As the national and global economies struggle to recover from their financial woes, Texas is displaying strength that is built on conservative fiscal discipline.
* Overcame Budget Shortfall. Back in 2003, Texas overcame a $10 billion budget hole without raising taxes by making tough choices to effectively prioritize and cut spending. Six years later, our Rainy Day Fund is on its way to $8 billion.
* Reducing Spending. There have been only two state budgets since World War II that cut general revenue spending in Texas, and Gov. Perry signed them both. Gov. Perry has line-item vetoed more than $3 billion in unnecessary spending from state budgets, more than all other Texas governors combined.
* Cutting Business Taxes. During the 81st Legislature, Gov. Perry called for and signed HB 4765, which exempts small businesses with less than $1 million in gross revenues from the state's franchise tax, up from $300,000. This is expected to spare 40,000 small local employers from paying any franchise tax, saving them $172 million in taxes, money which now can go to paying employees, expanding their businesses and otherwise bolstering the Texas economy. In 2006, Gov. Perry also signed legislation, which has to date saved Texans an estimated $16.4 billion in property taxes.