The 2011 legislative session is going to be so much fun.
Texas’ sales tax collections could fall $550 million short of budget projections for the current fiscal year, figures released Friday by Comptroller Susan Combs show.
The $1.6 billion collected in June, which reflects sales in May, was 11.2 percent less than the same month a year ago. It was the fifth consecutive month of sales tax declines.
Combs said the steep drop in June stemmed from the continued economic weakness, particularly in comparison to the strong sales tax collections last year, when higher oil and gas prices spurred companies to buy more drilling and other equipment.
With two months left in the 2009 budget year, the state’s sales tax collections are now $100 million below projections and could fall $550 million short by the end of the fiscal year, estimated Eva DeLuna Castro, senior budget analyst with the Center for Public Policy Priorities, a nonpartisan think tank.
DeLuna Castro said the state’s tax system largely depends on consumer spending, and right now, many people do not have the money to do so.
Sure is a good thing we got that $15 billion in stimulus funds this year, which helped us maintain services without having to dip into the Rainy Day Fund. Next time, we won’t be so lucky. EoW has more.