3rd Perry term as budget crisis looms

AUSTIN (AP) - Out on the campaign trial, GOP Gov. Rick Perry hammered hard on the theme that the Texas economy was doing better than many other states.

Perry Tuesday received about 55 percent of the vote to defeat Democrat Bill White .

Now the Republican governor will start his third, full term -- presiding over a brutal legislative session where deep budget cuts are expected to tackle a shortfall that could exceed $20 billion.

Perry, even before his giddy campaign victory party ended at an exotic game ranch near Austin, acknowledged the dreary budget session coming in 2011. He encouraged legislators to be ready.

Working in Perry's favor politically will be a heavily GOP Legislature. Republicans are picking up at least 15 Texas House seats to boost their majority.

One of the GOP victories was in the seat held by Democratic House leader Rep. Jim Dunnam of Waco, who lost even though his was considered a safe Democratic district.

Redistricting also is before the Legislature next year.