Texas tax collectors predict another $500 million for the state budget

Texas Politics
Glenn_Hegar_Biennial_Revenue_Estimate_2_1557916524435.jpg

Texas tax collectors predict another $500 million for the state budget” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

Texas Comptroller Glenn Hegar on Tuesday dropped a half-billion dollar gift into the laps of budget negotiators.

The news comes as a relief to legislative budget-writers, who are in the midst of closed-door meetings about how much state lawmakers should spend on public schools, property tax cuts and thousands of other line items in their two-year budget.

Lawmakers will have an additional $518 million to spend on public programs thanks to more robust tax collections, according to a revised fiscal forecast Hegar unveiled in a letter to Texas’ Republican leadership.

“Some of the increased revenue projected for fiscal 2019 is attributable to upwardly revised estimates of oil and natural gas production taxes,” Hegar wrote. As a result, the state’s oil-fed savings account, also known as the rainy day fund, is expected to grow by nearly $300 million in additional revenue.

The revised revenue estimate comes on top of a relatively rosy prediction Hegar made in January about the state’s tax collections over the next two years. At the time, the comptroller — who oversees the state treasury and is charged with predicting volatile state revenues so that lawmakers can craft a state budget that spans two years into the future — thought state coffers would end the fiscal year on Aug. 31 with about $4.2 billion in the bank. Tuesday’s revision brings that figure to $4.7 billion.

Hegar also noted in his letter that lawmakers are likely to grow the state’s treasury by another $550 million if they pass a bill to streamline online sales tax collections on out-of-state sellers.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2019/05/14/texas-tax-collectors-predict-another-500-million-state-budget/.

Texas Tribune mission statement

The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Video Forecast

More Forecast

Don't Miss