May 18, 2015 1:55 PM

Greenfield: Tax cuts or state services, that is the question

Quorum Report’s number cruncher Dr. Stuart Greenfield says Comptroller Glenn Hegar is wise to emphasize critical infrastructure and services while lawmakers have tax cutting fever

Following the release of revenue and expenditure data for April, sine die is fast approaching and critical decisions concerning both expenditures and taxes need to be decided. A conference committee is now figuring out how the state will spend and what tax reductions should be enacted.

Comptroller Glenn Hegar sent a letter to the state’s leadership in which he said wanted to “emphasize that in addition to tax cuts, it is also important to consider the long-term challenges affecting the state's balance sheet and credit ratings."

One would expect that underlying Hegar’s concern is the substantial decline in the growth rate in state tax collections. With the most up-to-date information on state revenue, lawmakers can set priorities and allow the rest of us to look over their shoulders.

Information on tax revenue collections through April is important not only for this fiscal year (FY15), but they also influence estimated revenue for the coming biennium. The positive growth (1.2 percent) in sales tax collections continues for the 61st consecutive month.

The complete column from Dr. Stuart Greenfield can be found in the R&D Department.

By Stuart Greenfield, Ph.D.