Published Monday, March 08, 2010 1:35 PM

$11 billion budget shortfall projected for Texas

Associated Press

AUSTIN, Texas -- A key state official says the Texas Legislature will face a shortfall of at least $11 billion when they meet to write the next state budget in 2011.

That's the projected difference between available revenue and the cost of maintaining services at their current levels.

John O'Brien, director of the Legislative Budget Board, told a legislative committee Monday that the estimate is conservative and could grow to as much as $15 billion.

The shortfall is a result of several factors, including lower-than-expected sales tax receipts.

State agencies have submitted proposals to cut their current-year budgets by 5 percent, as requested by Gov. Rick Perry. Those savings will only amount to about $1.7 billion, O'Brien said.

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