Is Rick Perry the right guy to lead us out of tough economic times?

Reported by: Joel Noe

Sources: The International Reader, Texas Political Society

First Reported by: Joel Noe,The International Reader

Since the beginning of his presidential campaign, Texas Gov. Rick Perry has made what he calls the economic success of Texas the centerpiece of his campaign. According to Perry and his supporters, the state economy has improved as a result of his policy, including the lack of an income tax and predictable regulation. Others, meanwhile, have questioned whether the Texan economy is truly as successful as Perry claims.

As of August 2011, Texas has a 8.2% unemployment rate^. In comparison, the national unemployment rate was 9.1% in August 2011.  25 states have a lower unemployment rate than Texas, and 25 states (including the District of Columbia) have a higher unemployment rate, meaning that Texas has median unemployment among U.S. states. Between June 2009 and August 2011, 237,000 jobs were created in Texas.

According to a March 28 2011 report by the Bureau of Labor Statistics, 9.54% of hourly-paid workers in Texas are paid at or below minimum wage. In comparison, the national percentage is 6.0%. Among the 50 U.S. states and the District of Columbia, Texas has the highest percentage of workers paid at or below minimum wage; the state with the second-highest percentage is Mississippi, with 9.50%.

As of 2011, 26% of the Texan population does not have health insurance. In comparison, the statistic among the entire U.S. is 17%.

Perry, a proclaimed proponent of fiscal conservatism, has often campaigned on tax reform and job growth. Perry opposed creating a Texas state income tax and increasing sales tax rates, choosing instead to increase user fees and debt, adding $2 billion for road bonds, borrowing from the Federal Unemployment Trust Fund and adding surcharges to various traffic offenses, protected the state's "Rainy Day fund", balanced the state budget as required by state law, and was reelected on a platform to reduce property taxes that rose with the inflation of property values in the late 1990s and the 21st century. In early 2006, Perry signed legislation that delivered a $15.7 billion reduction in property taxes.

In early 2006, Perry angered some fiscal conservatives in his own party by supporting an increase in the state franchise tax alongside a property tax reform bill. Many organizations within the Republican Party itself condemned Perry's tax bill, HB-3, and likened it to a "back door" state income tax. Perry claimed that the bill would save the average taxpayer $2,000 in property taxes. Critics contended that Perry inflated these numbers; the actual tax savings, some sources said, would average only $1,350 per family.

In 2003, Perry signed legislation that created the Texas Enterprise Fund to enhance the development of the Texas economy. In 2004, he authorized the fund to grant $20 million to Countrywide Financial in return for a promise "to create 7,500 new jobs in the state by 2010." Critics argue those jobs would have been created with or without tax payer money. The grant (all of which are approved by the Governor, the Lieutenant Governor and Speaker of the House) is one of the largest made from the fund in terms of the size and the number of jobs promised.

In the fall of 2007, while slashing jobs and with its stock price plummeting, Countrywide assured Perry's office that the company "believed" it would meet its 2010 commitment  only to be acquired in a fire sale two months later by Bank of America. Thanks to the "claw-back" provisions in the program, grantees return funds to the state for jobs not created.

As lieutenant governor, he initially sponsored a controversial school voucher bill as an alternative to the "Robin Hood" school finance proposal. In 2004, Perry attacked the same "Robin Hood" plan as detrimental to the educational system and attempted to get the legislature to replace it with one that he said would encourage greater equity, cost less, hold down property and sales taxes, and foster job growth. Perry supported the legalization of video lottery terminals at racetracks and on Indian reservations as well as increases in cigarette taxes.

In 2003, Perry called three consecutive special legislative sessions to procure a congressional redistricting plan he said would be more reflective of the state's population. The plan finally adopted - supported by then U.S. House Majority Leader Tom DeLay of Sugar Land - brought about a five-seat Republican gain in the delegation. In 2006, however, the five-seat edge was reduced to three seats. Thereafter, Republicans gained one seat in 2008 and an additional three seats in the 2010 election; they now hold a 23-9 majority.

A special session of the legislature was convened on June 21, 2005, to address education issues, but resistance developed from House Speaker Tom Craddick, a Republican from Midland. Perry's proposal was attacked by members from property-poor districts and was rejected. During the session, Perry became involved in a heated debate with Comptroller Carole Strayhorn about the merits of his school finance proposal. Strayhorn initially planned to oppose Perry in the 2006 Republican primary, but she instead ran as an independent in the general election. 

Another special session was convened on July 21, 2005, after Perry vetoed all funding for public schools for the 2007–2008 biennium. He vowed not to "approve an education budget that shortchanges teacher salary increases, textbooks, education technology, and education reforms. And I cannot let $2 billion sit in some bank account when it can go directly to the classroom."

Perry's campaign office in 2006 declared that without the special session, some "$2 billion that had been intended for teacher pay raises, education reforms, and other school priorities would have gone unused because House Bill 2 [the public school reform package] didn’t pass." The bill failed to pass in the first session, and was refiled in a second session, in which the bill was defeated 62-79, after 50 amendments were added without discussion or debate.

Late in 2005, to maximize the impact of a bipartisan education plan, Perry asked his former rival in the race for lieutenant governor, John Sharp - a former Texas State Comptroller and a member of the Texas Railroad Commission, Texas State Senate and Texas House of Representatives - to head an education task force charged with preparing a bipartisan education plan. Sharp accepted Perry's offer and removed himself as a potential candidate for governor in 2006. The task force issued its final plan several months later, and the legislature adopted it. For his successful efforts, Sharp was later nominated by The Dallas Morning News for the "Texan of the Year" award.

Despite Rick Perry's efforts Texas still ranks at the bottom of many educational indicators. Texas is 50th in the nation in kids with a high school diploma by age 25. Texas also has the 43rd lowest high school graduation rate. Texas is 49th in verbal SAT scores in the nation (493) and 46th in average math SAT scores (502). Although these differences in educational indicators appears to reflect differences in ethnic makeup (non-whites usually score lower and have higher drop-out rates). For example, when controlling for ethnic background Texas White, Hispanic, and Black students score significantly better than their counter-parts from Wisconsin. In addition, the Texas White-Black test score gap is lower.  Pay increases for Texas's teachers have not kept up with the national average, but the educational indicators do not show any negative impacts from this lower pay.

In June 2010, Perry went on a 12-day trade mission to East Asia. The security detail for the trip cost $129,000 in state money. The Texas Government attempted to block the media's scrutiny of the use of the funds as they contained information that could compromise the future security of the state's senior executive. A member of White's gubernatorial campaign stated that Perry should, "stop hiding the facts on fiscal issues like what he's charging taxpayers for travel". Perry's campaign countered that the trip led to greater exposure for Texas business opportunities in Asia. In all, Perry made 23 foreign trips from 2004 to 2010, including a vacation on Grand Cayman and an education policy retreat in the Bahamas. The state paid only 1% of the travel expenses for these excursions, but security details for all trips combined cost over $1 million in state money. Perry's chief of staff remarked that the trips were "good business sense" as they enhanced the profile of Texan goods and services in foreign markets. White's campaign, however, accused Perry of staging the trips for self-promotion.

In Perry's 2010 book Fed Up!, he takes issue with the Federal government's right to collect income tax, saying "if you want to know when Washington really got off the track, the 16th Amendment, giving them the opportunity to take your money with a personal income tax."  He also criticizes the 17th Amendment, which allows for the direct election of U.S. Senators. According to Perry, the 16th and 17th Amendments caused states to "[hand] over significant chunks of their sovereignty and wealth to the federal government. Congress was free to tax and spend to its heart's content."

On August 16, Perry sharply criticized the Federal Reserve, stating that it was "treasonous in [Perry's] opinion", by "printing money to play politics". Tony Fratto, a Republican who had worked in the Treasury and White House under the Bush administration, described Perry's remarks as "inappropriate and unpresidential."  Perry also suggested that if Chairman Ben Bernanke came to Texas, "[Texans] would treat him pretty ugly", a remark criticized by the White House as threatening.