Comptroller Glenn Hegar told the House Committee on Appropriations that the state has an estimated $194.6 billion available for general‑purpose spending in the 2026–27 biennium, a 1.1% decline from the certified amount for the 2024–25 biennium.

Hegar said the total includes a projected $23.8 billion ending balance carried forward from the current biennium, $155.4 billion in tax revenues and $21.0 billion in non‑tax receipts. “The $23.8 billion projected ending balance for the 24–25 biennium is robust,” Hegar said, adding that the composition of the balance differs from the prior record carryover because of unspent contingent appropriations and dedicated accounts.

Why it matters: the mix of one‑time carryover dollars, dedicated accounts and federal funds affects whether lawmakers can use money for ongoing programs or only one‑time items. Hegar emphasized that much of the carryover consists of funds dedicated for specific purposes or contingent appropriations that must be appropriated before spending.

Key details lawmakers heard
- The comptroller’s estimate: $194,600,000,000 available for 2026–27 (decrease of 1.1% vs. 2024–25).
- Ending balance carried forward from 2024–25: $23,800,000,000.
- Tax revenues (2026–27): $155,400,000,000; non‑tax receipts: $21,000,000,000.
- Sales tax remains the single largest revenue source; in 2026–27 sales tax is projected to be about 59% of total tax collections.
- Oil & gas severance tax transfers: the comptroller expects partial transfers to the State Highway Fund but no transfer to the Economic Stabilization Fund (ESF) in 2027 because the ESF will exceed its constitutional cap.
- Hegar projected the ESF balance would grow to more than $28.5 billion absent withdrawals, and he urged the committee to consider whether to leave the constitutional cap in place or allow more transfers into the fund for future generations.

Comptroller Hegar described differences between the current balance and the prior record carryover (2023) and said the current projection reflects more conservative fiscal management and unspent, dedicated balances and contingent appropriations that inflate the paper balance but are limited in use. He also noted that changes in economic assumptions or federal developments will alter the estimate and pledged to update the committee if collections deviate.

Ending balance uses and limits
Hegar described $4.5 billion of unspent contingent public education appropriations and roughly $7.33 billion in general revenue‑dedicated accounts (money collected for specific purposes that is not freely available for general spending). He told members those dedicated balances can be used to certify the budget but are not ongoing general revenue unless reallocated by lawmakers.

The comptroller also reviewed long‑term considerations for the ESF, including constitutionally required calculations that cap transfers to the ESF at an amount equal to 10% of general revenue deposited during the previous biennium. Hegar said the cap means 37.5% of severance tax collections typically set aside for the ESF will instead remain in general revenue once the cap is reached.

Outlook and caution
Hegar repeatedly cautioned the committee against treating the ending balance as an ongoing revenue source for recurring expenditures. He stressed the biennial revenue estimate is sensitive to global economic shocks and to policy choices the legislature may make during session. He also noted projected growth in severance and other revenues tied to oil, gas and motor vehicle taxes could be volatile.

Ending
The comptroller closed by saying he expects revenue collections and assumptions to change if macroeconomic conditions shift, and he promised to keep the legislature and taxpayers informed of material updates.

(Reporting based on Comptroller Hegar’s presentation to the House Appropriations Committee, transcript timecodes 398.31–1170.26.)