AUSTIN — Texas' top three elected leaders are directing state agencies and public higher education institutions to reduce their base budget requests by 3% as the state begins preparing for the 2028-29 budget cycle.
Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dustin Burrows announced the joint budget guidance Wednesday, July 15, saying state agencies should focus on affordability and demonstrate what the leaders described as prudent stewardship of taxpayer resources.
The guidance applies to Legislative Appropriations Requests, or LARs, submitted in preparation for the 90th Texas Legislature. Those requests are part of the process used to develop the state's two-year budget.
Under the guidance, agencies are being directed to reduce base spending requests by 3%. The leaders said funding for the Foundation School Program and Texas Education Savings Account Program should be protected from the reductions.
The guidance also identifies teacher support, property tax relief, public education funding and affordability for Texas consumers and homeowners as budget priorities.
'Texas leads the nation with a strong economy and responsible governance that puts families first,' Abbott said in a statement. '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.'
The budget instructions come after the 89th Texas Legislature approved a roughly $338 billion two-year spending plan in 2025. The budget directed billions of dollars toward teacher pay, property tax relief and water infrastructure, according to reporting by The Texas Tribune.
Abbott's office said state leaders approved $51 billion in property tax relief during recent legislative sessions and made investments in public education, water infrastructure and health care innovation.
Patrick said the budget guidance is intended to keep state spending on what he described as a fiscally conservative path.
'The guidance provided to state agencies today will keep our state on a fiscally conservative path that guarantees we live within our means while continuing the Texas Miracle,' Patrick said.
Burrows said the 3% reductions would serve as a baseline as lawmakers prepare the next state budget.
'These 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,' Burrows said.
The 90th Texas Legislature is scheduled to convene in 2027. Lawmakers will ultimately determine state spending for the 2028-29 biennium through the legislative appropriations proces.
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