Texas Comptroller Glenn Hegar Projects a Fiscal 2021 Ending Shortfall
Texas Comptroller Glenn Hegar today revised the Certification Revenue Estimate (CRE) and now projects a fiscal 2021 ending shortfall of $4.58 billion. The shortfall, which Hegar attributed to the COVID-19 pandemic and recent volatility in oil prices, is a decrease from the $2.89 billion positive year-end balance originally projected in the October 2019 CRE.
In a July 20 letter to state leadership, Hegar said the state will have $110.19 billion in General Revenue-related (GR-R) funds available for general-purpose spending for the 2020-21 biennium, down from a projected $121.76 billion in the October 2019 CRE.
The ending balance does not include the impact of instructions from state leadership directing most agencies to reduce their spending by 5 percent of 2020-21 GR-R appropriations. Any of these savings will reduce the projected shortfall. Similarly, the balance also does not assume any further financial assistance from the federal government as both the prospect and nature of such assistance remain uncertain.
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