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<br />Biennial
<br />Revenue
<br />
<br />Continued
<br />and slow population growth. Be-
<br />tween now and the end of the
<br />decade, average annual popula-
<br />tion growth will be at the lowest
<br />level in 15 years.
<br />An additional 17 percent of
<br />total state tax receipts is based
<br />solely on the quantity of goods
<br />sold. These taxes--motor fuels,
<br />cigarette and alcohol taxes, for
<br />instance--keep pace with popula-
<br />tion growth but not with infla-
<br />tion, Receipts from quantity-
<br />based taxes are expected to
<br />decline five percent in 1988-89,
<br />mainly because the temporary
<br />motor fuels tax increase (from 10
<br />to 15 cents per gallon) will expire
<br />in 1987,
<br />Both Texas' value- and quanti-
<br />ty-based taxes fail to reach the
<br />service industries--industries that
<br />
<br />4-- FISC,\
<br />
<br />NOTES. Januar)'
<br />
<br />987
<br />
<br />Januar)
<br />
<br />987. FISCAL
<br />
<br />NOTES--9
<br />
<br />SOURCE: Bob Bullock. Comptroller of Public Accounts,
<br />
<br />Sector Contributions to the Tax System
<br />Fiscal 1986
<br />
<br />Oil
<br />1
<br />
<br />
<br />Tax System
<br />
<br />~
<br />
<br />SOURCE: Bob Bullock. Comptroller of Public Accounts,
<br />
<br />TOTAL
<br />
<br />Salaries and Wages
<br />Other Personal Services
<br />Consumable Supplies and Materials
<br />Current and Recurring Operating Expenses
<br />Assistance and Medical Care for Needy
<br />Foundation School Program Grants
<br />Other Public Education Grants
<br />Grants to Higher Education
<br />Other Grants
<br />Payment of Principal on Indebtedness
<br />Payment of Interest and Other Claims
<br />Capital Outlay for Highways
<br />Capital Outlay for Land and Buildings
<br />Other Capital Outlays
<br />
<br />$
<br />
<br />$ 628,8
<br />279,1
<br />37.4
<br />12,7
<br />21.1
<br />o
<br />3,8
<br />73.4
<br />81.0
<br />o
<br />11.1
<br />1.0
<br />30,3
<br />36.0
<br />
<br />1,415,7
<br />
<br />$1,383,0
<br />
<br />608,2
<br />318.4
<br />37.4
<br />96,5
<br />25.2
<br />o
<br />4,1
<br />59.7
<br />62,5
<br />15,1
<br />8.7
<br />o
<br />16,8
<br />30.4
<br />
<br />-2,3%
<br />
<br />-21.3
<br />-44,6
<br />-15,7
<br />
<br />-3,3%
<br />14,1
<br />-0,2
<br />4.3
<br />9.4
<br />
<br />7,2
<br />-7,9
<br />-22,7
<br />
<br />will be the major source of eco-
<br />nomic strength in Texas during
<br />the 1988-89 biennium.
<br />For example, the state's most
<br />important tax--the sales tax--is
<br />levied mainly on the sale of
<br />
<br />goods, not on the sale of services,
<br />More than Iw(( of all consumer
<br />purchases are services, but only
<br />jive percent of state sales tax re-
<br />ceipts comes Fom sales of
<br />services.
<br />
<br />Catego'1'
<br />
<br />State Spending by Category, General Revenue Fund
<br />First Quarter, Fiscal 1986 and 1987
<br />(Amounts in Millions)
<br />
<br />September-
<br />November 1985
<br />
<br />$
<br />
<br />September-
<br />November 1986
<br />
<br />Percentage
<br />Change
<br />
<br />. Pnljccll:d
<br />SOURCI:: Roh Bullock. Comptrollcr
<br />
<br />u.s. ASSUMPTIONS
<br />Gross National Product
<br />Dollars)
<br />Percentage
<br />
<br />Oil Price ($/Barrel)
<br />
<br />Active Rig Count
<br />
<br />Change
<br />Consumer Price Index (Percentage
<br />Prime Lending Rate (Percent)
<br />
<br />(Billions
<br />
<br />of Puhlic Accounts and Chasc Economctric_, Inc.
<br />
<br />of
<br />
<br />Change)
<br />
<br />982
<br />
<br />3.559,7
<br />3,2
<br />3.7
<br />0,5
<br />
<br />6,298
<br />1.8
<br />27,24
<br />74
<br />
<br />3,658,9
<br />2,8
<br />2,5
<br />8,9
<br />
<br />6,569
<br />1.7
<br />20,66
<br />382
<br />
<br />3,752,5
<br />2.6
<br />2,7
<br />8,0
<br />
<br />6,741
<br />1.0
<br />5,1
<br />28
<br />
<br />3,854,0
<br />2,7
<br />4,3
<br />8,3
<br />
<br />6,912
<br />1.0
<br />5,37
<br />35
<br />
<br />3.962.2
<br />2,8
<br />4.4
<br />8,3
<br />
<br />6.17
<br />407
<br />
<br />First-quarter figures for fiscal
<br />1987--September I to November
<br />30, I 986--show general revenue
<br />spending running 2.3 percent
<br />below first-quarter 1986 levels,
<br />At $1.38 billion, first-quarter
<br />1987 spending from the General
<br />Revenue Fund was $32. 7 l~illion
<br />less than spending in the first
<br />quarter of fiscal 1986.
<br />But total state spending from
<br />all funds--including federal
<br />
<br />money and other special funds--
<br />rose 7.4 percent over the same
<br />period. First-quarter all-funds
<br />spending totaled $4.77 billion, up
<br />$330 million from fiscal 1986,
<br />The biggest general revenue
<br />spending reduction--$20.7
<br />million--came in wages paid to
<br />state employees, whose numbers
<br />declined. Spending on operating
<br />expenses, non-educational grants,
<br />interest payments and capital
<br />
<br />outlays for buildings, land and
<br />equipment also declined from
<br />first-quarter 1986 levels.
<br />Welfare and highway spending
<br />accounted for most of the overall
<br />increase on the all-funds side.
<br />First-quarter welfare spending
<br />rose 28.9 percent above 1986 lev-
<br />els to $710.9 million, and high-
<br />way spending rose 25.2 percent
<br />to $683.1 million,rJ
<br />
<br />Population (Thousands)
<br />Percentage Change
<br />
<br />7,177
<br />1.6
<br />
<br />Nonfarm Employment (Thousands)
<br />Percentage Change
<br />
<br />TEXAS ASSUMPTIONS
<br />Gross State Product (Billions of
<br />Percentage Change
<br />
<br />Personal Income (Billions)
<br />Percentage Change
<br />
<br />982 Dollars)
<br />
<br />6,647.1
<br />3,7
<br />
<br />286,9
<br />3,9
<br />211.5
<br />7,6
<br />
<br />6,705,7
<br />0.9
<br />
<br />285,9
<br />-0.4
<br />215,8
<br />2.0
<br />
<br />6,633.4
<br />-1.1
<br />
<br />283.6
<br />-0,8
<br />220,1
<br />2,0
<br />
<br />6.732,2
<br />1.5
<br />
<br />290,0
<br />2,3
<br />234,7
<br />6,6
<br />
<br />6.954.3
<br />3.3
<br />
<br />300,7
<br />3,7
<br />253,8
<br />8,1
<br />
<br />Spending Down in General
<br />Revenue F lnd'i 1JIV Overall
<br />
<br />1985
<br />
<br />1986*
<br />
<br />1987*
<br />
<br />1988*
<br />
<br />19H9*
<br />
<br />Key Economic Assumptions
<br />Fiscal Years 1985-1989
<br />
<br />FISCAL
<br />
<br />YEAR
<br />
<br />f:~~~~~~!E5
<br />
<br />Texas at a Glance:
<br />
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