The Texas Legislature has unveiled the initial drafts of the state's next budget, proposing over $150 billion in general revenue spending for the upcoming two-year cycle. The Republican-led proposals emphasize key areas such as property tax relief, border security, and education reform. Lawmakers have outlined their fiscal priorities through these drafts, which will serve as a foundation for negotiations on how to allocate funds raised from various sources like fuel, sales taxes, and franchise taxes on alcohol. Both the House and Senate versions aim to maintain conservative financial principles while addressing the needs of the growing state.

At the heart of the proposed budget is a significant allocation for border security. Governor Greg Abbott’s Operation Lone Star program receives $6.5 billion, matching its previous funding levels. This initiative aims to bolster security along the Texas-Mexico border, addressing concerns about illegal immigration and drug trafficking. Additionally, substantial investments are planned for property tax reforms, building on recent cuts, and enhancing cybersecurity measures. Other notable areas include water infrastructure, rural broadband expansion, and support for dementia research.

The Senate Finance Committee Chair Joan Huffman emphasized the importance of making strategic investments that would ensure Texas remains an attractive place to live, work, and raise a family. She highlighted the need for a conservative and sustainable budget that addresses immediate needs while strengthening the economy. The Senate bill proposes $332.9 billion in total spending, with $151.6 billion coming from general revenue. Similarly, the House version suggests $335.7 billion in overall expenditures, including $154.1 billion in general revenue.

House Speaker Dustin Burrows underscored the critical nature of passing the budget, noting it would set financial boundaries for all major legislation, including school choice and water infrastructure. He encouraged colleagues to seek additional resources within the budget to provide greater property tax relief and more funding for classrooms and teachers. The state comptroller recently reported that lawmakers have $194.6 billion in state tax money to spend, including a record-high balance in the Economic Stabilization Fund, also known as the rainy day fund.

Despite the substantial sums available, lawmakers must adhere to constitutional limits on budget growth. The Texas Legislative Budget Board has set a cap based on population and economic growth projections. Lt. Gov. Dan Patrick affirmed that the Senate bill adheres to conservative budgeting principles, ensuring state government does not expand faster than population growth and inflation. State Rep. Armando Walle praised certain aspects of the budget but expressed concerns about whether it would sufficiently address essential services for families in need.

Over the coming weeks, both chambers will hear testimony from hundreds of witnesses offering input on where the funds should be directed. Each chamber will pass its version of the budget in early spring, followed by negotiations to reach a final compromise. This General Appropriations Act is expected to be sent to Governor Abbott for his signature in May. Key highlights include billions for property tax relief, teacher compensation, border security, and investments in critical infrastructure and health initiatives.