Texas’s Economic Stabilization Fund (or “rainy day fund”) is a valuable tool for covering unexpected shortfalls in tax receipts, like those during the COVID-19 pandemic, but it should be used sparingly, and budget reductions should be prioritized instead. Key points: Texas ranks high in economic growth and must maintain a balanced budget, but the current...
Texas has weathered many a budgetary crisis before, and while we don’t know how deep this downturn will be, we know the strength of the Texas spirit and our state’s determination to secure a better future for our children. In a recent interview with the Texas Tribune, Texas Comptroller Glenn Hegar said the one-two punch of...
Texas policymakers generally understand that Texans do not want bigger government and higher taxes. So they have gotten pretty good over the years at concealing how much of your money they are spending. The textbook example of this occurred in 2013 when policymakers used every trick in the book to hide the fact that they...
As Yogi Berra once said, “If you don’t know where you’re going, you’ll wind up somewhere else.” That’s exactly where the Texas Legislature might find itself on the state’s budget for 2020-2021—somewhere else. Without a benchmark for the budget—an answer to the question of how much we have to spend—lawmakers are in danger of outstripping...
Many families across Texas keep a lean household budget that’s within their limited resources. Priorities matter for every dollar within their budget, whether it be for savings or food. This means families track expenditures and compare them over time to determine how to best spend their money. Your government should budget similarly. You should be...
The new year has our families – and yours – thinking about our budget priorities for the coming year. Some families will be cutting back on things like fast food and increasing savings. But a budget is more than just a spending guideline; it’s also a statement of priorities. It reveals what’s important to us,...
The Conservative Texas Budget (CTB) limits increases in the state’s two-year appropriations of state funds and all funds (state and federal funds) to less than the average taxpayer’s ability to pay—appropriately measured by population growth plus inflation. The figure below shows the limits for the currently discussed 2020-21 state budget. These CTB limits are based on...
The start of 2019 has our families and yours determining budget priorities. If you look at your budget, you get a good understanding of what you prioritize most. This also happens with the state’s budget. Let’s review the legislative priorities set by the Texas House and Texas Senate in their recently proposed recommended budgets and...
Chairman Bettencourt and Members of the Committee: My name is Talmadge Heflin, and I am the director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a 501(c)(3) non-profit, non-partisan free market think tank based here in Austin. Thank you for inviting me to give testimony on increasing transparency of local property...
Chair Nelson and Members of the Committee: My name is Talmadge Heflin, and I am the director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a 501(c)(3) non-profit, non-partisan free market think tank based here in Austin. Thank you for the opportunity to speak today on ways to strengthen the Economic...
Texas Comptroller Glenn Hegar certifies the two-year budget passed by the Texas Legislature after each legislative session. He does so by using projected general revenue-related (GR-R) funds, which includes collections from sales tax and other sources, to determine if those funds will sufficiently cover estimated expenditures. Here’s the Comptroller’s comments from the 2018-19 budget certification:...
Texans value every hard-earned dollar. They work hard to put food on the table, pay for college, save for retirement and satisfy their desires. Given some dollars pay taxes, every dollar collected by the government should go to essential programs that preserve liberty. It’s essential to evaluate every taxpayer dollar spent and pass a conservative budget...