Texas has more than $194B to spend this legislative session

AUSTIN, Texas - Texas has more than $194 billion to spend this legislative session, according to the Comptroller's office.

Members of the Texas House Ways & Means committee received their revenue update on Tuesday morning.

The revenue estimate is a little less than what lawmakers had for the last budget. The Rainy-Day fund is also about $16 billion less than the last budget.

Tax cuts

What we know:

The downward adjustment is not stopping another round of big tax cut proposals from being pitched.

The budget estimate keeps in play an overall plan by Republican leaders to use about $3 billion to buy down school property taxes. That money is to help provide another round of tax cuts. 

The House plan, released Monday, would provide tax relief to homeowners and small business owners. There is also a second House Bill to give an additional tax break to small businesses on things like furniture and equipment.

The Senate property tax cut proposal is built on increasing the Homestead Exemption. The Senate budget bill has $500 million earmarked for a business tax cut, but how that will be done has not yet been hashed out.

What they're saying:

FOX 7 Austin asked House Speaker Dustin Burrows if he is worried another ugly tax cut fight will happen this Session, like the one that triggered two Special Sessions in 2023.

"It is February. You know, if we were at this point in May, maybe that's the conversation we could talk about. But it's February, and I'm talking to the lieutenant governor and the governor frequently about these things. We're continuing to talk through them, and I think we're going to land the plane. I think at the end of the day, we're all Republicans. We all want many of the same things. I think we're going to get this done for the people of Texas with both plans," he said.

Burrows indicated blending the two plans will make them stronger.

"I think that's usually what we expect in legislation. Not only just have to make it through our chamber, it makes it through the Senate chamber. And then everyone's going to get together and try to improve both legislation's all legislation along the way," he said.

School choice

What we know:

Another hot legislative topic that will require some give-and-take is school choice.

The Texas House and Senate are pitching slightly different approaches to the matter, with the House version focusing more on low-income kids and students with disabilities.

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The voucher/ESA amount per student is also higher in the House school choice Bill. 

Teacher pay is also still awaiting action in both chambers.

What's next:

Speaker Burrows will address potential tax cuts and school choice among other issues facing Texas in this Sunday's ‘Texas: The Issue Is’.