As Legislative Session Nears End, Texas Budget Agreement Reached

image
Published: 20 May, 2013
Updated: 14 Oct, 2022
2 min read
Rick Perry during State of State address / Austin American-Statesman

Texas State Budget

On Friday, members of the Texas Legislature agreed to a deal on the Texas State Budget that includes more money for public schools in exchange for $1 billion in tax cuts and fee rebates. The agreement comes after a tumultuous round of negotiations that was nearly derailed Wednesday after Senate leaders held out for $300 million more for higher education, while House leaders sought more spending on public schools.

“This is a very good budget, and I don’t know how many member of the House or Senate could vote against this budget,” said Senate Finance Committee Chairman Tommy Williams to the Austin American-Statesman.

Previously, the Senate passed Senate Bill 1, a bill that would increase school funding, while the House passed House Bill 1025, a bill that would provide $200 million in education money and $2 billion for a new water fund.

On Thursday, Lieutenant Governor David Dewhurst claimed that a deal had been reached between the House and Senate. However, House Democrats, who are needed by the GOP to surpass the 100 vote threshold to pass the portion of the House bill that provides for the water fund, had not agreed to the Senate's package and spent much of Friday discussing whether or not they would join in agreement.

Democrats ultimately got a $3.9 billion education package. The package includes $3.4 billion for public school and additional money for teacher pensions and other education programs.

“While it doesn’t restore the $5.4 billion in education cuts, it puts back $3.93 billion that was taken away, and you cannot let the perfect be the enemy of the good,” said Representative Trey Martinez Fischer.

However, the Democrats had to concede $631 million in utility fee rebates, which comes from a fund that helps low-income Texans pay their electrical bill, and a few million dollars in business tax cuts to be used for $1 billion in tax relief.

A minor issue that is still being discussed includes the amount necessary to take out of the $12 billion rainy day fund. Senator Tommy Williams claimed he would continue to fight to remove $2.9 billion dollars from the rainy day fund in order to pay off highway construction debt.

IVP Donate

“I haven’t given up,” he said. “Texas is the fastest-growing state in the country, and we clearly have a shortfall in our highway funding. It’s undisputed that that’s the case.”

The bill will face a final vote in both chamber in approximately a week from now. If Governor Rick Perry signs the budget -- as he is expected to -- it will go into effect immediately.

Latest articles

CA capitol building dome with flags.
Why is CA Senator Mike McGuire Trying to Kill the Legal Cannabis Industry?
California’s legal cannabis industry is under mounting pressure, and in early June, state lawmakers and the governor appeared poised to help. A bill to freeze the state’s cannabis excise tax at 15% sailed through the State Assembly with a unanimous 74-0 vote. The governor’s office backed the plan. And legal cannabis businesses, still struggling to compete with unregulated sellers and mounting operating costs, saw a glimmer of hope....
03 Jul, 2025
-
7 min read
I voted buttons
After First RCV Election, Charlottesville Voters Back the Reform: 'They Get It, They Like It, They Want to Do It Again'
A new survey out of Charlottesville, Virginia, shows overwhelming support for ranked choice voting (RCV) following the city’s first use of the system in its June Democratic primary for City Council. Conducted one week after the election, the results found that nearly 90% of respondents support continued use of RCV....
03 Jul, 2025
-
3 min read
Crowd in Time Square.
NYC Exit Survey: 96% of Voters Understood Their Ranked Choice Ballots
An exit poll conducted by SurveyUSA on behalf of the nonprofit better elections group FairVote finds that ranked choice voting (RCV) continues to be supported by a vast majority of voters who find it simple, fair, and easy to use. The findings come in the wake of the city’s third use of RCV in its June 2025 primary elections....
01 Jul, 2025
-
6 min read