Texas Governor Rick Perry announced the Governor's Office and Legislative Budget Board (LBB) have directed state agencies to develop their legislative appropriations requests for the 2014-2015 biennial budget, including identifying 10 percent savings (in five percent increments) in general revenue-related funding. The governor discussed the directive and his commitment to keeping Texas on the path to prosperity at a discussion about the Texas economy hosted by the Greater San Antonio Chamber of Commerce and emceed by talk radio host Joe "Pags" Pagliarulo.

"Every two years, state leaders and agencies take a fresh look at our budget to ensure each taxpayer dollar is spent efficiently by our state government to keep Texas the best place to live, work, raise a family and start a business," Gov. Perry said. "Identifying potential savings early in the budget process reiterates our ongoing commitment to the responsible fiscal policies that have made Texas the epicenter of job creation in the U.S., including keeping our taxes low, spending in check and government running efficiently."

The Governor's Office and LBB letter provides a starting point for state agencies as they prepare their budget requests for the 83rd Legislative Session, and is similar in scope to directives provided by leadership in previous years to begin the budget writing process. Requests must be submitted to the Governor's Office and LBB by the end of August.

The directions in this letter support the priorities Gov. Perry has outlined in the Texas Budget Compact to ensure the state remains committed to fiscally responsible governing:
1) Practice truth in budgeting
2) Support a Constitutional limit of spending to the growth of population and inflation
3) Oppose any new taxes or tax increases, and make the small business tax exemption permanent
4) Preserve a strong Rainy Day Fund
5) Cut unnecessary/duplicative government programs and agencies

To view the letter to state agencies, please visit http://www.lbb.state.tx.us/LAR/LAR%20Policy%20Letter.pdf.

To view the LBB's instructions to state agencies, please visit http://www.lbb.state.tx.us/LAR/LAR.htm.