Texas

The Texas budget operates on a "pay as you go" basis in that expenditures cannot exceed revenue during the budget cycle. The state's budget period runs on a biennial basis from September 1 of each odd-numbered year to August 31 of the following oddnumbered year.

The state legislature meets from approximately January to May every odd-numbered year and writes a budget for the next two years. The appropriations committee in the house, and the finance committee in the senate are responsible for budget development. The primary legislative entity responsible for oversight of the budget when the legislature is not in session is the 10-member legislative budget board. Chaired by the lieutenant governor, the board prepares the initial budget that will be considered by the legislature.

The governor's office of budget and planning also prepares a budget for the Legislature's consideration. The governor has line-item veto authority over the budget and must sign the appropriations bill before it becomes law. The comptroller of public accounts must also sign the bill certifying that sufficient revenue will be available to fund the budget.

After running large budget surpluses in the early 1980s, the state experienced several years of budget shortfalls in the wake of falling oil prices. As the state's economy has diversified, the budget has shown greater ability to withstand minor economic fluctuations.

The governor's proposed state budget for the 2000–2001 biennium consisted of $96 billion, or a 9% increase from the previous biennium. In 2000/01 the state's starting balance was a comfortable $3.766 billion, equal to 14.4% of expenditures. General fund revenues totaled $29.36 billion, but in 2001/02, revenues fell nearly $1 billion to $28.4 billion while expenses were increasing. Texas has the highest percent of low-income uninsured children, so Medicaid and the Child's Health Insurance Program (CHIPS) have particularly large caseloads. No budget cuts were made in the face of the revenue short-fall in 2001/02, but in 2002/03, general fund revenues fell further, to $27.86 billion, and cuts made after the budget was enacted totaled $1.1 billion, 2nd in size only to the budget cuts being made by California. The governor called for 7% cuts across-the-board reductions while other options were being studied. The ending balance for 2002/03 (and the beginning balance for 2003/04) was –$1.796 billion. Projections in early 2003 estimated that the Texas deficit in 2003/04 would range from $2.5 billion to $8 billion, or 8.2% to 26.2% of the state budget. General funds are appropriated for education (48%), health and human services (30%), economic development (12%), public safety and criminal justice (8%), and general government (2%).

The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.