THIS
THIS TO
THIS TO BECOME THE MOST EXPENSIVE U.S. ELECTION IN
HISTORY.
HISTORY.
HISTORY. >>> SALES TAX REVENUE INCREASED
COLLECTING $2.98 BILLION IN
SALES TAX REVENUE IN JULY OF
THIS YEAR.
THIS YEAR. THAT'S 4.3% MORE THAN JULY OF
2019.
2019.
2019. JOINING US TO TALK ABOUT THAT
THIS MORNING IS TEXAS STATE
COMPTROLLER GLENN HEGAR.
>> IT IS GOOD TO HAVE GOOD
NEWS.
NEWS.
NEWS. WITH THE PANDEMIC, AND THE
LOWER OIL PRICES AND PRODUCTION
NUMBERS.
NUMBERS.
NUMBERS. A 4.3% INCREASE FROM JULY OF
2020 COMPARED TO JULY OF 2019
EQUATING IN RETAIL ALONE
SECTOR, $460 MILLION IN THE
STATE TREASURY FOR THE LAST TWO
MONTHS COMPARED TO 2019 IS VERY
GOOD NEWS.
GOOD NEWS. >> THAT IS REALLY A BIG DEAL.
THOSE ARE SOME BIG DOLLAR
FIGURES THERE.
FIGURES THERE. BUT, WE SHOULD ALSO NOTE THIS
CERTAINLY DOESN'T GET US OUT OF
THE RED FOR WHAT WE HAVE BEEN
THROUGH HERE THE LAST SEVERAL
MONTHS.
MONTHS.
MONTHS. IT HAS REALLY BATTERED THE
STATE COLLECTIONS.
STATE COLLECTIONS. >> THAT'S RIGHT.
YOU KNOW, TEXAS, I MEAN, f■
DEALING WITH THE COVID PANDEMIC
JUST LIKE THE REST OF THE
NATION AND THE REST OF THE
WORLD.
WORLD.
WORLD. TEXAS BEING A VERY
INTERCONNECTED ECONOMY TO @<ÑTH
REST OF THE WORLD.
I MADE THE POINT OVER AND OVER
THAT @Cx■
I MADE THE POINT OVER AND OVER THAT @Cx■THIS IS PROBABLY GOING
I MADE THE POINT OVER AND OVER THAT @Cx■THIS IS PROBABLY GOING■
I MADE THE POINT OVER AND OVER THAT @Cx■THIS IS PROBABLY GOING
BE A SLOW, LONG RECOVERY.
HOWEVER, YOU KNOW, WE ENTERED
INTO THIS PANDEMIC WITH A
STRONGER FOUNDATION THAN MANY
OTHER STATES.
OTHER STATES. MANY OTHER NATIONS.
AND WHAT WE HAVE SEEN IN THE
LAST FEW MONTHS IS CONSUMERS,
OBVIOUSLY,
OBVIOUSLY, MORE ITEMS ONLINE.
PEOPLE ARE STAYING HOME.
NOT ABLE TO TAKE VACATION.
WHAT WE ARE SEEING IS THERE HAS
BEEN SOME OF ]
■
■THAT
■THAT MONEY TO DO
HOME
HOME IMPROVEMENT PROJECT. THINGS AROUND THE HOUSE THEY
HAVEN'T IN THE PAST.
AND, THAT'S THE RESULT OF nbWHA
WE HAVE gsSEEN IN THE COLLECTIO
HERE THE LAST FEW MONTHS.
>> f
>> f
>> f ARE
>> f ARE WE LIKELY TO SEE TEXAS
BILLIONS OF DOLLARS IN THE RED
AS WE GO INTO THE NEXT BUDGET
CYCLE AND WHAT DOES THAT MEAN
AS FAR AS STATE SERVICES GO?
EVERYTHING WILL BE AFFECTED,
ISN'T IT?
ISN'T IT?
ISN'T IT? >> SO VERY EARLY ON, IN THE
PANDEMIC, I P
OUR EXPECTATIONS.
OUR EXPECTATIONS. WE WILL ENTER INTO SOME TYPE OF
RECESSION AS WELL.
NOW, OBVIOUSLY, nñTHERE IS SO
MUCH UNCERTAINTY AS TO HOW LONG
THE RECOVERY HAS BEGUN.
IF YOU LOOK AT THE STATE
TREASURY, WE WENT FROM HAVING A
$3 BILLION SURPLUS.
WE EXPECTED TO COME INTO THE
STATE TREASURY FOR THE
BUDGET p ■
STATE TREASURY FOR THE BUDGET p ■KvC■
STATE TREASURY FOR THE BUDGET p ■KvC■MORE THAN WHAT TH
LEGISLATURE vOmWAS SENT.
A $4.6 BILLION DEFICIT IN THE
BUDGET.
BUDGET.
BUDGET. LEADERSHIP HAS INSTRUCTED, THAT
WILL D
WILL D
WILL D VERY STRONG ECONOMIC
A LANCE
VERY STRONG ECONOMIC A LANCERAINY DAY . FUND BALANCE
THERE'S A LOT OF UNCERTAINTY.
WE NEED =ñTO GET SEVERAL $téfMO
MONTHS INTO THE REST OF /+■
WE NEED =ñTO GET SEVERAL $téfMO MONTHS INTO THE REST OF /+■ORTH
YEAR TO TEST THE TRENDS AND
ASSUMPTIONS KvC■
YEAR TO TEST THE TRENDS AND ASSUMPTIONS KvC■WE HAVE MADE.
>> WE HAVE TO SEE /+■
ASSUMPTIONS KvC■WE HAVE MADE. >> WE HAVE TO SEE /+■IF WE CAN
A GOOD POSITIVE STREAK GOING
HERE.
HERE.
HERE. ONE
HERE. ONE ]H
ONE ]H
ONE ]H DOESN'T HELP D WITH THAT CERTA
ONE ]H DOESN'T HELP D WITH THAT CERTAf
WE SAW /+■
DOESN'T HELP D WITH THAT CERTAf WE SAW /+■JULY 25th, THAT EXTRA
$600 FEDERAL UNEMPLOYMENT
BENEFIT GOING AWAY FOR TEXANS.
WE SAW IN
WE SAW IN
WE SAW IN WEEKS, THE UNIVERSITY OF
CHICAGO, u+j■
WEEKS, THE UNIVERSITY OF CHICAGO, u+j■AND JP MORGAN CHAS
PUTTING OUT THIS BIG STUDY
SAYING THAT MOST PEOPLE /cWHO
KEPT THEIR JOBS DURING THE
PANDEMIC, THEIR SPENDING HAS
GONE DOWN.
GONE DOWN. WHILE THE PEOPLE WHO WERE
GETTING THOSE ENHANCED
UNEMPLOYMENT BENEFITS HAVE BEEN
SPENDING MORE THAN THEY
PREPANDEMIC AND THAT HAS
PROPPED THE WHOLE ECONOMY.
WHAT HAPPENS HERE IF WE MYÑSEE
THAT GO AWAY IN G=TEXAS?
>> GOOD QUESTION.
DURING t(v:ANY TYPE OF RECESSIO
DURING A DOWNTURN, PEOPLE SEE
AN INCREASE.
AN INCREASE. YOU SEE THE ADDITIONAL
UNEMPLOYMENT BENEFITS THE
FEDERAL GOVERNMENT HAS GIVEN
AND THE STIMULUS DOLLARS THAT
HELPED O2fÑQU%■
AND THE STIMULUS DOLLARS THAT HELPED O2fÑQU%■PROP UP SOME OF
SPENDING.
SPENDING.
SPENDING. WE ASSUME THAT THE ECONOMY IS
GOING TO CONTINUE TO =.5U,PñSLO
OPEN UP, CONTINUE TO GROW,
THAT'S WHAT WE HAVE IN OUR ■
CURRENT REVENUE FORECAST.
WE ARE NOT TAKING INTO ACCOUNT
ANY ADDITIONAL DOLLARS THE
GOVERNMENT MAY SPEND.
THERE'S A LOT OF DISCUSSION
GOING ON IN NEGOTIATION.
SO, WE ARE WAITING TO SEE THE
FINAL PRINT OF WHAT CONGRESS
MAY PASS AND THE PRESIDENT
SIGNS BEFORE WE COULD TAKE THAT
XiJUR8.yECONOMIC
XiJUR8.yECONOMIC >> GLENN, THANKS FOR JOINING US
THIS MORNING AND STARTING US
OFF WITH 0GñA GLIMMER OF HOPE.
WE COULD USE AS MANY