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Texas faces nearly $1 billion budget hole heading into legislative session

Heading into the 2021 Texas Legislative Session, the state faces a nearly $1 billion budget...
Heading into the 2021 Texas Legislative Session, the state faces a nearly $1 billion budget deficit.(KBTX)
Published: Jan. 11, 2021 at 7:08 PM CST
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KILLEEN, Texas (KWTX) - Texas Comptroller Glenn Hegar said Monday that Texas is about $946 million in the red for the current fiscal year ending in August.

He cited “steep declines” in sales tax revenues, as well as decreased revenues from oil and natural gas extraction, because of the pandemic.

However, he said the declines were not as steep as they could have been.

Previously, in July, Hegar had projected a $4.6 billion deficit for the current biennium.

Even with the lower-than-expected budget deficit, some area nonprofits fear their essential programs could be on the chopping block.

“The money has to come from somewhere,” said Misty Biddick, executive director of Aware Central Texas, a nonprofit that works to prevent child abuse and family violence.

“We always fear that it’s going to come from funding to some of the programs that assist our clients,” she said.

Biddick said the pandemic has increased the need for state funding to her organization.

State lawmakers meet Tuesday in Austin for the beginning of the 87th Texas Legislature.

They will have nearly $113 billion to work with as they set the budget for the next two years.

That is a slight decrease from the amount they had last session.

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