COMPTROLLER GLENN HEGAR UPDATES HIS FINANCIAL REPORT, CITING SEVERAL POSITIVE ACTIONS THAT HELPED MITIGATE THE SEVERITY OF THE STATE’S COVID19-RELATED DEFICIT.
Texas comptroller Glenn Hegar provided a summary of the state’s economy while meeting with the AGC of Texas during the November board meeting.
The state’s economy is reeling from the COVID 19 crisis – but faring better than earlier dire projections.
The pandemic turned a projected $3 billion surplus into a $4.6 billion deficit, although that will end up considerably less, Hegar told AGC members.
For one thing, Texans spent $7.3 billion on home improvements, gym equipment and computer equipment in May and June when travel became limited, he said. Those transactions triggered hefty sales tax revenue.
It’s a good thing that Texas lawmakers passed legislation to treat internet sales the same as retail sales in brick and mortar buildings, Hegar, said. because those annual $500 million in sales have jumped to $1.2 billion over the past year and will continue to increase.
State agencies have tightened their belts and purse strings by enacting a 5 percent across-the-board spending reduction, aided in part by the expansion of work from home initiatives and other cost-saving actions.
But the COVID 19 spread in European countries concerns the comptroller because of its potential impact on Texas exports to the UK, Germany, France and other European countries. Texas accounts for 20 percent of all US exports, Hegar explained.
Hegar thanked AGC of Texas members for “your friendship over the years and for our great relationship.”
IN THANKS FOR HIS CONTINUED FRIENDSHIP AND SUPPORT, PUBLIC AFFAIRS CHAIRMAN TREY PEBLEY PRESENTS COMPTROLLER HEGAR WITH A ROAD SIGN. HEGAR WAS ELECTED THE 36TH TEXAS COMPTROLLER OF PUBLIC ACCOUNTS IN 2014.