The Texas Budget and Economy
Many agree that Washington is broken and the two party system is corrupt – corrupted by special interests. But the time will soon come when Washington is not just broken, but totally collapsed. When that day comes, Texas will be forced to do without things we rely on from the federal government – like about 35% of our state budget. Texas will have no choice but to stand on our own two feet, as we should have done all along.
Only Kathie Glass has the vision of what is coming, a plan for how to defeat this tyranny, and the guts to see it through. Kathie’s Plan for Texas Independence (not secession!) will prepare Texas for hard times ahead by restoring fiscal sanity, so we stand strong and independent of Washington, financially as in all ways.
We have repeatedly been told that Texas is a small government, low tax, and fiscally responsible state. That was true at one time, but it is not true now. The Wall Street Journal, commenting on our current 2014-2015 budget, called it “the biggest spending spree in history,” comparing us to California.
And, yet, things are not as good as they seem. Consider these uncomfortable facts:
★ We have huge debt – the second highest per capita debt in the nation!
★ Over one-third of our state budget comes from the federal government which, as we all know, is bankrupt.
★ Over the last 20 years, spending has increased 300% – twice the increase in population and inflation.
★ Our current biennium budget is about $200,000,000,000 (that’s billion with a “b”) — a 24% increase over the prior period.
★ We have unfunded liabilities of about $54 billion.
In 2013, in the midst of an unexpected windfall of $20,000,000,000 (a 26% increase) in general revenues compared to the previous biennium — largely due to the fracking phenomena — our spendthrift legislature spent it all. 20 BILLION DOLLARS! No property tax reform. No significant tax relief. No weaning ourselves away from federal dollars. No adding to the Rainy Day Fund. On the contrary, another 2 billion dollars was siphoned from the rainy day fund! Just spent on whatever they could dream up.
Abysmal financial decisions such as this earned the Senate Republicans a D+ rating of 68.9, and the House Republicans an even lower failing mark of 63 on the Texans or Fiscal Responsibility Fiscal Index. Democrats were graded at 40.8 and 19, respectively.
We need an honest budget.
Texas has been through booms before, and the frequent busts. These huge spending increases have now been baked into the equation. Should revenues not keep up this unprecedented pace, will the Legislature eliminate the new spending or will it increase taxes? I think that we know the answer to that. TAXES, baby!
Twenty years of solid Republican rule in Texas has resulted in this financial collision course between cronyism and reality. Washington really is broken. The two party system really is corrupt. We really do have to chart a new course. Kathie’s Plan for Texas Independence is the only way to go.
Compared to other states, there is no doubt that Texas enjoys a good economy. This is due to the industrious and savvy Texas people, a relative lack of government interference in the market, and the good fortune of all those oil reserves.