Texas in the News Weekly Quiz February 8, 2021

Weekly Quiz 4: Monday, February 8, 2021

Budget Woes

According to a former lieutenant governor, the only thing the legislature must do every session is pass a budget. “The rest is poetry.” Passing a budget that spans two years is challenging enough in good economic times (see Chapter 13). But lawmakers in the 87th legislative session face a multibillion-dollar deficit due to COVID-19 and the accompanying recession.

Which programs get cut? Which are spared? Can new funds (revenue) be located? A better economic forecast from the state’s Comptroller (who keeps the state’s check book) offered an unexpectedly optimistic revenue forecast, improving the spirits of lawmakers but dampening hopes of many who wanted the state to legalize and tax expanded gambling or marijuana.

State lawmakers can also find other ways to fix a tight budget. Lawmakers can raise taxes, but this is often politically challenging. Lawmakers can use accounting tricks to temporarily delay payments without interrupting services to Texans.

Read more in the following articles about how lawmakers might navigate a tight budget:


. How large is the state's budget shortfall?

. Sales taxes are the largest revenue source in Texas budgets. How much of a decrease in sales taxes was found in the second half of 2020?

. How much revenue does Texas have to operate in the next budget?

. In what year did a projected shortfall prompt state leaders to ask for pre-emptive agency cuts?

. What final step does the state Comptroller take on the budget?

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