[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6369711,"mediaKeyId","2154338-b2d313b8df929cf4050001ab5f78f11d","parentId",2154338,"title","Legislative analysts: property‑tax relief costs rose from $18B to roughly $22.7B due to hold‑harmless rules and valuation assumptions","audioSeconds",224,"startMs",4802000,"endMs",5026000,"viewUrl","/Search/View?dp=1&key=2154338-b2d313b8df929cf4050001ab5f78f11d&start=4802&end=5026","thumbnailUrl","https://assets.pipeline.soar.com/2154338-b2d313b8df929cf4050001ab5f78f11d/thumbnail_4802000.jpg","articleUrl","/articles/6369711/Texas/Legislative-analysts-propertytax-relief-costs-rose-from-18B-to-roughly-227B-due-to-holdharmless-rules-and-valuation-assumptions","mediaUrl","https://secure.pipeline.soar.com/6369711-6250ee6a50ce34133e2f124febc012ad/orig.mp4?Expires=1770586552&Signature=XqxbQaxctWSeszY~Ru8axXZwAnFp0MdE03W0zR2DtvRh7lPcL6gjom0-~dWxnAL1ODmM5z4I7L0kFxyvOFDZlOl~0hBnQFk3v4lpz7byQ4KQBuNvU72kMiFCCYD6f8kIT~DfkJxHkF9Dwa29ZLJrRbJN~1fzFUzLmKjEbQl8~k0jZphGB8NwqeinF0btOnD4WLusAugsWknKkmGfKxciDiEj9A73wIE4OQjMmgS4yfNTQ4sbtoZEbW9ycW7St1HwuutjPwRPWhux960BkyxrZAihuEblUtvqDXVu9hMFwJlBBXSlQ5h74paeWfGUFnHa1ufD4PbZRnzI9z9700ON~w__&Key-Pair-Id=KUT5TJCACFTXG","author","Texas Senate Sessions","date","2025-01-27T00:00:00Z","article","The Legislative Budget Board told the Senate Finance Committee that estimates of the cost of the property‑tax relief measures enacted two years ago grew markedly after implementation because of the interaction of appraisal values, how the Foundation School Program computes tier 1 tax rates, and several hold‑harmless provisions.

Aaron Hendrickson of the LBB summarized the office’s post‑implementation review: “In developing the fiscal note for Senate Bill 2, our office assumed a district's tier 1 tax rate would be based off of a value that incorporated the $100,000 homestead exemption. In implementing the provisions of the bill, TEA used the value that incorporated the older $40,000 homestead exemption which provided for a higher property value and a lower tier 1 tax rate and provided additional compression.” The LBB analysis found the combined effect of that calculation choice and multiple holds harmless increased the projected cost of the package.

Hendrickson told senators that the LBB’s estimate of the biennial ongoing cost of the measures enacted in the prior session rose from the original $18,000,000,000 fiscal note to a much larger figure during implementation and coding of the Foundation School Program; the analysis identified two primary drivers: (1) which homestead‑exemption amount was used in the computations of district property values and resulting tax rate compression, and (2) interactions among several hold‑harmless formula provisions that amplified costs when property values rose faster than assumed.

The LBB also presented the committee with the SB1 assumptions for the next biennium: the budget text included a line‑item of $51,000,000,000 in total property‑tax‑relief‑related items for 2026–27, which the LBB broke into components such as ongoing costs from prior reforms, 3,000,000,000 to raise the homestead exemption contingent on legislation, and a $500,000,000 business relief placeholder. LBB staff said they estimate roughly a $400,000,000 general‑revenue shortfall in the Foundation School Program this current biennium related to enrollment and other student‑cost drivers.

Why it matters: The post‑implementation cost growth changed the baseline that lawmakers must fund in 2026–27. The LBB’s review underscores how technical implementation choices in school finance interact with property valuations and statutory hold‑harmless rules and how those interactions can produce substantially higher ongoing costs than the original fiscal note suggested.","mediaType","Video","parentTitle","01/27/2025\tSenate Committee on Finance","oneSentenceSummary","Legislative Budget Board analysts told Senate Finance that the property‑tax relief enacted two years ago cost substantially more than its original fiscal note because Texas Education Agency computations used different valuation assumptions and because multiple hold‑harmless formula provisions compounded the cost.","taxTitle","Senate, Legislative, Texas","taxId",16215,"location","Texas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6369716,"Comptroller Hager: Texas has $19.46 billion available for general purpose spending; ESF cap will alter future transfers",599,1501000,2100000,"/Search/View?dp=1&key=2154338-b2d313b8df929cf4050001ab5f78f11d&start=1501&end=2100","https://assets.pipeline.soar.com/2154338-b2d313b8df929cf4050001ab5f78f11d/thumbnail_1501000.jpg","/articles/6369716/Texas/Comptroller-Hager-Texas-has-1946-billion-available-for-general-purpose-spending-ESF-cap-will-alter-future-transfers","https://secure.pipeline.soar.com/6369716-8c8353c450197f6ace93d52c4518c9c8/orig.mp4?Expires=1770586552&Signature=hu6flxtGLsJ2~GOS6DE9fE-R22BjG5KQfbv4WTUiUz6RnDnpoWEE6cpOCAz3y3hPNRgyjm-nFlU5mC5GMTcCkFh2Os0nhCvDU-wYO0a-hu0SQLLAKZvwNG70nVrL5C8v5CTFSG96EXhs0cEdexAU5BtyhcVTsPEZmhMxpD4714lO9ohMSt0GCuB98xciSwIfYRLmSPQUfUlWA9GRe0afCA9uA3xU4BTrtPNNGS2mcrd7pRQnJFO68E9dINx90R5s4S4gl-af9pSzBDHlmaQxZvdymcz69Mdrp6MotH42QSqCfPOAEqhlTPxSPzXmAiTv9TWnEblpCofkBcBqDxE4BA__&Key-Pair-Id=KUT5TJCACFTXG","Comptroller Glenn Hager told the Senate Finance Committee the biennial revenue estimate (BRE) shows “$19,460,000,000 available for general purpose spending” for the upcoming biennium, and provided a breakdown of carryforward cash, tax, and non‑tax receipts that underlie the estimate.

Hager said the current projected ending balance includes a carryforward balance from the current biennium and that the make‑up of the ending balance differs from the record carryforward two years earlier. “The projected ending balance in this BRE has a very different makeup,” he said, pointing to conservative fiscal management after the pandemic windfall and noting that much of the recent balance sits in general‑revenue‑dedicated accounts.

The comptroller spent considerable time explaining how severance tax transfers interact with the Economic Stabilization Fund (ESF, also called the rainy‑day fund). He said partial transfers to the State Highway Fund and planned limits on transfers to the ESF have led to a projected ESF balance that will hit its constitutional cap early in the next biennium. When the cap is reached, 37.5% of severance taxes that would otherwise go to the ESF will remain in general revenue instead, Hager said, and he urged lawmakers to consider whether to leave the cap in place or seek a constitutional change that would allow more transfers into the ESF.

“1 question that deserves your attention is whether part of the severance taxes should continue to go into the ESF for future generations or should the cap remain in place and thus those severance taxes flow back into general revenue from here forward,” Hager said. He also walked through projected oil prices and severance‑tax collections that feed the estimates, and explained that the ESF now earns investment income rather than being kept in cash — a structural change that increases long‑term purchasing power of the fund.

Committee members pressed Hager on the specifics — including how much severance tax revenue would remain in general revenue if the cap binds, how much the state would transfer to the State Highway Fund, and how federal dollars and COVID‑era spending changes affected the BRE. Hager’s briefing set the technical baseline the committee will use while reviewing SB1 and agency requests.

Why it matters: The comptroller’s revenue estimate limits the total amount available for general fund spending and affects the Senate’s choices on property tax relief, one‑time investments, and ongoing commitments. The discussion about the ESF cap frames a major policy decision: whether to preserve the constitutional cap or raise it (a voter referendum) with consequences for transfers into long‑term savings versus near‑term general‑revenue spending.","Comptroller Glenn Hager presented the biennial revenue estimate to the Senate Finance Committee, reporting $19.46 billion available for general‑purpose spending and highlighting a projected carryforward, changes to severance tax transfers to the Economic Stabilization Fund (ESF), and the choice lawmakers face when the ESF cap is reached.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6369721,"Senate Finance chair unveils Senate Bill 1: $33.29 billion all‑funds base budget with $3 billion new property‑tax relief",331,1124000,1455000,"/Search/View?dp=1&key=2154338-b2d313b8df929cf4050001ab5f78f11d&start=1124&end=1455","https://assets.pipeline.soar.com/2154338-b2d313b8df929cf4050001ab5f78f11d/thumbnail_1124000.jpg","/articles/6369721/Texas/Senate-Finance-chair-unveils-Senate-Bill-1-3329-billion-allfunds-base-budget-with-3-billion-new-propertytax-relief","https://secure.pipeline.soar.com/6369721-7056a10292a8d64d609b5cad957e84d4/orig.mp4?Expires=1770586552&Signature=HSTms8vry6uVxWq06Q~WMpN~IvH6FpiETYjkU7QVcDdcAtq0aeF16QcU8e48KklK~3nPT2mlrgyUhmkH5fAVZa45PsQNhY94nkku70xzjVLNAI3ShxDywtUosMMB7bbknqIf3kN48WLvBdUZw~QRU5pd0mbynL8QEdeZojVSa4Cs2MRqaDk9vWWStgvuyamQyLzcSfmXGB7qxjMXRn3T5G-0Bo9esN7Ru8VwuTMwxPo51esjhr94O5goUJqruLHGDeUa~44aW40D31pMKp5p9RcZ7BzheGgB0ONpaoDe-u2tYgUUXOdkLdeCB~9-ihmrlJ4zm6T3WrzNP2z3qwtQVQ__&Key-Pair-Id=KUT5TJCACFTXG","Senate Finance Chair Jane Huffman laid out Senate Bill 1, the committee’s base budget for fiscal years 2026–27, including an all‑funds total she described as $33,290,000,000 and a general‑revenue figure she read as “151.6 billion.” Chair Huffman said the bill centers on a mix of one‑time investments, maintenance of existing commitments and targeted tax relief items that the Senate is proposing for consideration.

Huffman told the committee the bill includes new property‑tax relief measures — including $3,000,000,000 to raise the residential homestead exemption and $3,000,000,000 in additional maintenance‑and‑operations (M&O) rate compression — and a $500,000,000 placeholder “for tax relief to businesses.” She also listed education and workforce priorities, including full funding for the Foundation School Program, a planned $4,850,000,000 increase for teacher compensation contingent on separate legislation, and new endowments to support career and technical education.

“Senate Bill 1, the Senate’s base budget for fiscal years 2026 and 2027, includes $33,290,000,000 in all funds and … 151.6 billion in general revenue,” Huffman told the committee during her opening remarks. She emphasized the budget’s mix of recurring obligations and one‑time investments and urged caution about committing short‑term revenue spikes to ongoing expenses: “I ask you to keep this in mind as we craft the next budget.”

Other highlights Chair Huffman identified in her statement to the committee include money for border operations, increases in funding for community‑based long‑term care wages, funding for wildfire aircraft, a transportation package item, and a $5,000,000,000 second tranche for the Texas Energy Fund intended to support electric reliability. She also said the bill carries an informational list of supplemental priorities that the Senate may address later in session, including a multi‑billion dollar water infrastructure contingency and a prospective one‑time payment to the employee retirement system.

The committee adopted its rules by roll call before the hearing moved into invited testimony on SB1. Committee members and agency witnesses told the committee they would follow with line‑item briefings; the chair scheduled Comptroller Glenn Hager and Legislative Budget Board staff to present the revenue estimate and the LBB’s bill overview, respectively.

Why it matters: SB1 sets the Senate’s opening policy and funding posture for the 2026–27 biennium. The broad mix of property‑tax measures, school finance funding and one‑time investments the chair listed will steer negotiations and affect supplemental requests later in session. With the comptroller’s revenue certification and the LBB’s capacity analyses expected to follow, lawmakers described the weeks ahead as a detailed and technical review period.","Senate Bill 1, the Senate's base budget for fiscal 2026–27, was presented by Chair Jane Huffman with funding highlights including $33,290,000,000 in all funds and multiple one‑time investments and tax‑relief placeholders. The committee opened hearings on the bill with presentations to follow from the Comptroller and the Legislative Budget Board.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6369707,"Chief Justice urges pay raises and staffing for courts; LBB and OCA present funding requests for judicial salaries and court modernization",0,5034000,"/Search/View?dp=1&key=2154338-b2d313b8df929cf4050001ab5f78f11d&start=5034&end=5034","https://assets.pipeline.soar.com/2154338-b2d313b8df929cf4050001ab5f78f11d/thumbnail_5034000.jpg","/articles/6369707/Texas/Chief-Justice-urges-pay-raises-and-staffing-for-courts-LBB-and-OCA-present-funding-requests-for-judicial-salaries-and-court-modernization","https://secure.pipeline.soar.com/6369707-bcf54c29f6829e21d7a3cd2ba73c3220/orig.mp4?Expires=1770586552&Signature=lKwu8hRohwRiXre3j~akGrcZ3HqIQF-evfteSQBgIbjWUVuqsFy4KKQYJN6wuQP8rvxSRH9kALPPju7fvO~H6rVvW7ushoLonoMzbdZHVUvA0qa3I5znjqRGT7PjICelVQSci063a-UjF3X27wzbS47AF~hC1xRmjmBjAANCeEtYXTgIQDF9PJ1G2urSwSwKtg-IW~Wn~i5jGxaVG6EWqQthrdWb9B7Ks99ppcJZLXRmObkf8pWMqaY847WHaSW~o8zKz0Ew~Mjz5pzLzR7Szkxld2FveJ6tye7eLoyCekMx68SoSrgche3OfzX0-8kkrImtpLm9QBgLzV3bYO7BZQ__&Key-Pair-Id=KUT5TJCACFTXG","Chief Justice Jimmy Blacklock, who had just taken office, told the Senate Finance Committee that improving judicial pay and staffing is essential to attract and retain judges and court staff capable of administering the state’s complex caseloads. “A first year lawyer out of law school … will be making more money than Chief Justice Nathan Hecht was making after 40 years of service,” Blacklock said, and he urged support for legislative steps to make judicial salaries more competitive.

Blacklock proposed a discussion that went beyond modest annual adjustments, noting the public‑policy consequences of an underpaid judiciary and urging the committee to pair compensation changes with measures that improve accountability and court performance. He specifically thanked Chair Huffman for filing a pay bill (noting a 15% proposal) and said the judiciary will work on internal fixes to address underperformance and public confidence.

LBB and the Office of Court Administration (OCA) provided concrete budgetary and program requests for the judiciary. LBB presented the fiscal effect of potential changes in the Judicial Compensation Commission’s recommendations and noted that the existing tenure/tier structure means that raising the base district‑judge salary creates follow‑on costs for justices, prosecutors and other tenure‑linked positions. LBB said recommendations in the introduced bill did not include a full article‑wide 6% salary increase requested for nonjudicial staff.

OCA Director Megan Lavoie presented exceptional items the agency seeks: a 6% staff retention and recruitment supplement, a 15% increase for child protection and child support court coordinators, a specialty court case management system to standardize data collection for more than 200 specialty courts, and a plan to replace “Thames,” the appellate case management system, with a hosted cloud solution to improve security and long‑term support. OCA noted the addition of five business court divisions and requested funding for the remaining six divisions authorized by last session’s law.

Why it matters: Judges' compensation, court staffing and modern case management systems affect court speed and quality of justice. The committee heard proposals that, if adopted, would increase recurring judicial compensation costs and devote funds to technology and coordination—each of which would require tradeoffs elsewhere in the budget.

Direct quote: Chief Justice Blacklock: “I am here on behalf of my fellow judges and on behalf of the entire Texas judiciary to tell you that I think it's absolutely essential that we as a state raise judicial salary significantly so that we can attract and retain hardworking rule of law judges.”","Supreme Court Chief Justice Jimmy Blacklock urged a significant pay increase for judges to attract and retain qualified jurists and staff; Office of Court Administration and Legislative Budget Board outlined agency requests including pay adjustments, a specialty court case management system and an upgraded appellate system.","actionData","errors"]

Article not found

Legislative analysts: property‑tax relief costs rose from $18B to roughly $22.7B due to hold‑harmless rules and valuation assumptions

Comptroller Hager: Texas has $19.46 billion available for general purpose spending; ESF cap will alter future transfers

Senate Finance chair unveils Senate Bill 1: $33.29 billion all‑funds base budget with $3 billion new property‑tax relief

Chief Justice urges pay raises and staffing for courts; LBB and OCA present funding requests for judicial salaries and court modernization