Texas has done better economically and fiscally than moststates for decades. However, an area needing improvement is con- sistently controlling the state’s budget growth. Because government spending ultimately drives taxation, especially when Texas must balance its budget, limiting budget increases is essential for a competitive economy that supports prosperity.
The 2018-19 initially appropriated amount of about $217 billion is up 75% since the 2004-05 budget. Comparatively, the key metric of population growth plus inflation compounded over time is up an estimated 63% during this period. Adjusting the total budget for this key metric shows that total budget growth is up 7.3% above the pace of population growth plus inflation since the 2004-05 budget. This excessive increase has burdened Texans with higher taxes and fees to sustain elevated spending levels and slowed economic growth.