Greg Abbott Unveils Working Texans Policy Plan

To create more jobs, I’m unveiling my “Working Texans” plan to serve as a catalyst for a new era of economic expansion in Texas.

The building block of a strong economy is an environment where entrepreneurs and workers have the freedom to aspire, to innovate, to grow and to prosper. Increasingly, we’re seeing government as a hindrance—rather than a help—to economic growth.

At the federal level, especially with laws like Obamacare, Dodd-Frank, and lawless regulations by agencies like the EPA, we’ve seen the heavy hand of government impose burdensome and costly programs that stifle job growth, take more tax dollars and limit the ability of workers to take home more pay.

To get government off the backs of workers and job creators, and to unleash the power of entrepreneurs and innovators, government must be limited. When government is limited, freedom is expanded. When freedom is expanded, free enterprise flourishes and individuals prosper. I will be Governor of a state where freedom, free enterprise and individual prosperity are staples of society.

All of that begins with government being right-sized. We’ve seen the devastation of big government policies that have robbed taxpayers of their money and destroyed economic opportunity in areas that once were thriving. Fifty years ago, Detroit was described in terms that sound like Texas cities today. Detroit was one of the fastest growing, most prosperous cities in America. It was attracting workers from around the country. But after an era of big government policies and increased spending, Detroit hit a downward spiral that led to bankruptcy.

We’re seeing the same poor policy choices begin to choke off opportunity in America. Twenty-five years ago, America’s debt was $2.6 trillion. Now, our national debt exceeds $17 trillion. Our national debt per person now exceeds $53,000 for every man, woman and child in America. Even Greece has less debt per person than Americans. Once again, unrestrained growth of government is the cause of these problems. Workers, jobs and take home pay are the victims.

Today, Texas is one of the leading economies in the world. But, we’re beginning to see warning signs of problems. Unemployment still remains above where it was before the recession. Last month, the Tax Foundation downgraded Texas’ status out of the top ten states in the country. The size of our state government has grown faster than our population. Our local debt load is the second highest of the large states in the country. We’re beginning to see cracks in our economic foundation that could lead to serious damage for taxpayers if the right policy choices aren’t made.

To keep Texas on the right track, we must never forget that you know better how to spend your money than do bureaucrats in Austin or Washington. To help you keep more of your money, to preserve your pursuit of happiness that was embedded as a bedrock principle in our foundational document, government must be restrained in taking your money.

I have a plan to do that. My plan has a basic premise: control the growth of government in order to grow the economy and grow jobs. I offer eight reforms that will constrain the size of government, that will stimulate the private sector to create more jobs and will let Texans keep more of their money.

To protect taxpayers from the harsh effects of government growing too big, we need a constitutional amendment that limits the growth of the state budget to population growth, plus inflation. Even with this tighter spending limit, the state will be able to provide necessary services because the budget will keep up with population growth and the rising costs of goods and services.

To further keep spending under control, the Governor should be given expanded line-item veto authority. I am willing to take on the task of making difficult decisions to reduce government spending when at times the Legislature may not be able to do so. But to do that, the Governor needs additional authority to make prudent and sensible spending reductions for the benefit of our future.

Even with these new constitutional protections against excessive spending, more tools are needed to ensure Texas remains economically sound. One of these tools is better protection of the state’s Rainy Day Fund. The Rainy Day Fund is our savings account, intended to protect our economic future. We need more safeguards to protect that savings from being raided. Currently, the Legislature is authorized to tap the Rainy Day Fund “at any time and for any purpose”.

We’ve seen a troubling trend of using the Rainy Day Fund for what should be core government operations and expenses. To protect the Rainy Day Fund, I will promote a constitutional amendment that strictly limits the Fund to be used only for it’s intended purpose of meeting unforeseen shortfalls in revenue, reducing existing debt, one-time infrastructure payments and expenses related to state disasters. Together, these measures will ensure the Rainy Day Fund is not an ATM that can be raided whenever passions rise to spend more taxpayer money.

To ensure public trust and confidence in government, taxpayers must have government that is transparent and accountable. To bolster that trust and confidence, I suggest five reforms that will make our budget clearer, cleaner and leaner.

One reason why Texans are frustrated about taxes and spending is that money intended for a particular purpose is sometimes used for something entirely different. Take transportation, for example. We need to stop diverting transportation funding away from building roads. Money raised for roads should be spent on roads. I also believe it’s time to constitutionally dedicate a portion of the motor vehicle sales tax to road construction and maintenance. These changes will improve trust and confidence in our state budget process and will add billions more dollars to keep Texans moving.

We also need to stop the financial shell game that’s used to balance the state’s books. The state imposes more than 200 special taxes and fees that are intended to go to a specific purpose like updating 911 service or sexual assault programs. Often those fees and taxes don’t go to their intended purpose. Instead, the money is left unspent in order to balance the budget. More than $4 billion falls into this category.

I will work to ensure that either these funds are used for their intended purpose or the assessment for them is eliminated. I will also work for a constitutional amendment that prohibits using these dedicated accounts to certify the state budget. We must remove the temptation of budgetary sleights of hand. It is time to kick the habit of budgetary shell games and accounting gimmickry.

Democracy works best when voters are fully informed. To better control budgets and to ensure tax dollars are being spent wisely, taxpayers should be given more information about debt before voting on it. Debt has a role in building infrastructure. Just like most individuals couldn’t buy a house or a car without incurring some debt, most governments are unable to build schoolhouses or roads for cars without some debt. Unchecked, however, debt becomes an anchor on government and eventually on taxpayers. Debt today can become taxes tomorrow. It can stifle economic growth and limit job creation.

In Texas, we are heavier in debt than most Texans know. Local governments owe more than $200 billion in bond debt. Some cities owe well over $5,000 per person in debt alone. Our local bond debt is second highest per capita among the large states. Only New York is more heavily in debt. Even California has lower local debt.

To get a handle on our debt, voters should be given more information—on the ballot itself—about current debt, before making a decision whether to vote for more debt. Second, all local taxing entities should be required to post their financial information online so voters can easily see it.

One reason local debt is so high is because of unfunded mandates by the state. If the state wants local governments to do something, the state should shoulder more responsibility for paying for it. Under current law, the Legislature can impose requirements on local governments without providing funding to meet those requirements. For example, the Fair Defense Act requires counsel for indigent defendants in criminal cases. That law cost about $207 million in 2012. The state paid about $28 million of that cost, while counties were stuck with about $179 million of the tab. A constitutional amendment should be passed prohibiting the Legislature from putting any more unfunded mandates on local governments.

Lastly, I will work with the Legislature to reform the sunset system. The Sunset process seldom eliminates unnecessary agencies and simply becomes a vehicle for special interest carve-outs in the Capitol. Florida appoints 25 community and business leaders to a “Taxation and Budget Reform Commission” to scour the budget for wasteful spending and outdated taxes and fees. It is time we adopted a similar model if we want to truly constrain the growth of government. The Commission should focus on abolishing or consolidating state agencies and reducing costs.

The key to unlimited economic growth is limiting the size and scope of government by controlling spending, reducing debt and reforming government. We will ensure the public sector doesn’t smother the private sector.

Some people want to transform Texas into California—a free-spending nanny state that puts government behind the wheel and citizens at the mercy of its edicts. But I believe in the Texas model of freedom—and so do a lot of Californians. More Californians are fleeing to Texas than any other state.

As Governor, I will protect that freedom and those economic principles.

Texas has the greatest economy in America. Let’s make it better. Let’s build a Texas worthy of the next generation, with good jobs and abundant opportunity.

Texas is a job-creating machine and Texans are the force that powers it. I will be the Governor who keeps it that way.