Perry gives mixed reaction to session
Governor says session had 'good, bad and the
ugly.'
May 30, 2007
By Jason Embry,
AMERICAN-STATESMAN STAFF
Gov. Rick Perry chided lawmakers Tuesday for a lack
of "accountability and budgetary honesty" in their
plans to balance the state's books over the next two
years and for not using a state surplus to further
cut taxes.
On the other hand, Perry praised the Legislature,
whose 2007 session ended Monday, for increased
spending on state parks, college financial aid and
law enforcement near the Texas-Mexico border. But he
questioned how they got there.
"Generally speaking, it's
not the investments made in the budget that concern
me," Perry said. "It's the charades; it's the
accounting sleights of hand; it's the budgetary
wizardry that gives me pause, especially with the
state awash in revenue."
Comptroller Susan Combs
reported in January that state revenue would grow by
$14 billion over the next two years. Lawmakers used
much of that money to correct accounting tricks used
to balance previous budgets, to increase spending on
education and health and human services, and to set
aside $2.5 billion to hold down property tax rates
in two years.
Perry said he hoped to avoid a special
legislative session but did not rule out calling
one. He also said he wouldn't blame Texans for
having a bad taste in their mouths about the
session, alluding to a bitter fight in recent days
over whether the House should vote on removing
Speaker Tom Craddick.
"I'd hoped that with a strong economy and a
record budget surplus, that we could see greater
unity this session," Perry said. "Instead, we saw
continued discord. I'm glad that legislators are
leaving town so there is time for the wounds to
heal."
Perry focused his comments on the most important
legislation of the session, a $153 billion state
budget, which lawmakers passed Sunday.
His critique capped a session in which the
Republican governor and the Republican-led
Legislature weren't exactly soulmates.
Lawmakers blocked his order for schools to
vaccinate girls against the human papillomavirus,
and they loudly assailed the actions on toll roads
by the Texas Department of Transportation, which is
headed by Perry appointees.
Perry counted additional tax cuts among the
Legislature's unfinished business, along with
legislation that aims to limit how much tax bills
can increase when property values go up.
Along with the $2.5 billion left unspent in
general state revenue, the new budget will allow an
unusually large sum — more than $4 billion — to
collect in the state's Rainy Day Fund.
Perry also criticized lawmakers for not spending
enough on an incentive pool for colleges and
universities to boost their graduation rates. And he
criticized the late addition to the budget of
millions of dollars in so-called special items, or
programs at specific schools.
The influx of special items into the budget
stalled negotiations between the House and Senate in
the closing days.
Lt. Gov. David Dewhurst, who heads the Senate,
and House Speaker Tom Craddick defended the budget.
Dewhurst called it a "good, fiscally conservative
budget" that cuts $7 billion a year in local school
property taxes, gives teachers a pay raise, expands
health insurance for children from low-income
families and eliminates a surcharge on phone bills
starting in the 2009 budget year.
Craddick spokeswoman Alexis DeLee said the budget
"has strong bipartisan support, and it meets the
needs of Texans while leaving almost $7 billion on
the table for future funding issues."
As for the tax cuts Perry called for, Dewhurst
said, the Legislature should first see how much
money the state's new business tax will generate.
Lawmakers approved that tax in 2006, but it will not
be paid until 2008.
Perry applauded the push to create a $3 billion
cancer research fund using bonds and said he would
campaign for voters to approve it this fall.
"We will look back at this session as the
linchpin in the fight against cancer with
investments that one day could lead to a cure,"
Perry said.
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