• San Antonio Chamber of Commerce

The Biennial Budget

There are 41 days left in the 87th Legislative Session. Members have passed significant legislation, including Senate Bill 1, the biennial budget. The Senate unanimously passed the $250 billion 2-year budget on April 6, and the House Appropriations Committee passed its version of Senate Bill 1 last week with only a $750 million difference. Debate on Senate Bill1 is set for April 22, 2021 in the full House. The $250 billion budget does not include or account for the $35 billion in federal coronavirus aid. The budget bill is a 2.6% increase from the prior biennial budget and still leaves the Economic Stabilization Fund, commonly referred to as the “Rainy Day Fund” at a projected $11.6 billion at the end of 2023, from its current $10 billion total. A combination of factors including higher property taxes, less than expected school attendance, and federal funds from the CARES Act freed up almost $5.5 billion to balance the budget and keep the school formula funding increases and property tax reductions enacted last session in place.