The primary challenge of the legislature next session will be to protect Texas’ economy. In spite of the rising price of gas and consumer goods, Texas has one of the strongest economies in the nation. Last year over 1/3 of the new jobs created in the United States were right here in Texas, with 95% of those in private industry. Texas has one of the lowest unemployment rates and lowest mortgage foreclosure rates in the nation. Texas’ consumer confidence level is over 30 points higher than the rest of the U.S. and sales tax collections are up 5.8% over last year. Why is Texas faring so much better than the rest of the nation? Two primary reasons are: Business Friendly Environment - Many businesses that were overtaxed and over regulated in other states are relocating to Texas. Many of those same states have responded by increasing taxes on the remaining businesses and individuals, perpetuating a vicious cycle . Conservative statewide leadership - Under Governor Perry and a republican majority legislature, Texas has maintained fiscal discipline, resisting higher taxes and excessive spending. While other states face huge deficits, Texas has a $10.7 billion surplus on hand during these uncertain times. If we focus on the primary responsibilities of government, maintain fiscal discipline and keep our economy strong we can continue to weather this economic downturn better than the rest of the nation. Raising taxes and irresponsible spending is one of the worst changes Texas could make.