On April 11, 26 Texas House members voted against the budget bill, Senate Bill 1 (SB 1). That was the most no votes against a Texas budget since 29 members voted against the budget in 2013.

Nineteen of the no votes were from Republicans. But there are good reasons why ALL Republicans in the Texas Senate and Texas House should vote against the Texas budget, both Senate Bill 1 and House Bill 500 (the supplemental appropriations bill). In fact, there are 10 good reasons.

Over the next two weeks, we’ll be releasing one short paper each weekday with a full explanation for each of the 10 reasons. In the meantime, below is a brief overview of each.

Reason #1. Texas Property Taxes are Out of Control

Since 2019, including this session, the Texas Legislature has increased spending on public schools by about $23 billion in the name of property tax relief. It has done little to help Texans; during that period, property tax revenue paid by Texans has increased by $23.6 billion, or 37%. This session, legislators have put another $6 billion of “property tax relief” in the proposed budget. But they are doing it the exact same way they have done the last six years, and the results will be the same: the statewide total tax levy for all Texans is projected to increase by $2.5 billion this year, reaching a record $89.3 billion. Voting against the Texas budget is one of the most important ways to send a message, both to fellow legislators and one’s constituents, that returning over-collected taxpayer money through school district property tax relief should be the top priority in the budget.

Reason #2. The Texas Budget Belongs in California, Not Texas

In the Legislature’s 2026-27 proposed budget, state funds appropriations (excluding federal funds) rise by 8.2% from the 2024-25 biennium and nearly 43% compared to the 2022–23 biennium—well above the increase of population growth plus inflation. But even that is too high, as the goal should be freezing or even reducing the budget after past spending excesses. This budget grows spending across nearly every article of the budget without meaningful reforms. This proposed budget is a sharp break from the principles of fiscal responsibility, conservative budgeting, and pro-growth governance that once set Texas apart from states like California. Instead of honoring Texas’ conservative values, this budget moves us farther down the path of being like California, with nearly every corner of the state pestered by an ever-growing government bureaucracy.

Reason #3. There is More Than $50 Billion of New Spending in the Texas Budget

When the Texas House and Texas Senate vote on whether to approve the final versions of SB 1 and HB 500, they will be voting on whether to approve more than $50 billion in new spending of state funds. The new spending includes $11 billion for government schools (SB1), $2.4 billion for Medicaid (SB 1) $3.3 billion for the Texas Department of Transportation (SB1), $2.9 billion for state employee pay raises and benefits (SB1/HB 500), $4.6 billion for the Health and Human Services Commission (HB 500), and $3 billion for the Dementia Institute. Meanwhile, only $6 billion is set aside for new property tax relief.

Reason #4. The Texas Legislature is Using Sleight of Hand to Exceed the Tax Spending Limit by at Least $7.6 Billion

The Texas Constitution contains two major limits on state government spending. One of these is the Tax Spending Limit, approved by Texas voters in 1978. It prohibits the spending of non-constitutionally dedicated funds from growing faster than the “estimated rate of growth of the state’s economy.” Unfortunately, the Texas Legislature manipulates the budget in multiple ways to get around the limit. This session, this sleight of hand will allow them to exceed the limit at a cost to Texas taxpayers of at least $7.6 billion.

Reason #5. 2026-27 State Controlled Spending Likely to Top $600 Billion

The Texas budget is put together using smoke and mirrors. Everything about the appropriations process is designed to hide the total cost and true size of the state government from Texas taxpayers. For instance, the Legislative Budget Board shows that total all-funds spending for the 2026-27 biennium will be $337.4 billion. However, three adjustments based on calculations using historical trends suggest that final state-controlled spending for the biennium will instead be closer to $608 billion.

Reason #6. There is No DOGE in the Texas Budget

President Donald Trump and Elon Musk are doing amazing work in slashing waste and fraud in Washington, D.C. The resignation of 77,000 federal employees out of 2.2 million—and nearly 3 million including contractors—proves what we already knew: government is too big, inefficient, and expensive. The same effort is not happening in Texas. Texas’s state and local governments employ 1.9 million people, draining resources from the private sector and creating a permanent class of taxpayer-funded jobs that often add little value; there is $2.6 billion in the budget for increased spending on government employee salaries and benefits. Add to this the large increases in spending and property taxes, and it is clear there is no DOGE in the Texas budget.

Reason #7. The Texas Budget is Full of Handouts for Special Interests

Despite our conservative image, Texas is a haven for crony capitalism. Texans provide billions of dollars for big business through multiple channels, including property tax abatements for manufacturers. There are also billions of handouts in the Texas budget. There is $500 million for Hollywood filmmakers, $5.75 billion for electric generators, $2.5 billion for the water industry, and $100 million for the Texas Enterprise Fund. Additionally, many state agencies had their wish lists fulfilled in HB 500, including $101 million for the Texas Historical Commission, $150 million to improve the Legislature’s facilities, and $163 million for the Texas Parks and Wildlife Commission. Everyone has priority access to taxpayer funds except the taxpayers themselves.

Reason #8. The Texas Budget is a Democrat-Friendly Budget

It is clear that the spending in the Texas budget is very Democrat friendly. Fifty-seven of the 62 Democrats in the Texas House voted for the budget; all 11 Democrats in the Texas Senate voted for it. The budget was also developed with significant input from Democrats. For instance, the vice chair of the Texas House Appropriations Committee is a Democrat, as are two subcommittee chairs and two subcommittee vice chairs. When the budget was debated on the House floor, the first amendment adopted was a Democrat authored amendment that killed over a hundred conservative amendments without debate, including proposals to defund DEI programs, stop gender indoctrination, and cut corporate welfare.

Reason #9. The Texas Budget is Not Pro-Growth

Texas’ state government has a $24 billion surplus (over-collected taxpayer money) and a $28.5 billion Rainy Day Fund. Instead of using this over-collected taxpayer money to substantially cut taxes, government spending, and regulations, the Texas budget is funding billions of dollars of spending that grows government rather than shrinks it. A pro-growth budget is a sustainable budget: the current spending explosion and concurrent regulatory expansion are harming Texas’ economic growth potential. Instead, the Legislature should use the budget to prioritize substantial tax relief, reduce regulations, and cut government spending.

Reason #10. The Texas Budget is Not Conservative

Spending of state funds in the proposed 2026-27 budget is expected to increase by 43% over the 2022-23 appropriations from 2021; during that period, population growth and inflation are projected to be about 27%. The Legislature is leaving only $2.9 billion unspent under the Texas Constitution’s Balanced Budget Amendment; in 2023, they left only $1.6 billion on the table under the Texas Constitution’s Tax Spending Limit. Finally, there is $28 billion in Texas’ Rainy Day Fund; historically, the ESF has been used as a slush fund rather than as savings to meet emergency spending needs. Increasing spending by 60% above population growth plus inflation, spending all the money you can get your hands on, and building up a taxpayer-funded slush fund are not conservative.

Conclusion

The Texas Legislature has a duty not just to pass a budget—but to pass the right budget. One that reflects the values of hardworking Texans: low taxes, limited government, fiscal transparency, and economic growth rooted in personal freedom and responsibility. The proposed 2026–27 budget does the opposite. It grows government, hides the real cost of spending, prioritizes political interests over the public interest, and sets Texas on a fiscal trajectory more reminiscent of California than the Lone Star State. With a $24 billion surplus and billions more in the Rainy Day Fund, lawmakers had every tool available to provide transformative tax relief and rein in the size of government. Instead, they chose to spend nearly everything—and then some. Texans deserve better.

Voting “No” on this budget isn’t just fiscally responsible—it’s a signal to voters, taxpayers, and future generations that conservative leadership means something. It’s a commitment to economic freedom, sustainable governance, and the belief that prosperity comes not from government programs, but from the ingenuity and hard work of free people.

Now is the time to stand firm. Texas is watching.

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