Texplainer: How Will High Gas Prices Affect the Budget?

Hey, Texplainer: What do high gasoline prices mean for the state budget?

Oil prices have risen recently, as unrest in the Middle East continues. Gasoline prices have gone up in tandem. In Texas, a gallon of gas costs a dollar more than a year ago. For state policymakers, a crucial question is how higher prices at the pump will affect Texas' estimated $15 billion to $27 billion budget gap. The answer, of course, is that it's complicated.

To some extent high oil prices are good for Texas tax revenues. "When prices remain above $100 per barrel, the state could ...

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