Published: 11-13-08
Americans for Prosperity Director Peggy Venable encourages Texas state legislators to enact spending limits when they meet in session on Jan. 13.
Venable spoke to representatives about the importance of spending limits at a Spending Subcommittee of the House Appropriations hearing on Wednesday at the Capitol. She said that with the national economy in turmoil and state and local governmental entities facing budget shortfalls AFP recommends spending limits.
Limits require lawmakers to set spending priorities just like families do and also provides for voter approval to spend more.
“We will work with legislators to allow taxpayers the opportunity to determine how much government they want and are willing to pay for at every level of government” said Venable.
AFP proposes a spending limit which does several things:
• Allows government to grow proportionate to the increase in population and inflation
• Any growth beyond that would require voter approval
• Surplus revenue should go to the budget stabilization fund (to be funded up to 15 of the state budget) and to a true emergency reserve cash fund (3 of the budget)
• Once those funds meet their target additional surplus should be given in property tax relief.
• Local spending limits must be in place.
• Mandates cannot be passed from state to local government without subsequent funding or the spending limit is adjusted proportionate to the unfunded mandate cost.
“We have good news in Texas thanks to legislators’ hard work. We have a budget surplus and have enjoyed several years of a good economy. Should taxpayers bemoan a good economy? Certainly not” Venable said. “Nor should taxpayers fuel government growth during good economic times only to be faced with tax increases or threatened with cuts in services during economic downturns.”
“Texans deserve to have the opportunity to determine just how much government they want and are willing to pay for. Texans need meaningful tax and expenditure reforms” she said. “Without taxpayer protections good economic times simply fuel government growth.”
The testimony is available online at: www.afptx.org.
