September 25, 2014 5:12 PM

Greenfield: State Revenue Continues to Befuddle Comptroller

Comptroller unrevised revenue estimate undershoots bny $5B

Even though the state’s fiscal year (FY14) ended August 31, there’s not much news from the Comptroller on the state’s better-than-expected revenue collections.

But why wouldn’t the Comptroller and Texans be happy that both state tax collections and total state revenue were greater than expected? Wouldn’t additional revenue assist in improving public education, building new roads, addressing water issues, and providing health coverage to the 6 million Texans without health insurance?

A closer look at the Comptroller’s tax collections provides some insight to the state’s favorable fiscal condition.

Table I shows both state tax collections and total state revenue exceeded the Comptroller’s revenue estimate (CRE) released in December 2013. Total tax revenues were $2.1 billion more than inthe CRE, while total state revenue exceeded the estimate by $2.4 billion. Except for the cigarette tax, every tax exceeded the Comptroller’s estimate for FY14. One should also note that, except for cigarette tax collections, the amount collected for each tax in FY14 exceeds the Comptroller’s current estimate for tax collections in FY15.

Dr. Stuart Greenfield holds a Ph.D. in economics from the University of Texas. He worked for three Comptrollers of Public Accounts and since retiring from the state in 2000, Greenfield has taught economics at ACC and UMUC. Stuart maintains Texas Fiscal Info, which provides fiscal analysis. His complete column can be found in today’s R&D Department.

By Stuart Greenfield, Ph.D.