Perry: Federal government 'inept' at solving financial crisis, other problems

Gov. Rick Perry on Tuesday blasted the federal government as "inept" at solving the financial crisis and other national problems. He warned that "partisan bickering" imperils the national economy and threatens Texans' prosperity.

Mr. Perry said he worries that financial turmoil could hurt Texas' attempts to rebuild from hurricanes, safeguard public-sector retirees' pensions and keep running a surplus.

"We're sick and tired of watching Washington bicker with each other while the financial markets are roiled," he said, after unveiling plans to seek $134 million for border security in the next two-year state budget.

The Republican governor said national leaders should "get over the initial behind their name and start being Americans first and quit being Democrats or Republicans."

Mr. Perry said that although he and the Legislature built a budget cushion and made "good decisions" in recent years, that surplus could be wiped out by federal mistakes.

"Washington is so inept at addressing these issues," he said. "Whether it's securing our borders or whether it's securing our financial future, Washington has been absolutely abject failures at this."

Asked how Monday's $1.1 trillion loss in stocks' value might affect retired teachers' and state employees' pensions, Mr. Perry said, "Any time you have a loss of that magnitude, you have concern. We ought to have concern."

He said, though, that it's premature to say whether the state will have to pour more taxpayer money into pension funds – or to discuss the budget outlook generally.

Still, he said, "This national economy is a drag."

The governor said Texas may suffer a fiscal hit if the federal government "doesn't fairly reimburse us for our costs on Hurricane Ike."

Mr. Perry acknowledged he's also worried that a tightening of credit – caused by financial services companies' problems – may hamper rebuilding efforts in coastal areas battered by hurricanes.

There is some good news, Mr. Perry said.

"Be glad you live in Texas and not in Florida or California or one of those other states that truly have some economic hurdles," he said.