Austin News

As Texas' latest budget cycle comes to an end, it finishes strong with an extra $725 million in funding.

Texas Comptroller of Public Accounts Glenn Hager had predicted in January that it would fall $1 billion short from COVID-19 spending. The budgets were recently amended by Hegar for the current and 2022-2023 biennium, with the state funds for the 2022-23 biennium increased by $3 billion to $116 billion.

“When we finalized our economic forecast for the January BRE, COVID case counts and hospitalizations were on the rise, and the rollout of vaccines had just begun,” Hegar said in a press release. “Those conditions warranted caution about the near-term economic outlook. Since then, case counts and hospitalizations have plummeted, many restrictions have been lifted and economic activity in the state — and across the country — has accelerated.”

Hegar doesn't think the announcement will alter the 2021 spending plan. He also stated that COVID-19 vaccines and a brighter economy in Texas are to thank for the optimism, but that the economy depends heavily on international trade.

"Texas' economic recovery is accelerating and I have updated my forecasts for revenues and the overall economy," Hegar said. His estimate doesn't include appropriations made by the 87th Legislature.

“Our revised revenue forecast assumes continued economic growth through the next biennium, but uncertainty remains about the ultimate course of the economy and thus state revenue,” Hegar said. “Texas remains well-positioned to recover from the COVID outbreak and return to its norm of economic growth in excess of the national rate — if we haven’t already.”

House Bill 2 was introduced by state Rep. Greg Bonnen (R-Friendswood) with 148-0 approval before it was sent to the Senate. To read the House press release, click here.