The economy of the State of Texas is receiving an unexpected boost from the Eagle Ford shale oil and gas production, which will provide the state with additional revenues to grow from a record budget deficit to a record budget surplus.
Texas Comptroller Susan Combs reported that the 2012 tax collections came in with $3.7 billion more than the budget estimate, which will continue to grow until the next budget. The surplus is due largely to higher than expected oil and gas production taxes and the increase in sales tax revenue that results from workers spending their income at local businesses.
The newly expected surplus will help cover some of the items that were not budgeted in the previous legislative session. In addition, the surplus should provide the means to restore the level of state services that were cut back to reduce spending.
The surplus eliminates the need to tap into the State's rainy day fund and changes the tone of the debates in the upcoming legislative session.
You can read more at the Austin-American Statesman and the San Antonio Business Journal.