Watch a conversation with Comptroller Glenn Hegar

The state’s economic output will slow, but a recession isn’t expected, Hegar said.

Dec. 12, 2024 Updated: Jan. 13, 2025

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Texas’ economic output will be below its historic average, but will outpace growth in the country overall, Texas Comptroller Glenn Hegar said at a Texas Tribune event on Monday.

“Texas’ economy doesn’t forecast a recession, we just don’t think it’ll grow in the next year or two at the same pace,” Hegar said during the conversation with Tribune Editor-in-chief Matthew Watkins.

Hegar’s comments came hours after he released the state’s budget revenue estimate, which guides lawmakers who are writing a two-year state budget during this year’s regular legislative session.

The state is projected to have $194.6 billion available in general revenue for the 2026-2027 biennium. The estimated funds includes $23.8 billion expected to be leftover from the 2024-25 biennium.

“It’s a good position to be in where we are today compared to other states where they are actually negative,” Hegar said.

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