Soaring Oil Prices Kick Up Texas' Budget Surplus To $10.7 Billion

May 7, 2008 2:47 p.m. EST

Austin, TX (AHN) - While the rest of the nation is reeling from soaring oil prices, Texas is benefiting from the non-stop rise in prices of black gold. Oil revenues' contribution to state budget would result to a $10.7 billion budget surplus.

State Comptroller Susan Combs made the fearless forecast Tuesday. Texas Gov. Rick Perry, through spokesman Robert Black, said part of the state's overflowing coffers would redound to the residents' benefits as tax cuts or rebate checks. However, Black said, the measures require legislative approval.

Because of the increased activity in the state's oil and gas industry, 214,000 new jobs were created leading to a 7.5 percent rise in employment from March 2007 to March 2008.

Black, quoted by the Houston Chronicle, said, "With a surplus of this magnitude, I know the governor believes we need to look at some sort of tax relief, whether it be on property taxes, business taxes or some type of actual rebate, like the federal government can do."