COMBS: $77.3 Billion Estimated for 2012-13 Biennium General Revenue

Comptroller Susan Combs Releases 2012-13 Biennial Revenue Estimate from taxes fees & other income Texas Insider Report: AUSTIN Texas The recent recession has had its impact on the state revenue outlook as major revenue sources such as the sales tax generated less money in the last couple of years" said Texas Comptroller Susan Combs in releasing the states Biennial Revenue Estimate showing Texas is projected to have $72.2 billion available for general-purpose spending during the 2012-13 biennium. While we have turned the corner to an economic recovery the revenue estimate Im releasing today is for moderate growth" Combs said.   The states general revenue collections from sources such as taxes fees and other income is estimated to be $77.3 billion for the 2012-13 biennium of which more than $800 million would be set aside as part of future transfers to the Rainy Day Fund leaving approximately $76.5 billion in net general revenue. Offsetting that revenue is a projected negative $4.3 billion ending balance for the current biennium leaving the Legislature the estimated $72.2 billion for general purpose spending for the next biennium. Lawmakers will address reducing the negative ending balance for the current biennium when they convene for the legislative session. Economic growth in the state is projected to reflect a growing population and revival of business activity.  The Texas economy in inflation-adjusted terms is projected to increase by 2.6 percent in fiscal 2011 compared to the previous year and by 2.8 percent in fiscal 2012 and 3.4 percent in fiscal 2013. Texas had lost about 431300 jobs from the time of the states employment peak in the summer of 2008 to the bottoming of employment in the fall of 2009. But since then the state has added back more than 220000 jobs and is on track to gain back all lost jobs by the second half of fiscal 2012.

• The states largest tax revenue source is the sales tax which accounts for more than half the states general revenue. It is expected to generate approximately $42.9 billion in the 2012-13 biennium an increase of about $3 billion or 8 percent from the current biennium.
• Among other large tax revenue sources the motor vehicle sales tax is expected to generate about $5.8 billion in 2012-13 an 8.8 percent increase from the current biennium.
• Natural gas production tax revenue is expected to increase by more than 10 percent to $1.5 billion the next biennium.
• The oil production tax is projected to generate about $1.9 billion about a 4 percent decline.
• The states total franchise tax revenue is estimated at $8.8 billion for 2012-13 about an 11 percent increase.

The states economy is growing but we have not yet reached a stage of sustained and broad-based robust growth" Combs said. I would urge lawmakers to continue their historical practice of careful budget deliberations."  At the end of the current biennium the states Rainy Day Fund will have a balance of about $8.2 billion.  At the end of the 2012-13 biennium the balance would be approximately $9.4 billion absent any appropriation that might be made by the 82nd Legislature. State revenue for all purposes is estimated at $177.8 billion for the biennium which would include approximately $100.5 billion in federal receipts and other income. The full Biennial Revenue Estimate is available on the Comptrollers Web site.