Every day the national press discusses the economic uncertainty facing the nation. Though we face our own economic challenges, we are fortunate to live in Texas -- one of the few states not facing a state budget deficit. California, New York, and other states are struggling in their legislative sessions to balance their budgets.

Texas is better positioned to weather the storm, largely because we are much more diverse an economy than others, and also because we have not seen our state government spending balloon out of control. It is not an accident that Texas was responsible for over 70 percent of all net jobs added nationwide for states that had a net employment gain over the period from November 2007 to November 2008. The job climate is both welcoming and rational. We know however that we will lose some of those gains in 2009, but believe that the downturn will be significantly less severe than that experienced elsewhere.

While many families are having to tighten their belts, so must government, and one of the best ways to keep spending under control is through transparent budgeting. When I announced the Biennial Revenue Estimate in early January, I pointed out that we were going to see about 10 percent less revenue than the previous budget cycle, but we were very fortunate to have the Rainy Day Fund for emergencies.

It now seems that the federal stimulus dollars, between 15 and 16 billion is expected to be allocated to Texas, can be used in certain circumstances for one-time projects which will not obligate the state in years going forward. This however must be closely monitored. The bill is very lengthy, and our staff has put up on the web all the information we have about this package, and we will modify it as more information is received. You can find more information at www.window.state.tx.us/recovery.

The most critical part of this is to avoid committing to ongoing expenditures funded by one-time sources of revenue. Otherwise, the legislature will face billions of dollars in new spending obligations without an ongoing revenue source to fund them. In this economic climate, it is wise to be cautious and prudent, and I know that the Republicans in the legislature will do just that.

For more information about the Texas economy and transparent budgeting, please visit my website at www.window.state.tx.us.