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This week, staff from the Texas Legislative Budget Board and various state agencies will convene for a crucial series of joint budget hearings scheduled to take place from August 28th through August 30th. These hearings are an integral part of the state’s budget process, serving as a foundation for the detailed discussions, deliberations, and decisions that will ultimately shape Texas’s fiscal policy and priorities for the upcoming biennium.
The Bigger Picture: The Texas Budget Process
Before diving into the specifics of the joint budget hearings, it’s important to understand the broader context of the Texas budget process. The state’s budgeting process is a meticulous and complex operation, with several steps that span multiple months, if not years. It involves a litany of individuals and organizations, including state agencies, the Governor’s office, the Texas Legislature, and ultimately, the people of Texas.
The process typically begins with state agencies submitting their Legislative Appropriations Requests (LARs), detailing the funding they believe is necessary to carry out their functions. This is followed by the development of a draft budget, known as the General Appropriations Bill, which is introduced in both the House and Senate during the next legislative session. The Legislature then conducts a series of hearings and deliberations, allowing for amendments and adjustments before the final budget is passed. Once approved by the Legislature, the bill is sent to the Governor, who has the power to sign it into law or veto specific items using a tool called the ‘Line Item Veto.’
For more on this process, go here.
These joint budget hearings are a critical step in this overall process. They offer an opportunity for the actual budget writers—the staff at the Texas Legislative Budget Board—to examine the proposed budget in detail and engage with agency representatives before finalizing a draft of the state’s spending plan.
The Schedule & Previous Appropriations Comparisons
Below is the published schedule for the first round of joint budget hearings taking place the week of August 28th through August 30th. For reference, we have also included the amount budgeted for each agency in the 2022-23 biennium, the amount appropriated in the most recent biennium (2024-25), and the percentage change between the two:
Wednesday, August 28, 2024
| Agency/Program | Start & End Times | 2022-23 Estimated/Budgeted | 2024-25 Appropriations | % Change |
|---|---|---|---|---|
| Behavioral Health Executive Council | 9:00 AM – 12:00 PM | $10.2 million | $10.8 million | +6.1% |
| Office of Injured Employee Counsel | 9:00 AM – 12:00 PM | $17.4 million | $20.3 million | +16.7% |
| Office of Public Insurance Counsel | 9:00 AM – 12:00 PM | $2.0 million | $3.3 million | +67.1% |
| Texas Department of Insurance | 9:00 AM – 12:00 PM | $307.7 million | $261.0 million | -15.2% |
| Texas Medical Board | 9:00 AM – 12:00 PM | $32.3 million | $44.4 million | +37.2% |
| Board of Pharmacy | 2:00 – 4:00 PM | $20.3 million | $30.2 million | +49.0% |
| Executive Council of Physical Therapy & Occupational Therapy Examiners | 2:00 – 4:00 PM | $2.8 million | $3.6 million | +27.3% |
| Public Utility Commission of Texas | 2:00 – 4:00 PM | $42.6 million | $5.07 billion | +11,789.8% |
Thursday, August 29, 2024
| Agency/Program | Start & End Times | 2022-23 Estimated/Budgeted | 2024-25 Appropriations | % Change |
|---|---|---|---|---|
| Office of Public Utility Counsel | 9:00 – 9:30 AM | $5.0 million | $6.9 million | +36.3% |
| Commission on State Emergency Communications | 10:30 – 11:00 AM | $290.6 million | $128.8 million | -55.7% |
| Commission on the Arts | 11:00 – 11:45 AM | $25.7 million | $31.6 million | +23.0% |
| State Preservation Board | 11:00 – 11:45 AM | $221.9 million | $39.3 million | -82.3% |
| Cancer Prevention & Research Institute of Texas | 12:00 – 12:30 PM | $594.4 million | $600.1 million | +1.0% |
| Ethics Commission | 12:30 – 1:00 PM | $6.6 million | $8.2 million | +24.5% |
| Board of Plumbing Examiners | 1:00 – 4:00 PM | $6.0 million | $7.9 million | +30.0% |
| State Office of Administrative Hearings | 1:00 – 4:00 PM | $22.7 million | $25.4 million | +11.9% |
| State Securities Board | 1:00 – 4:00 PM | $15.0 million | $18.8 million | +25.0% |
| Texas Department of Housing & Community Affairs | 1:00 – 4:00 PM | $3.08 billion | $1.35 billion | -56.2% |
Friday, August 30, 2024
| Agency/Program | Start & End Times | 2022-23 Estimated/Budgeted | 2024-25 Appropriations | % Change |
|---|---|---|---|---|
| Texas Department of Licensing & Regulation | 10:00 – 11:00 AM | $92.3 million | $137.3 million | +48.7% |
Source(s): Texas Legislative Budget Board Joint Budget Hearings Schedule and Fiscal Size-Up 2024-25 Biennium
Several other joint budget hearings have been scheduled throughout September and October as well. You can find that schedule here.
Budget Surplus & Its Implications
In mid-July, Texas Comptroller Glenn Hegar (R) updated lawmakers on the Certification Revenue Estimate, indicating that state lawmakers will also be able to consider the use of an over $21 billion budget surplus.
The stability in revenue collections and the projected budget surplus present both opportunities and challenges for Texas lawmakers and taxpayers. On one hand, the surplus—which ultimately represents an overcollection of taxpayer money from various sources—offers a cushion that can be utilized for government services and spending on infrastructure challenges. On the other hand, it raises questions about the prudent use of taxpayer money.
For example, in the most recent legislative session (88th – 2023), lawmakers faced a historic budget surplus of over $32.7 billion. Among other things, the surplus represented a realistic opportunity for lawmakers to return that money to Texas taxpayers by providing tangible property tax relief and even a path to the elimination of the tax altogether. The funds could have been used to provide maximum compression of the maintenance and operations (M&O) portion of the property tax, significantly reducing the burden on property taxpayers and setting a precedent for future surpluses. Instead, lawmakers provided only some tax relief and passed the largest spending increase in the history of Texas. That spending increase will now serve as the baseline for spending in the next biennium when lawmakers convene in January 2025.
The Purpose of the Joint Budget Hearings
The joint budget hearings are scheduled at a pivotal moment in the budget cycle. The primary purpose of these hearings is to provide a forum for in-depth examination and discussion of the proposed budget allocations across various state agencies and programs. Here are some of the key objectives of these hearings:
- Detailed Examination of Budget Proposals: The joint budget hearings allow the Legislative Budget Board to scrutinize the budget proposals submitted by state agencies. This includes reviewing their requests for funding, evaluating their justifications, and questioning agency representatives about how the funds will be used.
- Addressing Emerging Priorities and Challenges: The joint budget hearings also provide an opportunity for legislators to address emerging priorities and challenges that may not have been fully anticipated when the budget proposals were initially developed. This could include responding to unforeseen events, such as natural disasters, public health crises, or economic shifts, that require additional funding or adjustments to the budget.
- Setting the Stage for Budget Decisions: Finally, the joint budget hearings set the stage for the near-final budget decisions that will be made later in the legislative session. The hearings are a crucial step in building consensus among lawmakers, addressing any outstanding issues or concerns, and ensuring that the budget reflects the state’s priorities.
Conclusion
The joint budget hearings scheduled for August 28th through August 30th are a vital component of the Texas budget process. These hearings provide a forum for legislators to scrutinize budget proposals, ensure fiscal responsibility, address emerging challenges, and incorporate public input. As the hearings unfold, they will set the stage for the final budget decisions that will shape Texas’s fiscal policies and priorities for the coming years. For Texans interested in how their state allocates its resources, these hearings are an essential part of the democratic process, offering transparency, accountability, and a voice for the people in the state’s financial decisions.
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