News Article | April 17, 2025
State Budget Advances to Conference
Last week, the Texas House adopted its version of Senate Bill 1, the state budget for the 2026-27 biennium, which begins Sept. 1, 2025. With both House and Senate conferees appointed, the budget process is moving toward its conclusion.
The next step is the release of a side-by-side comparison of the two chambers’ versions of the budget. These documents, known as “issue dockets,” will detail differences in funding amounts, riders and bill language. They will be made available for public review before the Conference Committee finalizes its decisions.
SB 1 Conferees
House:
- Rep. Greg Bonnen (R-Friendswood), Chair, House Appropriations Committee
- Rep. Mary Gonzalez (D-Clint), Vice Chair, House Appropriations Committee
- Rep. Stan Kitzman (R-Bellville)
- Rep. Angelia Orr (R-Hillsboro)
- Rep. Armando Walle (D-Houston)
Senate:
- Sen. Joan Huffman (R-Houston), Chair, Senate Finance Committee
- Sen. Brendan Creighton (R-Conroe)
- Sen. Lois Kolkhorst (R-Brenham)
- Sen. Robert Nichols (R-Jacksonville)
- Sen. Charles Schwertner (R-Georgetown)
While most differences between the House and Senate versions are minimal, particularly as they relate to funding important to counties, several budget items affecting counties vary in funding levels. Selected examples:
| SB 1: State Budget for the 2026-27 Biennium | |||
|---|---|---|---|
| House | Senate | Difference (House-Senate) | |
| Selected Key Funding Differences | |||
| Disabled Veterans Assistance Payments to Cities and Counties | $69.4 million | $19 million | $50.4 million |
| Criminal Justice Grants, Governors Public Safety Office | $771.9 million | $756.4 million | $15.5 million |
|
• Crime Victim Rapid Response Grant Program
|
$10 million | $— | $10 million |
|
• Project Safe Neighborhood Grant Program
|
$4 million | $— | $4 million |
| Homeland Security Grants, Governors Public Safety Office | $446.8 million | $444.8 million | $2 million |
|
• Nonprofit Security Grant Program
|
$7 million | $5 million | $2 million |
| Community Mental Health Services | $1,440.7 million | $1,412 million | $28.8 million* |
| Community Mental Health Grant Programs | $230.5 million | $235.5 million | $5 million** |
| Mental Health Community Hospitals | $801.2 million | $780.7 million | $20.5 million*** |
| Texas Indigent Defense Commission | $173.7 million | $ 164.1 million | $9.5 million |
| Office of Court Administration | |||
| Contingency Senate Bill 9 (does not reflect any related county confinement costs) | $— | $4.1 million | $4.1 million |
*House provides more for youth mobile crisis outreach teams and local mental health authorities.
**Senate provides more for jail diversion programs and community collaboratives.
***House provides more for operations of new or expanded mental health facilities.
There are also county-related items in Article XI, the so-called wish-list article, notably:
- County Transportation Infrastructure Grant Program — $250 million (Article XI, both House and Senate).
- Contingency for SB 1377/HB 3000, Rural Ambulance Service — $90 million (Article XI, both House and Senate).
In addition, we are also tracking HB 500, the supplemental appropriations bill for the current two-year budget, which contains several items significant to counties, including:
- Courthouse preservation grants.
- Expanded state and local wildfire capacity due to the Panhandle fires.
- Funds to plan and design local mental health facilities in Brazoria and Tarrant counties.
- Grants to reimburse counties for juvenile detention costs and additional county grant funds for indigent defense.
- Water infrastructure investments.
HB 500 has been referred to the Senate Finance Committee. Once the Senate adopts its version of the bill, a conference committee may be needed.
As lawmakers finalize the budget, the state’s spending caps may receive greater focus. Based on current estimates, which consider the House versions of SB 1 and HB 500, the remaining spending authority is $2.9 billion. This is the lowest of the three caps and, as such, the controlling limit.
The Legislative Services team is preparing a detailed side-by-side comparison of county-related funding items in the budget, which we will post online. Please contact Zelma Smith with questions or for more information.