Gov. Perry Visits Tyler and Touts Budget Cuts

TYLER (AP/STAFF) � Governor Rick Perry says the Legislature should keep its hands off the state’s Rainy Day Fund. Perry repeated his position against tapping the fund Tuesday at an appearance at the Brookshire’s distribution facility on the Tyler loop. Perry said using the fund now would simply “kick the can down the road” and make Texas vulnerable to financial pressures in 2013.

Perry said the Rainy Day Fund is a valuable insurance policy against �a future that continues to be uncertain on a national and global scale, and must be used as an absolute last resort, not a quick fix.” According to Perry, “Here in Texas, we know you can’t tax and spend your way to prosperity, and as long as we remain committed to our job friendly principles, such as low taxes and a fair legal system, we will continue along a successful path for Texas families and employers.”

The Governor declined to say whether he’d veto any bill that taps the fund. He said his policy remains to avoid discussing legislation before it reaches his desk.

Texas is facing its worst budget crisis in generations. Some Republican lawmakers have proposed tapping the state’s Rainy Day Fund to make up for a $27 billion shortfall. But Perry continues to oppose any effort to raise more state revenue, or to tap the fund.

Strengthening the principles that have helped Texas lead the national economic recovery and add more jobs than any other state in 2010, including keeping taxes low, and maintaining a predictable regulatory climate and fair legal system, remains a priority for the governor. The governor said he is committed to keeping taxes low in order to help small businesses continue to succeed and create jobs, and reiterated the need to make permanent the small business tax cut that was passed last session. This measure cut taxes for 40,000 small businesses, and allowed them to focus on job creation and growing their businesses.

The governor also emphasized his commitment to further strengthening Texas’ legal system by creating a “loser pays” system to provide stronger protections against frivolous lawsuits, establishing an early dismissal option for frivolous lawsuits, ensuring new laws cannot create causes of action unless expressly established by the Legislature, and setting up expedited trials and limited discovery for lawsuits with claims between $10,000 and $100,000.