In July, Comptroller Glenn Hegar testified before the Legislative Budget Board members and released his updated Certification Revenue Estimate report (CRE), which projects an additional $2.7 billion at the end of the current budget cycle for fiscal years 2018-19.
According to Hegar, this projected ending balance is primarily due to rising oil and gas production and other related industries.
As he explained, the $2.7 billion already includes certain anticipated expenses, except for any supplemental appropriations that may be allocated for Medicaid and Hurricane Harvey during this current budget period. Usually the supplemental appropriations bill is adopted by the Legislature soon after the legislative session begins.
Other significant key remarks made by the Comptroller:
- The Economic Stabilization Fund (ESF), also known as the Rainy Day Fund, is expected to reach $11.8 billion at the end of fiscal year 2019;
- Sales tax collections, the largest source of state tax revenue, are up by 10 percent compared to June of last year;
- More than 350,000 jobs were added in the previous 12 months, pushing the unemployment rate to a historic low for much of the year;
- The State Highway Fund (SHF) will receive its full allocation of $2.5 billion from the severance tax collections in fiscal year 2018;
- The next expected revenue update will be the Biennial Revenue Estimate for fiscal years 2020-21 in December 2018.
Hegar also noted that the state is expected to lose about $400 million in revenue from the non-collection of sales tax on internet service in fiscal year 2020.
For more information on this topic, please contact Paul K. Emerson at 800-456-5974.