AGC-TBB Capitol Roundup

January 22, 2023

Quote of the Week

"We're not Republicans or Democrats when we're cheering for the Astros."

- State Senator John Whitmire (D-Houston). The Legislature honored the Houston Astros owner, coaches, and players for winning the most recent World Series.

Governor Abbott and Lt. Governor Patrick Sworn-In

Hundreds of spectators were welcomed to the sunny north lawn of the Texas Capitol by the fanfare of marching bands playing “Texas, our Texas.” Republicans Gov. Greg Abbott and Lt. Gov. Dan Patrick were both sworn-in to their third terms, since being first elected in 2014. Lawmakers and their families sat on stage under a Texas flag as attendees cheered, took videos, and fanned themselves in the 80-degree weather.

In his inaugural address, Abbott declared Texas “America’s undisputed economic leader”— focusing on property tax relief, border security, school safety, “parental rights” in schools, public safety, and improving the stability of the Texas power grid. Abbott is on track to becoming Texas’ second-longest serving governor, behind Rick Perry, who served more than 14 years.

Abbott also begins his third term as a potential candidate for the White House in 2024, something his aides say he will consider after the legislative session concludes in May. Asked if he was ruling out a 2024 Presidential campaign, Abbott replied: "I think a more accurate way to say it is it’s not something I’m ruling in right now. I’m focused on Texas, period."

Property tax relief, border security, state employee raises are top priorities in Texas House, Senate budget proposals

The Texas House and Senate are closely aligned on how to spend a $288.7 billion budget over the next two years. The budget is comprised of $93.7 billion in federal funds, $130.1 billion in state general revenue funds, and $64.9 billion in other funds.

The trickier battle will be how to spend the record $32.7 billion budget surplus from the previous two years. Some lawmakers want to spend more on one-time investments (water infrastructure, broadband, power grid), while others want to spend more on recurring obligations (property tax relief, state employee raises).

Complicating matters is the Texas Constitution’s limit on budget increases or “spending cap,” which has been set at 12.3% higher than the previous budget.

The proposed budgets set aside $15 billion for property tax relief, $4.6 billion in border security, and give state employees 5% raises in both 2023 and 2024.

Both the House and Senate budget bills leave tens of billions of dollars unallocated and do not touch the state’s rainy day fund. The spending proposals will go through many changes before the end of the 140-day legislative session.