"We can take a more balanced approach, consistent with what my fiscal commission put forward, which says $2 trillion worth of cuts."
But in Texas, the president's plan is a tough sell.
"Texas has always been a pretty Republican state, for historic reasons," Obama said.
However, the president inferred that his election meant Texas politics was changing.
"We lost by a few percentage points in Texas," Obama said. That was followed by a gentle reminder that the figure was closer to 10 percent.
"If what you're telling me is Texas is a conservative state, you're absolutely right," he said.
Republican Gov. Rick Perry harshly and frequently criticizes the president over the health care law, EPA regulation on oil and gas industries in Texas and the budget. But the president hinted at hypocrisy by the Texas governor.
"Gov. Perry helped balance his budget with about $6 billion worth of federal help — which he happily took — and then started blaming the members of Congress who had offered that help," Obama said.