State leaders on guard as economy slows

AUSTIN (AP) - Gov. Rick Perry and the state comptroller Wednesday warned that the national economic crisis is starting to seep into Texas government. Both said Texas is in better position than most states. Slower sales tax growth and other financial factors, like sagging public pension funds, are among the concerns going into the 2009 legislative session. Comptroller Susan Combs said in 2006, sales tax was growing at a rate of 12 percent and now that has slowed to 5 percent.

Combs said Texas has been helped by sales in the energy sector. Perry, at a separate event, met privately today with representatives of the auto, retail and restaurant trade associations. Perry said only part of the state's projected $11 billion surplus is uncommitted. He said costs from Hurricane Ike and Medicaid enrollment growth are likely to take up that money.