State budget officials to testify today on lagging sales tax revenues

By: Robert T. Garrett/The Dallas Morning News

State budget officials are to appear this morning before a House committee to talk about sagging state revenues and the implications for the next legislative session.

“The situation is not good,” said Rep. Jim Pitts, R-Waxahachie, who has asked representatives of Comptroller Susan Combs to testify before his Appropriations Committee.

State revenues remain “well short” of predictions, although sales tax receipts showed a modest gain last month, Pitts, the House’s chief budget writer, said Monday.

“The members of Appropriations need to know what they’re facing next session,” he said.

Pitts said sales tax receipts in April increased by 1.4 percent over the same month a year earlier, ending a string of 14 consecutive months of decreases.

“We’re now comparing this year to a bad year. April 2009 wasn’t good,” he said.

“But at least it’s in the up direction,” Pitts said of last month’s gain. “We hope it sustains.”

The 6.25 percent state sales tax is the state’s revenue workhorse, producing 57 percent of state tax money and about a quarter of overall funds, including federal money.

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