(AP) AUSTIN, Texas — Texas property values increased 1.3 percent
statewide last year, the comptroller's office says, in another sign the
economy is getting stronger.
The assessed value of all
residential and commercial property across the state increased to $1.69
trillion in 2011, compared to the previous year's $1.67 trillion. In
2010, Texas suffered the first decline in statewide property values in
17 years, and state budget writers had anticipated another 1 percent
decrease last year — but 2011 was more positive than expected, the
Austin American-Statesman (http://bit.ly/wz66yK) reported Tuesday.
The
assessed value is a key variable in school funding, which is based on a
mix of local property taxes and state dollars. The difference will save
the state perhaps $300 million to $400 million by reducing its
obligation to school districts, according to Joe Wisnoski of Moak Casey
& Associates, a school finance consulting firm.
Still, the
increase is relatively insignificant in relation to Texas' overall
two-year budget of $173.5 billion — and it won't necessarily be used to
undo some of the $4 billion reduction in school aid that the Legislature
enacted last year.
"It probably will make very, very little difference in the bottom line of school districts," Wisnoski told the Statesman.
But
the increase in property values, combined with the state's collection
of more tax revenue than previously expected, adds to the perception
that Texas is climbing out of its budget hole.
"We're certainly
above the trend line across the board, but it's still early," said Dale
Craymer, president of the business-backed Texas Taxpayers and Research
Association. "If current trends hold, we will be in relatively good
shape."
Since the state's fiscal year began in September, sales tax revenue has come in about double the projected rate of growth.
Other
key sources of revenue have performed exceedingly well, particularly
the natural gas production tax, which is expected to be up 25 percent
compared with the previous budget. Much of that money goes to the
state's Rainy Day Fund, which is expected to have $7.3 billion available
by the end of the two-year budget.
Texas Comptroller Susan Combs
said in December that the state would have $1.6 billion more than
previously expected in the 2012-13 budget.
But she also warned
that legislators would likely have to tap the Rainy Day Fund when they
convene again next year given that they left $4.3 billion in Medicaid
obligations unpaid during last year's session.
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