Budget Revenue Shortfall

The Texas State Budget for 2010-11

Higher Ed.12%

HHS13%

K-12 Ed.14%

Other8%

Prisons3%

Highways6%

Federal36%

HHS 20%

K-12 Ed. 8%

Highway 4%

Other Fed. 4%

Property tax cut, 8%

Biennial Total: $182 billion

Federally funded = shown in white; other areas are General Revenue,

GR-Dedicated, & “Other” State Funds.

In billion $ 2008-09 2010-11

5/06 Fiscal Note

11/09 Cash Report

5/06 Fiscal Note

11/09 Certification

Franchise tax 6.8 3.0 7.7 3.4

Tobacco tax 1.4 1.9 1.3 1.8

Used car, interest 0.1 0.0 0.1 0.1

TOTAL REVENUE 8.3 4.9 9.1 5.4

Cost of property tax cut

-14.2 -14.2 -14.9 -14.9

SHORTFALL -$5.9 -$9.3 -$5.8 -$9.5

Fiscal 2008

Fiscal 2009Fiscal 2010

Current Budget

2012-13 Budget

General Revenue $75.0 billion $75.0 billion

ARRA Used for GR $6.4 billion $0

Cash on hand $2.6 billion $0

Property Tax Relief Fund carryover

$3.0 billion $0

Permanent School Fund $0 $1.2 billion

TOTAL GR BUDGET $87.0 billion $76.2 billion

GAP $10.8 billion

Potential Revenue for 2012-13

Economic growth with no change in revenue system

$800 million for each 1% growth

Accounting AdjustmentsPayment delays, etc

$2.0 billion

Potential Revenue for 2012-13

Beginning balance $8.2 billion

Growth during 2012-13 $1.0 billion

Total Rainy Day Fund Available

$9.2 billion

Sources of State Revenue 2009Total $84.3 billion

Licenses, Fees, Fines,

Penalties9%

Interest/Investment

Income2%

Taxes45%

Lottery2%

Other5%

Federal Funds37%

Local 8%

State 27%

Special District6%

County 8%

School District20%

City 8%

Other State Taxes25%

Sales Tax35%

Property Tax40%

Sources: Comptroller of Public Accounts, Biennial Revenue Estimate 2008-09, January 2007; Annual Property Tax Report. Forecast by CPPP.

Major State & Local Taxes in Texas 2009

Source: Comptroller of Public Accounts, Annual Cash Report.

Other3%

Insurance3%

Gas/Oil Production 6%

Franchise11%

Sin (Cigarette,

Tobacco, Alcohol)

6%

Motor Fuels8%

Motor Vehicle Sales and

Rental7%

Sales56%

State Tax Collections 2009Total $37.8 billion

Budget Scenario for 2012-13

$0

$25

$50

$75

$100

2002-03 2004-05 2006-07 2008-09 2010-11 2012-13

Local School Tax Cut (GR and PTF)

GR for Higher Ed

ARRA instead of GR

Other GR

GR for HHS

Other GR for K-12

GR for Prisons

Additional GR Needed

$7 b

$1 b

None

$3 b

$3.3 b

$300 m

$700 m