TEXAS ENJOYS $11 BILLION SURPLUS

As most states scramble to patch holes in their budgets, Texas glides along unscathed. While California, New York, Florida, Michigan and Ohio make painful choices -- higher taxes, spending cuts, Texas has a surplus topping $11 billion. Why? Because the state doesn't have an income tax:

• States with income taxes have seen revenue plummet, especially in the Northeast and in Midwestern states.
• Texas is among several energy-producing states reporting no budget gap; others include Alaska, Louisiana, North Dakota and Wyoming. [but not California]
• Moreover, Gov. Rick Perry (R) has said Texas' economy is strong and continues to create jobs because of low taxes and conservative policies, and state leaders remain upbeat as the next legislative session approaches.

Overall, the state is in pretty good shape. Sales tax receipts have remained strong. And Lt. Gov. David Dewhurst, who presides over the state Senate, recently said that "because of conservative fiscal decisions ... our state's economy remains stronger than virtually every other state in the nation."

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