How can Texas reduce expenditures for the new public school employee health program while protecting and improving benefits? The Texas 78th Legislature faces this key question as members confront a $9.9 billion revenue shortfall. The health care program is targeted for legislative cuts. Funded for its first year only, the program was financed by revenues taken from a “one time” source; additional blows were delivered by a sagging state economy and rising insurance costs, estimated in the range of $2.5 billion for the 2004-2005 fiscal year.
Local Government
Growing Pains: The Cost and Contribution of Impact Fees in Texas
Texas’s rapidly growing population requires new infrastructure and improvements, which oftentimes come at great expense. To fund these projects, local officials often impose impact fees on new development—but their use comes at a cost. Key points: Texas is the fastest-growing state in the nation. As such, it has robust infrastructure requirements. To help finance capital...
August 12, 2026