Texas lawmakers can have about $20 billion in unspent cash going into the 89th legislative session, state Comptroller Glenn Hegar informed members of the Austin Chamber on Dec. 12.
“The Legislature can have a whole lot of instruments within the toolbox subsequent session to cope with points, whether or not it is street infrastructure, water infrastructure, electrical grid infrastructure, public training, greater training,” Hegar mentioned. “I do assume that these are a number of the large pillar points that they are going to work on.”
The comptroller is predicted to challenge an official biennial income estimate forward of the session, which begins Jan. 14.
The context
The one invoice Texas lawmakers are constitutionally required to go every session is the biennial price range, which funds state companies, public and better training, well being and human companies, the felony justice system, state courts, and extra.
Throughout the 88th legislative session, lawmakers handed a $321 billion price range for the 2024-25 biennium, which runs from Sept. 1, 2023, to Aug. 31, 2025. They entered that session with a historic $32.7 billion surplus.
In 2023, lawmakers put aside $4.5 billion for instructor pay raises and different public training expenditures, however that cash has not been spent. It was tied to a $500 million non-public college voucher package deal, which might give households public cash to ship their kids to personal faculties.
The instructor pay and voucher proposals each died in late 2023 after 4 particular periods. Lawmakers are on observe to approve vouchers in 2025, Gov. Greg Abbott mentioned Nov. 6, after a number of pro-voucher Republicans have been elected to the Texas Home.
Abbott, a champion of vouchers, mentioned he was dedicated to “absolutely funding” Texas public faculties and elevating salaries for lecturers.
“Some folks … make it sound like you may’t have each college alternative and strong public faculties,” Abbott mentioned. “That is fully false. The fact is we are able to have the perfect public faculties in America and now have college alternative at the exact same time. It doesn’t must be one or the opposite, and it is improper to pit one in opposition to the opposite.”
The $4.5 billion is in an account referred to as “devoted funds,” that means it might solely be used to fund public faculties.
What’s taking place
If Texas have been its personal nation, Hegar mentioned Dec. 12, it could be the world’s eighth-largest economic system. The state receives cash from the federal authorities, state taxes-such as gross sales taxes and the enterprise franchise tax-and different sources, in response to the comptroller’s workplace.
“The state economic system continues to develop, however it’s not rising on the identical tempo that it has been lately,” Hegar mentioned. “Gross sales tax … is the largest income supply for the state of Texas. Our gross sales tax revenues are, on common, about 4% rising from month-to-month proper now, with inflation at about 2.7%.”
What they’re saying
State Rep. Caroline Harris Davila, R-Spherical Rock, mentioned lawmakers must “be good” when writing the subsequent price range.
“A part of that’s stewarding taxpayer money-when it is available in to us to spend on roads and infrastructure, are we being accountable with it?” Harris Davila mentioned throughout a Dec. 12 panel hosted by the Austin Chamber. “The numbers Hegar threw round sound very large, however in case you look throughout the state at the entire street tasks we have now occurring proper now, I imply, it is not sufficient already. And so I am continuously attempting to determine with my colleagues, what does the rise in funding seem like, and the way can we enable that to occur?”
Rep. Donna Howard, D-Austin, mentioned the Legislature additionally must prioritize the state’s water infrastructure, which may embody making a devoted funding supply to stop future water shortages. About 85% of voters are involved that Texas could face water shortages within the subsequent 50 years, in response to a current ballot by Texas 2036, a nonpartisan coverage group.
“It is a distinctive alternative that we can’t have once more, to arrange some type of, you recognize, funding fund, just like the everlasting college fund, just like the state freeway fund-set one thing up that will be ongoing in perpetuity to assist us fund that infrastructure,” Howard mentioned.
Harris Davila, who represents a portion of Williamson County, mentioned some cities in her space have water pipes which are 100 years previous.
“These cities want all the assistance they will get, they usually’ve by no means had the tax base to organize for this kind of progress. … A variety of the those that work in Austin are going to dwell in these areas, they usually want that infrastructure simply as a lot as the companies shifting into that a part of city,” Harris Davila mentioned.
Growing funding for public faculties can be one other main legislative precedence in 2025, the 2 lawmakers mentioned.
“My large concern is that we aren’t placing the cash into public training that we have to,” Howard mentioned. “I understand that there are causes that individuals wish to have a look at completely different training selections. We now have some selections, however please perceive we have now acquired to fund our faculties, and that’s way more than what we’re doing proper now. If we wish to have an informed workforce all through the state, we have now acquired to fund our public faculties.”
Harris Davila, who voted in favor of personal college vouchers in 2023, mentioned Texas lawmakers “need all youngsters to have the perfect training doable.”
“Ninety % or extra of our children are in public faculties,” Harris Davila mentioned. “I imply, that is an enormous chunk. So once you’re speaking to representatives, everybody understands and helps public faculties and the work that they do.”
This text comes from our ABC13 companions at Group Influence Newspapers.