Gov. Greg Abbott releases 2024-2025 budget proposal, suggests property tax cuts, public school divestment
February 26, 2023
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El gobernador Greg Abbott pública la propuesta de presupuesto 2024-2025, sugiere recortes de impuestos a la propiedad y desinversión de escuelas públicas
Following debate from Texas lawmakers on how to best spend an unprecedented $32.7 billion budget surplus, Gov. Greg Abbott revealed his 2024-2025 budget proposal outlining his suggestions for Texas’ $188.2 billion budget – a proposal that emphasizes lowering property taxes.
Abbott proposed dividing the state budget between funding for education, family care, public safety and more, but notably suggested portioning $15 billion to lowering property taxes, which rose significantly from inflation and housing demand, leaving Texans burdened by high costs.
However, Joshua Blank, research director of the Texas Politics Project, said it appears unlikely the $15 billion allocation will relieve economic stress. He said a property tax cut will have little effect on an individual’s tax payments.
“Property tax cuts tend to translate into a small impact on most homeowners,” Blank said. “When we asked homeowners previously whether or not the average calculated impact of property tax cuts would make a difference to most Texans, the majority of Texas voters say no.”
Blank said the cuts are also not likely to aid renters or the roughly 49% of Texans who do not own property.
Associate architecture professor Jake Wegmann, who conducts research on housing affordability, said the cuts will not apply equitably.
“The benefit, when compared to the overall Texas population, is going to disproportionately go to people who are richer and whiter,” Wegmann said.\
The budget proposal also suggested funding for public education, including mental health resources, school safety improvements and proposed education savings accounts. Also known as private school vouchers, ESAs give parents the option to receive money from the state instead of sending their child to public school, allowing them to afford other educational expenses like private school tuition. This proposition, which Abbott promoted in his State of the State address, received criticism from some policymakers, including State Rep. Gina Hinojosa.
“After almost a decade under Governor Abbott’s leadership, he answers the anger and frustration that parents and teachers feel in cash-strapped schools with a gimmick,” Hinojosa said in a statement. “We must stop diverting property taxes away from public schools and fully fund the public education our children need to succeed, once and for all.”
In addition, the budget proposal includes funding for higher education resources like advising tools, a performance-based funding system for community colleges, public health programs and an endowment fund for emerging research universities like the University of Houston and Texas Tech University.
“Texas has recently achieved the rank of #1 in the number of Carnegie Tier One research institutions,” Abbott said in his proposal. “The establishment of an endowment fund for Emerging Research universities that do not have access to the Permanent University Fund will further propel these universities in the rankings.”
Other suggestions in the proposal include funding for increased border security, alternatives to abortion, community-based foster care and infrastructure improvements. However, Blank said the governor actually has little say in the budgeting process.
“All the governor can do is approve the budget and threaten to veto,” Blank said. “And so this is all part of the governor’s attempt at the beginning of the session to use the tools at his disposal to make clear to the Legislature what he wants. Now it’s up to the Legislature to decide how much or how little of that guidance they will follow.”
