Office of the Governor Rick Perry

Gov. Perry Warns Against 'Vicious Cycle of Undisciplined Spending'

Organizations Representing 400,000 Texans Join Call to Hold the Line on State Spending

Wednesday, April 23, 2003  •  Press Release

AUSTIN – Gov. Rick Perry today joined members of organizations representing more than 400,000 Texas families and businesses in urging Texas lawmakers to hold the line on spending and not raise the price of state government on taxpayers.

"Texas families and Texas small businesses may not be organizing petition drives or marching on the Capitol, but they are keenly interested in who is working to give them a government at a price they can afford,” Perry said. “Even if their voices are quiet, legislators would be wise to hear it.”

The governor was joined at the Governor’s Mansion by representatives from 12 statewide organizations. The groups included Citizens for a Sound Economy, Free Market Foundation, Independent Bankers Association of Texas, National Center for Policy Analysis, National Federation of Independent Business, Texas Association of Business, Texas Citizen Action Network, Texas Conservative Coalition, Texas Hispanics Educating on Law and Politics (Texas HELP), Texas Public Policy Foundation, Texas Women’s Alliance and the Young Conservatives of Texas.

“We must resist the vicious cycle of undisciplined spending that leads to higher taxes that then leads to more undisciplined spending,” Perry said. “If higher taxes ensure sufficient revenue, then why does California now face a $35 billion budget gap? Over the long-term, tax hikes do not alleviate economic and budgetary problems. They exacerbate them.”

The governor also warned against budget tricks such as draining the state’s Rainy Day Fund for on-going expenses or “payment deferrals,” which allow government to push expenditures into the next budget cycle.

“We must not attempt short-term solutions that come at the expense of long-term prosperity,” Perry said. “We cannot create jobs and additional revenue by passing the tax hikes that kill jobs and dry up sources of revenue.”

Perry noted that practicing fiscal discipline is not easy and sometime means “saying no to worthwhile programs” or “accepting reductions in one’s own favored initiatives.”

Perry also praised state legislators for working to develop a budget within available revenue.

“The legislative process is working,” the governor said. “I want to encourage members of the House and Senate to continue to hold the line on spending, investing in priorities and spending what the state can afford, but not one cent more.”

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