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In a late-night post on Twitter/X, Texas Lieutenant Governor Dan Patrick (R) attempted to shed some light on what appears to be a growing rift between his vision and that of House Speaker Dade Phelan (R) for budget priorities ahead of the next legislative session.
Patrick alleges that Phelan delayed signing onto what has traditionally been a joint letter between the Texas Governor, Lieutenant Governor, and House Speaker, describing budget priorities and providing instruction to state agencies as they prepare their legislative appropriation requests (LARs). He further claims that this delay caused valuable time to be lost for state agencies and that at the last minute, when the Governor and Lieutenant Governor issued their letter, the House Speaker issued his own letter instead, with a noticeable difference in budget priorities, particularly a lack of emphasis on school choice.
The following morning, Phelan responded:
“This is a routine, technical letter to kick off the budget-making process; it is not a bill or a law. Interim hearings are ongoing on all of these issues — including education — and more. The members of the Texas House will drive the budget process and priorities in the session. That is exactly as it has always worked and will continue to work in the Texas House.”
Texas House Speaker Dade Phelan (R) response via Twitter / X, 7.26.2024
Brief Background
Legislative Appropriation Requests
At the heart of this conflict are the Legislative Appropriations Requests (LARs) for the 2026-2027 biennium. The LARs are crucial as they outline what various state agencies believe are their funding needs and priorities, forming the foundation for the state’s budget. The process, detailed here, begins with instructions sent by the Legislative Budget Board (LBB) and the Governor’s Office to all state agencies, guiding them on how to prepare their requests.
Once those requests are collected, both the LBB and Governor’s Office of Budget, Planning, and Policy (GOBPP) participate in hearings on each state agency’s strategic plan and LAR. Based on those hearings, they separately prepare budget recommendations to be presented to state lawmakers as part of the overall appropriations process.
School Choice
The use of Education Savings Accounts (ESAs) was at the heart of contention in the last legislative cycle. Prioritized by Gov. Greg Abbott in his State of the State Address in February 2023 as an “Emergency Item,” ESAs were subsequently considered in a special legislative session and used as a factor in primary elections via endorsements of particular candidates. ESAs were undoubtedly a determinant factor in what will be the new legislative disposition in the next legislative session (2025), as arguably 9 incumbent state lawmakers chose not to run for re-election over the issue, and 15 incumbent state representatives lost their primary elections.
The subject has also been included in recent Republican Primary Elections. In 2024, Republican primary voters considered Proposition 11:
Proposition 11: Texas parents and guardians should have the right to select schools, whether public or private, for their children, and the funding should follow the student.
Ballot Proposition, March 2024 Republican Primary Election
Proposition 11 passed overwhelmingly by Republican primary voters with 79.52% (1,797,110 votes) in favor and 20.48% (462,722 votes) in opposition.
Source: Texas Secretary of State, Texas Election Results, 2024 March 5th Republican Primary
Republican primary voters also considered Proposition 9 in 2022:
Proposition 9: Texas parents and guardians should have the right to select schools, whether public or private, for their children, and the funding should follow the student.
Ballot Proposition, March 2022 Republican Primary Election
Proposition 9 passed overwhelmingly by Republican Primary voters with 87.78% (1,669,408 votes) in favor and 12.22% (232,454 votes) in opposition.
Source: Texas Secretary of State, Texas Election Results, 2022 March 1st Republican Primary
The issue is also a plank in the 2024 Republican Party of Texas Platform:
84. School Choice: We support further empowering all Texas families to choose from public, private, charter, or homeschool options for their children’s education and funding which shall follow the student with no strings attached. We oppose regulations on homeschooling or the curriculum of private or religious schools and believe a constitutional amendment should be adopted accordingly. In lieu of funding, citizens may use property tax exemptions.
2024 Republican Party of Texas Platform
Moreover, the Republican Party of Texas considered “Parental Rights and Education Freedom” a legislative priority in 2022 and “School Choice for All” as a legislative priority in 2020.
The Letters Offering Differing Visions
The letters mentioned above can be seen below:
The joint letter between Gov. Abbott and Lt. Gov. Patrick emphasized several budgeting priorities:
“Legislative Appropriations Requests should take into consideration that priorities for the next appropriations act will include property tax relief; additional funding to support construction and modernization of dispatchable electric generating facilities; operational funding for the mental health facilities authorized by the 88th Legislature; and funding for Education Savings Accounts and securing the border.”
Joint Letter Between Gov. Abbott & Lt. Gov Patrick to State Agencies, 7.25.2024
By comparison, the letter by Speaker Phelan only emphasized a few budgeting priorities, deferring to House lawmakers for any additional priorities:
“While I am confident the next budget will prioritize critical items such as additional property tax relief and border security, it will ultimately be up to all members of the legislature to determine the spending priorities next session.”
Letter by Speaker Phelan to State Agencies, 7.25.2024
The omission of ESAs, among other items, by Phelan in his direction to state agencies is notable for several reasons, but perhaps most significantly due to the amount of time and attention Gov. Abbott gave the issue both in the last legislative session (2023), the subsequent special legislative sessions, and the primary election cycle. As Patrick points out in his Twitter/X post, Phelan seems to be ignoring what appears to be a clarion call around the issue in relation to his own party’s membership in the Texas House and Republican voters generally. Why?
To Phelan’s point included in his response, the issue of “Educational Opportunity” is included in his House Interim Charges issued in May 2024. Specifically,
2. Educational Opportunity: Consider issues and matters to increase educational opportunities in Texas to ensure students and families have increased options to attend a high-quality school, regardless of circumstance. Evaluate the use of education savings accounts in other states and make recommendations for a Texas program, including suggestions on eligibility and prioritization of applicants.
House Interim Committee Charges, 88th Legislature, May 2024 – House Committee on Public Education
The House Committee on Public Education is scheduled to consider that interim charge specifically in a public hearing on August 12, 2024
The Budget Process
Understanding the budget process is critical to contextualizing these events. The Texas budget cycle is a meticulous and structured process. It begins in July of even-numbered years when the LBB sends out instructions for the LARs. State agencies then develop their strategic plans and LARs, submitting them to both the LBB and the Governor’s Office of Budget, Planning, and Policy. Hearings are conducted in the fall to scrutinize these requests, and by January, when the next legislative session begins, the Legislature receives budget recommendations from both the LBB and the Governor’s Office. This process sends all sorts of signals about what Texas intends to prioritize by its allocation of taxpayer money.
The Implications
The divergence between the letters from Gov. Abbott and Lt. Gov. Patrick, as well as Speaker Phelan, illustrates a deeper ideological split within Texas’s Republican leadership. Their priorities reflect differing visions for the state’s future and perhaps represent differing political calculus. The speakership is obtained among the membership of the Texas House. This conflict is more than just a political squabble; it has real implications for the budgetary allocations and the legislative agenda in the upcoming session. The exclusion of certain priorities from the Speaker’s letter could lead to legislative battles that impact various state-funded programs and initiatives. Only time will tell.
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