State Of Texas Faces $1 Billion Budget Deficit

Jan 12, 2021

Credit Courtesy: Chuck Smith / Red River Radio News

REVENUE DROPS - The coronavirus pandemic has created a nearly $1 billion deficit in the Texas state budget.  The forecast was presented online by Texas Republican Comptroller Glenn Hegar on Monday.  It reflected how the nation’s energy hub remains hampered by a slow economic recovery and a half-million fewer jobs than a year ago.

"As a result there is a wide range of possible outcomes for state revenue through the end of fiscal 2023." Glenn Hager, Texas State Comptroller
Credit Courtesy: Office of Texas State Comptroller

"The forecast however remains clouded with uncertainty. The ultimate path  of the pandemic and the behavior of businesses and consumers is difficult to gauge," Hegar said. "It is also unclear how they will respond once the pandemic is fully under control. As a result there is a wide range of possible outcomes for state revenue through the end of fiscal 2023."

The deficit could result in cuts to state services, although many economists say that once coronavirus vaccines are more widely distributed, a broader recovery should take hold in the second half of the year.  The state’s budget deficit will no doubt be on the minds of the GOP-controlled  87th  Texas  Legislature which is scheduled to return to work today for the first time in two years.