As the 88th Texas legislative session moves forward, lawmakers have presented differing ideas on how to utilize the record-breaking $33 billion surplus.
Gov. Greg Abbott has long been on record as wanting to use half of the surplus to alleviate property taxes, although that was when it was at $27 billion. Both Republican leaders of the state legislature, Lt. Gov. Dan Patrick and House Speaker Dade Phelan, have made it clear that caution and a sense of frugalness must be demonstrated concerning the state’s ability to finance these property tax benefits long-term. Bipartisan groups and lawmakers on the other side of the aisle are fighting for a piece of the $33 billion pie to fund everything from teachers to infrastructure.
Patrick Svitek, a primary political correspondent for the Texas Tribune, wrote in a Jan. 25 Twitter post that Abbott told reporters two weeks ago, “$15 billion is a good start.” But the governor added that he would be “pushing for even more.”
The Texas Tribune reported that in the House and Senate, budget writers have proposed $15 billion toward property tax cuts over the next two years. Of that $15 billion, $9.7 billion would be new while the remaining $5.3 billion would be maintaining tax cuts implemented under the 2019 school finance law. Unlike the House’s draft, the Senate’s proposal set aside $3 billion to boost the homestead exemption—which is the dollar amount of a home’s value that cannot be taxed—from $40,000 to $70,000. Because of this, a home worth $300,000 would have at least $300 net savings on its annual tax bill.
From 2017-2021, property tax collections have grown more than 20%, but property taxes have remained approximately 50% of total tax collected, a report from the Texas comptroller’s office said.
Part of the fight will entail pushback from Democrats to use more of the surplus to fund public schools, infrastructure and other needs; The Tribune said. A $15,000 pay raise for Texas teachers would cost a total of $12 billion over the next two years.
Other lawmakers have proposed the stimulus be designated to fund infrastructure, one being Sen. Charles Perry, who chairs the Senate’s Water, Agriculture, and Natural Resources Committee; a recent KCBD report said. Perry has suggested that $2 billion be used to fund more grants and loans to rural mid-level water utilities and municipalities.
During Abbott’s re-election campaign, he pledged on Twitter to return “at least HALF” of the surplus—$27 billion at the time—“to you [Texans] with the largest property tax cut ever in the history of Texas.”