Despite the estimate being a bit lower, the Legislature convenes Tuesday with a more than $23.8 billion cash carry over, meaning the state remains in surplus.
Hegar said the slowdown was due to many factors; the last revenue estimate reflected the post-COVID, high inflation period. Multiple factors — sales tax, oil and gas revenue, population growth and the global economy — affect the state budget.
He also pointed out that the state made more conservative and one-time purchases, limiting spending during the 2024-25 biennium.
The 89th Legislature convened at noon Tuesday, Jan. 14, and the proposed 2026-27 appropriations bill will be delivered Jan. 21. The final budget is expected mid-June.
Opportunities for spending include education, roads and water, Hegar said during a webcast with the Texas Tribune.
Hegar didn’t mention IT; however, there are many, many agencies requesting large amounts in supplemental funding for IT, tech projects and full-time staff support. Agencies hope for funds to start, continue or complete projects of various sizes.
A sampling of large exceptional items requests include:
- Health and Human Services Commission
- Railroad Commission
- Department of Public Safety
- Department of Criminal Justice
- Department of Family and Protective Services
