Texas comptroller: State growth slows but continues upward

Palestine Herald-Press
Ali Linan CNHI Texas statehouse reporter
September 22, 2023

AUSTIN — Texas Comptroller Glenn Hegar said Texas growth will slow down but continue to be healthy.

Hegar spoke Friday at the annual Texas Tribune Festival, often called TribFest. He said the Texas Comptroller of Public Accounts will release its annual revenue estimate report in October.

In the report, Texans can expect an additional cash carryover balance for the current two-year budget, he said. This comes a year after his office reported an estimated record-breaking surplus of more than $30 billion, which lawmakers divided among a rainy-day fund, property tax relief and about $17 billion in infrastructure and other state investments. 

Hegar said that although Texas’ sales tax collection — which accounts for 59% of total state revenues — continues to be strong, he is concerned about global slowdowns that can impact Texas. Because the state is the eighth largest economy in the world and a leader in exports in the country, what happens on the global market greatly impacts Texas, Hegar said.

“The Texas economy is going to continue to grow … but I do think there are some real structural issues nationally and globally that could cause a drag (in growth in Texas),” Hegar said. 

Hegar also discussed issues with the state’s aging infrastructure, most notably the state grid.

Texas operates its own grid, separate from national interconnectivity, in order to avoid being federally regulated. It is operated by the Electric Reliability Council of Texas.

During a severe winter storm in 2021, the grid nearly collapsed and hundreds of Texans died. Since then, state leaders have been working to fortify the grid.

Hegar said that although such steps have been taken, more needs to be done to ensure financial investments are being made, particularly as the population booms and more businesses move to Texas.

“We have an aging infrastructure in this state, that is without a doubt, and we do not have enough readily dispatchable energy in this state for the days that the renewables are not doing what they need to do,” Hegar said. Dispatchable energy includes all sources that can be easily generated with an on and off switch such as nuclear, coal and natural gas.

Hegar made national headlines when he released a list of financial companies his office deemed boycotters of energy companies last year. Leaders in other conservative states soon followed.

Hegar said Friday that he did so because he believes the state needs a diversified portfolio and the country – through financial institution investments – can never completely transition away from fossil fuels because they are a part of everyday life. 

While state legislators passed a few laws this past session to bring new dispatchable energy to the state, such as offering low interest loans to providers, Hegar said he believes more needs to be done.

“I think we're going to have to look at the next session, not turn the card, but try to be a little more surgical on how do we make sure we get those assets on the ground,” he said.