TABC CFO presents $64.9 million FY2026 operating budget, highlights salary and IT investments

Conrad Swan, the Texas Alcoholic Beverage Commission’s chief financial officer, presented the agency’s internal operating budget for fiscal year 2026 at the Sept. 23 commission meeting, showing total appropriations and supplemental items that raise the internal spending plan to $64.9 million.

Swan told commissioners that the agency's general appropriations totaled $60.4 million in the enacted bill, “most of that is GR at $59,900,000,” and that two supplemental appropriations and other adjustments increase the internal display to roughly $64.9 million. ‘‘One of them at $3,100,000 was mostly for our innovation and technology division,’’ Swan said, and the budget also reflects vehicle replacement funding and other supplemental items authorized to be carried into 2026.

Key numbers and priorities: Swan said roughly $33.5 million — more than half the agency appropriation — is spent on enforcement strategies. He highlighted that salaries now account for about $48 million of the budget, or roughly 70–75% of the internal plan, noting recent exceptional‑item funding for recruiting and retention (approximately $2.5 million for commissioned peace officers and about $300,000 for indirect staff). Swan said a large portion of the remaining budget includes professional fees, services, and other operating expenses tied to IT and contract support.

Context and risks: Swan cautioned that some supplemental appropriations are one‑time or subject to future budget requests; for example, the supplemental vehicle funding has been appropriated twice and may need further action to remain ongoing. He also noted that an IT transformation capital project remains pending final invoices and that some amounts will be migrated into the FY2026 budget when final costs are known.

Questions from commissioners: Commissioner Marino asked whether the salary line reflected funds available to spend and Swan replied that the figure represents the budgeted amount if all authorized FTEs were filled for a full year. ‘‘That is correct. So that’s our budget if everything went to perfection and we had all 620 of our FTEs hired and on board for the entire year. We would spend that number and that’s not realistic,’’ Swan said, adding that actual expenditures will likely be lower until vacancies are filled. Swan said the agency has seen increased applicant interest after raising pay and expects to fill vacancies more quickly.

Outcome and next steps: The presentation was informational; commissioners had no substantive objections and no formal vote on the budget document was recorded during the meeting. Swan said staff will return with future budget updates as final invoices and actualizations occur.

What to watch: Ongoing hiring and whether supplemental or exceptional item funding becomes permanent will affect the FY2026 outturn. The IT transformation invoices and project closeout will also change final numbers reported in future updates.