PRESS STATEMENT

For Immediate Release: December 3, 2008
Contact: Cindy Mallette, (512) 476-5905

Governors Just Say “No!” To State Bailouts

Americans For Prosperity Applauds Texas and South Carolina Governors For Defending Taxpayers In Bailout Vote

AUSTIN─ In a political culture that rewards fiscal irresponsibility, Americans for Prosperity-Texas praises Texas Gov.Rick Perry and South Carolina Gov. Mark Sanford for standing for taxpayers and opposing federal bailouts for state governments.

“Americans for Prosperity is grateful for these leaders taking a strong stand against state bailouts,” said Peggy Venable, AFP-Texas state director. “It is shocking that federal tax dollars from Texans could be directed to states facing bankruptcy because of their own irresponsible fiscal policies.”

“Texas leaders have exercised fiscal responsibility,” said Venable, “and we are entering this coming session with an $11 billion budget surplus thanks to taxpayer and job-friendly government policies.”

“Texans should not be expected to send their tax dollars to any other state, let alone one that continuously hurts its own economy through heavy taxation and irresponsible spending practices,” Venable said. “Government bailouts and irresponsible government spending are leaving our children a legacy of debt.”

AFP encourages other state leaders to promote the free-market principles that have paid off for Texas as our economy is growing faster than any other in the country.

According to Comptroller Susan Combs, “Texas continues to fare better economically than most other states. The Texas economy, the world’s 12th-largest, continues to grow and is unlikely to slip into recession. In fiscal 2008, Texas’ gross state product grew by 4.2 percent, versus 1.9 percent for the national economy.”

AFP attributes that economic growth to a limited state government, lower taxes and civil justice reforms that welcome business and investment to Texas.

“States need to learn that huge spending increases during good economic times lead to budget crises when the economy weakens. States need to exercise fiscal restraint during the boom years, as Texas did, to prevent this harmful cycle.” Venable said. “Federal bailouts force all taxpayers—including Texans whose state government acted responsibly—to pick up the tab while state legislators avoid learning this important lesson.”

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Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org