Comptroller Glenn Hegar announced the release of the Certification Revenue Estimate (CRE) for the fiscal 2024-25 biennium. As a result of legislative actions and an updated economic forecast, the Comptroller’s office now expects revenue available for general spending in 2024-25 to total about $194.57 billion, up 24.8% from the 2022-23 biennium. This revenue will support the $176.28 billion in general-purpose spending called for by the 88th Legislature and will result in a projected fiscal 2025 balance available for certification of $18.29 billion.
Before each regular legislative session, the Comptroller’s office issues a Biennial Revenue Estimate (BRE) that estimates how much revenue will be available for spending in the state’s next two-year budget cycle. After the session, and this year after two special sessions, the agency releases the CRE to provide the detailed basis by which the Comptroller certified the budget and any other bills making appropriations. This CRE also serves as an estimate of available revenue for the third called session expected to begin Oct. 9. The CRE revises estimates in the BRE to reflect legislative activity and current economic information and considers final revenue numbers for the recently ended fiscal year.
The State Highway Fund (SHF) and Economic Stabilization Fund (ESF; the state’s “Rainy Day Fund”) both receive funding from oil and gas severance taxes. Fiscal 2024 transfers will total $3.06 billion each to the ESF and SHF based on severance taxes collected in fiscal 2023, and each fund will receive an estimated $2.76 billion in fiscal 2025 from severance taxes collected in fiscal 2024. Additionally, in fiscal 2024 the ESF will receive a transfer of $2.52 billion, half of the unencumbered and unobligated fiscal 2023 General Revenue Fund ending balance.
After accounting for interest and investment earnings by the ESF, along with expenditures authorized by appropriations made in recent legislative sessions, the CRE projects a fiscal 2025 ending Rainy Day Fund balance of $23.77 billion.
The Comptroller’s office has created a useful infographic (PDF) featuring highlights from the CRE – which can be found below. Detailed tables and the CRE can be found on the Comptroller’s website.
