As Texas Comptroller of Public Accounts, Susan Combs serves as the state's chief financial officer. She manages the state's treasury operations to monitor Texas' fiscal health, guides legislative decision makers by estimating state revenues and ensures state taxes are collected fairly and efficiently to fund vital programs and services for the people of Texas. Her previous public service includes two terms as the state's first woman Agriculture Commissioner, as well as four years in the Texas House of Representatives.

Q: Could you briefly describe your background before coming to the Comptroller's office?

A: After graduating from Vassar College, I worked in international advertising in New York, in the financial markets on Wall Street and for the federal government before returning to Texas to obtain a law degree from the University of Texas School of Law. I served as an assistant district attorney in Dallas, where I built a reputation as a tough prosecutor of child abuse cases. In addition to my duties as Comptroller, I run a ranching operation in Brewster County on the same ranch owned by my great-grandfather more than a century ago.

Q: What are some of your local government-focused initiatives at the Comptroller's office?

A: We expanded the Local Government Assistance Division to include economic development and launched the Texas Ahead Website in May 2008 as a one-stop portal to give businesses, global partners and local governments a wealth of economic development tools and resources. Key among these is the Texas EDGE Data Center that puts key economic development information at users’ fingertips. Texas EDGE provides governments, developers and businesses across the state with data and analysis useful in revenue planning, financial analysis, economic forecasting, site-location decisions and other issues affecting trade and industry growth.

Our office also recently issued Texas Works, which examines a serious imbalance existing between the demand for skilled workers and the state's ability to supply them. Texas Works offers an in-depth study of this issue with recommended steps to ensure our state's young and growing population is one of the world’s strongest and most highly skilled work forces.

Q: Do you view government as a friend or foe?

A: Government is certainly not the solution to every problem, but at my office, we really want to inject truth into an old phrase: We’re from the government, and we’re here to help. That means responding to taxpayer requests and issues in a timely manner, executing rules and policies fairly
and recognizing constructive input.

When dealing with taxpayer dollars, our processes must be sound and innovative to meet the state's growing needs at a time of economic uncertainty. We know every new agency responsibility won't be accompanied by more money and employees. Because of that, our office always approaches issues creatively, embraces innovative solutions and streamlines processes in a continual effort to do more with less. We believe our office is only a friend to Texas if we offer exceptional service at
a good value.

Q: Can you give us an update on the revised franchise tax?

A: During the latest session, the Legislature reassessed the threshold for applying the franchise tax, taking into account firsthand reports received from constituents as well as a study conducted by the Business Tax Advisory Committee. For reports due in 2010 and 2011, taxable entities with total revenue equaling $1 million or less will owe no tax. After 2011, the threshold will be $600,000 or less. This change will shield some 37,000 businesses from paying the next round of franchise taxes, ensuring that Texas remains a viable incubator for small businesses.

For businesses seeking to change the way the franchise tax is assessed, our office encourages taxpayers to contact their state legislators directly. The Business Tax Advisory Committee, which
prepares an assessment of the tax for the Legislature before each regular session, also appreciates taxpayer feedback. To contact the committee, taxpayers may contact Mike Reissig at
mike.reissig@cpa.state.tx.us.

Q: The national economy appears to be faltering. What is your view of our state's economy?

A: The Texas economy, the world's 12th-largest, continues to fare better than those of many other states. However, Texas is feeling the effects of the worldwide recession. According to the National Bureau of Economic Research, the U.S. economy peaked in December 2007 and has been in recession since then. Nevertheless, Texas fared well in fiscal 2008 (Sept. 1, 2007 – Aug. 21, 2008), when its gross product expanded more than twice as fast as the nation’s (4.2 percent versus 1.9 percent).

Texas' economic growth thus far in fiscal 2009 has been much slower. The Comptroller's office estimates that the Texas gross state product will expand by just 1.8 percent throughout fiscal 2009. The U.S. economy, by contrast, is on track to shrink by 0.9 percent over the fiscal year. From a big-picture perspective, Texas has so far fared strongly in light of difficult circumstances. We have a diverse economy that is underpinned by fiscally responsible policies. No state will be unscathed by current economic forces, but the diversity of the Texas economy is helping us weather these tough economic times better than most.

Q: Can you explain your focus on transparency and office efficiency?

A: From day one, I've wanted the Comptroller's office to run simpler, smarter and faster, and with as much transparency as possible. Keeping that in mind, we're working to accomplish these goals:

• Perform mandated duties in a transparent, fair manner and encourage transparency throughout Texas government. Key to this goal is the "Where the Money Goes" online expenditure database, which allows any site visitor the opportunity to examine state agency spending — down to
  the pencils.
• Use the latest in information technology to deliver more information using fewer resources.
• Keep checks out of the mail by emphasizing the importance of electronic funds transfers and direct deposit.
• Collect economic data important to Texans and use the Internet to deliver those numbers to citizens who need them.