texas taxpayers and research association february 2010 (512) 472-8838 the fiscal view from texas...
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www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
The Fiscal View From Texas
Dale CraymerTexas Taxpayers and Research Association
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
Key Facts About Texas
2008 Population 24.3 million
2010-11 Biennial BudgetAll Funds $182.5 billionDiscretionary $92.3 billion
Budget Deficit $0.0 (for now)
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
Texas State Budget, 2010-11
-
$ 10
$ 20
$ 30
$ 40
$ 50
$ 60
$ 70
Health &Human
Services
PublicEducation
HigherEducation
Bus & EcoDevo
Pub Safety &Crim Just
All Other
Non-GR State Funds
Federal Funds
General Revenue & Property Tax Relief
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
The “Structural Deficit”
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
Spending Revenues
Current State
Spending
Current State
Revenues
Federal StimulusCash Balances
($ Billions of Dollars)
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
2010-11 Current RevenuesGeneral Revenue and Property Tax Relief Fund in Billions of Dollars
(Excludes Federal Stimulus Funds)
Sales Tax, $43.6
Motor Vehicle Sales Tax, $5.7
Franchise Tax, $8.7
Alcohol & Tobacco, $4.6
Other Taxes, $10.1
Non Tax Revenue, $8.9
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
Sales Tax Revenues
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
20102008200620042001 2002 2003 2005 2007 2009
Percent Change from Same Month in Previous Year
Fiscal Years
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Texas Taxpayers and Research Association February 2010
Handicapping 2012-13• Increasing risk that budget may start with a
deficit from 2010-11• State will not have $12.5 billion of “one-time”
money spent in previous budget • Spending pressures continue to grow
– Medicaid– Public Education– Higher Education– Employee Benefits
• Rainy Day Fund may have $8-9 billion• The budget shortfall will exceed amounts in the
Rainy Day Fund
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Texas Taxpayers and Research Association February 2010
Time Honored Budget-Balancing Strategies
• Cut spending
• Draw from Rainy Day Fund
• Adopt worse policies of tax administration
• Eliminate tax exemptions & credits
• Raise tax rates
www.ttara.org (512) 472-8838
Texas Taxpayers and Research Association February 2010
TTARA
Dale Craymer: State Budget, Franchise Tax
Bill Allaway: Transportation Finance
John Kennedy: Sales Tax, Property Tax
Sheryl Pace: School Finance
George Christian: Property Tax
Ryan Ash: Communications, Website