Comptroller Susan Combs announced that she estimated that Texas will have about $9 billion less in the budget for 2009 than it did two years ago. She also predicted that Texas will experience 110,000 job losses (nonfarm) within the next nine months caused by a decrease in tax revenues for the state. Furthermore, sales tax revenue which makes up the majority of Texas’ revenue will remain flat for 2009.
Less taxes means less services for the public. Roads don’t get repaired, schools, police and firemen get less funding. State taxes are essential for the healthy functioning of Texas. A $9 billion gap in what Texas earns this year is a huge problem even if Comptroller Combs isn’t sounding the alarms. All we have to do is take a look at California to see what happens to a state when tax revenues begin to lag significantly.
Comptroller Combs warns the state to not overspend; but what she leaves out is that overspending (especially in this economic environment) could cause Texas to go bankrupt. Although we may not realize it, the good times made all of us “live large” and spend more money that we would have under normal conditions and some individuals, businesses and governments are going bankrupt because of it. One of the issues ordinary residents in Dallas-Fort Worth should think about is the future stability of state government jobs.
If the state of Texas is missing billions in tax revenue they may decide that they don’t need those “extra” employees they hired during the boom times. If you work for a state agency you may want to listen closely for any rumors of future job losses. But don’t wait until you get your “pink slip” before you prepare yourself for a job loss. So many people end up facing foreclosure and financial ruin because they believed that “government jobs” were secure. In this economic environment, no job is secure. As we have mentioned several times here, you must prepare. Bankruptcy is setup to help ordinary people avoid financial ruin when they run into tough times, such as facing a job loss or foreclosure. Take the opportunity to speak with a bankruptcy attorney so that you can find out how bankruptcy can help you protect your assets and prepare/protect yourself in the case of a job loss.