State of the State with Governor Rick Perry

Governor Rick Perry is depending on state agencies to cut discretionary spending in order to weather the two economic storms brewing in Texas: the financial implications of Hurricane Ike as well as a national financial downturn.

Is it time to panic? Governor Perry says no.

Texas has long been building the foundation for a strong and bright future. Its policies of limited growth in spending, low taxes and a reasonable regulatory environment have strengthened the Texas economy, preparing the state to handle the national economy’s current instability. In addition, stronger guidelines for home equity borrowing and lending have resulted in Texas having some of the lowest levels of mortgage defaults among the nation’s top 10 most populous states.

In light of the ongoing economic and financial slowdown, the Financial Times recently named Texas the number one state economy in the nation. States’ positions were based on a ranking of four separate economic indicators: employment growth rate, state product growth rate, personal income growth rate and home foreclosure rate.

Texas continues to be a leader in job creation, generating nearly half of all jobs created in the nation from August 2007 to August 2008. The state’s unemployment rate remains at 5 percent, 1.1 percent below the national average. Texas also remains home to more Fortune 500 headquarters than any other state in the nation.

Governor Perry also spoke about transportation which is certain to be the hot topic in the 81st legislative session. The governor said the Department of Public Safety should be funded by general revenue and gas taxes should go towards transportation infrastructure.