(The Center Square) – Texas Gov. Greg Abbott, Lt. Gov. Dan Patrick and Speaker Dustin Burrows have issued a joint policy guidance directing state agencies and institutions of higher education to reduce their base spending requests by 3% to make the state more affordable to taxpayers.
The directive is part of the leaders’ guidance for agencies preparing their legislative appropriations requests for the 2028-29 biennium. The state budget is passed by the legislature every two years. The next legislative session begins in January.
The directive requires state agencies “to demonstrate prudent stewardship of taxpayer resources through a three percent reduction in base budget requests” and reflects the leaders’ legislative and budget priorities for next year, they said in a joint statement.
The announcement comes as Abbott is touring the state promoting an affordability tour to find ways to reduce costs for Texans.
The stated goals of Abbott, Patrick and Burrows for the next legislative session, they said, is “tackling affordability concerns for Texas consumers and homeowners.” Other shared goals are ensuring the state has enough money to continue taxpayer-funded subsidies and “protect them from any base budget reductions,” they said.
This includes ensuring there is enough money in the budget for the state’s new school choice program, the Texas Education Savings Account Program, and the Foundation School Program. More than 102,000 students have been accepted to the new $1 billion TEFA program, which begins in August when the 2026-2027 school year begins, The Center Square reported.
“Texas leads the nation with a strong economy and responsible governance that puts families first,” Abbott said. “This guidance protects our historic investments in public education and teachers, delivers even more property tax relief, and makes the cost of living more manageable for Texas families through strict standards of efficiency and accountability from every state agency.”
They also want to ensure there are enough funds to support teachers, advance property tax reform and fully fund public education. During the last legislative session, the Republican-led legislature allocated a record amount of $9 billion in funding for public education, including increasing teacher pay and retirement payments.
They also committed $1 billion to water infrastructure and billions toward healthcare innovation. They also claim they’ve provided $51 billion in property tax relief as property taxes continue to increase.
“These achievements have provided tangible relief and underscore the urgency of preserving Texas’ competitive advantage,” they said in a joint statement.
Patrick said his goal “is to ensure Texas remains the economic engine of America and the best place in the world to live, work, and raise a family” and the guidance they issued to state agencies “will keep our state on a fiscally conservative path that guarantees we live within our means while continuing the Texas Miracle.”
Burrows noted that the increased cost of living “continues to challenge families across America” and they were responding by “protecting taxpayer dollars through fiscally conservative budgeting.”
State agency spending reductions “will provide the baseline for a conservative budget that prioritizes property tax relief and strategic investments to support our state’s growth and keep Texas on solid footing,” he said.
