State lawmakers will gather in Austin today for the start of the 2023 legislative session. One of their biggest jobs every two years is to adopt the state's budget. Texas State Comptroller Glen Hegar predicts they will have a record-setting amount of revenue to work with during that process.
The Biennial Revenue Estimate (BRE) shows the state is projected to have a record $188.2 billion in revenue available for general-purpose spending during the 2024-25 biennium. That's a 26.3 percent increase from the 2022-23 biennium. Hegar largely attributes the one-time increase to the state's recovery from the COVID-19 pandemic, along with rising energy prices and overall inflation.
"The disruption of the pandemic gave way to vigorous economic growth that kept our state in a national leadership role, helped drive record revenue collections, and provided an astonishing projected cash balance," he said. "Don't count on me announcing another big revenue jump two years from now. The revenue increases that we have seen have been, in many ways, unprecedented."
Hegar is urging lawmakers to proceed with caution as they discuss their spending priorities for the next two years.
"Thoughtful options might include investment in our electrical grid, broadband connectivity, port and water infrastructure, salary adjustments for state employees, our teachers, and nurses...and the development of our skilled trade workforce," he said. "We are unlikely to have an opportunity like this again. This budgeting session is truly a once in a lifetime session. As always, the state must be careful in its spending to ensure we don't face ongoing costs when this surplus is a memory."
The 88th Session of the Texas Legislature runs from January 10th through May 29th.
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