The bane of Texas, Governor “Good Hair” Perry, resisted accepting stimulus money from the federal government, but was eventually over-ruled by his legislature. Ironically, without the stimulus money, Texas would really be in dire straits. Will Perry apologize? Ha, only when Houston freezes in July.
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
(click to continue reading Wonk Room Stimulus-Critic Rick Perry Only Able To Balance His State’s Budget Because Of Stimulus.)
Democratic gubernatorial candidate, Bill White, better be using this tidbit in his ads against Perry for the upcoming election.