Texas Projects $194.6 Billion in General Revenue for 2026-2027 Biennium Amid Slight Decrease and Full Economic Stabilization Fund

Jan 13, 2025, 08:39 PM

Texas Comptroller Glenn Hegar has projected that the state will have $194.6 billion available in general revenue for the 2026-2027 biennium, marking a slight decrease of 1.1% from the previous budget cycle. This estimate includes $23.8 billion in surplus from the current budget cycle and anticipates $176.4 billion in new revenue, with sales tax collections projected to increase by 9% to reach $94.2 billion. Hegar emphasized the need for lawmakers to make thoughtful financial decisions to improve Texans' lives, despite positive economic indicators. The state's Economic Stabilization Fund is expected to exceed its constitutional cap for the first time. The Texas Legislature is set to convene on Tuesday to start the 2025 legislative session, where passing a balanced budget is a constitutional requirement. Lawmakers are expected to prioritize passing a private school voucher program, with Lt. Gov. Dan Patrick calling on Gov. Greg Abbott to declare it an emergency item.