Texas will have an $18 billion surplus in 2024-25, according to an announcement from Comptroller Glenn Hegar on Thursday. That’s much more than was anticipated when lawmakers passed the state’s $321 billion budget in May.
In the agency’s Certification Revenue Estimate (CRE), the comptroller’s office said $194.57 billion will be available for general spending over the next two years. That is more than enough to cover the $176 billion included in the 2024-25 plan.
The comptroller’s office issues a Biennial Revenue Estimate before each legislative session to project how much will be available for the upcoming budget. The CRE revises those estimates at the end of each session based on legislative activity, current economic information, and final revenue numbers for the recently ended fiscal year.
According to the new estimates, the state will also end 2025 with $23.77 billion in its Rainy-Day fund. Additionally, the State Highway Fund will receive $2.5 billion in sales tax revenue for each year plus an estimated $674 million in 2024 and $724 million in 2025 in motor vehicle sales tax revenue.
“For well over a year now, consensus macroeconomic forecasts have indicated a recession this year or next,” Hegar said. “The Texas economy has outperformed the national economy, and the economic outlook included with this revenue estimate does not assume a recession in Texas.”