While the Texas economy is not growing at the rate it did in 2013 and 2014, it continues to have job gains because of diversification, according to Texas Comptroller of Public Accounts Glenn Hegar.
Hegar told the Texas Farm Bureau (TFB) Radio Network that the diversity of the state’s economy provides a strong foundation. He said in the last 12 months, 60,000 jobs were lost in oil and gas and 40,000 jobs were lost in manufacturing. In the same period, however, 185,000 jobs were gained in Texas in other industries.
“Do we face some head winds with lower commodity prices? Yes. But the foundation has made Texas a really good place to call home and do business. That foundation is still here,” Hegar said. “Texas has a lower unemployment level than the national average. We’re at 4.3 percent unemployment, and we’ve been below the national average for 111 months in a row. Unbelievable streak.”
The Comptroller’s office reports the state sales tax revenue in April totaled $2.38 billion, up three percent compared to April 2015. Sales tax revenue is the largest source of funding for the state budget, accounting for 56 percent of all tax collections. Motor vehicle sales and rental taxes, motor fuel taxes and oil and natural gas production taxes also are large revenue sources for the state.
Hegar said possible impacts on state finances on the horizon include ongoing school finance litigation and any outcome generated by the Texas Supreme Court, as well as a tighter state budget in the 2017 legislative session.