SB 1, proposed state budget is a conservative solution to Texas challenges in economic uncertainty
AUSTIN – The Texas Senate Republican Caucus issued a letter to Texans explaining the perfectly appropriate transportation transfer in the Senate budget – a stance supported unanimously by the Texas Senate in a vote of 31-0. This transfer recognizes Texans 83% vote for the Transportation Proposition 7 ballot measure passed after the legislative session.
“We have passed a strong budget that allows Texas to live within her means,” said Senate Finance Chair Jane Nelson (R-Flower Mound). “According to our own Texas Comptroller, you can’t calculate a year’s worth of sales tax data before the year is over. The Senate budget allows for the necessary calculations to be made in order to transfer the full funds to TXDOT and uphold our promise to the voters.”
Therefore, the determination of what to deposit cannot be made until 12 months of sales tax collections are analyzed. Collections run through August 31st of each year, allowing the transfer to take place each year in September after the end of the collection period.
“SB 1 rightly assumes that annual sales tax data will be evaluated in September 2019, and the transfer will occur accordingly. Despite how others have characterized it, this is common sense,” said Senate Transportation Chair Robert Nichols (R-Jacksonville).
“The critics have it wrong. It is standard revenue accounting practices to collect payments, deposit and reconcile them next month,” stated Senate Republican Caucus Chair and former Harris County Tax Assessor-Collector Paul Bettencourt (R-Houston).
For a complete statement of the Texas Senate GOP Caucus’ position please refer to the attached letter.