Gov. Perry calls for $1.8 billion in tax relief for Texans

Posted Tuesday, Jan. 29, 2013 0 comments  Print Reprints
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AUSTIN - Gov. Rick Perry, declaring that Texas is "stronger than ever," on Tuesday called on lawmakers to give Texans $1.8 billion in tax relief over the next two years and proposed drawing $3.7 billion from the state's Rainy Day Fund to invest in infrastructure such as transportation and water.

In his seventh State of the State address, Texas' longest serving governor outlined a number of initiatives - some old, some new - to help keep the Lone Star State on a trajectory that he said has made it the envy of the nation.

"Texas is not merely strong but exceptional," he said, citing a "can-do culture" that makes it possible for all citizens to work hard and pursue their dreams.

He also made a bow to a man he once vilified in his ill-fated presidential race last year, noting that President Obama, in his recent inaugural address, called on Americans "to work together and do our part to secure a brighter future for America."

"Mr. President," Perry said, "Texas stands ready to do our part."

Perhaps more than in the past, Perry's remarks were being watched closely for any hints about his future political ambitions.

Perry has already signaled his interest in another presidential race as well as a run for re-election next year and is expected to reveal his decision in June, after the end of the legislative session.

In contrast to his last State of the State Address two years ago, when he was considered in peak form after a convincing re-election victory in 2010, Perry is being closely scrutinized for any signs of political weakness after his failed presidential bid in 2012. But Perry has widely dismissed those perceptions, saying he has been consistently underestimated in the past.

Nevertheless, a new poll released on the day of his State-of-the-State speech - conducted by the Democratic-oriented PPP firm of North Carolina - found that only 31 percent of voters think Perry should seek re-election next year, compared to 62 percent who think it's time for him to step aside. The poll also asserts that Perry is among the most unpopular governors in the country, with only 41 percent of voters approving of him compared to 54 percent who disapprove.

Perry and the state's other Republican leaders - Lt. Gov. David Dewhurst and House Speaker Joe Straus - have earlier suggested that lawmakers would try to put tax relief on the table during the current legislative session, but the governor's address marked the first time he proposed a specific number. He did not go into details as to how the $1.8 billion would be achieved, leaving that to legislators.

Better-than-expected revenue proposals by Comptroller Susan Combs have given lawmakers a robust pot of money to fund state services for the upcoming 2014-15 biennium, a sharp contrast to the lean budget conditions during the past two legislative sessions.

With the possibility of "billions still on the table after we've funded our services and met the demands of our ever-expanding population, " Perry said, "I think providing tax relief of at least $1.8 billion is a good place to start."

Although Perry has been resistant to tapping into the Rainy Day Fund, he noted that the state's economic surge and booming oil economy will generate nearly $12 billion in the fund, which is financed by oil and gas revenue.

Perry said the fund needs to remain strong but he said Texas can afford to make a $3.7 billion one-time investment from the reserve pool to fund infrastructure needs.

"What I am proposing will support critical water and transportation systems across our state, addresses our needs both short- and long-term and ensures both water and traffic will continue to flow in Texas for generations to come," he said.

Dave Montgomery is chief of the Star-Telegram's Austin Bureau

Twitter: @daveymontgomery

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