The budget is the only bill the Legislature must pass each session. Every two years, the Legislature is tasked with making important decisions on allocating our tax dollars to the services and infrastructure that allow Texans of every race, background, and gender to reach their full potential. On June 18, Governor Abbott signed the 2024-25 General Appropriations Act passed in the 88th Regular Legislative Session. This is the state’s current budget for the two-year period from Sept. 1, 2023, to Aug. 31, 2025.
Thanks to robust economic growth, sales tax revenue, strong energy prices, and high inflation, the Legislature began the session with $188.2 billion in general revenue to distribute. That figure included a record-high positive balance of $32.7 billion left over from the last biennium. On top of that, the state’s Economic Stabilization Fund (ESF) – the rainy-day fund – held another $23.5 billion.
Every Texan saw this large carryover balance as a rare opportunity to make long-overdue investments in public education, health care, and other needs. While lawmakers did allocate modest boosts in health care and infrastructure that will benefit all Texans, they also chose to prioritize massive and unsustainable property tax cuts that will very likely threaten the long-term health of our schools and other institutions.
Alongside the 2024-25 budget, the Legislature also passed the supplemental appropriations bill, SB 30, to cover unforeseen expenses in the 2022-23 biennium. This budget analysis includes some items from the supplemental bill as well.
View the full report here.