Texas legislators are planning to allocate billions of dollars over the next two years for a range of initiatives that include a voucher-like educational program, reductions to property taxes, increases in teacher salaries, enhancements to water infrastructure, and continuation of border security efforts. Initial drafts of the state budget were submitted by leaders of both the House and Senate this past Wednesday.
Both legislative chambers have earmarked $1 billion for education savings accounts, a program designed to allow families to access state funds for private school tuition and related educational costs. This funding is double what was available in the previous budget cycle, reflecting an increase in support for the initiative following recent electoral successes among its proponents in the House, which has historically blocked such measures.
Moreover, both chambers have proposed $6.5 billion for what Lt. Gov. Dan Patrick’s office describes as the maintenance of “current border security operations.” Despite earlier indications from Patrick and Governor Greg Abbott that funds could be shifted from recent border spending increases to other priorities in light of changes in federal immigration policy, the proposed funding mirrors the amount designated for border security in the current budget.
The proposed budgets reveal how the Republican-controlled Legislature may leverage Texas’s anticipated $24 billion surplus in the upcoming two-year budget cycle set to begin in September. There is also a shared intention to channel nearly $5 billion into public school funding and an additional $3.5 billion into new property tax reductions.
While the two chambers have presented similar spending strategies, finalizing the budget will require reconciliation of differences within their nearly 1,100-page budget documents before submission to Abbott for approval. Funding allocations for initiatives like education savings accounts and property tax cuts are contingent upon the passage of additional legislative measures needed to release the funds.
Senate Bill 1, detailing a $332.9 billion budget proposal filed by Sen. Joan Huffman, R-Houston, and House Bill 1, a slightly larger $335.7 billion proposal from Rep. Greg Bonnen, R-Friendswood, illustrate the ambitious spending plans. Incoming House Speaker Dustin Burrows, R-Lubbock, expressed the intent for cooperation between the two chambers on the budget, emphasizing a commitment to a fiscally conservative approach that meets the needs of Texans.
With general revenue projections estimated at $194.6 billion for the next two years, Texas Comptroller Glenn Hegar cautioned that this figure could vary based on economic trends and does not account for federal allocations for programs like Medicaid. Moreover, a constitutional spending cap constrains general revenue spending, with both budget proposals adhering to this limit while leaving substantial funds unspent.
Rep. Armando Walle, a Democrat from Houston involved with the House Appropriations Committee, highlighted ongoing commitments to flood infrastructure and food bank programs in the draft budget. However, he stressed the essential need for investment in public schools and other critical services, noting the demand for affordable childcare and modernized water infrastructure.
Both legislative chambers have proposed $1 billion in funding for education savings accounts, a significant rise from the earlier proposed amount, reflecting a shift in political dynamics following a successful election for voucher supporters. Additionally, they seek to allocate $4.85 billion towards public school funding, seeking to reverse a lack of funding increases from the previous session after past attempts to pass a voucher program failed.
The Senate’s plan also includes a proposal to raise teacher pay by $4,000, with rural teachers eligible for an additional $6,000, which advocates argue will help bridge the pay gap between urban and rural educators. However, some voices, including the Texas State Teachers Association, assert that these increases do not sufficiently meet the funding needs of public school teachers.
Both chambers aim to provide $400 million for enhanced school safety following complaints that existing safety mandates were underfunded. They also have aligned in their approach to limit property tax hikes for local school districts, proposing over $32 billion for ongoing tax relief initiatives, including a push from Patrick to enhance the school homestead exemption.
Budget proposals also indicate a $6.5 billion investment in border security, which would accumulate nearly $20 billion in taxpayer resources allocated to Operation Lone Star since its inception in 2021. Significant portions of this funding would support the governor’s office and other state agencies focused on border-related enforcement efforts.
Furthermore, lawmakers are allocating $10 billion for improvements in the state’s energy, broadband, and water infrastructure. Proposed investments include $5 billion for the Texas Energy Fund to bolster power generation capacity following previous energy crises, as well as funding aimed at enhancing broadband accessibility for Texas residents without internet service.
On the health front, both budget drafts include $3 billion directed to establish a new Dementia Prevention and Research Institute, drawing inspiration from a successful cancer research initiative. Additionally, substantial funding is proposed to streamline the Medicaid enrollment process, aiming to improve services for families seeking assistance. The commitment to increase early childhood services for children with disabilities also reflects ongoing legislative support amid advocacy from nonprofit organizations.
As these budget considerations unfold, they are subject to revisions and political discussions, with various factions highlighting their priorities in shaping Texas’s future spending and policy directions.
