Comptroller predicts better-than-expected growth in Texas economy
Plummeting oil prices have incited much speculation in recent weeks about how much Texas’ coffers might suffer and how much less money might be available to a Republican-dominated Legislature that wants to cut taxes significantly and also spend on things like roads.
On Monday, freshman Texas Comptroller Glenn Hegar settled the deliberation with his much-anticipated official estimate of how much the state will bring in and have to spend over the next two years. And it was higher than many expected it to be, although tempered because of low energy prices.
Hegar’s approximation – formulated, he has said, under much and diverse advisement – showed that state lawmakers, who convene at noon on Tuesday, will have $113 billion in general revenue to spend on the 2016-17 budget. That is a sizable $18 billion more than general revenue spending in the current two-year budget cycle, which ends Aug. 31.
The estimate assumes oil prices – currently at less than $50 a barrel – will be $64 per barrel on average for current fiscal year, which ends Aug. 31, and to nearly $70 per barrel by the end of 2017. The last revenue estimate, released in 2013, assumed taxable oil prices of about $80 per barrel.
Read more: http://www.statesman.com/news/news/state-regional-govt-politics/comptroller-releases-better-than-expected-revenue-/njmSB/
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