Surplus revenue has doubled for Texas ’next budget

Texas ’oil and gas economy, along with the sales tax, has been exceptionally good over the past two years, building up $ 27 billion in excess revenue for the next budget.

This automatically means more money for Texas roads and more funds for the so-called Rainy Day Fund or state savings account. It could also involve some additional spending on budget priorities or possible property tax cuts.

What You Need to Know

  • Oil and gas revenues, plus sales tax, raised excess revenue to $ 27 billion, a record high for a Texas budget.
  • Budget spending is limited in the Texas budget, but property tax cuts would not count against budget limits
  • Both Republicans and Democrats speak of additional relief from the House exemption
  • Lieutenant Governor Dan Patrick wants to increase the mandatory family property exemption from $ 40,000 to $ 60,000

Several budget limits will prevent Texas lawmakers from spending all that money without a super-majority vote. Lt. Gov. Dan Patrick and potentially most of the Conservative Texas Senate want to spend an additional $ 4 billion on property tax relief. That would increase the household exemption to $ 60,000.

“I’ve always believed that returning money to taxpayers doesn’t grow the government,” Patrick said. “All members of the Texas Senate will have ideas on how these additional revenues should be spent, and I will consider them fully. However, I believe that, first and foremost, any surplus should go back to Texas taxpayers.”

Ultimately, Patrick wants a $ 100,000 exemption. The wind may be behind them because the property tax cut will not count against mandatory budget limits. That housing exemption will not extend to homeowners of other types of housing, such as housing complexes.

The Democratic House Caucus is also in favor of increasing ownership, but with the caveat that other budget areas also need attention.

“It’s equally important that we invest in our infrastructure, health care system and neighborhood schools,” said Rep. Chris Turner, D-Arlington. “This increase in revenue gives us the opportunity to improve the lives of all Texans and work to find real solutions to the most critical problems facing our state.”

The Texas School Coalition, in its own statement, has called for more education spending, arguing that Texas is fine because it is the state, not the local school districts, that are reaping the benefit of the highest property values.

The higher the value of housing, the less the state has to spend on education, said Christy Rome, executive director of the Texas Schools Coalition. Recapture – the money that property-rich school districts send back to the state to support property-poor school districts – is at an all-time high of $ 3 billion.

In the Senate, Patrick also pledges to suspend the gasoline tax for the remainder of 2022; allocate “funding to continue paying teacher raises”; and provide another check 13 for retired teachers.

That last priority probably won’t sit well with retired teachers, who would rather see a more lasting cost-of-living adjustment. During testimony before Senate Finance, the executive director of the Texas Retired Teachers Association, Tim Lee, noted that recent inflation has had a major impact on teachers ’pensions.

Many senior retired teachers live on an average of $ 2,000 a month. Most cannot claim any retirement benefits from the Social Security system.

Surplus revenue has doubled for Texas ’next budget

Source link Surplus revenue has doubled for Texas ’next budget

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