Legislative Services

The Governor's Office, the Legislative Budget Board, state leadership offices and budget-writing committees have completed public hearings on the 2026-27 Legislative Appropriations Requests (LARs) from state agencies, higher education agencies and institutions, state courts and other judicial agencies. The LARs and public hearings are significant for counties because the state budget helps fund mandatory services such as indigent defense.

Here's a summary of funding requests that may affect county resources.

Texas Health and Human Services Commission (HHSC)

Summary of Requests for the 2026-27 Biennium

The HHSC baseline budget request includes funding for behavioral health programs equal to the 2024-25 budget. Unlike exceptional item funding requests, baseline funding requests are more likely to be in the final appropriations bill enacted by the Legislature. Funding for behavioral health programs benefit counties. Key baseline funding requests for behavioral programs of importance to counties include:

• $289.9 million for purchased psychiatric beds across rural and urban communities, for children in state conservatorship and competency restoration for county jail inmates deemed incompetent to stand trial. As of July 2024, the average wait time for a county jail inmate requiring a forensic bed placement was more than six months, or 14 months for placement in a maximum-security unit.
• $231 million for community mental health grant programs, including jail diversion initiatives and programs that reduce wait times for jail inmates awaiting transfer to a state hospital bed for competency restoration services, mental health services for veterans and their families, programs to reduce juvenile justice involvement through community-based initiatives with children and families, and programs that expand regional behavioral health or jail centers.
• $72 million for mental health crisis services, covering funding for crisis stabilization facilities, crisis respite units for youth and youth mobile crisis outreach teams.

Not all critical programs are included in HHSC's baseline funding request. The 88th Legislature provided $275 million for one-time grants for local mental health facilities. No similar facility proposals are included in this request, so counties will need to make their case to the 89th Legislature.

HHSC's baseline request also covers pay raises authorized by the 88th Legislature that have improved workforce stability at state hospitals and state-supported living centers. The agency is requesting additional funding over the baseline amounts to increase salaries for high-demand positions, such as nurses, and for police officers at state facilities, whose salaries are 42% below the statewide average.

The joint budget hearing for the Health and Human Services Commission was held on Sept. 30. Watch it here.

Texas Department of Criminal Justice (TDCJ)

TDCJ's baseline budget request totals $8.8 billion, including 39,962.4 positions. The agency's exceptional item requests total $2.1 billion and would add 450 positions to the payroll. Highlights from a county perspective:

The recent Sunset Staff Report says TDCJ is experiencing severe staffing shortages, with some prisons operating with only 30% of needed correctional officers, leading to safety risks and facility closures. Further, the report states that the growing inmate population will outpace available bed space. Inmate population characteristics, such as mental health care, will further challenge TDCJ's ability to manage the system. These are worrying issues for counties. Longer stays in county jails worsen jail overcrowding and increase pressures on county resources.

To some extent, TDCJ's top-rated exceptional item requests address staffing shortages – 15% pay raises for parole officers and 10% pay raises for correctional officers. Funding is also requested for staff retention initiatives.

TDCJ also requested a total of $117.6 million in exceptional items to support pay raises for community supervision officers, community corrections officers and their supervisors; expanded misdemeanor funding based on one year of supervision; and resources for community corrections facilities and services.

The joint budget hearing for the Department of Criminal Justice was held on Oct. 2, and may be viewed here.

Governor's Office – Trusteed Programs

The Governor's Office provides funding for disaster assistance to affected communities and various grant programs for counties and local governments through the Governor's Public Safety Office. The latter includes Operation Lone Star, the state's border security initiative. Funding of interest to county officials:

• $2.9 billion exceptional item request for Operation Lone Star to continue installation of barriers and provide transportation for illegal immigrants out of border communities. Prior appropriations have been spent or obligated. This request would continue funding at previously approved levels.
• $115.2 million to maintain funding for victim assistance grants for nonprofit organizations and local governments. According to the Governor's Office, victims assistance funding originates with the federal Crime Victims Fund, which continues to decline due to falling collections. In fact, Texas' annual federal award decreased by more than 40% in FY 2024. A similar appropriation out of General Revenue was used to offset the shortfall in federal funds for the 2024-25 biennium.

The joint budget hearing for the Office of the Governor was held on Oct. 3 and can be streamed here.

Comptroller of Public Accounts – Fiscal Programs

The Comptroller's baseline request includes 2024-25 funding levels for several programs important to counties:

• Reimbursement for mixed beverage tax receipts: Continues estimated funding at $635.2 million. Also, see the exceptional item request discussed below.
• County law enforcement grants (SB 22): Continues funding at $330.8 million for financial assistance to supplement salaries in rural Sheriff's offices, Constable's offices, and District and County Attorney's offices. Counties with populations of 300,000 or less – 236 counties at present – are eligible for these grants.
• Distribution to counties for gross weight/axle fees: Continues an estimated $34 million to partially reimburse counties for road damage caused by overweight trucks.
• Law enforcement continuing education funds: Continues funding at $24 million for local law enforcement agencies to provide continuing education for licensed peace officers, as required by law.
• Payment of county taxes on university lands: Continues funding at $20 million.
• Payments to cities and counties to offset property tax relief for disabled veterans: Continues current funding at $19 million. See the related exceptional item request discussed below.
• Lateral Road Fund: Continues payments to counties for county road maintenance and construction at $14.6 million.

The Comptroller's exceptional item requests include:

• $1.7 billion in federal broadband development funds, mostly for grants to support broadband and infrastructure projects. Normally, increases in federal funds above baseline amounts do not require exceptional item funding requests. In this instance, the Comptroller's Office submitted the exceptional item request because the funds are deposited into a general-revenue dedicated account. Funding requests out of the General Revenue Fund are limited to the budget target set by state leadership for the 2026-27 LARs – 100% of 2024-25 spending.
• $95.9 million in reimbursements to cities and counties for mixed beverage tax receipts based on the 2026-27 revenue estimate for mixed beverage tax receipts prepared by the Comptroller's staff.
• $50.4 million to provide local governments with relief for Disabled Veterans property tax exemptions authorized by the state. The additional funds are required to keep pace with increases in the number of local governments qualifying for the program.

The joint budget hearing for the Comptroller's Office was held on Sept. 27. Watch it here.

The 2026-27 LAR process is ongoing. County officials still have opportunities to weigh in on funding requests before and during the legislative session. County officials should continue to work with their associations to identify their state budget priorities. TAC Legislative Services will provide updates in future newsletters.

For more information about this article, please contact Zelma Smith.