Texas Capital Highlights

Week of April 3-7, 2023 Rainy Day Fund hits cap for first time

The state’s piggy bank is nearly full. Comptroller Glenn Hegar predicts the state’s so-called Rainy Day Fund, officially the Economic Stabilization Fund, will reach its statutory limit by 2025, which is 10% of what is deposited in the General Revenue Fund. Rising revenues fueled by spikes in energy prices and inflation have filled the state’s coffers, Hegar said.

“The revenue increases that we have seen truly have been historical and unprecedented. We have never seen anything like this in the past, and I don’t think we’ll see anything like this in the future,” he said.

The state experienced record growth in tax collections in 2022 of 25.6% from the previous year, filling the state’s coffers with a surplus of $32.7 billion.

“I am glad to see that lawmakers are giving careful thought to how this tremendous asset can be best put to work for Texans,” Hegar added.

Senate backs boost for retired teachers

The Texas Senate also unanimously approved a package that allocates $4.7 billion from the budget surplus to increase monthly payments for retired teachers and gives a one-time bump to retirees over 75, the Statesman reported. The bill is now headed to the House for consideration.

The measure calls for a 2% raise for teachers who retired between Sept. 1, 2013, and Jan. 1, 2022, and a 4% raise for those who retired before Sept. 1, 2013. Senate Bill 10 also provides a one-time stipend of $7,500 for retirees older than 75. The bill affects nearly a half-million retired teachers.

“This is a significant financial commitment from the state,” state Sen. Joan Huffman, R-Houston, said. “Many TRS retirees have been struggling for so long. We needed to do this.”

Retired teachers on average make $2,100 a month through the Teachers Retirement System.

House passes diaper, period products bill

The Texas House last week overwhelmingly passed a bill repealing the state sales tax on diapers, period products, baby wipes and similar items. The measure now heads to the Senate.

Its sponsor, state Rep. Donna Howard, D-Austin, has tried for several sessions to get the measure passed.

“This bill provides an opportunity to help Texas families at every stage of life,” Howard said Tuesday, as reported by The Dallas Morning News. The measure also exempts adult diapers. have to remember to give them their space, especially during the nesting season, and pick up after ourselves. If you’re out on the water, look for the yellow signs that identify rookery islands and keep your distance. We can all enjoy the same places, as long as we do it responsibly.”