AUSTIN (December 20, 2012)—The State Budget Crisis Task Force, a national group examining state finances, says Texas' budget is in better shape than budgets in many other states, but population growth and other challenges loom.

The task force was formed last year and is examining budgets in Texas, California, Illinois, New Jersey, New York and Virginia.

The task force said in a statement Thursday that it credited the state for "a culture of sound fiscal management and transparency."

The task force also points to strong cash reserves.

The state Rainy Day Fund balance has topped $8 billion.

Although the challenges Texas faces aren't as severe as those faced by lawmakers in other state, the Legislature next year will confront spiraling healthcare costs and calls for more investment in water and roads.