AUSTIN- Today, the Texas Comptroller released its latest Biennial Revenue Estimate (BRE), revealing that state lawmakers can expect to have $194.6 billion available for general spending purposes during the 2026-27 biennium. This strong revenue outlook is undergirded by robust tax collections and a strong economy. TPPF urges the 89th Texas Legislature to maintain fiscal discipline and to prioritize property taxpayers.
“Texas’ robust revenue outlook is the product of conservative fiscal management and a firm understanding of the importance of free-market economic principles. Texas’ leadership clearly understands that when government is small, the opportunities are endless,” says TPPF’s Greg Sindelar. “This session, state lawmakers have an opportunity to build on this successful framework by passing a balanced budget that spends no more than population growth and inflation, limits total spending to only what’s needed, and prioritizes taxpayers above all else.”
In addition, the Comptroller’s report also notes that the general revenue-related surplus is expected to reach almost $24 billion while the state’s Economic Stabilization Fund, or “rainy day” fund, will grow $28.5 billion by the end of the 2026-27 biennium. These available funds provide policymakers with critical tools to lower taxes.
“The 2025 Texas Legislature has another great opportunity to deliver meaningful tax relief using surplus monies,” says TPPF’s James Quintero. “However, it’s not enough to only focus on tax relief. The next Legislature should also make tax reform a top priority. Based on the past 2 years, it’s very clear that opportunistic local governments will erode any tax relief provided by the Legislature, if allowed.”
Texas Public Policy Foundation is a non-profit free-market research institute based in Austin that aims to foster human flourishing by protecting and promoting liberty, opportunity, and personal responsibility