Texas economy main topic of town hall meeting

Lauren Ricks

Nov. 5, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Dist. 4 State Rep. Betty Brown's 2-hour Town Hall meeting was a friendly discussion on conservative principles and the Texas economy.

Over 70 people -- constituents from Henderson and surrounding counties -- attended the town hall meeting at the Trinity Valley Community College cafeteria on Tuesday evening.

The event featured District 4 State Rep. Betty Brown, District 5 Rep. Bryan Hughes, District 2 Rep. Dan Flynn and representatives of the Austin-based think tank, Texas Conservative Coalition.

"We talk a lot about the economy these days," Brown said. "Texas is better off than other states because of decisions made in the Texas Legislature."

She said the Texas Conservative Coalition is a valuable resource for legislators.

TCC Policy Analyst Brent Connett said the legislative caucus promotes limited government, individual liberty, free enterprise and traditional family values. He said there are two Americas now, one Conservative and the "other side."

Connett said according to a recent Gallup poll, Conservatives outnumber liberals 2 to 1.

"There's an America that works and there's an America that doesn't work," he said.

Connett drew a comparison between Texas' economy and California's. He said Texas has a balanced budget compared to California's $41 billion budget deficit. Texas has the seventh lowest tax burden in the nation, and California has the sixth highest tax burden in the U.S. The Lone Star State has an AA plus bond rating, compared to California's BBB rating.

"Texas has been able to weather the economic downturn relatively well," he said. "These legislatures have worked very hard."

Connett said when the state has a surplus, the don't spend it. Hughes said the state has run a surplus the last seven out of eight legislative sessions.

Connett said the money is put in the state's Economic Stabilization Fund, also known as the "Rainy Day Fund."

He said the state has $6.7 billion in the fund.

"California has $0 in Rainy Day Fund," Connett said.

He said 64 Fortune 500 companies are headquartered in Texas. California has 51 Fortune 500 companies. Connett cited Census Bureau statistics which found California lost more than 2,000 people every week between 2000 to 2007.

"Texas gained more than 1,500 every week," he said.

Brown said the Texas' unemployment rate, at 8.0 percent, is low compared to other states in the nation. California's unemployment rate stands at 12.2 percent, according to Connett.

"But we are not ignoring those who have lost their jobs," Brown said.

She said Texas offers more opportunity to its unemployed citizens because more jobs were created in Texas last year than any other state.

Connett said the economy in Texas is a result of several legislative accomplishments, including laws cutting taxes and reforming law suits.

"The Texas Conservative Coalition strives for a strong private sector and a limited government," he said.

Connett said the organization's agenda for Texas is to limit the growth of government, cut, simplify and reform business taxes, cut property taxes until they are eliminated and let the free market work.

"Property taxes are a major problem in this state," he said. "A lot of individuals are being literally taxed out of their homes."

Connett said moving away from a property tax to a consumption tax is one proposal being considered to funds the state's schools.

"The sales taxes are more fair," he said. "Everyone pays."

Connett said the consumption tax also brings in more income. He said another proposal is to have home buyers pay the tax once upfront, similar to taxes on vehicles purchased.

Hughes pitched another idea to pay for Texas' schools. He said if the state's surplus was saved, in 10 years Maintenance and Operations (M&O) would be paid for. Hughes said the bulk of property taxes are for M&O costs.

Flynn said 12,266 bills were filed during the last legislative session.

"1,600 were signed into law," he said. "Every one of them are going to affect your life."

Brown said though progress has been made, the legislators have to keep fighting for Conservative principles. She said in the last session, 900 bills were filed to turn back lawsuit reform.

"We have to keep at it," Brown said. "We have to keep Texas strong."

Newstex ID: KRTB-0452-39478939