The Texas economy continues to strengthen entering the final quarter of fiscal 2012. The May state revenue report is the latest indicator that the state’s fiscal position has improved more quickly than expected.
Sales tax collections through April were $1.5 billion higher than last year.
Eight months into fiscal 2012 the Comptroller’s fiscal forecast for improved state revenues is coming to fruition. As the state operates with a smaller state budget than the last biennium and amid continued pressures to fund services for residents of the fastest-growing large state, it is helpful that major state revenues are actually exceeding expectations.
Paul Ballard, CEO and chief investment officer of the Texas Treasury Safekeeping Trust Company (TTSTC), explains the importance of the Texas treasury fund and the efforts to proactively grow and protect the financial assets of the state and local government entities.
In fiscal 2012, the Texas state government’s net revenue, excluding trust funds, totaled $94.7 billion, 0.4 percent more than in fiscal 2011. Tax collections income accounted for 46.6 percent of total net revenues, followed by federal revenue, which accounted for another 34.8 percent.
The lifeblood of any effective audit is timely and complete access to records. House Bill 11, approved by the 2007 Texas Legislature and revised in 2011, requires electronic reporting of most wholesale alcohol and tobacco sales, making it easier for the Comptroller to identify, investigate and even prosecute retailers who collect sales taxes but fail to remit the proceeds to the state.