Gov. Greg Abbott said on social media that he will veto Article 10 of the state's budget, which includes funding for the legislature itself.
The Texas legislature has one constitutional mandate every session: to pass a balanced budget.
Tax collections on motor vehicles were up from December 2019, which may be explained by consumers taking advantage of low interest rates and purchasing a new vehicle for Christmas.
The legislature cannot appropriate higher than a seven percent increase in general revenue spending for the next biennium when the body convenes in January.
State leaders called on some Texas agencies to trim budgets by 5 percent after numbers from the comptroller’s office showed tax revenue down $989 million this April compared to 2019.
With tax revenues declining, cities and counties may look to raise property taxes above the 3.5 percent threshold instituted by SB 2 thanks to a loophole in the law.
The request sent to most state agencies anticipates a shortfall in the state's revenue due to the coronavirus pandemic and government-mandated lockdown.
Because of the statewide disaster declaration, local taxing entities will be able to raise property taxes above the thresholds instituted by SB 2.
Texas could face a significant revenue shortfall that would disrupt the ability of the state government to fund its $248 billion biennial budget.
