TWC approves $3.06 billion operating budget for FY26, cites carryforward and federal positions
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Summary
Commission approved a proposed FY26 operating budget of $3,059,902,442, citing federal carryforward funds, increased FTEs and a WorkQuest management fee provision.
The Texas Workforce Commission on May 20 approved a proposed fiscal year 2026 operating budget totaling $3,059,902,442, staff said.
Chris Nelson, the commission’s chief financial officer, told commissioners the FY26 proposal reflects amounts appropriated in SB 1 of the 89th Legislature and increases of about $65.3 million from the FY25 GAA, largely because of federal fund carryforward and general revenue dedicated funding awarded in 2025 through a supplemental appropriation. The budget submission to the Legislative Budget Board in November will include this proposed operating budget, Nelson said.
Nelson said the proposed FY26 budget includes a TWC FTE budget of 5,087.4, higher than the GAA amount of 5,066, attributable to an increase in federally funded positions. He also described a 5.8% management fee for WorkQuest, described in the packet as 5.8% of net commission on contracts and tied to chapter 122 of the Human Resources Code.
Commissioners asked about the roughly $200 million listed as unappropriated funds; Nelson said most of that is benefits and, from a state appropriation accounting standpoint, those benefits are not counted toward the appropriated budget though they derive largely from federal grant funding.
A motion to approve the Texas Workforce Commission operating budget as recommended by staff was made, seconded and approved.
Commissioners thanked Nelson and his team for preparing the proposal; staff will continue work needed for the November submission to the Legislative Budget Board.
