AGC-TBB Capitol Roundup

January 15, 2023

Quote of the Week

"The amount of projected revenues gives the state a remarkable, a truly once-in-a-lifetime opportunity, for historic actions in this legislative session.”

- Texas Comptroller Glenn Hegar on the state’s projected $188.2 billion available in general revenue, more money than legislators have ever had at their disposal

Record State Budget Surplus

Texas Comptroller Glenn Hegar announced that Texas lawmakers will have $188.2 billion available for the next budget, after record-breaking revenue growth. This is far more money than legislators have ever had at their disposal, with an increase in available funds that dwarfs any previous jumps between budget cycles.

The amount includes a historic $32.7 billion surplus from the 2022-23 budget—due to vigorous economic growth, higher energy prices, inflation, and one-time federal stimulus funds. Of that $32.7 billion surplus, $10 billion is reserved for highway funds and the state’s rainy-day fund, the latter of which is projected to also have a record-high balance of $27.1 billion by the end of 2025.

This is more money than lawmakers are allowed to spend due to a state constitution “spending cap,” barring any special legislative action to bypass those spending limits.

The biggest issue this session is how the Legislature will allocate this historic amount of money. Priorities that have been mentioned by leadership include the following: property tax relief, workforce/salaries, infrastructure (particularly water, electric grid, broadband), mental health, and saving unspent monies for the 2025 Session.

Phelan Re-elected Texas House Speaker

While the federal Congress recently struggled for days to elect a Speaker and did so on a sharply-divided partisan vote, Texas elected their state House speaker in a single, bipartisan vote. State Rep. Dade Phelan (R-Beaumont) was re-elected to his second term as Speaker of the Texas House of Representatives by a 143-3 vote. He defeated state Rep. Tony Tinderholt (R-Arlington), who received votes from himself, Nate Schatzline (R-Fort Worth), and Bryan Slaton (R-Royce City).

The Texas House is currently made up of 86 Republicans and 64 Democrats.