AUSTIN—The state will be in much better financial shape than it appeared last summer, and could even end the current biennium with money in the bank, according to Senate Finance Chair and Flower Mound Senator Jane Nelson. “Who could have imagined that,” she said. Last July, there were indications that lawmakers could be facing a shortfall approaching five billion dollars, but better-than-expected sales tax collections, federal aid funds and cuts to state agencies could leave state ledgers in the black when the fiscal biennium for 2020-2021 ends in September. The budget bill laid out before the Senate Finance Committee on Monday would appropriate $119.7 billion in state revenue for the 2022-2023 biennium. State Comptroller Glenn Hegar, appearing before the committee, said a major reason for the improved economic outlook is betterthan-expected retail sales tax collections, off only about five percent from last year, half of what was anticipated. A major driver of robust collections was online sales taxes, which Hegar said amounted to $1.7 billion over the last 15 months. Last session, the legislature approved a bill that would permit the state to collect those taxes following a 2018 Supreme Court ruling allowing states to collect tax on sales made in on-line marketplaces. “Other states are really kicking themselves right now for not having put that in place before the pandemic,” said Nelson. Combined with about $3.5 billion in federal COVID aid, which freed up state revenue and a five percent cut for most state agencies, the state will likely end fiscal year 2021 with a positive balance. "We made wise investments and they are paying dividends as we keep working to defeat this virus and get the economy on track," said Nelson.
