The budgeting process in Texas is a detailed, multi-step procedure that involves the state’s executive, legislative, and judicial branches. It sets the financial priorities for the state's operations, including spending, revenue, and the allocation of resources for various public services. Here's an overview of the key steps involved in the Texas state budgeting process:
1. Preparation of the Budget
- Executive Branch (Governor’s Office and Legislative Budget Board - LBB):
- - The process begins with the Governor’s Office of Budget, Planning, and Policy and the Legislative Budget Board (LBB). They work closely with state agencies to gather data on anticipated revenue and spending needs.
- - Each state agency submits its budget request to the LBB. These requests detail how much money they anticipate needing for the upcoming biennium (two-year period).
- - The Governor's Office plays a central role in shaping the budget, including setting fiscal priorities.
2. Budget Proposal
- Governor’s Budget:
- - The Governor submits an initial budget proposal to the Texas Legislature. This document outlines the governor's financial priorities, spending allocations, and projected revenue for the upcoming biennium.
- - The Governor's proposal is a starting point, but it is not binding on the legislature.
3. Review by the Legislative Budget Board (LBB)
- The Legislative Budget Board (LBB), which is composed of key legislative leaders (including members from both the Senate and House), conducts a review of the budget proposal. This involves scrutinizing agency requests and determining what spending is necessary and appropriate for the state.
- The LBB drafts its own version of the budget, which is often referred to as the LBB's proposed budget or the General Appropriations Bill (GAB).
4. Legislative Review and Revision
- House and Senate Consideration:
- - The LBB's budget proposal is submitted to both chambers of the legislature (the House of Representatives and the Senate). It is reviewed, debated, and may be amended by various legislative committees.
- - House Appropriations Committee and Senate Finance Committee are the primary committees that conduct detailed hearings and reviews of the budget.
- - Amendments can be made during the committee hearings or in floor debates.
5. Approval of the Budget
- After the budget has been reviewed and revised by both the House and Senate, it is voted on by each chamber. If both chambers approve the budget, it is sent to the Governor for final approval.
6. Governor’s Review and Action
- Once the budget is passed by the legislature, the Governor has the power to approve or veto the proposed budget.
- - The Governor can veto specific line items within the budget (known as a line-item veto) but cannot veto the entire budget bill.
- - If the Governor does veto line items, the legislature can attempt to override the veto with a two-thirds majority vote in both chambers.
7. Implementation
- Once the budget is approved and signed by the Governor, it is implemented by the state agencies as they receive their appropriations. The state must ensure that the spending is aligned with the approved budget.
Key Features of Texas Budgeting Process:
- Biennial Budget: Texas operates on a biennial budget cycle, which means the budget covers two years (odd-numbered years).
- Constitutional Requirement: Texas law requires a balanced budget, meaning that the state cannot spend more money than it receives in revenue.
- Transparency: The budgeting process is transparent, and the public is invited to participate by attending hearings and reviewing budget documents.
This process ensures that the state's funds are allocated in a way that reflects its priorities and that spending is kept within the bounds of projected revenues. The Texas budgeting process is unique in its emphasis on limited government, fiscal conservatism, and constitutional requirements for balanced spending.
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Relevant Documents:
- Texas Legislature Online.
- Texas Fiscal Size-Up: 2024-2025.
