When it comes to Texas’ budget deficit, nobody is quite sure where the state stands. The comptroller does not release official figures until January. And with the energy industry resilient as ever, there has been much talk by Governor Rick Perry about how well Texas has held up. Oil prices are high and new plays – mainly the Eagle Ford, with its oil and natural gas liquids – and enhanced oil recovery on old fields, are producing strong returns.
But, as big as the energy industry is in Texas, it cannot carry the state alone. There are signs the deficit is going to be a doozy. John Reynolds, a Texas budget expert with the Quorum Report, which reports on Texas politics, crunches the numbers for us.


