Big. Could’ve been bigger. No teacher pay hike. Yet.

Late Saturday, the Legislature despatched the brand new state price range to Governor Greg Abbott. The price range remains true to Abbott’s promise to chop taxes, nevertheless it fails to ship on his dedication to university selection. The governor and Lieutenant Governor Dan Patrick confronted severe opposition within the House of their quest to protected taxpayer budget for personal training. Though they might now not go training financial savings accounts, they used the price range to reach upper teacher pay and greater investment for public colleges.

The two-year price range handed each chambers simply, with the Senate giving it a 29-2 approval on Friday, and the House following swimsuit with a 124-22 approval on Saturday. “Our budget will secure Texas’ conservative future,” mentioned Patrick in a written commentary.

The Biggest Budget Ever

The new price range exceeds $300 billion for the primary time ever and can spend $321.3 billion, together with non-tax revenues and federal budget, if authorized via Abbott. According to the Legislative Budget Board, the 2021 price range handed used to be $297.2 billion.

The deal that Senate and House negotiators made “makes historic investments that will have a lasting impact on the state,” mentioned House Appropriations Committee Chairman Greg Bonnen, R-Friendswood. He indexed the $12.3 billion in new belongings tax cuts, in conjunction with $5.3 billion for ones mandated via a 2019 legislation. He additionally famous $9.4 billion for psychological well being and a proposed water fund of $1 billion aimed toward repairing pipes and developing recent provides.

However, underneath the wondering of GOP Rep. Ken King, House Appropriations Committee Chairman Greg Bonnen admitted that the plan to spend $6 billion on teacher pay and school-formula will increase used to be diminished within the ultimate model to $3.9 billion. Bonnen cited the $5 billion on broadband and $3 billion on a brand new college fund that the House sought after and Patrick’s call for for $5 billion for brand new electrical energy turbines as further influencing components. “As we started to add the total amount, we had to make adjustments,” he mentioned.

Most Unspent Ever

Lawmakers may have spent much more, however a Forties “pay as you go” restrict acts as a hurdle via restricting them to the volume that Comptroller Glenn Hegar thinks can be to be had. The authorized deal stays inside of a cushion underneath that cap of $10.7 billion of common earnings, in keeping with the Legislative Budget Board. “We took caution to ensure that this budget is sustainable in future years, which is why we are choosing not to spend all the money we have … to ensure we can tackle future needs,” mentioned Houston GOP Sen. Joan Huffman, the Senate’s best price range author. “And that is on top of the money that is in the Economic Stabilization Fund,” Huffman mentioned, referring to grease and fuel taxes that can shape a wet day fund achieving $27.1 billion via the top of the following cycle. Though a lot of the spending is for tax reduction, Patrick prohibited its use.

Teacher Pay is Stuck

The chambers’ preliminary budgets had $5 billion of recent cash for public colleges, with teacher pay will increase being a potential use. Even if separate expenses on teacher pay and training financial savings accounts (ESAs) die, the cash will nonetheless be to be had, in keeping with Huffman. “It could happen in a special session, as we all know,” she mentioned.

Abbott threatened to name lawmakers again for a different consultation in the event that they did not approve a college selection program. When requested about teacher pay, Huffman spoke back, “It’s in a category that they could use it for teacher pay raise.”

In April, individuals voted 86-52 within the House to bar any use of appropriated budget for vouchers or ESAs, in keeping with King. Bonnen showed that the Senate had pressured the removing of this provision. King additional famous that the general price range units apart $500 million for college selection as “a contingency.” Should lawmakers reject ESAs, the cash might be used another way, he mentioned. “We can pay our teachers without creating ESAs?” King requested. “That is technically a possibility,” the chairman replied. “You’d have to get the votes to do that.”