Texas Projects $194.6 Billion Budget with Record Surplus and Rainy Day Fund Cap

The state anticipates a $23.8 billion surplus and a capped $28.5 billion rainy day fund as lawmakers debate spending priorities for the 2026-2027 budget.

• Texas Comptroller Glenn Hegar announced a $194.6 billion revenue estimate for general-purpose spending in the 2026-2027 biennium, slightly below the previous cycle.
• The state has a $23.8 billion surplus, including $4.5 billion previously allocated for public education and school vouchers, which were not utilized last session.
• The Economic Stabilization Fund, or rainy day fund, will reach its constitutional cap of $28.5 billion for the first time, preventing further transfers into the fund.
• Key spending priorities include property tax cuts, teacher salary increases, infrastructure investments, and potentially revisiting a school voucher program.
• Hegar urged lawmakers to make cautious financial decisions, emphasizing the need for sustainable investments as economic growth is expected to slow in coming years.

3 Articles

The Texas Observer Houston Public Media Washington Examiner