Budget estimate opens path for 'life-changing decisions for Texans' by lawmakers
AUSTIN (Nexstar) — From education savings accounts to border security to property tax reform, lawmakers have big plans for the legislative session. Those plans come with big price tags.
On Monday, State Comptroller Glenn Hegar will release the Biennial Revenue Estimate, or BRE. It's his estimate of how much money lawmakers will have available when they make the next state budget. Hegar hinted that the estimate would be good news for the state.
"The upcoming revenue estimate that we're gonna give next Monday shows, once again, that the state legislature will have a large cash carryover balance from this two-year budget to the next two-year budget," Hegar said during an interview Wednesday.
Hegar did not release a specific number. That will come with Monday's announcement. But he suggested that it will be less than the $32.7 billion surplus he announced before the 2023 legislative session.
"It was historical. It was once in a lifetime," Hegar said of that surplus.
Still, he noted the encouraging financial outlook for the state in this budget cycle. Hegar said the state's Economic Stabilization Fund now stands at $24 billion, the most in Texas history. The fund is more commonly known as the rainy day fund, functioning as a savings account to help the state cover shortfalls or emergency needs
"Once again, the legislature here is in a very positive position to make some real kind of monumental decisions and life-changing decisions for Texans, which, if you compare that to other states, some of the other states, unfortunately, they're in deficits right now. So we are in a relatively very strong position compared to other states," Hegar said.
Hegar believes continued growth in the state, including demand for artificial intelligence and cryptocurrency will likely require funding improvements to power infrastructure.
"I think trying to continue to make sure that we meet that infrastructure need for electrical demands in the future of the state of Texas over the course of the next several years, which are projected at very high growth rates every single year from year to year, making sure that we are investing in that area, and that the state needs to do some type of encouraging to make sure we have that electrical generation in the state of Texas so we have that reliability," Hegar said.
Plans for education savings accounts, dubbed school choice by supporters or school vouchers by opponents, could take up a significant amount of the surplus.
"I think the legislature is going to talk about, obviously. First and foremost, it's going to be public education funding—education savings accounts. That's an important priority for the governor," Hegar said, calling that "a large discussion."
Hegar noted how in the last legislative session, some lawmakers proposed a system that started with a focus on certain demographics, like those with disabilities or economically disadvantaged students.
"I think part of it is if you're making it universal, but you're also taking one step at a time," Hegar said.
Hegar said he expects the Comptroller's Office to be called upon to manage an education savings account program.
"Obviously, I'm very in tune to what they're doing, because in the last legislative session, and I'm assuming this legislative session, they're asking my office to manage that program, stand it up and manage it," Hegar said.