What happens to Texas' extra $5 billion in revenue?
Fri, 20 Jul 2012 10:57:16 GMT —
Some very unexpected and welcome news for state lawmakers as a windfall of $5 billion is being added to the state's bank account.
It's due to the state's economy being on the upswing for more than two years, but legislators are still watching the bottom line very closely.
Lawmakers will be back in session in January-probably feeling like they had a special Christmas present: At least 5 billion extra in their coffers, thanks to increased tax collections---but that doesn't mean they'll be going on a spending spree, according to 87th District Representative, Four Price.
"The state leadership has asked for departments across the state to plan for cuts in the event they're necessary, which is prudent and wise. It's good planning but it may not be as deep or necessary as originally anticipated, which is very encouraging."
They still have to deal with almost 10 billion in short term loans along with two big ticket items-medicaid and education funding.
"Big challenges ahead with respect to school finance and human services and a lot of big ticket items so, obviosuly any unexpected revenue so to speak is welcome and encourgaing."
There's still about $7 billion in the rainy day fund, but Legislators hope to keep that money right where it is. We're certainly looking more encouraging than we were say, this time, two years ago."
Price added that the economic growth in the state's that's bringing in the extra revenue has been in positive territory for the past 27 months straight.