King Touts Fiscal Restraint as Reason for State’s Improved Credit Rating

August 14, 2009

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State Representative Phil King (R-Weatherford) today cited fiscal restraint and common sense economics for Texas’ booming economy and why Standard & Poor’s (S&P) raised Texas’ credit rating from ‘AA’ to ‘AA+’ this week.

A statement from S&P on Tuesday explained, “S&P raised its issuer credit rating (ICR) and general obligation (GO) rating on Texas to ‘AA+’ from ‘AA’ based on the state’s continued economic diversification, and expectation that state officials and policy makers will remain committed to the maintenance of an adequate level of reserves in the Economic Stabilization Fund (rainy day fund).” The statement went on to say, “The ratings continue to reflect our opinion of the state’s large and steadily diversifying economy, which despite the recession continues to perform better than the nation in terms of both economic activity and employment.”

King stated, “Conservatives fought off many attempts this past legislative session to unnecessarily raid the rainy day fund and now we are seeing the positive effects of taking that stand.” King went on to say, “Texas has it right – we have ensured our ‘savings account’ is intact, have kept taxes on families and businesses to a minimum, and have kept our government programs in check – that’s why our state is blowing the rest of the nation away in key economic indicators like employment and trade just to name a few.”

King concluded, “If congress and other states would use the ‘Texas Model’ as the standard for how to operate instead of creating more big government programs and raising taxes on business and families to pay for those programs, this country would be a lot better off.”