The Biennial Budget Cycle Kicks Off

The State's biennial budget cycle typically kicks off in the summer leading up to the regular Legislative Session. This year, state agencies have already been hard at work crafting their strategic plans and compiling workforce summaries to present to their respective legislative and governor's office overseers. Additionally, they have been actively seeking input from stakeholders regarding their potential Legislative Appropriations Requests (LAR) for the upcoming FY 26-27 state budget. Recently, agencies received detailed instructions on how to prepare their LARs, with directives coming from both the Governor and Lt. Governor, as well as the Speaker of the House.

Next, the Legislative Budget Board (LBB) will schedule a series of Joint Budget Hearings (JBH) for all agencies to present their LARs, including any additional funding requests, known as Exceptional Item Requests (EIR). Joint Budget Hearings are held before staff of the Lt. Governor, Speaker, Senate Finance and Appropriations Committees, LBB and Governor's Office. Following the conclusion of this process, the Chairs of the budget committees for the two legislative bodies, along with the Speaker and Lt. Governor, will collaborate on developing recommendations based on the LARs and agency presentations. Subsequently, they will instruct the LBB to formulate a proposed budget for the upcoming biennium, aligning with their priorities and the assessment of agency needs. This proposed budget will then be drafted separately for introduction in the Senate and House of Representatives as appropriations bills. Early hearings during the legislative session will be held to consider agency and public input, as well as funding requests.

At the beginning of the Legislative Session, the Comptroller's office issues an official revenue projection for the upcoming biennium. This projection serves as a guide for the Legislature in determining the amount available for state budget expenditures.

The Texas Public Employees Association team is committed to actively participating and providing testimony at the numerous agency hearings during the Joint Budget hearing process and Legislative Session. Our primary focus is on advocating for essential salary increases for all state employees, building on the achievements of the current biennium pay adjustments to address turnover within state government. Our dedication continues towards maintaining the stability of the ERS funds, protecting insurance benefit premiums, and enhancing the pensions of our state retirees throughout these critical hearings.

We invite you to join us in shaping a better future for state employees and retirees. Together, our united voice becomes more powerful with each new member.