Texas Comptroller's Office Lays Out Budget Crisis

By: Associated Press Email
By: Associated Press Email

A state budget expert identified $10 billion in lost revenue created by poor planning in making past tax cuts.

The state's chief revenue estimator, John Heleman, said the
legislature's decision to cut property taxes in 2005 and replace that revenue with a new business tax created a perpetual budget shortfall. He said the property tax cuts cost more than lawmakers expected, and the new business margins' tax does not bring in as much money as expected. He said that created a $10 billion hole in the budget.

Heleman said the recent recession was the worst to hit Texas
since World War II. He said recovery in jobs and business revenues
would be slow.

Senators must figure out how to solve a $27 billion budget shortfall in drafting a new budget.

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