One week ago, Texas Comptroller Susan Combs released her Biennial Revenue Estimate (BRE) – a projection of how much legislators can spend in the next budget – which predicted flat state revenues and a worsening economic outlook.
Just how tough do things look? Well, according to the Comptroller’s BRE, lawmakers will only have $77.1 billion in General Revenue (GR) to spend this session whereas last session’s lawmakers had $86.2 billion in GR – a $9 billion difference.
The state’s economy is also predicted to lose as many as 111,000 jobs during the first three quarters of next year and the growth in personal income is expected to slow to an average 3.7 percent during 2010 and 2011, according to the Comptroller’s estimate.
Yet, even in spite of all the bad economic news, Texas still fares remarkably well when compared to other states.
Texas is among the rare states not reporting a budget shortfall this biennium. Combs’ revenue estimate also projects a $9.1 billion balance in the “rainy day” fund by 2011, and the return of job creation by the fourth quarter of 2009.
Times may be tough, but the state has seen much worse and come out on top – just ask the legislators of the 2003 session. Using Texas’ tried-and-true policies of low taxes and limited government, the state has little to fear.
– James Quintero