IT LOOKS as if Texas is rich again. On January 7th the comptroller, Susan Combs, announced that the state would have $101.4 billion available for general spending in 2014-2015. At a press conference announcing the estimate, she explained that the figure was the result of broad-based economic recovery. Sales-tax receipts, which make up more than half of the state’s general-revenue funds, had come in higher than expected, after several years in which consumers had been looking down the back of the sofa for spare change. Oil and gas revenues were up, too, as big fracking sites such as the Eagle Ford Shale came online. Her estimate also included a hefty surplus: Texas would end the current budget cycle with $8.8 billion left over.

For Republican leaders in Texas, the new estimate proved the wisdom of austerity: the state had got through the downturn and is now in a strong position. Democrats, however, were quick to observe that Ms Combs’s projection two years ago had been for only $72.4 billion in revenue. Under Texas law, the state may not spend more than the comptroller expects it to have. The 2011 estimate, in other words, meant that the state was in effect facing a budget shortfall of more than $20 billion. In order to stay in the black, Texas had cut spending across the board.

Democrats had objected; Texas had some $9.4 billion in a “rainy day” fund, and that money could have been used to soften the blow. The legislature, which is controlled by Republicans, did take several billion dollars out of the fund in the end, but reluctantly. Most of the shortfall was made up by deep cuts. The rapidly growing public-school system, for example, was allocated about $5 billion less than expected, given previous funding commitments. So now the Democrats are arguing that the state can afford to be a lot more generous.

The state’s Republican leaders are apparently willing to spend more money this time round than last, and the state will probably allocate billions of dollars to much-needed infrastructure improvements. Water has emerged as a priority, and roads may also get some attention. The Republicans seem less interested, though, in operational expenses such as school funding, to the irritation of Democrats, who take the new estimate as a sign that the state can afford to come out of its defensive crouch.