State Budget

2022-23 Biennium 

The following articles can help pinpoint topics of importance for counties.

Budget Deficit 

The Texas economy has been hit hard by the double whammy of the coronavirus pandemic and low oil prices, driving down tax revenues. As a result, in July 2020, Comptroller Glenn Hegar projected a $4.6 billion deficit for the state’s current two-year budget that ends in August 2021. In his January Biennial Revenue Estimate for the 2022-23 Biennium, Comptroller Hegar reduced this estimated deficit to $946 million, citing underestimated gains in tax receipts from online sales.

Out-of-state online sellers and marketplace providers were not required to collect Texas’ sales and use tax until late in 2019, following the U.S. Supreme Court’s Wayfair decision and subsequent state legislation. Although monthly sales collections were down in eight of the last nine months compared to the previous year, the drop would have been greater, but for tax collections from online sellers.

The following articles provide information on the deficit and how the deficit affects state funding for counties.

Helpful Resources

GR-Dedicated Accounts & the State Budget

The Legislature's long-standing practice of balancing and certifying the state budget by diverting dedicated funds intended for certain purposes has impacted many county programs and local budgets.

Download Issue Brief

Related Articles

Recession cuts how much lawmakers can spend with the next state budget, but decrease isn’t as bad as feared

Texas Tribune, Jan. 11, 2021

Texas lawmakers will enter the legislative session this week with an estimated $112.5 billion available to allocate for general-purpose spending in the next two-year state budget, a number that's down slightly from the current budget but is significantly higher than what was estimated this summer when the coronavirus began to devastate the economy.

Balancing Texas' budget is always complicated. The pandemic and recession will make it even harder in 2021.

Texas Tribune, Dec. 28, 2020

One of the largest tasks Texas lawmakers will tackle during the 2021 legislative session that begins in January is writing the state budget, which outlines state spending for the next two years. While the tome-like General Appropriations Act can seem overwhelming and often abstract, the spending and cuts detailed within it can have immediate and highly consequential effects on Texans' lives…

Texas Lawmakers Must Manage Budget Shortfall, COVID Rules, Sept. 25, 2020

The pandemic caused by the novel coronavirus is setting the stage for one of the most unusual and high-stakes sessions of the Texas Legislature — ever. The COVID-19 outbreak crippled the state’s high-flying economy, making for severe budget woes ahead...

COVID-19 hits Texas transportation budget with $800 million shortfall

Valley Central, Sept. 22, 2020

Texas Chairman of the Committee of House Transportation, Terry Canales recently held a virtual townhall on Facebook, with state leaders to discuss COVID-19’s impact on transportation...

Budget plan offers glimpse at state agency cuts

The Statesman, Sept. 1, 2020

In the first comprehensive glimpse of how the ravages of the COVID-19 pandemic will affect key state services, an August state budget document obtained by the American-Statesman lays out how agencies proposed meeting 5% cuts demanded by the state’s Republican leadership in May...

$5 billion state budget shortfall predicted; Rep. King weighs in

Weatherford Democrat, Aug. 7, 2020

State Rep. Phil King, R-Weatherford, recently predicted a $5 billion shortfall in the current state budget because of the COVID-19 pandemic, but added that it’s really hard to project...

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