By J. Lyn Carl, GalleryWatch.com
Austin, Tx – "Marginally improved" is the way State Comptroller Carole Keeton Strayhorn describes the state's revenue situation in a letter to the state's leadership today as they head into the Third Called Session of the 78th Texas Legislature. She also urged the state's top three leaders to continue efforts to grow the state's "Rainy Day Fund."
In her letter to Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Tom Craddick, Strayhorn says her previous estimate showed $98.6 million remains unappropriated for 2004-05, due mainly to vetoes by Perry in June. Additionally, the comptroller said general revenue-related funds for the 2003 fiscal year were $89.3 million above her estimate.
Strayhorn reminded, however, that Perry made "certain deficiency grants" from dedicated general revenue accounts in August that reduced the amount available. "After deducting the cost of these grants," she said, "the estimated funds remaining available for the 2004-05 biennium are $187.4 million."
Strayhorn told the GOP leadership she is pleased to report the state's "Rainy Day Fund" is now $218 million higher than previously estimated, which she credits to higher-than-anticipated natural gas revenues.
"Given that the previous billion-dollar balance in the Rainy Day Fund has been otherwise appropriated, I believe that it is absolutely sound fiscal management to grow the Rainy Day Fund to a prudent balance of $3 billion," said Strayhorn.
Strayhorn said otherwise her revenue estimate remains "unchanged." She added that because the governor's "call" for the Third Called Session that begins today includes bill relating to government reorganization and other issues, she will be "closely monitoring developments as they might affect available revenue" and said she would notify the three GOP leaders if her revenue estimate changes.