Sales taxes still sliding

Still no sign of a turnaround in many Texas cities.

Municipal sales tax collections across Texas fell 11.4 percent in November, raising new economic worries amid signs of recovery in housing and other industries.

The declines are discouraging to city budget officials who had hoped that November’s Black Friday shopping bonanza would signal a broad turnaround.

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Municipal collections statewide fell to $274.5 million in November, down from $309.9 million during the same month in 2008, according to figures released Wednesday by the state comptroller’s office.

November collections fell significantly in many large cities statewide, including Houston (18.5 percent), Corpus Christi (16.6 percent) and Beaumont (24 percent).

The news isn’t all bad, as some suburban cities saw increased sales tax revenues over 2008. That Houston figure sure does stink, and it’s not making Mayor Parker’s job any easier.

“There isn’t any wiggle room,” Parker said Friday, noting that the fiscal 2011 budget is expected to be even more strained than this year. “There’s not a cushion there.”

The city received $33.9 million in sales tax revenue for November 2009, an 18.5 percent decline from November 2008, despite the fact that the period included Black Friday, the biggest shopping day of the year.

So far this fiscal year, sales tax revenue, which makes up nearly a third of the city’s general fund budget, has been down about 10 percent from last year.

If those trends continue through the next five months, the city would face an additional $15 million budget gap that could push its reserves down to the lowest point allowed under city policy.

The $20 million rainy day fund, depleted for Ike-related costs, also has yet to be replenished.

For what it’s worth, December was a strong month for retailers around the country, so perhaps the next month’s report will be sunnier. Gotta find your hope where you can.

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