Oil prices help Texas rake in $10.7 billion surplus

The Houston Chronicle reports:

The nation may be on the verge of a recession, but the Texas economy is doing well enough for Comptroller Susan Combs to predict Tuesday that the Legislature will have a $10.7 billion surplus when it convenes in January.

Much of the extra money can be attributed to record oil prices. While motorists are being socked with ever-increasing gasoline costs, oil and gas employment in Texas has been booming, the comptroller's office reported.

If Combs' early forecast holds up, Gov. Rick Perry would like to return part of the money to the taxpayers in the form of tax cuts or rebate checks, spokesman Robert Black said. But those steps would need legislative action.

Oil and gas employment in Texas grew by 7.5 percent between March 2007 and March 2008, leading an overall increase of 214,000 Texas jobs, comptroller's spokesman R.J. DeSilva said.

Consequently, sales tax revenue, a major source of state government income, also continues to grow.

And, DeSilva added, Texas has been insulated more than other states from the sub-prime mortgage lending crisis. Texas, he said, avoided the housing price bubbles that hurt states like California and Florida.

You might say there's isn't a recession going on in Texas.