Hegar gives lawmakers dour revenue estimate for 2017 session
AUSTIN -- Facing sluggish economic forecasts amid low oil prices along with billions in tax revenue already dedicated to the state highway fund, Comptroller Glenn Hegar said Monday that lawmakers will have $104.87 billion in state funds at their disposal in crafting the next two-year budget, a significant decrease from his estimate ahead of the legislative session two years ago.
Hegar told state lawmakers he expected a "slow to moderate" expansion of the Texas economy. Still, he said, the amount of revenue they will be able to negotiate over has fallen. That's largely because lawmakers in 2015 dedicated up to $5 billion in sales tax revenue that must go to the state's ravenous highway fund, rather than being spent on other priorities such as schools, health care or reforms to the embattled Texas foster care system.
"We are projecting overall revenue growth," Hegar said. "Such growth, however, is more than offset" by the demands of the state highway fund and other dedicated funds.
The revenue estimate does not determine the scope of the entire Texas budget. Rather, it sets a limit on the state’s general fund, the portion of the budget that lawmakers have the most control over. The general fund typically makes up about half of the state’s total budget and, along with federal funding, helps pay for schools, health care, universities and other services.
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