TEXAS ENJOYS $11 BILLION SURPLUS
As most states scramble to patch holes in their budgets, Texas glides along unscathed -- for now, says the Dallas Morning News.
Estimates by fiscal watchdog groups vary, but between 37 and 41 states are dealing with shortfalls this year or will face a budget gap in 2009. While California, New York, Florida, Michigan and Ohio make painful choices -- higher taxes, spending cuts, Texas has a surplus topping $11 billion. Why? Because the subprime mortgage problems have not hit Texans as hard and the state doesn't have an income tax:
States with income taxes have seen revenue plummet, especially in the Northeast, where financial companies have laid off thousands and in Midwestern states suffering losses of manufacturing jobs.
Texas is among several energy-producing states reporting no budget gap; others include Alaska, Louisiana, North Dakota and Wyoming.
Moreover, Gov. Rick Perry (R) has said Texas' economy is strong and continues to create jobs because of low taxes and conservative policies, and state leaders remain upbeat as the next legislative session approaches.
Overall, the state is in pretty good shape, says former State Deputy Comptroller Billy Hamilton. Nevertheless, we're going to have some slowdown, he continues. Declining oil prices and disappointing revenue from a revised business tax may signal fiscal trouble ahead.
However, sales tax receipts have remained strong. And Lt. Gov. David Dewhurst, who presides over the state Senate, recently promised to restrain spending in next budget but said that "because of conservative fiscal decisions ... our state's economy remains stronger than virtually every other state in the nation."
Source: Robert T. Garrett, "Texas watches spending despite $11 billion budget surplus," Dallas Morning News, November 24, 2008.
For more on Tax and Spending Issues:
TEXAS ENJOYS $11 BILLION SURPLUS
Texas Budget Surplus Makes Legislators Look Good
While other states look for a bailout, Texas is the envy of the nation.
By Brendan Higgins |
Wednesday, Dec 3, 2008 | Updated 8:17 AM CDTView Comments () | Leave A Comment | Email | PrintTweet
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Texas is the envy of the nation when it comes to balancing its checkbook.
The state government is sitting on an $11 billion surplus and Rep. Dan Branch of Dallas (R) said he knows why.
"The strong oil and gas sector has bolstered our sales tax revenues as well as production tax revenues," said Branch. "These revenues along with lower property tax rates, reasonable regulation and strong job growth have created a significant surplus while over 35 states, most with state income taxes, are running deficits."
The fact that Texas has no income tax makes its current condition even more impressive to outsiders.
Consider that California's budget gap is now at $16 billion and the state is considering federal bailout options.
Gov. Arnold Schwarzenegger is also faced with the fact that he's going to have to do something he's vowed not to: Raise taxes.
Branch said that won't be a problem here.
"Our state taxes its residents less than any large state and the legislature has been careful to reduce spending to within population growth and inflation rates."
Texas Budget Surplus Makes Legislators Look Good | NBC Dallas-Fort Worth
PolitiFact Texas | Perry says Texas has a surplus in billions
even this bunch said it was "barley true"
thats funny
thats like your line of thinking
Texas Budget Surplus Makes Legislators Look Good
While other states look for a bailout, Texas is the envy of the nation.
By Brendan Higgins |
Wednesday, Dec 3, 2008 | Updated 8:17 AM CDTView Comments () | Leave A Comment | Email | PrintTweet
advertisement
Texas is the envy of the nation when it comes to balancing its checkbook.
The state government is sitting on an $11 billion surplus and Rep. Dan Branch of Dallas (R) said he knows why.
"The strong oil and gas sector has bolstered our sales tax revenues as well as production tax revenues," said Branch. "These revenues along with lower property tax rates, reasonable regulation and strong job growth have created a significant surplus while over 35 states, most with state income taxes, are running deficits."
The fact that Texas has no income tax makes its current condition even more impressive to outsiders.
Consider that California's budget gap is now at $16 billion and the state is considering federal bailout options.
Gov. Arnold Schwarzenegger is also faced with the fact that he's going to have to do something he's vowed not to: Raise taxes.
Branch said that won't be a problem here.
"Our state taxes its residents less than any large state and the legislature has been careful to reduce spending to within population growth and inflation rates."