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Keep Conservatives United
"KCU-Budget-c4-web" +
:30 ad run in Columbia, SC starting Aug. 31, 2011.
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[Music] Male Announcer: Rick Perry says he's one tough hombre on spending.
Perry clip from Republican
Leadership Conference): "Number one is don't spend all the
money."
[cash register ring SFX]
Male Announcer: But
what's his record?
Rick Perry doubled spending in a decade, and this year Rick Perry is
spending more money than the state takes in [cash register ring SFX],
covering his deficits with record borrowing.
And he's supposed to be the Tea Party guy?
There is an honest conservative and she's not Rick Perry.
Paid for and authorized by Keep Conservatives United.
Notes:
From Keep
Conserrvatives United...
Facts
While claiming “don’t spend all the money ‘, Governor Perry doubled
spending from $44.996 billion to $90.410 billion over a decade
2000-2010. (Texas Comprehensive Financial Reports Statistical Sections
2009,page 9,2010,page 11,
http://www.window.state.tx.us/finances/pubs/cafr/index.html Even if
federal funds going to Texas are excluded, Perry increased state money
only spending 66% ($28.83 billion to $47.93 billion) or 43% faster than
the combined increase in inflation and population
Now the Wall
Street Journal reports Texas just borrowed a record
$9.8 billion to fund government. The paper said, “In an offering
document, the Texas comptroller projected a maximum temporary cash
shortfall of $13.2 billion within fiscal year 2012 before the note
proceeds and other available borrowing. The state said it expects to
start fiscal year 2012 with a $1.8 billion negative cash balance in the
general revenue fund’s unrestricted accounts, and to end the 2012
fiscal year with a negative cash balance of $6.7 billion.
The $9.8 billion represented the largest amount sold since the state
first began selling short-term notes in 1987, according to the
comptroller’s office’ (Wall Street Journal 8/23/11)
The offering document for new debt shows Rick Perry is spending $1.8
billion more than the state takes in this year (page 17).
https://www.trantexas.com/pma/Texas.TRAN.2011.pos/TRAN.2011.POS.pdf
Rick Perry is spending all the money and then some. And he’s supposed
to be the Tea Party guy?
Conclusion
While Perry is borrowing record dollars to cover his deficit, Bachmann
led the fight against Washington’s deal to increase debt. Keep
Conservatives United’s ads make the difference clear.
Response from RickPerry.org...
Bachmann
Committee Attacks Gov. Perry’s Fiscally
Conservative Record
100% of attacks in ad are false
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/
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/
Inflation:
2001: 176.2 (CPI Index); Page 4, http://www.window.state.tx.us/
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/
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/
Copyright © 2011 Eric M.
Appleman/Democracy in
Action.