What should Texas do with its budget surplus?

AUSTIN, Texas — State lawmakers can have extra money at their disposal this session than ever earlier than. The state comptroller added practically $6 billion to the projected funds surplus — taking it to about $33 billion. 

“It truly is unprecedented,” mentioned Rahul Sreenivasan, the funds coverage analyst for the nonpartisan assume tank Texas 2036. “Lawmakers this session have the chance to make generational investments into issues like water infrastructure, broadband entry, and cybersecurity—all whereas sustaining a strong fiscal place.” 

Texas is projected to have about $188 billion accessible income funds after record-breaking income development. That’s a 26% improve from what lawmakers had over the last funds cycle. 

Nonetheless, lawmakers can’t spend the whole surplus, and never everybody agrees on greatest spend it. Gov. Abbott and Lt. Gov. Dan Patrick each say it ought to partially be spent to decrease property taxes.

The comptroller has cautioned the numbers may very well be affected by efforts by the Federal Reserve to scale back inflation. The funds is the one merchandise lawmakers should cross every session.