Hegar releases biennial revenue forecast

By Editor | January 22, 2025

CAPITAL HIGHLIGHTS

The Texas Legislature begins its work creating a state budget for the next two years with slightly less revenue available than it had during the previous biennium.
Texas Comptroller Glenn Hegar projects lawmakers will have $194.6 billion available during the 2026-27 budget cycle, down 1.1%. Hegar said the decrease is because the state is starting with a beginning balance that is nearly $16 billion less compared to 2024-25.
He noted the state is in good financial shape and predicts revenue collections will continue to rise in the upcoming biennium.
“Thoughtful consideration of spending decisions, as always, will be crucial to ensure new and existing investments can be funded in the future — and that these investments focus on improving the lives of Texans,” Hegar said.
Sales tax collections continue to make up the state’s largest source of general fund revenue at 61%, followed distantly by oil and gas tax collections.
Abbott floats notion of buying water from Houston for West Texas
Abbott and Houston Mayor John Whitmire reportedly have been in initial talks to sell the city’s “excess” water to West Texas, the Houston Chronicle reported.
Whitmire, a longtime state senator before being elected mayor, told the Chronicle that he was open to the idea if it means the city can get much-needed infrastructure funding, calling it potentially a “win-win.”
Cities and businesses operating in the Permian Basin are calling for more access to water as their aquifers run low after decades of unrestricted drilling. However, a recent State Water Plan predicts the 15-county region that includes Houston could itself run short of water for municipal needs by 2030.
Whitmire said the city could build new reservoirs to hold water sold to the state in exchange for funding to fix its crumbling infrastructure.
The city needs about $15 billion just to fix its water pipes and build a new water purification plant. Houston has lost 36 billion gallons of water in the past two years – enough to supply the entire city of Fort Worth, with 900,000 people, with water for a year.
Fatal occupational injury report released
A total of 564 workers died on the job in 2023, according to the Texas Department of Insurance’s annual report, down slightly from the previous year. Most of the fatalities occurred in the private sector – 93%.
The trade, transportation, and utilities industry, both private and public sector, reported the most fatalities at 183. During the same period 126 construction workers died on the job.
The number of worker fatalities has not changed markedly in the past five years, according to TDI.
Texas firefighters deployed to Southern California
The Texas Division of Emergency Management and Texas A&M Forest Service have deployed firefighters, emergency management and medical personnel, fire engines, and equipment to assist with wildfire response efforts in California.
More than 135 firefighters and other emergency personnel, as well as more than 45 fire engines, ambulances, command vehicles, and equipment, have been sent to California.
“I thank all the brave firefighters and first responders who are answering the call to help Californians in need as these fires continue to burn,” Abbott said.