Texas Comptroller Susan Combs notified state leaders last week that the current two-year budget will be tighter than expected, with a smaller rainy-day fund than anticipated when the budget was approved this spring.
In a letter to Gov. Rick Perry, Lieut. Gov. David Dewhurst, House Speaker Joe Straus, and legislative leaders, Combs said the state will have $77.7 billion in general revenue to cover the $77.6 billion in general fund appropriations in the budget.
That will leave the state with an ending general fund balance of $83.5 million when the current budget cycle ends Aug. 31, 2011.
The total two-year budget — which includes dedicated funds and $12 billion of federal stimulus money — is $182 billion.
Combs said natural gas severance-tax revenue, which supports the state’s rainy-day fund, will provide a cushion of $8.2 billion in 2011 rather than the $9 billion that had been expected.
She said the Texas economy should begin to recover in 2010.
“However, if consumer spending continues to lag through the second half of fiscal 2010, it could result in tax collections being lower than currently anticipated,” the comptroller wrote.
Sales and natural gas tax revenue fell more than $1 billion short of projections in fiscal 2009.
