At Baker Institute, we have been monitoring Texas State revenues. Since the State’s fiscal year ends on August 31, we now have full-year data. It shows that after two years of drifting sideways, the State’s revenues resumed growing, albeit modestly. Revenue from all sources was up 3.2%, which roughly tracked inflation.

More promising, the State’s tax collections rose by 4.5%. Sales tax collections grew by 6.5%–above inflation and population growth.

The State continues to be very dependent on funding from the federal government. Last year, federal transfers were nearly a third of all State revenue. This is consistent with the share in recent years.

You can read all the details in this working paper we just published.