Texas Comptroller Glenn Hegar Wednesday announced his certification of House Bill 1, the general appropriations act that was approved by both houses during the recently-gaveled regular session of the 86th Texas Legislature. The bill now heads to the desk of Gov. Greg Abbott.
HB 1 appropriates $250.7 billion in total spending for the state’s budget during the 2020-21 biennium.
“I want to congratulate the Legislature on a very productive session,” Hegar said. “The state made important progress on some key issues affecting our state. I’m proud to certify this budget and send it on to Gov. Abbott for final approval.”
HB 1 is certified based on the most recent total revenue projection released in May, which includes an upward revision of $518 million and accounts for the passage of online marketplace legislation, which added approximately $550 million in additional sales tax revenue.
Hegar pledged to continue to monitor the Texas economy, noting that it has expanded at a rapid pace over the last 18 months.
“We’ve seen tremendous growth in Texas over the last year and a half, which allowed lawmakers to make historic investments in education and provide much-needed property tax relief,” Hegar said. “Uncertainty in the global economy, however, as well as increasing unpredictability surrounding international trade policy at the federal level, may have dampening effects on the Texas economy in the coming years.”
The Legislature also addressed some key long-term concerns that Hegar has highlighted in recent years, such as teacher pensions and healthcare. But Hegar noted that long-term liability concerns continue to put downward pressure on the state’s credit rating.
“As I prepare our cash flow analysis ahead of my annual visit to New York to meet with representatives from the credit rating agencies, some key obligations will continue to require legislative attention in future sessions,” Hegar said. “We anticipate the Employees Retirement System pensions, ongoing costs associated with Medicaid and the future healthcare needs of teachers to remain in focus when lawmakers return in two years.”