AUSTIN, Texas — Heading into the 89th legislative session on Tuesday, the Texas legislature will have a budget surplus of nearly $24 billion to spend this year on policy priorities, after projects from the Comptroller’s Office shared on Monday.
That surplus slightly decreased from the last session, which amounted to more than $32 billion. But it still reflects a massive jump in funding for the state of Texas heading into what’s expected to be a sweeping legislative session; before 2021, most sessions began with just a few billion dollars in surplus money.
Now, lawmakers will begin a political squabble to allocate those $24 billion toward policy priorities in the 89th session.
“Thoughtful consideration of spending decisions, as always, will be crucial to ensure new and existing investments can be funded in the future — and that these investments focus on improving the lives of Texans,” Comptroller Glenn Hegar said in a written statement on Monday. “Despite positive economic numbers, many of our residents continue to feel the higher cost of groceries, housing, and other necessities. And the lingering impacts of persistently rising prices mean many are struggling to ensure a bright future for their children.”
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“With this surplus, my first focus is to continue to cut property taxes and increase teacher salaries, along with making smart, one-time investments to ensure our budget is sustainable moving forward and that our state is prepared for the future, as we did with last session’s surplus,” Lieutenant Governor Dan Patrick, who presides over the Senate, wrote in a statement. “For example, Gov. Abbott and I agree we must add new dispatchable power to our grid so the Texas miracle can continue.”
“Having this approach where you’re not necessarily creating a ton of new expenses for the state is one way of approaching this,” Rahul Sreenivasan, Director of Government Performance and Fiscal Policy at Texas 2036, said in an interview. “Like, what are the things that we could do that could set us up for future success and to be able to weather potential economic downturns in the future?”
Patrick has also, alongside Governor Greg Abbott, led the political push to pass a vouchers-like program for private schooling, referred to by Republicans as an Education Savings Account. Last session, the legislature actually allocated $4.5 billion to go toward a voucher program but failed to pass the legislation that would have actually established the program. As such, that $4.5 billion is included in this new annual surplus.
Democrats have expressed skepticism toward Republicans’ leadership over public education funding in the upcoming session, given that such initiatives were not made in the previous session when Texas had a larger surplus.
“I’m confident in what we as Democrats are going to be working for, and that is investing in Texans,” Rep. Donna Howard, D-Austin, said in a press conference Monday morning before the comptroller’s figures were shared. “I think, unfortunately, with public education, obviously, that was a political maneuver that hurt Texas children and families. I hope that won’t be repeated.”
Like Dan Patrick, other prominent conservatives have advocated exploring the possibility of completely eliminating property taxes. The Texas Public Policy Foundation, a prominent conservative think tank, praised the news of Texas’ $24 billion surplus as an opportunity to eliminate property taxes.