AUSTIN – Lt. Gov. Dan Patrick issued the following statement today upon the filing of Senate Bill 1 (SB 1), the State Budget, by Sen. Joan Huffman, R-Houston:
“Today, Senate Finance Chair Joan Huffman filed SB 1, the Texas Senate’s introduced state budget for the 2026-2027 biennium. My budget team and I have worked alongside Chair Huffman and the Senate Finance Committee to ensure the Senate’s state budget reflects the conservative priorities of Texans. I thank Chair Huffman for her tireless work over the interim to produce this budget. She has been a great partner throughout this process, which began in late August.
“SB 1 maintains our promise to Texans by keeping our state on a conservative path to greater prosperity. Conservative budgeting principles used in SB 1 ensure that state government does not grow faster than population times inflation. Like the budget for the current biennium, Texas must prioritize one-time spending of our surplus. This will keep our state’s economy the envy of the nation and the world.
“The Texas Senate introduced the 2026-2027 All Funds (state and federal funds combined) state budget, totaling $332.9 billion, a decrease of $55.3 million, or a zero percent change. All State Funds total $234.4 billion, an increase of $9.7 billion, or 4.3%. Healthcare and Education make up 70% of the total All Funds budget.
“Our conservative approach to budgeting has allowed Texas to maintain a pristine balance sheet going into the next biennium. I look forward to the legislature’s final product.”
Upon filing SB 1, Senate Finance Chair Joan Huffman issued the following statement:
“It is no secret that the Texas economy is thriving. By remaining fiscally conservative and making strategic investments, we can address the needs of our growing state while keeping an eye on the future. In the coming weeks, the Senate Finance Committee will hold daily public hearings on the budget to hear from state agencies, stakeholders, and the public. Once again, I am grateful for the opportunity to work with Lt. Gov. Dan Patrick and my Senate colleagues on this complex undertaking of crafting a state budget for the next biennium.”
SB 1 Highlights include:
- $32.2 billion to extend last biennium’s record-setting tax cuts, provide additional compression under HB 3 (86R, 2019), and increase the homestead exemption to $140,000 for regular homeowners and $150,000 for seniors. This brings the total state funds provided for property tax relief to $51 billion since the passage of HB 3 (86R)
- $73.1 billion in All Funds to fully fund the Foundation School Program, including enrollment growth
- $5.3 billion in additional funding for public education:
- $4.9 billion increase to the Foundation School Program for teacher pay and changes to the Teacher Incentive Allotment
- Teacher pay would increase $4,000 for all teachers, plus an additional $6,000 for rural teachers, resulting in a $10,000 pay raise for our rural teachers to close the salary gap between our rural and larger school districts. The Senate passed several bills last session to close that gap, but all the bills the Senate passed to raise teacher pay died in the House
- $400 million for school safety
$1 billion for school choice
$46.5 billion from All State Funds for Health and Human Services for the 2026-2027 biennium, an increase of $845.2 million, or 1.9%, from the 2024-2025 biennium. $756 million to increase base wages for community attendants
$6.5 billion to continue Texas’ strong presence at the border and maintain current border security operations
$402 million for 567 new Department of Public Safety troopers and 159 related enforcement personnel with needed equipment
$5 billion for a second transfer to the Texas Energy Fund, for a grand total of $10 billion, to continue to strengthen our electric grid
$2.5 billion for comprehensive funding for water and flood infrastructure, emphasizing new supply development (will be in the supplemental budget)
$3 billion to create the Dementia Prevention and Research Institute of Texas (DPRIT)
$509 million for emergency preparedness and response capabilities, including $315 million for seven new Texas Division of Emergency Management regional centers across the state, and $194 million for the Texas A&M Forest Service to add additional specialized planes and helicopters to help with wildfire suppression (will be in the supplemental budget)
$40.4 billion for the Texas Department of Transportation for the 2026-2027 biennium. Texas has increased the transportation budget by $17.3 billion since I became Lt. Governor in 2015
$498 million to revamp the Texas Film Incentive, making Texas the movie capital of the world. It will consist of two parts: $48 million in grants for small films and TV commercials, and up to $450 million in new tax credits, including Texas residency requirements for workers. Texas gets $4 back for every $1 invested while creating new jobs for Texans
$1 billion to reduce state obligations for unfunded pension liability (will be in the supplemental budget)
