Texas’ Debt and Deficit Spending Growing Faster Than The Nation’s

Think Progress: [...Texas] is racking up debt at a faster rate than the national government and in greater amounts than most other states.

Perry regularly attacks President Obama for engaging in “too much spending” and running up too much debt, but as the Fort Worth Star-Telegram’s Mitchell Schnurman writes today, Texas’ refusal to raise taxes has led to its own debt ballooning faster than Washington’s:

From 2001 to 2010, state debt alone grew from $13.4 billion to $37.8 billion, according to the Texas Bond Review Board. That’s an increase of 281 percent. Over the same time, the national debt rose almost 234 percent. [...]

Still, the trend is undeniable. While Texas lawmakers have refused to raise taxes — and often criticize Washington for borrowing and spending — the state has been paying for much of its expansion with borrowed money.

While the state has had to borrow for infrastructure building to keep up with rapid population growth, as Schnurman points out, Texas didn’t have two wars, the budget-busting Bush tax cuts, recession-combating measurs, and other big-ticket national expenditures. And Texas’ “borrowing isn’t slowing.”

The state’s debt belies Perry’s boisterous rhetoric on his economic stewardship. While conservatives boast of Perry’s “Texas miracle,” California, which Perry often bashes as the antithesis of his approach, has seen faster GDP per capita growth than Texas under Perry. Meanwhile, Texas’ obstinate refusal to raise taxes helped create the largest budget shortfall in the state’s history, leading to devastating cuts to government services — one town had to lay off its entire police force — and Perry using budget gimmicks and federal stimulus dollars to balance his budget.

At his appearance before the Republican Leadership Conference in New Orleans on June 18th , Texas Gov. Rick Perry crowed that the Republican Super Majority 2011 legislative session balanced the 2011-13 state budget while leaving billions in reserve. Perry told the Republican Leadership Conference:

"To preserve our job-friendly climate, the Texas Legislature didn’t raises taxes this last legislative session while balancing their budget and maintaining essential services. And I might add, that new budget leaves $6 billion in a rainy day fund."

In January, state Comptroller Susan Combs predicted the rainy day fund would have a balance of $9.7 billion by the end of August 2013. That figure was later whittled to $6.4 billion after legislators took $3.2 billion from the rainy day fund in April to cover a deficit in the current 2009-2011 budget that runs through August 31, 2011.

In January 2011 Texas Comptroller Susan Combs projected a $27 billion deficit for fiscal 2012-2013. State lawmakers then proposed an austere budget for the 2012-2013 fiscal years that cut $31 billion in spending from public schools, colleges, collage students, Medicaid and social services, public safety (police and prisons) and transportation. That austerity budget cut $7.8 billion from health and human services and $8 billion for K-12 public schools.

On June 28, 2011 Gov. Perry signed a $172 billion budget passed by the super Republican majority Texas House and Senate. The budget signed by Gov. Perry cuts $15 billion from the level of spending last authorized in the 2009-11 state budget. The largest individual cut was to public education, which lost over $4 billion over the biennium.

Smartphones Rapidly Replacing Computers For Internet Access

Pew Internet & American Life Project highlight the breakneck speed consumers are adopting smartphones as their preferred Internet access device — faster than just about any high-tech product in history. The Pew Internet Project research survey finds that one third of American adults – 35% – have adopted smartphones in the last four years, an adoption trend that shows no sign of slowing! The Project’s May survey found that 83% of US adults have a cell phone of some kind, and that 42% of them own a smartphone. That translates into 35% of all adults.

Several demographic groups have high levels of smartphone adoption, including the financially well-off and well-educated, non-whites, and those under the age of 45.

Some 87% of smartphone owners access the internet or email on their handheld, including two-thirds (68%) who do so on a typical day. When asked what device they normally use to access the internet, 25% of smartphone owners say that they mostly go online using their phone, rather than with a computer. While many of these individuals have other sources of online access at home, roughly one third of these “cell mostly” internet users lack a high-speed home broadband connection.

Why Social Security Cannot Go Bankrupt

It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money,”says an article in Forbes:

This belief is the result of a common error: conceptualizing Social Security from the micro (individual) rather than the macro (economy-wide) perspective. It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. It’s an immediate transfer from workers today to retirees today. That’s what it has always been and that’s what it has to be–there is no other possible way for it to work.

There appears to be every indication that productivity increases should be sufficient for the Baby Boomers to retire AND allow the rest of us enjoy even higher standards of living (assuming the compression of wages ends). That’s good news. In fact, it’s the only news that’s important./

I’m not telling you whether you should be for or against Social Security, but the argument that it is going bankrupt is a non-starter. It is much ado about nothing.

Read the full article @ Forbes

President Barack Obama used the August 14, 2010 anniversary of Social Security to trumpet Democrats’ support for the popular program and accuse Republicans of trying to destroy it.

President Obama promises to protect Social Security [3:15]

Seventy-five years after President Franklin D. Roosevelt signed Social Security into law, Obama said in his August 14, 2010 weekly radio and Internet address: “We have an obligation to keep that promise, to safeguard Social Security for our seniors, people with disabilities and all Americans — today, tomorrow and forever.” [Text of speech]

Sen. Bernie Sanders Cutting Medicare Is NOT the Answer

Some Republican leaders in Congress are “pushing to make privatizing Social Security a key part of their legislative agenda if they win a majority in Congress this fall,” Obama said.

He contended that such privatization was “an ill-conceived idea that would add trillions of dollars to our budget deficit while tying your benefits to the whims of Wall Street traders and the ups and downs of the stock market.”

Democrats adamantly oppose any cut in benefits to reduce costs and some won’t accept a gradual increase in the retirement age, something that was done in the last overhaul in 1983. Republicans say an increase in Social Security taxes is out of the question, even for the wealthy.