Office of the Governor Rick Perry

Gov. Perry, Lt. Gov. Dewhurst Call for Stricter Constitutional Spending Limit

Tuesday, September 25, 2012  •  Houston, Texas   •  Press Release

Gov. Rick Perry renewed his call for a stricter Constitutional spending limit for Texas' state budget ahead of the upcoming legislative session. The governor was joined by Lt. Gov. David Dewhurst and Sen. Dan Patrick to reiterate their commitment to the sound conservative policies that have made our state prosperous.

"Government growth, if any, should be kept to the bare minimum and should be limited by constitutional amendment to the rate of our population growth combined with the rate of inflation," Gov. Perry said. "An amendment to the Texas Constitution would cast a spending limit in clear terms, ensuring we never get in a situation where state spending spirals out of control the way it has in Washington, D.C."

"Texas is the national model when it comes to keeping state spending to a minimum," Lt. Gov. Dewhurst said. "We take pride in the fact that Texas ranks 47th out of 50th per capita in state spending. A constitutional spending limit based on population and inflation growth will provide Texas greater stability when it comes to budgeting, ensure that the Lone Star State is prosperous for future generations and provide an example for Washington and the rest of the nation on how to govern responsibly."

"I have long believed that state government must live within its means, just like all Texans do every day," Sen. Patrick said. "Fiscal conservatism will continue to be a top priority for me this coming session."

In order to protect against excessive government growth and over-taxation in the future, the Texas Budget Compact proposes replacing the current Constitutional spending limit, which is based on personal income, with a firmer cap based on the combined rate of inflation and Texas population growth.

Gov. Perry has called on lawmakers to commit to the five key principles of the Texas Budget Compact to ensure Texas remains strong and competitive in the future. He also urged the ongoing need for careful stewardship of Texas taxpayer dollars, especially as Medicaid puts increasing pressure on our state budget. The principles of the compact are:

  • Practice Truth in Budgeting
  • Support a Constitutional limit of spending to the growth of population and inflation
  • Oppose any new taxes or tax increases, and make the small business tax exemption permanent
  • Preserve a strong Rainy Day Fund
  • Cut unnecessary and duplicative government programs and agencies

For more information about the Texas Budget Compact, please visit:

For more information about Texas' economy and jobs market, please visit:


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