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Miracle Fades as Texas Oil Bust Jeopardizes Once Surging Surplus

  • Lawmakers brace for revenue slowdown as crude prices decline
  • Sales taxes drop from year earlier, economic growth stalls
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Texas Miracle, meet the Oil Curse.

After booming when rising energy prices rippled through the nation’s largest oil-producing state, Texas’s once stellar economic growth is slowing as crude trades for less than half what it did two years ago. As a result, lawmakers are anticipating that billions of dollars of tax revenue won’t materialize, threatening the government’s surpluses and leading investors to demand higher yields on some of its bonds.