Texas Comptroller Glenn Hegar today released totals for fiscal 2016 state revenues, in addition to announcing monthly state revenues for August. Spotlight on the release:
Net revenue available for general purpose spending after severance tax revenues are set aside for transfer to the Economic Stabilization Fund (ESF) and the State Highway Fund (SHF) was $49.9 billion, 1.3 percent below the Certification Revenue Estimate (CRE) projection of $50.6 billion.
Sales tax revenue for the year was $28.2 billion, 3.5 percent below the CRE projection of $29.3 billion.
Oil production and regulation tax revenue was $1.7 billion, 7.6 percent below the CRE projection of $1.8 billion, while natural gas tax revenue was $579 million, 33.6 percent below the CRE projection of $871 million.
Franchise tax revenue was $3.9 billion. While this source of revenue was down 16.6 percent compared to fiscal 2015 as a result of tax rate reduction, it finished 10 percent ahead of the CRE estimate of $3.5 billion.
The state will set aside $879 million for transfer to the ESF and the SHF based on fiscal 2016 oil production tax collections. Natural gas production tax collections did not meet the threshold for transfer. Each fund will receive $439.5 million. The transfer will bring the ESF to $10.1 billion, a record high.
“We finished fiscal 2016 with $651 million less for general purpose spending than we estimated in the CRE,” Hegar said. “While that’s a significant number, it’s only 1.3 percent below estimate. Texas continues to grow, only at a more moderated pace.”
Click on the link for a copy of the complete press release.
