COMPTROLLER TICKS UP REVENUE ESTIMATE—BUT WITH A WARNING
State lawmakers may have $2.8 billion more to spend when they convene next January, according to an estimate by Texas Comptroller Glenn Hegar.
Rising oil prices and better than expected sales tax revenue were cited by Hegar as the leading causes of his revision.
That was good news for budget writers who will enter next session needing to pay for a $2 billion underfunding of Medicaid from last session and the costs of Hurricane Harvey recovery.
But Hegar raised a red flag. He said escalating tariffs and a possible withdrawal from the North American Free Trade Agreement (NAFTA) “could harm some of our state’s leading industries while slowing our economic growth.”
Even if revenue estimate proves to be accurate, the Legislature is still expected to face a significant revenue shortfall as they write the next biennial budget.