Perry delivers speech to Legislature

AUSTIN - As other states struggle and raise taxes, Texas should be bold and try to attract more businesses and jobs through financial incentives and tax relief while easing tuition expenses for college students, Gov. Rick Perry told the Legislature on Tuesday.

Perry told House and Senate members in his "State of the State" address that he wants to pump more than $500 million combined into a job creation fund, an emerging technology fund and a film-making incentives account in the coming two-year budget. He said all have a track record of success.

"As we wrestle with a lowered revenue estimate, we must stay committed to the proven policies that have brought us so far, and resist any calls to panic," Perry said. "In rough times, others see threats; Texans see opportunities."

Perry proposed freezing tuition for college students for four years of schooling, keeping the rate the same as it was for a student's freshman year. He said that would help families plan financially while giving students a good reason to finish college on time. He also proposed expanding funding for the Texas Grants Program, a state scholarship plan.

"In order to break the cycle of poverty, education has to be a top priority," state Rep. Eddie Lucio III, D-San Benito, said in a press release Tuesday in response to Perry's proposal. "Many Texans cannot afford tuition at state universities as it stands now. We must do better than the governor's proposed rate freeze. Education is one investment that doesn't lose value in tough economic times, and it's time for the state to meet its responsibility to fix a system that's broken."

State Rep. Rene Oliveira, D-Brownsville, was also disappointed by the governor's speech, claiming Perry played down the state's economic problems.

"Texans are going through tough times, and they deserve the state's help," he said. "The Rainy Day Fund was intended to help stabilize the state budget in an economic slump. State spending can help revive a struggling economy."

In responding to Perry's speech, state Sen. Eddie Lucio Jr., D-Brownsville, stressed the problems plaguing the state's poor and marginalized populations.

"We must ... prioritize services that impact our most vulnerable and needy Texans like the elderly living in nursing homes ... and rural counties battling to improve their infrastructure to offer residents a better quality of life."

Lucio III also expressed disappointment that the governor did not address the issue of the Children's Health Insurance Program.

"Regardless of our district's demographic or our partisan preferences, we can agree that we cannot afford to ignore the health of 1.5 million uninsured Texas children," Lucio said. "Rio Grande Valley families are particularly affected by this dangerous gap in health care. They need help now."

The state representative has filed a bill that would create a Medicaid "buy-in" program for children with developmental disabilities.