Texas has record $33 billion budget surplus as state legislative session set to begin
AUSTIN (CBSDFW.COM) – As Texas lawmakers gavel into session Tuesday, they will have a record budget surplus: nearly $33 billion.
Comptroller Glenn Hegar made the announcement Monday calling it a "once in a lifetime opportunity" for lawmakers to spend on the state's priorities.
At the State Capitol, Representative Craig Goldman, R-Fort Worth said, "I think that's the number one question for everybody this session: What do we do with all the extra money?"
He and 148 other state Representatives and 31 Senators, along with Governor Greg Abbott, Lt. Governor Dan Patrick, and the Speaker of the House, most likely Dade Phelan, R-Beaumont, will answer that question during the session that's set to end Memorial Day weekend.
Homeowners have said they'd like a break in their property taxes.
"We have to make it sustainable. There's no reason to give people a property tax cut if it's only going to be for two years and in four years, we have to then go back and raise their property taxes."
Representative Nicole Collier, D-Fort Worth agrees. "Absolutely, we are looking for some property tax relief for those homeowners in our district. We're looking for protections for renters in our district as well."
Dr. Joshua Blank, Research Director of the Texas Politics Project at UT Austin said their polls showed people think their property tax bills are too high. "Voters were least satisfied with the legislature's handling of property taxes last session. Across a range of issues, it was way down near the bottom and so we know the legislature wants to do something to address this."
While property taxes fund cities, counties, hospital and community college districts, the largest share go to public schools.
It's complex, but the state can increase its share of funding for schools to reduce the burden on property owners.
Lawmakers did just that during the 2019 legislative session.
Last year, Governor Greg Abbott campaigned on taking half the surplus and using it for property tax relief.
On Monday, Lt. Governor Dan Patrick issued a statement saying in part, "Texas taxpayers must first receive tax relief before we commit to any new spending. Additionally, we must not spend all the money."
A cap prevents lawmakers from spending more than population and inflation growth.
But there are a lot of needs: lawmakers say after the deadly mass shooting in Uvalde, that includes beefing up school security and mental health services.
Republicans also say it's necessary to spend state money to secure the border.
During the last legislative session, lawmakers approved $1 billion in funding, but since then, that increased to $4 billion as part of Governor Abbott's Operation Lone Star.
Representative Goldman said he doesn't see the state reducing that amount. "Just the opposite. I think as long as the federal government doesn't do their job and protect our federal border, then it's up to the people of the State of Texas to protect their border."
Representative Collier said she doesn't think the $4 billion is appropriate.
She said the state has other needs too. "We also need to address the health care shortage, in terms of healthcare access of so many people who don't have health insurance."
While many Democrats support expanding Medicaid, Republicans haven't and Collier said she doesn't think there are votes to pass that.
Comptroller Hegar mentioned other priorities including making improvements to the state's electric grid, expanding access to water in the growing state, along with raising salaries for state employees, nurses, and teachers, who remain in high demand.
Hegar also warned he's expecting a recession during the coming year, but one that would be short and shallow.
Even though the legislature will gavel back into session, the Texas Constitution doesn't allow lawmakers to pass bills during their first 60 days.
There are notable exceptions though: They include Governor Abbott's emergency items, his top priorities for the session.
But we won't know what those are until he delivers his state of state address in the next several weeks.