^
Keep Dallas Observer Free
4

Paul Krugman Is Very Worried About Texas

Speaking of the great state o' Texas's $25-billion budget shortfall ...

Clearly, there are many Get Him to the Greek fans amongst the Friends of Unfair Park who've spent the better part of the morning filling the in-box with a copy of actor and Nobel Prize-winner Paul Krugman's piece in today's New York Times: "The Texas Omen." In it, the economist asks the question: If Texas is so recession-proof, then, like, what the hell? Didn't Governor Rick Perry say in that campaign ad back in February that "we have billions in surplus"? Yeah, he sure did. So, Texas, WTF?

The truth is that the Texas state government has relied for years on smoke and mirrors to create the illusion of sound finances in the face of a serious "structural" budget deficit -- that is, a deficit that persists even when the economy is doing well. When the recession struck, hitting revenue in Texas just as it did everywhere else, that illusion was bound to collapse.

The only thing that let Gov. Rick Perry get away, temporarily, with claims of a surplus was the fact that Texas enacts budgets only once every two years, and the last budget was put in place before the depth of the economic downturn was clear. Now the next budget must be passed -- and Texas may have a $25 billion hole to fill. Now what?

Now what? I'm gonna see if Schutze'll let me borrow his shotgun, that's what.

I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Dallas and help keep the future of Dallas Observer free.

Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.

 

Join the Observer community and help support independent local journalism in Dallas.

 

Join the Observer community and help support independent local journalism in Dallas.