Transcript Slide 1

Texas Taxpayers and Research Association
February 2010
The Fiscal View From Texas
Dale Craymer
Texas Taxpayers and Research Association
[email protected]
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 Budget
All Funds
$182.5 billion
Discretionary
$92.3 billion
Budget Deficit
www.ttara.org
$0.0 (for now)
(512) 472-8838
Texas Taxpayers and Research Association
February 2010
Texas State Budget, 2010-11
$ 70
$ 60
Non-GR State Funds
Federal Funds
$ 50
General Revenue & Property Tax Relief
$ 40
$ 30
$ 20
$ 10
Health &
Human
Services
www.ttara.org
Public
Education
Higher
Education
Bus & Eco
Devo
Pub Safety &
Crim Just
All Other
(512) 472-8838
Texas Taxpayers and Research Association
February 2010
The “Structural Deficit”
$100.0
($ Billions of Dollars)
Federal Stimulus
Cash Balances
$80.0
$60.0
Current
State
Spending
Current
State
Revenues
Spending
Revenues
$40.0
$20.0
$0.0
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
February 2010
2010-11 Current Revenues
General Revenue and Property Tax Relief Fund in Billions of Dollars
(Excludes Federal Stimulus Funds)
Non Tax
Revenue, $8.9
Other Taxes,
$10.1
Alcohol &
Tobacco, $4.6
Sales Tax,
$43.6
Franchise Tax,
$8.7
Motor Vehicle
Sales Tax, $5.7
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
February 2010
Sales Tax Revenues
20.0%
Percent Change from Same Month in Previous Year
15.0%
10.0%
5.0%
0.0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
-5.0%
Fiscal Years
-10.0%
-15.0%
-20.0%
www.ttara.org
(512) 472-8838
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
www.ttara.org
(512) 472-8838
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
www.ttara.org
(512) 472-8838