If it seems like just a few years ago that the Texas economy was booming, you’d be right. In fact, in 2006 Texas had a budget surplus of over $8 billion. So how is it that just five years later, we’re facing down the barrel of a $27 billion deficit?
Fort Worth Weekly explains that there are a few reasons. First came major changes to the state’s franchise tax in 2006 along with other taxes that were supposed to save local school districts about $7 billion in maintenance and operations taxes. However, the franchise tax didn’t bring in the revenue legislators expected it to.