January 14, 2011
By Paul K. Emerson, TAC State Financial Analyst
Comptroller Susan Combs released the state’s 2012-13 Biennial Revenue Estimate, which anticipates $72.2 billion will be available in General Revenue-Related funds for the upcoming biennium. This figure marks the certification amount the Legislature will be able to spend.
Offsetting the certification amount is what’s anticipated to be a negative $4.3 billion ending balance for the current biennium (2010-11). This amount includes approximately $400 million in savings from recent agencies revenue reductions. With eight months still remaining in FY2011, further revenue collections are likely to reduce the current negative ending balance.
Another $866 million is tagged for future transfers to the Rainy Day Fund. At the end of the 2012-13 biennium, the Rainy Day Fund is projected to increase to $9.4 billion.
Now that the BRE has been released, according to some, the projected revenue shortfall is between $15 billion - $27 billion. This estimated shortfall is primarily based on the amount needed to continue the current level of services to the people of Texas. More details of the shortfall will be known after the General Appropriations Act is released next week.
For more information on this article, contact Paul Emerson, TAC state financial analyst, at (800) 456-5974.