State economy recovering

AUSTIN – Texas Comptroller Carole Keeton Rylander last week said the September 11 terrorist attacks reduced sales tax collections by a total $42 million, a rebound from the initial $100 million-plus dip.

“The state took an initial body blow of $113 million immediately after the attacks, but we bounced back,” Rylander said. “Texans are a defiant, confident, and resilient bunch. I continue to believe it is highly unlikely that there will be a recession in Texas.”

Rylander said consumer confidence, which was slipping before the September 11 tragedy, continued to slide nationally and in Texas; but the local slip was not as steep. Between August and October nationally, consumer confidence slid 25 percent; but during the same time in Texas, consumer confidence slipped 21 percent.

The Comptroller said she does not believe the September economic snapshot will affect her biennial revenue estimate.

“One month is not a trend,” she said. “I fully expect our economy to recover in the latter months of next year.”

State sales tax collections for September of this year totaled $1.15 billion, down just one percent from the same time last year.

Texas communities will learn the effects of the terrorist attacks on their local revenue next week, when the Comptroller makes regular monthly sales tax allocations on November 9.

Rylander also said she will be transferring $686 million from the natural gas severance tax into the state’s Rainy Day Fund, bringing that balance up to $882 million.

Wall Street cited the growing Rainy Day Fund in giving the state a high financial rating. That, in turn, will save Texans $55 million this year.