Perry Campaign Press Release - Bachmann Committee Attacks Gov. Perry's Fiscally Conservative Record

AUSTIN — A committee supporting Michele Bachmann has released a blatantly false ad that completely misrepresents Gov. Perry's fiscally conservative record in Texas.

"Gov. Perry is a proven fiscal conservative, having cut taxes, signed six balanced budgets, and led Texas to become America's top job-creating state," said Ray Sullivan, RickPerry.org's communications director. "Congresswoman Bachmann's front-group ad is patently and provably false. Unlike Washington, the Texas budget is balanced, does not run deficits and limits spending, even as Texas added jobs and population in big numbers."

FALSE CLAIM: "Rick Perry doubled spending in a decade."

TRUTH: State spending — the non-federal dollars state lawmakers can control — is six percent lower under Gov. Perry than it was under the two-year budget in effect when he took office, adjusting for population growth and inflation. In unadjusted amounts, state spending is $80.5 billion for the 2012-13 biennium compared to $55.7 billion for the 2000-01 biennium. Texas' population growth plus inflation since 2001 is 54 percent. The current Texas budget funds the state's vital needs by operating within available revenues and providing tax cuts for small businesses. Gov. Perry is the only Texas governor since World War II to cut state (general revenue) spending.

FALSE CLAIM: "This year, Rick Perry is spending more money than the state takes in."

TRUTH: Texas' budget has been certified as balanced by the Texas Comptroller of Public Accounts, with an estimated $6.5 billion remaining unspent in the state's Rainy Day Fund. Every budget Gov. Perry has signed has been balanced.

FALSE CLAIM: "Covering his deficits with record borrowing."

TRUTH: Texas does not have a deficit. The state's recent sale of Tax and Revenue Anticipation Notes (TRANs) is cash-flow management tool that dates back to 1987. These notes are sold every fiscal year to manage cash flow and to provide up-front payments to public schools. They are repaid within the fiscal year with tax revenue that comes in after the upfront school payments are made. Texas earned the highest possible ratings in anticipation of this offering, receiving a rating of SP-1+ by Standard & Poor's, MIG 1 by Moody's Investors Service and F1+ by Fitch Inc. Texas' net interest rate of .27 percent is down from last year's rate of .34 percent, representing the state's lowest net rate ever for these notes.

SOURCES:

Texas State (General Revenue) Spending:

2000-01 Biennium: $55.7 Billion, Page 9, http://www.lbb.state.tx.us/Fiscal_Size-up/Fiscal%20Size-up%202010-11.pdf; 2012-13 Biennium: $80.5 Billion, Page 7 http://www.lbb.state.tx.us/Bill_82/4_Conference/Summary%20of%20Conferenc...

2000-01 Biennium Adjusted for Inflation plus Population Growth: $85.9 Billion; $55.7 Billion plus 54% ($30.2 Billion) = $85.9 Billion; $85.9 Billion minus six percent ($5.2 Billion) = $80.7 Billion

Texas Population:

2001: 21.3 Million, Page 4 http://www.window.state.tx.us/taxbud/bre2012/96-402_BRE_2012-13.pdf; 2013 (projected): 26.5 Million, Page 5 http://www.window.state.tx.us/taxbud/bre2012/96-402_BRE_2012-13.pdf; Change: 5.2 Million (24.6%)

Inflation:

2001: 176.2 (CPI Index); Page 4, http://www.window.state.tx.us/taxbud/bre2012/96-402_BRE_2012-13.pdf; 2013 (projected): 228.3 (CPI Index); Page 5, http://www.window.state.tx.us/taxbud/bre2012/96-402_BRE_2012-13.pdf; Change: 52.1 (29.6%)

Budget Certification / Rainy Day Fund Balance:

Certification of H.B. 1 by Comptroller of Public Accounts Susan Combs, 6/7/11, http://www.rickperry.org/content/uploads/2011/09/Budget-Certification-6-... Certification of S.B. 2 by Comptroller of Public Accounts Susan Combs, 7/1/11, http://www.rickperry.org/content/uploads/2011/09/Budget-Certification-7-... Summary of Conference Committee Report on H.B. 1, Legislative Budget Board, May 2011, Page 23, http://www.lbb.state.tx.us/Bill_82/4_Conference/Summary of Conference Committee Report on House Bill 1.pdf

Tax and Revenue Anticipation Notes

"Gov. Perry: High Demand for Texas Short-Term Notes Due to State's Fiscal Strength," Office of the Governor, 8/23/11, http://governor.state.tx.us/news/press-release/16515/