State Budget

2024-25 Biennium

Budget Surplus

The 2024-25 Biennial Revenue Estimate of $188.23 billion available for general purpose spending represents the largest revenue projection in state history, providing the 88th Legislature with a generational opportunity for one-time investments.

A key takeaway from the estimate is the $32.7 billion surplus Comptroller Hegar projects for the end of the current two-year budget, as of Aug. 31, 2023. To put that number in perspective – the estimated 2023 surplus is larger than the General Fund Fiscal 2023 enacted annual budgets of 41 states, according to a 2022 survey conducted by the National Association of State Budget Officers.

The surplus is far higher than any in history mainly due to record year-over-year growth in state tax receipts. According to the Comptroller’s Office, fiscal year 2022 state tax receipts represent a 25.6% increase over fiscal year 2021 – nearly double the prior record of 13.4% annual growth in 2011. The state sales tax – which accounts for more than 50% of state tax receipts – grew by 19.3% due to inflation, and severance taxes on oil production and natural gas grew by 84.4% and 185%, respectively. Other, lesser factors contributing to the record surplus—$3.8 billion in cost savings by funding eligible payroll expenses out of federal COVID19 relief instead of General Revenue funds, and $4.3 billion in lower costs for state aid to schools due to rising property values.

For more on this historic surplus see this graphic from Texas Comptroller Glen Hegar.

Helpful Resources

2022-2023 Biennium

State Budget (archived)

Budget Archives