Perry could wipe the floor with Obama based on his economic record alone. Half of all jobs created in the U.S. during last two years came from one state, Texas.
AUSTIN — Standard & Poor’s (S&P) has raised Texas’ issuer credit and general obligation credit ratings to AA+ from AA based on the state’s strong and diverse economy and strong leadership from the governor and Legislature that has left a projected $9 billion in the state’s Rainy Day Fund. S&P also raised its rating on the state’s appropriation debt to AA from AA-.
“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,” S&P credit analyst Horacio Aldrete-Sanchez said. “Furthermore, we expect that the Texas economy will recover earlier and at a faster rate than most other states given its continued population growth and relatively low cost of doing business, which we expect will contribute to gradual employment gains in 2010, particularly in the health, education and services sectors.”
S&P’s decision was based on Texas’ 2010-11 biennial budget, the state’s strong Rainy Day Fund, and Texas’ low tax-supported debt burden. The higher rating means Texas will pay lower interest on money it borrows, saving of millions of taxpayer dollars.
“In light of the economic downturn affecting the nation, this session we continued to make wise choices, such as cutting taxes on 40,000 small businesses and maintaining a multi-billion dollar balance in our Rainy Day Fund that have helped our state sustain its overall economic strength,” Gov. Perry said. “These prudent and fiscally conservative decisions continue to pay off for our taxpayers.”
HT: Baseball Crank