Tax Volatility Calls for Careful Resource Management

Texas Insider Report: AUSTIN Texas  The Texas economy usually delivers a dependable stream of revenue to state coffers. Collections of the various taxes comprising that revenue stream however can vary dramatically from year to year. In the latest issue of Fiscal Notes the Comptrollers office examines the way in which tax collections rise and fall or tax volatility and some of the factors driving it. Tax volatility may seem like an academic concern but it can have real-world effects on the state budget and the people and organizations that depend on state funding Texas Comptroller Glenn Hegar said. In this issue the Comptrollers office also looks at a recent policy statement by the Governmental Accounting Standards Board (GASB) the entity that sets accounting standards for state and local governments. This statement called GASB 77 is expected to greatly improve the transparency of various tax incentives granted in exchange for economic development. Published monthly Fiscal Notes is online at comptroller.texas.gov/economy/fiscal-notes and also can be received by subscribing via the Comptrollers website. Fiscal Notes is an extension of the Comptrollers constitutional responsibilities to monitor the states economy and estimate state government revenues. It has been published periodically since 1975 featuring in-depth analysis concerning state finances and original research by subject-matter experts in the Comptrollers office.