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In a recent post on Twitter/X, outgoing Texas State Representative Matt Schaefer (R-Tyler) highlighted a growing issue within the legislative process concerning how lawmakers engage with the state budget.
Schaefer, who previously served on the House Appropriations Committee during the 86th (2019) and 87th (2021) Legislative Sessions, has long been critical of the overall process. He argues that the budget is one of the most significant votes that Texas House members take, yet it receives minimal engagement from many lawmakers. This raises essential questions about transparency, participation, and the influence of a select few in shaping the state’s financial blueprint.
The Importance of the Texas State Budget
The Texas state budget is not just a financial document; it reflects the state’s priorities, values, and future direction. It determines where taxpayer money goes to fund various governmental agencies and programs, such as education, healthcare, infrastructure, and public safety. Given its far-reaching implications, one would assume that every lawmaker would be deeply involved in its formulation and approval.
However, as Schaefer pointed out, the reality is starkly different. Despite the budget being the only item that state lawmakers are truly required to consider during a legislative session, a significant portion of the lawmakers are disengaged from the appropriations process. This lack of participation has profound consequences.
For example, the state budget continues to increase at an alarming rate, with the burden of government growing beyond the population it is supposed to serve.
Though the Texas Legislature convenes in legislative sessions every other year, the appropriations process begins before the legislative session, with the bulk of the work handled by the staff of the Legislative Budget Board (LBB), a handful of lawmakers from both legislative chambers relevant to the Senate Finance and House Appropriations Committees, and the committee staff.
In total, that includes the Legislative Budget Board itself, comprised of the Lieutenant Governor, Speaker of the House, eight lawmakers (four from the Senate and four from the House), twelve other members of the Senate Finance Committee, and twenty-four other members of the House Appropriations Committee, totaling forty-five lawmakers of the available 181 that make up the Texas Senate and Texas House of Representatives. Put another way, that is less than 25% of available lawmakers thoroughly involved in the appropriations process.
In total, that includes the Legislative Budget Board itself, comprised of the Lieutenant Governor, Speaker of the House, 8 lawmakers (4 from the Senate and 4 from the House), 12 other members of the Senate Finance Committee, and 24 other members of the House Appropriations Committee, totaling 45 lawmakers of the available 181 that make up the Texas Senate and Texas House of Representatives (less than 25% of available lawmakers) thoroughly involved in the appropriations process.
Nearly all other lawmakers do not find themselves involved in the process until they are considering the overall appropriations bill on the floor of their respective chambers, offering amendments to the budget sometimes manifesting themselves as items called “riders” or outright trying to “put and take” money from one place in the document to another.
In recent legislative sessions, this brief involvement manifests as political theater, whereby calendar rules are adopted requiring the pre-filing of any amendments ahead of the deliberations of the overall appropriations bill, and as the deliberations proceed, many of the amendments are negotiated away by the leadership of each legislative chamber, withdrawn, or combined with other amendments in a frantic and often exhaustive legislative day. For those witnessing it firsthand, it appears to be an inefficient way to alter a document initially prepared by bureaucrats and a small group of lawmakers.
The Role of the Senate Finance and House Appropriations Committees
Both the Senate Finance and House Appropriations Committees play a pivotal role in the budget process. Comprised of selected members, these committees are responsible for drafting the budget bill, which outlines the allocation of funds to various state agencies and programs. While the committees’ work is crucial, it should not overshadow the need for broader legislative involvement.
The concentration of budgetary decision-making within a small group of lawmakers can lead to a lack of transparency and accountability. When only a handful of representatives actively participate in the process, the voices and concerns of many Texans may go unheard. This centralization of power can also result in budget decisions that reflect the priorities of a few rather than the collective will of the legislature.
The Consequences of Legislative Disengagement
The disengagement of many lawmakers from the budget process can have several adverse effects:
- Lack of Representation: Constituents rely on their elected representatives to advocate for their needs and interests. When lawmakers are not fully engaged in the budget process, they fail to represent their constituents effectively.
- Limited Oversight: A diverse group of lawmakers provides checks and balances that can prevent potential misuse or misallocation of funds. When few are involved, oversight is weakened, increasing the risk of errors or corruption.
- Reduced Transparency: Transparency is a cornerstone of good governance. When budget decisions are made behind closed doors by a select few, it erodes public trust and diminishes the perceived legitimacy of the process.
- Policy Imbalance: The budget should reflect a balance of priorities across different sectors and regions. Limited participation can lead to skewed allocations that favor certain areas or interests over others.
The Need for Greater Engagement
To address these concerns, it is essential to encourage greater engagement from all members of the Texas Legislature in the budget process. Here are several ways that could help achieve this goal:
- Education and Training: New and existing members should receive comprehensive training on the budget process. Understanding the complexities of the budget can empower legislators to participate more actively.
- Broader Discussions: While the Finance and Appropriations Committees play a key role, efforts should be made to include input from other lawmakers. This can be achieved through joint sessions, workshops, and open hearings.
- Transparent Processes: The budget process should be as transparent as possible. This includes making draft budgets available for review, holding public hearings, and using technology to provide real-time updates.
- Encouraging Debate: Robust debate and discussion should be encouraged at every stage of the budget process. This ensures that different perspectives are considered and that the final budget is a product of collective deliberation.
- Constituent Involvement: Lawmakers should actively seek input from their constituents on budget priorities. Town halls, surveys, and digital platforms can facilitate this engagement, ensuring that the budget reflects the needs and desires of Texans.
An Example of Disengagement in Fiscal Issues More Broadly
Amid the 86th Legislative Session (2019), lawmakers passed Senate Bill 68, authored by then-State Sen. Jane Nelson (R-Flower Mound), who was also the Senate Finance Committee Chairman. This legislation required the LBB to perform strategic fiscal reviews for all state agencies currently subject to review by the Texas Sunset Advisory Commission. Upon completion of the review, the legislation required the LBB to submit a report of its findings by September 1st of the years that precede a legislative session to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and lawmakers of the Senate Finance and House Appropriations Committees.
The LBB published its first report under this legislation in October 2020.
In February 2021, during the 87th Legislative Session, State Rep. Greg Bonnen (R-Friendswood), the Chairman of the House Appropriations Committee, created the Subcommittee on Strategic Fiscal Review and Federal Relief Funds, presumably to both review the aforementioned LBB report and make recommendations as part of the overall appropriations process. Its focus was also supposed to be evaluating state agency programs and expenditures, performance and efficiency, and the long-term fiscal planning of those agencies and programs to make specific policy recommendations to the overall Appropriations Committee. The subcommittee was comprised of seven House lawmakers, including Schaefer. It never convened during the regular legislative session. It was not until December 2022, the following year, after the second report from the LBB was submitted, that the subcommittee held its first meeting, considering agency reviews for the Texas Juvenile Justice Department (TJJD), Texas Commission on Law Enforcement (TCOLE), Texas Commission on Environmental Quality (TCEQ) and Low-Level Radioactive Waste Disposal Compact Commission, Texas State Soil and Water Conservation Board, Texas Water Development Board (TWDB), the Public Utility Commission of Texas (PUC) and the Office of Public Utility Counsel, and the Board of Veterinary Medical Examiners.
In February 2023, during the 88th Legislative Session, Bonnen again created a subcommittee, albeit by a slightly different name, to address Strategic Fiscal Reviews. It was named the Subcommittee on Strategic Fiscal Review and was comprised of eight House lawmakers. This subcommittee never met during the regular legislative session, and as of this publication has not met at all, presumably awaiting the new report from the LBB.
All of this at least begs the question: was this all just an exercise in political theatre centered around fiscal prudence?
Conclusion
The state budget is a critical tool for shaping Texas’s future. However, as highlighted by outgoing State Representative Matt Schaefer, the current process is marked by limited engagement from many lawmakers, leading to a concentration of decision-making power. To enhance representation, transparency, and accountability, it is imperative to foster greater involvement from all members of the Texas Legislature. By doing so, the budget process can better reflect the varying needs and priorities of all Texas taxpayers, ensuring a more effective allocation of resources and fiscal prudence.
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