Pandemic leaves Texas with $1B deficit as virus still surges

AUSTIN (AP) — The coronavirus pandemic has created a nearly $1 billion deficit in the Texas state budget as the nation’s energy hub remains hampered by a slow recovery and a half-million fewer jobs than a year ago.

The forecast Monday by state officials is brighter than bleak projections last summer that warned of a spending deficit four times the size. Still, the shortfall could result in cuts.

“Unfortunately, the economic damage done by the pandemic has created a hole that it will take some time to climb out of,” Republican Comptroller Glenn Hegar said.