Commentary

Why Republicans Should Vote Against the Texas Budget – Reason #2: The Texas Budget Belongs in California, Not Texas

May 7, 2025
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TFR Staff
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89th Legislative Session, Budget, Budget Surplus, California, Corporate Welfare, Property Tax, State Budget

Once hailed as a national model for fiscal responsibility and economic freedom, Texas now appears to be drifting dangerously close to California’s big-government playbook. The recently proposed 2026–27 Texas state budget sends a clear signal: the Lone Star State is at a crossroads, and too many lawmakers are steering it in the wrong direction.

Let’s be clear. This is not just about numbers on a spreadsheet. This budget reflects a broader political philosophy shift away from Texas’ time-honored values of limited government, low taxation, and personal responsibility. Instead, it mirrors the progressive approach expected from states like California: massive spending increases, government expansion, and token tax relief that fails to move the needle for everyday Texans.

The proposed budget increases state funds appropriations by 8.2% from the current biennium and nearly 43% compared to just four years ago. That’s more than one and a half times the rate of combined population growth and inflation—Texas’ standard for responsible budgeting. This is not “conservative.” It’s not even moderate. It’s a spending binge. What’s more troubling is that these increases are unrelated to meaningful reforms. Instead of focusing on public safety, education outcomes, or property tax elimination, the budget prioritizes politically popular but fiscally suspect programs.

For example, the plan sets aside a paltry $6 billion for property tax relief, while $24 billion in surplus funds sit on the table. It expands government programs, doles out corporate subsidies, and builds a bureaucracy that will be difficult to scale back. If you thought Texas was immune to crony corporatism, think again. The budget includes $500 million for film subsidies, billions more for electric grid subsidies, water infrastructure, so-called “future funds,” the Texas Enterprise Fund, and more. These handouts serve special interests and big businesses, not taxpayers.

This budget could have been written in Sacramento. That’s not a compliment.

There was a time when Texas Republicans championed spending limits, tax cuts, and economic liberty. But this budget fails to reflect those values. With a historic $24 billion surplus and $28 billion in the Rainy Day Fund, the Legislature had a golden opportunity to deliver transformative tax relief, perhaps even accelerating the school M&O property tax phaseout. Instead, they chose to grow government. This is a missed opportunity not just for today, but for generations. 

Texans deserve a budget that puts taxpayers first, not politicians and bureaucrats. It’s time to return to the principles that made Texas an economic powerhouse: low taxes, restrained spending, and a government that lives within its means. Conservative legislators should oppose this budget unless it’s drastically revised. Real tax relief, structural reform, and a rollback of unnecessary spending must be non-negotiable.

Because if Texas continues down this path, we may wake up one day and realize that we’ve become the very thing we once prided ourselves on never being: California.


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