The expected amount for the biennial revenue estimate is $32.7 billion. When the current budget was created during the parliamentary session of 2021, this excess budget was not expected.
As they are required to develop a two-year budget, state legislators are now faced with a conundrum over how to spend it. According to Austin-American Statesman, some want to utilize the excess to reduce property taxes, which would help homeowners who are feeling the strain from rising market prices.
According to Dale Craymer of the Texas Taxpayers and Research Association, this shifts the tax burden to other groups, such renters and companies that are not eligible for homestead exemptions. The fact that companies pay more than half of the school property taxes will be contradicted by this.
Comptroller Hegar urges lawmakers to decide to invest in infrastructure and services that will fuel growth for Texas in addition to tax relief in light of all these recommendations on how to utilize the surplus.
Decide Spend Surplus Budget
Texas’ infrastructure is being threatened by the state’s fast growth. But broadband issues were the primary finding.
According to a survey, 7 million Texans still do not have access, and several billion dollars are required to connect everyone. The Texas Water Development Board, which forecast a severe drought in 2022, is another choice.
This demonstrates how the drought poses a persistent threat to seriously impair the state’s economy and jeopardize public health and safety.
Taking care of the electricity grid is also necessary. As transmission reliability, energy efficiency improvements, and even more capacity improvements could all be accelerated, this would require several billion dollars.
By utilizing part of the surpluses to pay off the securitization that was put in place to cover the high gas cost that was passed down to the customer, it would be able to include the monthly utility bill relief.
Other Reports, Relief Check
A $1 billion tax rebate provision and expenditures on housing, healthcare, and education are all part of this package. Gov. Grisham stated that the objective of this budget is to maintain the improvement of the lives of New Mexicans via supporting programs, policies, and successful projects.
She continued by saying that this will also provide the state more authority to keep coming up with fresh, cutting-edge solutions for unexpected economic disruptions. According to a report by the US Sun, this will significantly aid the community’s growth and prosperity as well as the citizens.
All taxpayers in New Mexico will be eligible for the rebates. The one-time refunds in Gov. Grisham’s budget are $750 for single filers and $1,500 for joint filers. According to specifics from the proposed budgets, non-filers would be given funds on a first-come, first-served basis.