A Report to the
Citizens of Texas
Sept. 1, 2008 – Aug. 31, 2009
Texas and the Future – Challenges Ahead
The state’s chief tax collector, accountant, revenue estimator, treasurer and purchaser, the Texas Comptroller of Public Accounts writes the checks, pays the bills and keeps the books for the multi-billion dollar business of state government.
In this spirit, the Comptroller’s office provides Texas state agencies, local governments, businesses and citizens with a wide variety of services to help ensure the state’s continuing prosperity.
The Comptroller’s office has identified the following challenges for Texas:
- Ensuring an educated work force. The newly established Every Chance Funds will boost Texas career and technical education by offering grants to community colleges, technical schools and nonprofit organizations as well as scholarships for students in career and technical training programs. Learn more about these funds at Every Chance Every Texan.
- Balancing economic growth with natural resources. The Comptroller’s Natural Resources Policy Division monitors and analyzes the potential impact of state and federal energy and natural resource initiatives that could affect state revenues and the Texas economy. The division is advising a multi-agency advisory committee currently evaluating ways to reduce “greenhouse” gas emissions without damaging the Texas economy. Learn about the committee’s work.
- Ensuring government works smarter. Through strategic sourcing and volume discounts, the state of Texas is achieving economies of scale through smarter purchasing, generating cost savings for state agencies and stretching taxpayer dollars. For more information, visit TxSmartBuy.com.
- Encouraging transparency. To see exactly how your tax dollars are spent, the Comptroller’s Open Book Texas tools allow you to track and analyze spending by state agencies, read about local government transparency efforts and follow the flow of federal stimulus spending in our state.
Texas Economic Outlook for Fiscal 2010-11
The Comptroller’s Biennial Revenue Estimate and Certification Revenue Estimate tell the Legislature how much money is available to spend.
According to the Comptroller’s most recent Certification Revenue Estimate:
The national recession appears to be abating and U.S. job losses are becoming less severe. The economic forecast underlying this estimate projects that:
- Texas employment that began declining late in calendar 2008 will resume slow growth in the first half of calendar 2010.
- employment growth will build throughout the remainder of fiscal 2010, with more significant improvement in fiscal 2011. Job growth will reach 2.1 percent after two consecutive fiscal years of net job losses.
- Texas should regain its previous peak employment level of 10.66 million by the end of fiscal 2011.
Texas’ real gross state product is expected to:
- increase by 1.9 percent in fiscal 2010 in advance of significant job gains, and following a decline of 1.8 percent in fiscal 2009.
- show a growth of 3.4 percent in fiscal 2011 – faster than the projected growth in the U.S. economy for that year.
The national and state economies appear to be at turning points, moving back to expansion. As the economy recovers, jobs will be added, more homes will be built and retail sales will increase. If consumer spending continues to lag through the second half of fiscal 2010, tax collections may be lower than currently anticipated. This uncertainty demands caution and vigilance.
Source: Certification Revenue Estimate, November 2009.
|Real Gross State Product – total value of goods and services produced (2000 dollar)||$927,331,000||$958,600,700|
|gross state product Annual Percent Change||1.9%||3.4%|
|Personal Income (Billions)||$962.6||$1,005.6|
|Personal IncomeAnnual Percent Change||1.9%||4.5%|
|Nonfarm EmploymentAnnual Percent Change||-1.2%||2.1%|
|Resident PopulationAnnual Percent Change||1.9%||1.8%|
|Unemployment Rate (percent)||8.2%||7.7%|