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»Texas budget surplus is $33B, bigger than Connecticut, Delaware, and Vermont combined«
Everything in Texas is larger.
This year, the state’s accountants recorded a record-breaking $33 billion surplus in tax income, roughly equal to the combined yearly budgets of Connecticut ($20 billion), Delaware ($5 billion), and Vermont ($8 billion).
“The increase is a direct result of robust economic growth since the end of COVID-19 pandemic restrictions, spikes in energy prices, and unfortunately the highest rate of general price inflation in the past four decades,” Texas Comptroller Glenn Hegar stated on Monday.
The Lone Star state, regularly recognized as one of the most popular destinations to move in the United States, now has a population of over 30 million people and had the most population growth of any state from 2021 to 2022, with 470,000 new inhabitants paying into its tax system.
Greg Abbott, the governor of Texas, disagrees with other members of his party over how the additional funds should be used.
Texas’ exceptional budget surplus comes at a time when other large states, such as New York and California, are facing fiscal deficits of $3 billion and $22 billion, respectively.
Legislators will now decide what to do with the additional monies during the legislature session that began on Tuesday, despite the fact that Governor Greg Abbott and other Republicans are already at odds about how to spend the billions.
Monday was when Texas Comptroller Glenn Hegar revealed the additional cash.
AP
According to Bloomberg, the governor intends to return half of the funds to homeowners. In states with no income tax, property owners are primarily responsible for replenishing the coffers.
Lt. Governor Dan Patrick desires to invest a portion of the windfalls in the power grid, which failed in 2021 during a winter storm, resulting in the deaths of hundreds of Texans. Texas is the only state with its own electrical grid.
Complicating matters, a portion of the funds are already committed, the state’s chief financial officer reminded elected leaders, who will ultimately determine how to use the additional funds.
Many lawmakers in the Lone Star State are advocating for a portion of the surplus to be used to reinforce the state’s electrical grid, which nearly failed in 2021
Hegar noted that $10,2 billion must be set up for the state’s Rainy Day Fund and State Highway Fund. Additional $155 million must be set aside to offset the Texas Guaranteed Tuition Plan deficit.
Hegar also advised state leaders, urging them to be “cautious” and “thoughtful” in light of the fact that Texas is unlikely to ever experience a windfall of this magnitude.
“Lawmakers should also consider substantial tax cuts to ease the burden on Texans struggling with inflation, economic uncertainty, and rising housing costs,” added Hegar.
»Texas budget surplus is $33B, bigger than Connecticut, Delaware, and Vermont combined«