The Senate Finance Committee held its first public hearing of the legislative session. The agenda included an overview of the Biennial Revenue Estimate presented by Comptroller Glenn Hegar and a review of Senate Bill (SB) 1, the appropriations bill, by Jerry McGinty, Director of the Legislative Budget Board. The Committee also began hearing from the heads of our of judiciary branch of government. This hearing is the first of many public hearings and meetings that will take place over the next several months to determine funding for Fiscal Years 2026 and 2027. The Senate Finance Committee is chaired by Senator Joan Huffman, with Senator Juan “Chuy” Hinojosa serving as vice chair.
Senator “Chuy” Hinojosa released the following statement:
“Today was the first hearing of the Senate Finance Committee, and I was honored to join Chair Joan Huffman as her Vice Chair once again. I appreciate Lt. Governor Dan Patrick for appointing me to this position, and I look forward to a productive session focused on passing a budget that makes significant investments to strengthen our communities and the Texas economy. SB 1, as filed, is just a starting point. These public hearings provide an opportunity for Committee members to hear invited testimony from all state agencies and hear from the public on how our tax dollars should be allocated.
The starting point, All Funds budget, including federal funds, is $332.9 billion. This includes $151.6 billion in General Fund (state) dollars, which is an increase of $9 billion from the previous session. This means that we are still $12.4 billion below the Pay-as-you-go Limit, $6.9 billion below the Tax Spending Limit, and $14.2 billion below the Consolidated General Revenue Limit. The tax spending limit is the controlling limit because General Revenue spending authority is lower than for the other two limits, which means we have $6.9 billion remaining to allocate throughout the process.
SB 1, as introduced, already includes at least $32.2 billion to extend last biennium’s record-setting property tax relief. It also includes $5.3 billion in additional funding for public education, with a $4.9 billion increase to the Foundation School Program for teacher pay and adjustments to the Teacher Incentive Allotment. The Senate plan proposes a $4,000 pay raise for all teachers, plus an additional $6,000 for rural teachers, totaling a $10,000 increase for those in rural areas. Additionally, the budget includes $400 million for school safety, $5 billion for a second transfer to the Texas Energy Fund (bringing the total to $10 billion) to further strengthen our electric grid, $40.4 billion for the Texas Department of Transportation for the 2026-2027 biennium, and $3 billion to create the Dementia Prevention and Research Institute of Texas. These are just a few examples of the investments included in the budget.
The proposed Supplemental Appropriations bill, which will be filed and considered later in the session, will include: $2.5 billion for water infrastructure and water supply projects; $515.8 million for construction and major repairs at criminal justice facilities; $315 million for emergency operations centers and resource storage and staging areas across the state to support disaster response; $194 million to the Texas A&M Forest Service for the purchase of aircraft for wildfire suppression; and $100 million to the Texas Historical Commission for the Courthouse Grant Program, among other funding.
Throughout the budget process, I will advocate for the needs of the Rio Grande Valley, the Coastal Bend regions, and statewide priorities. It is important that members of the public attend the hearings to provide input as we move forward with the budget writing process.”
The Senate Finance Committee has scheduled public hearings on SB 1 from Monday, January 27th until Friday, February 14th. Additional information and a list of agendas with the agencies scheduled to testify, can be found at, https://www.legis.texas.gov/Committees/MeetingsByCmte.aspx?Leg=89&Chamber=S&CmteCode=C540
The House of Representatives will soon appoint members to the House Appropriations Committee. When organized, House Appropriations will undergo a similar process hearing from all state agencies and also seeking input from the public.