Comptroller Projects $4.6 Billion Shortfall in Revised Revenue Estimate: Release and Hearing Summary

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 o