Sunday, September 8, 1996

Report: Texas has $2.3 billion surplus as fiscal year ends

By Associated Press

SAN ANTONIO (AP) - The state of Texas ended its fiscal year last week with a nearly $2.3 billion cash surplus, $1.4 billion more than expected, the San Antonio Express-News reported Saturday.

In a copyright story, the newspaper said the windfall resulted from a buoyant economy that helped increase state revenues. At the same time, some agencies spent less than budgeted.

"It's certainly a good problem to have," said state Sen. Bill Ratliff, R-Mount Pleasant, who likely will have a say in what happens to the excess as the new chairman of the Senate Finance Committee.

Most of the surplus - $573 million - came from increased revenues from sales taxes, franchise taxes, lottery proceeds, motor vehicle taxes, interest on state deposits and other revenue increases, said Andy Welch, a spokesman for Texas Comptroller John Sharp.

An additional $484 million came from agencies that spent less than budgeted. Overestimates of Health and Human Services caseloads and state prison populations account for most of the spending reductions, the comptroller's office said.

Lastly, an extra $336 million was in some other accounts that include various fees and some federal money.

Texas operates on a two-year budget. The first year of the current cycle ended Aug. 31 with a total cash balance of nearly $2.3 billion that carries over into the second year, Welch said. The state had estimated it would end the year with a cash balance of about $870 million.

Texas enjoyed an unexpected cash balance of about $2.2 billion midway through the 1994-95 fiscal years, Welch said.

What happens to the money is up to the Texas Legislature, which meets again in January. Lawmakers can decide to spend it or save it.

"I can't predict what we're going to do," Ratliff said Friday. "But I would at least advise caution because we don't know what federal changes in welfare are going to do with the state's budget."