing a household budget knows, when a family’s expenses grow beyond its income, the solution is not to instantly drain your savings and demand a raise from your boss. The proper response is to cut back on household expenses—particularly if your family’s spending habits resemble anything close to the state’s.

    According to the Legislative Budget Board, state government spending increased by nearly 300 percent between fiscal years 1990 and 2010, or 139 percent after adjusting for inflation. During the same period, Texas’ population grew by only 49 percent."

    "ObamaCare adds 3.1 million people to Texas’ Medicaid rolls by 2014 and Texas will need an additional $10 billion in the next budget to meet those costs."

    Texas Public Policy Foundation

    The Big Squeeze
    by The Honorable Arlene Wohlgemuth
    & Spencer Harris

    Texas Public Policy Foundation

    Texas booms while California busts
    First of a five-part series
    By: Mark Hemingway

    "Among the states, it has become clear there are two competing visions of political economy in America, embodied by California and Texas. One vision involves the economic devastation that comes of an overregulated economy. The other reveals the prosperity unleashed by smaller government."

    "California is facing budget shortfalls in excess of $20 billion each year for the next five years, and acquires $25 million in new debt each day. “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked,” then California Gov.-elect Jerry Brown, D, told the Los Angeles Times.

    By contrast, when Gov. Rick Perry, R-Texas, campaigned successfully for a third term this year, he ran ads touting the fact that his state has billions in surplus. In fact, Texas was one of only six states that did not run a budget deficit in 2009. Perry, with characteristic Texas humility, has taken to taunting California on his Facebook page.
    Texas is expected to run a two-year, $15 billion deficit going forward. But this still doesn’t have observers worried. Texas legislators closed a $10 billion deficit in 2003 without raising taxes"

    Washington Examiner

    I'm sorry to have to tell you this, but in case you weren't aware, Rick Perry doesn't give a rat's a$$ about the people of Texas, and has sold them out time and time again to his New World Order buddies! He's a Bilderberger, and he's a NWO crony who believes in the screw the people for money doctrine…and he's getting allot of money from "special interests" for doing so (if "special interests" is the politically correct term you really must use). He's a total slimy scoundrel, and I have no reason to lie, I don't even live in Texas!


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