Texans feeling pain of higher prices statewide

However, reports from around the state show that Texans are feeling the higher prices, not only on consumer goods such as eggs, milk and meat, but also the prices of manufactured durable goods, such as appliances. Those retail prices will not only include shipping of the finished products, but also the higher shipping costs of materials, parts and components used to manufacture them.

For instance, in Galveston, the cost of shrimp from the Texas Gulf Coast is up 20 percent from last year, due to the increased cost of diesel fuel to power the shrimping fleet. That in turn is increasing the price charged by restaurants and grocery stores.

In East Texas, as deer season approaches, there is concern that high fuel prices will keep deer hunters away this fall. Deer hunting brings millions of dollars into the economy of several cities in East Texas, and local officials are nervous that hunters will either stay home or find areas to hunt closer to home, not spending money for deer leases, hotel rooms and meals.

In Dallas, commuters are cutting back on "extras" such as cable TV, going out to eat, taking vacations and even cutting back from steaks to more modest meals at home. One woman who lives in Hutchins near Fort Worth, said the cost of filling her Suburban for the daily commute to Irving has gone from $50 last year to more than $90. She said she is now watching everything she buys and is looking for a smaller vehicle for her commute.

Officials with the Hays County school district say the rising cost of food and fuel is eating up their school lunch budget, and that cost will have to be passed along to parents in the district. Hays CISD Chief Financial Officer Carter Scherff said schools might have to increase the price of lunches by 25 cents, putting the daily cost to more than $2. A mother of five children said that would cost her an additional $225 per school year.

All three of three of the major airlines based in Texas - American, Southwest and Continental - have recently reported losses in the billions of dollars due to increased fuel costs. All three airlines have cut back on the number of flights, and American Airlines has put a moratorium on hiring in all jobs except those needed to staff the airplanes.

Major cities are also feeling the pinch. Fort Worth officials recently announced that they are looking at merging departments, cutting non-essential services and even raising the property tax rate as they begin budget talks for next fiscal year. Austin begins its budget cycle with a $20 to $36 million revenue shortfall. Similar stories are heard in Dallas, Houston, San Antonio and other cities.

Last week, Gov. Rick Perry asked the federal government for a 50 percent waiver from the federal renewable fuel standard mandate for ethanol produced from grain. According to Perry, corn prices have risen 138 percent globally over the last three years and global food prices increased 83 percent over the same time period. He said the artificial demand for grain-derived ethanol is devastating the livestock industry in Texas and needlessly creating a negative impact on the state's otherwise strong economy.

Comptroller's Office spokesman DeSilva said that despite the hardships, Texas remains better suited to deal with them than most anywhere else in the county.

"Between March 2007 and March 2008, Texas gained 214,000 jobs," he said. "That number is more than the next four states combined. The next highest was New York, which gained about 69,000 jobs. So for now, the Texas economy has resisted the 'cooling off' we've seen in the national economy."

DeSilva said state officials are watching a number of key indices. "We're keeping an eye on fuel prices to see what effect they are having on the Texas economy," he said, adding that while some state agencies have had to make some adjustments, none has had major problems yet in dealing with the increase in fuel prices.