The day before the 86th Legislature convenes, Texas State Comptroller Glenn Hegar provided his estimate that Texas lawmakers will have $119.1 billion for general-purpose spending during the 2020-21 biennium. This is an increase from the 85th Session start of session, when lawmakers were given an estimate of $104.9 billion at the start of session. Hegar warned, however, that substantial supplemental appropriations could affect revenue available for the 2020-21 biennium.
Hegar stated in the Biennial Revenue Estimate (BRE), “Looking ahead to the 2020-21 biennium, we remain cautiously optimistic but recognize we are unlikely to see continued revenue growth at the unusually strong rates we have seen in recent months. 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. As the nation’s leading export state, the Texas economy in particular is exposed to potential reductions in international trade. Because of this heightened uncertainty, this revenue estimate is based on a projection of continued but slowing expansion of the Texas economy.”
Additionally, absent any additional appropriations that might be made by the Legislature, the balance of the Rainy Day Fund, also referred to as the Economic Stabilization Fund (ESF), is expected to be $15.4 billion at the end of the 2020-21 biennium. Hegar during his press conference argued for the creation of the Texas Legacy Fund as a way to grow and safeguard the ESF. To view the press conference, visit the Comptrollers FB page.
The full Biennial Revenue Estimate is available on the Comptroller’s website.