January 11, 2021      8:40 PM
Hegar: Texas will end biennium with $1 billion shortfall; $112.53 billion will be available for 2022-23 biennium, a slight decrease from past session
In delivering the revenue estimate, Hegar said “The forecast, however, remains clouded with uncertainty. The ultimate path of the pandemic and the behavior of consumers and businesses during a resurgence are difficult to gauge. It’s also unclear how they’ll respond once the pandemic is fully under control."
Strong consumer spending
has lifted the state budget’s projected deficit to just under $1 billion, with
available general revenue now calculated at almost the same level as the
state’s last budget: $112.5 billion.
Those numbers, announced
by Comptroller Glenn Hegar this morning in his
biennial revenue estimate, puts Texas in the minority of states that won’t
be forced to make significant cuts due to the COVID-19 pandemic.
Hegar predicts the
economic recovery to be sooner, rather than later, in Texas. Tax collections won’t be the heady 11 percent growth lawmakers have seen in
flush sessions, but they will be comfortably in the black as Texas moves
through the next biennium.