State Budget

The Texas Legislature balances and certifies the state budget by diverting dedicated funds from their intended purposes. This impacts many county programs and local budgets. This budgetary trick forces higher property taxes to fund the affected county programs.

Download Issue Brief

Key Points

Texas Comptroller of Public Accounts must certify that there are sufficient funds available in the General Appropriations Act to cover approved spending by the Legislature before the bill is sent to the governor for approval.
In complying with this provision of the constitution, various techniques are used to certify and balance the state’s budget.
One technique is using non-appropriated, dedicated general funds (GR-dedicated) for certification.
There are more than 200 GR-dedicated accounts. Each account is statutorily dedicated for a particular purpose.
GR-dedicated accounts are a method of finance that includes accounts within the General Revenue Fund that are dedicated as a result of legislative action.
GR-dedicated funds are appropriated in nearly all the articles in the General Appropriations Act. By far the largest allocation is to Article III (Education).

Source: A State Budget Guide for County Officials, Texas Association of Counties

	Texas Gov. Greg Abbott signs $250 billion budget with no line-item vetoes Fox 34, June 16, 2019 Gov. Greg Abbott signed the state’s roughly $250 billion budget Saturday, bringing a session-long effort to address the Legislature’s top priorities — school funding and property taxes — to a close. A spokesman for Abbott confirmed that the governor signed...
	Legislative session ends: A look at Texas' proposed budget Corsicana Daily Sun, June 5, 2019 The 86th legislative session wrapped up Monday, May 27 after 140 days, culminating in a major breakthrough for school finance and property tax reform. The Texas Legislature advanced a $250.7 billion two-year budget Sunday, May 26 ending weeks of...
	Analysis: Do as they say, not as they do The Texas Tribune, May 29, 2019 The Texas Legislature did a lot in the 86th regular session, especially if you judge by their spending...
	Texas tax collectors predict another $500 million for the state budget Your Basin, May 15, 2019 Texas Comptroller Glenn Hegar on Tuesday dropped a half-billion dollar gift into the laps of budget negotiators. The news comes as a relief to legislative budget-writers, who are in the midst of closed-door meetings about how much state lawmakers should spend...
	Tax Caps Roll Through Texas House The Austin Chronicle, May 3, 2019 The careful choreography of the session's marquee budget, property tax, and school finance measures advanced Tuesday, April 30, with the House's approval of Senate Bill 2, the revenue cap plan opposed vociferously by local mayors, county judges, and...
	Change in tax bill would let many cities and counties raise property tax levies by more than 3.5% Texas Tribune, May 2, 2019 After revisions made in the Texas House, more than a thousand smaller taxing units may not have to abide by a key provision in the Legislature's priority property tax reform bill that requires them to hold an election before raising 3.5% more property tax...
	From property taxes to teacher pay, here's how the Texas House and Senate compare on spending priorities Texas Tribune, May 2, 2019 Behind closed doors at the Texas Capitol, a panel of House and Senate budget writers is negotiating which public programs will receive state funding over the next two years. Both chambers approved separate spending plans in recent weeks...
	Major sticking point in property tax debate resolved in Legislature Houston Chronicle, May 1, 2019 One of the biggest sticking points in the debate over property tax reform in Texas has been resolved in the Legislature after nearly 6 years of haggling, offering the best hope in years that a bill limiting how much local governments can raise taxes is close to becoming law...
	Priority bills of the Texas Legislature move forward, but more work to be done KVUE ABC, May 1, 2019 Texas lawmakers have been clear about their priorities this session. In the Senate, it's property tax reform in the form of Senate Bill 2 (SB 2). In the House, it's school finance reform in House Bill 3 (HB 3). And this week both bills have made significant progress...
	Texas House Okays Property Tax Cap, but Major Challenges Loom in the Senate WOAI, May 1, 2019 The Texas House, on a 107 to 40 vote, last night approved what many Texans feel is the main responsibility of the 2019 session, a bill to limit the steady increase of property taxes, News Radio 1200 WOAI reports. The bill significantly lowers what is called...
	Texas House passes 'property tax transparency' bill SB2 KVUE ABC, Apr. 30, 2019 The Texas House of Representatives debated an amended version of Senate Bill 2 (SB2), the property tax reform bill, Tuesday. It was initially passed by a vote of 107-40 later in the evening. Rather than calling it a "property tax reform bill" as is done in...
	Texas House passes massive property tax overhaul, moving one step closer to Abbott's desk Denton Record-Chronicle, Apr. 30, 2019 A massive property tax overhaul — one lawmakers say will help home and business owners who are buried by skyrocketing tax bills — is nearing its final approval, much to the dismay of city leaders who have for months warned the legislation will hurt...
	House committee passes Senate property tax bill The Marshall News Messenger Apr. 30, 2019 Blasting the Senate for taking a symbolic approach on school district taxes, a panel of House lawmakers heavily altered then approved the upper chamber’s version of priority property tax legislation late Thursday. And committee members pointedly included a...
	Conference committee to work our differences in state budget The Madisonville Meteor, Apr. 23, 2019 After Easter weekend, conferees for the Texas House and Senate must work out differences in the two chambers' versions of a fiscal 2020-2021 state budget to send to Gov. Greg Abbott. Concurrence is required on how to spend an estimated $250 billion in...
	Sen. Kolkhorst Named to Budget Conference Committee Fort Bend Herald, Apr. 18, 2019 Lt. Gov. Dan Patrick has appointed five Senators to serve on the powerful budget conference committee which is tasked with producing the final version of the state budget; the only piece of legislation lawmakers must constitutionally pass during...
	Sales tax swap plan already in jeopardy in the Texas Legislature Houston Chronicle, Apr. 16, 2019 A plan for a tax swap that would raise Texas sales taxes to among the highest in the nation has run into trouble in the state Senate, less than a week after it was first pitched by top Republican lawmakers...
	The Governor Wants to Replace Property Taxes With 'Consumption' Taxes. That's a Terrible Idea. Texas Monthly, Apr. 16, 2019 One of the most pervasive myths about Texas is that it's a low-tax, low-spending state. It's true that Texas doesn't have a state income tax. But Texas's per-capita government spending isn’t that much lower than the national average, and its tax system is highly...
	Senate Budget Comes In Under Spending Caps The Times - Freestone County, Apr. 15, 2019 The state will be well served by a forward-looking, conservative budget that represents only modest growth over last biennium, according to Senate Finance chair and Flower Mound Senator Jane Nelson...
	Texas Senate passes two-year budget with money for property tax cuts — but no plan for how to spend it Texas Tribune, Apr. 9, 2019 The Texas Senate on Tuesday approved a two-year, $248 billion spending plan that includes $2.7 billion for a nebulous goal of property tax "relief" — but with seven weeks left in the 2019 legislative session, the upper chamber has yet to rally behind a way to spend those funds...
	House passes state budget at end of marathon session Statesman, Mar. 27, 2019 After a marathon session, lawmakers in the Texas House on Wednesday night approved a funding plan for state government for the next two years. The lawmakers had sifted through more than 300 amendments on matters large and small related to House Bill 1...
	Texas House unanimously approves $251B budget KXAN, Mar. 27, 2019 The Texas House unanimously approved its $251 billion state budget Thursday morning just after midnight. The plan now goes to the Senate. The budget discussion lasted late into the night as lawmakers considered hundreds of amendments to House Bill 1...
	County takes a stand against unfunded mandates Corsicana Daily Sun, Mar. 25, 2019 The Navarro County Commissioners Court approved a resolution Monday asking Texas legislators to prohibit unfunded mandates, which local officials say are the state's way of kicking costs down the road to county taxpayers...
	Texas House and Senate diverge on budget Statesman, Mar. 24, 2019 As state lawmakers convene this week to refine proposals to fund the state government for the next two years, the marquee issues of the legislative session remain unresolved: how much money to direct to schools and how to structure property tax relief...
	Texas' savings account is poised to hit $1.5 billion. How much will lawmakers spend? The Texas Tribune, Feb. 8, 2019 More than in any legislative session since the Great Recession, Texas lawmakers are signaling a willingness this year to dip into the state’s massive savings account...
	Here are the two things you need to tell your Texas representative, senator Star-Telegram, Feb. 2, 2019 It has been a year since I took issue with some leaders in our state who were blaming out-of-control property taxes on local governments...
	State Capital Highlights: Senate Finance panel starts work on state budget The Marshall News Messenger, Jan. 29, 2019 Jane Nelson, chairwoman of the Senate Finance Committee, on Jan. 22 said she would follow an aggressive agenda to deliver a budget ready for floor debate by the end of February...
	Current State Budget compared with the Legislative Appropriation Requests (LAR’s) for 2020-21 Nov. 11, 2018 The latest state budget document showing both the Legislative Appropriation Requests (LAR’s) baseline amounts and any exceptional item requests for the various programs that directly impact counties for the upcoming fiscal years (2020-21)...
	Conference Committee Report (CCR) on SB 1 for Fiscal Years 2018 -19 Revised Aug. 7, 2017 Fiscal Impact on County State Funded Programs. Governor's veto items included...
	Comptroller Releases State Revenue Estimate for 85th Legislature Jan. 13, 2017 The day before the 85th Legislature convened, Comptroller Glenn Hegar released the latest Biennial Revenue Estimate (BRE), which shows that the state is projected to have $104.9 billion available for general purpose spending in the 2018-19 biennium...
	State Budget Highlights: Impact on Counties Jan. 27, 2017 The release of both proposed budgets (SB 1 in the Senate and HB 1 in the House) marks the beginning of the budget process for both chambers...
	Report Details How Dedicated Funds Help Balance State Budget County Issues, Oct. 23, 2013 As part of what has been a regular practice over the past two decades, General Revenue-Dedicated Funds were used to certify the state budget for the coming fiscal years, according to a report released by the Comptroller’s office...