COMPTROLLER ISSUES REVENUE ESTIMATE AND WARNING
Before legislators can start on the main job of the legislative session—passing a budget for the next two years—they must learn how much money they have to spend.
Answering that question is the role of the biennial revenue estimate, which Texas Comptroller Glenn Hegar provided Monday as legislators prepared to convene for the 86th Session.
Hegar projected there would be about $119.1 billion in state funds available for the 2020 and 2021 cycle, which is up 8.1 percent from the $110.2 billion available in the last cycle.
Hegar cited rising oil prices and production and increased sales tax from a healthy economy for an estimate that is rosier than had been expected just a few months ago.
But he advised caution on spending because of potential clouds on the horizon.
“Oil prices have dropped sharply since October, financial markets have demonstrated increased volatility, interest rates have been rising and U.S. trade policy remains uncertain,” he said.
Hegar is likely to offer another estimate later in session, adjusting for any changes occurring in the subsequent months.
He also estimated the Economic Stabilization Fund, known as the rainy day fund, will have a balance of $15 billion. Legislators will have to decide whether to dip into that fund or leave the balance alone.