Office of the Governor Rick Perry

Governor's Initiatives - Texas Budget Compact

Principles for a Stronger Texas

We are approaching a legislative session that offers a very clear choice in the direction we'll be going as a state in the years and even decades to come. Given the increasing pressure on our budget, in particular with respect to Medicaid, it is imperative we remain committed to the sound conservative values that have made Texas the prosperous state it is today, and take steps to advance us even further. These are principles Texans live under and these are the principles Texans expect.

As we all have a vested interest in the future of Texas, we need to do everything we can to help our state become a stronger, more prosperous state, better prepared to deal with the unexpected and better positioned to care for our own. That's what the Budget Compact is all about, a unique opportunity to do right by Texans.

Action Items

That's why Gov. Perry is proposing "The Texas Budget Compact," comprised of five simple yet effective principles that will lead to a stronger Texas:

  1. Practice Truth in Budgeting
  2. Support a Constitutional limit of spending to the growth of population and inflation
  3. Oppose any new taxes or tax increases, and make the small business tax exemption permanent
  4. Preserve a strong Rainy Day Fund
  5. Cut unnecessary and duplicative government programs and agencies

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