Texas' top three political heavyweights are telling state government to tighten its belt by 3 percent as they start sketching out the 2028–29 state budget.
On Wednesday, Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dustin Burrows issued joint instructions that state agencies and public universities should cut their base spending requests by 3 percent when they file legislative appropriations requests for the next biennium. The guidance pitches the trims as a way to shield school funding while carving out more space for property tax relief and teacher support programs. Budget staff across state government were told to apply strict efficiency standards as they finish their proposals for the upcoming budget cycle.
In a post from the Governor Abbott Press Office, the office said Abbott, Patrick and Burrows directed agencies and institutions of higher education to prepare 2028–29 legislative appropriations requests with a 3 percent reduction in base spending. According to the post, the guidance protects key education dollars, including the Foundation School Program and the Texas Education Savings Account, and quoted Abbott saying the instructions "protect our historic investments in public education and teachers."
The move comes on the heels of the 89th Legislature's large property tax package, in which lawmakers and the governor dedicated roughly $51 billion to property tax relief and increased school funding, a shift that has reshaped the state's budget priorities, as reported by The Texas Tribune. How much of that can be carried forward into 2028–29 will hinge on revenue estimates and certification from the Texas Comptroller, which helps establish the fiscal baseline for the state.
It is standard for governors to send topline marching orders before budget season, and the Legislative Budget Board will use agency requests as the launch point for negotiations when lawmakers return to Austin. The LBB, co-chaired by the lieutenant governor and the House speaker, plays a central role in converting those agency submissions into the state's recommended appropriations, according to the Legislative Budget Board.
What agencies and colleges will be asked to do
Agency budget offices are being told to hunt for recurring base costs that can be trimmed by roughly 3 percent, a familiar exercise that often focuses on administrative overhead, vendor contracts and unfilled positions rather than direct classroom services. Institutions of higher education and many state agencies already submit detailed nonfinancial reports and budget data to the governor's Budget and Policy Division and the LBB, and those filings will be used to set the starting point for appropriations talks under the new instructions from the governor's office.
Political stakes for property taxes and teachers
Keeping the Foundation School Program and the Texas Education Savings Account off the chopping block while pressing for more property tax relief keeps education squarely in Republican fiscal messaging ahead of the next session. The 89th Legislature's $51 billion package put tax rate compression and school funding at the center of state policy fights, and the new guidance signals that leaders want a conservative baseline in place before the bargaining begins over teacher pay and local school budgets, as reported by The Texas Tribune.
Officials said agencies must submit their legislative appropriations requests under the new parameters and that the 90th Legislature should "build on recent successes and address affordability for Texas families and homeowners," language taken from the guidance issued by the governor's office. For the full text of the instructions and statements from state leaders, see the post from the Governor Abbott Press Office.
