WILLIAM P. CLEMENTS, JR. GOVERNOR Dear : OFFICE OF THE GOVERNOR STATE CAPITOL AUSTIN, TEXAS 78711 0 Al 4G 6- A41W 0 (- 2) ‘t a'te a°' 6/-7Fe& bErmiz Idsrs VAK‘ t e" 11,A-Ur 2051 go Thank you for your recent message regarding tax reductions, deficit spending, and unnecessary government involvement in our lives. With the new leadership of President Reagan, America can recover its economic health. The mood in Congress has changed and, with the support of concerned Americans, the President can pass his budget and tax cuts. I fully support the Reagan economic package and have encouraged the Texas Congressional delegation to vote for it. I also promise to do my part here in Texas to curtail the growth of state spending and state government bureaucracy. For the first year since World War lithe number of state agency workers has actually declined. The explosive growth of state spending also has slowed. My budget recommendations to the Legislature are $500 mill on below the Legislative Budget Board recommendations. The Legislature has already trimmed its spending. requests several hundred million dollars and more cuts can be made. If they are not, I will to use my veto as I did last session, when I vetoed $250 million in spending. Taxes can also be cut. I strongly favor repealing of the state ad valorem property tax and using surplus state revenues for tax reduction, through direct relief or through a trust and to keep Texas' tax burden one of the country's lowest. I am keenly disappointed the Legislature failed to approve a constitutional amendment allowing citizens to pass or repeal laws by Initiative and Referendum. As you know, I support Initative and Referendum. Californians used Initiative and Referendum to pass "Proposition 13." Texans should have the same rights. With your help and support we can secure these important rights for all Texans during the next Legislative session. Thank you again for your sharing your views with .me. Sincerely, William P. Clements, Jr. Governor of Texas WPCJr:lpw