Economics
Texas Slashes Deficit, Sees Stable Revenue for Upcoming Budget
- State expecting $1 billion deficit for current budget cycle
- Online sales taxes, more consumer spending buoyed expectations
This article is for subscribers only.
Texas slashed the size of its projected budget shortfall and expects revenue to come in virtually unchanged from the last cycle despite the shutdowns prompted by the coronavirus pandemic.
The state now projects it will have $112.5 billion in revenue available for general-purpose spending during the biennium that begins in September, according to a Monday estimate from Comptroller Glenn Hegar. Still, that revenue estimate is about 0.4% down from what was available in the last budget cycle. Heger estimates Texas will face a nearly $1 billion deficit at the end of the current fiscal year, a fraction of the size that was anticipated in July.