The Texas economy is expected to recover quickly from Hurricane Harvey, but the state comptroller warns the response will likely take a bite out of the budget.
Early estimates are about $2 billion over the two-year budget cycle to repair roads and schools. But that's where Dr. Vance Ginn, senior economist at the Texas Public Policy Foundation, credits lawmakers for holding off on using the $10 billion Rainy Day fund.
“The idea is let's wait and see what the costs will are going to be, and then in 2019 kind of backfill what those expenditures were,” he says.
“The key part here is to also look at how much can private charities, how much can families, individuals and communities help to rebuild certain areas, and then look at what the government really has control over and the expenditures for roads and other government buildings.”
He says the state's economy has already begun to rebound.
“Over time, what you will notice is this won't have a huge effect on the overall Texas economy as we continue to recover and rebuild moving forward.”