Texas State Budget Process

Key terms and concepts covering the Texas state budget development, legislative process, and budget execution.

Texas State Budget

The state's financial plan that authorizes funding for government programs, agencies, and services over a two-year biennium.

Biennium

A two-year budget period; in Texas, state budgets generally cover two fiscal years.

General Appropriations Act (GAA)

The law passed by the Legislature that appropriates funding to state agencies and programs.

Legislative Budget Board (LBB)

A permanent legislative agency that supports the Texas Legislature in developing and reviewing the state budget and evaluating government performance.

Governor's Office of Budget, Planning and Policy (GOBPP)

The Governor's office that participates in developing and reviewing budget recommendations and monitoring budget matters.

Legislative Appropriations Request (LAR)

A state agency's formal request to the Legislature for funding and staffing authority for its programs and operations, detailing funding needs, current operations, requested resources, exceptional items, and performance goals.

Distinction Between LAR and GAA

The LAR is what an agency requests, whereas the GAA is the appropriations law that establishes what funding is legally authorized.

Agency Operating Budget

A detailed plan for how an agency intends to allocate and use its appropriated resources to carry out operations during the fiscal year within the legal limits of the GAA.

Texas State Budget Cycle

The recurring process consisting of agency strategic planning and LAR preparation, legislative review, passage of the GAA, budget implementation, monitoring, and reporting.

Texas Legislature Regular Session

A legislative session that occurs in odd-numbered years, beginning in January, and lasting for up to $140$ days.

Biennial Revenue Estimate (BRE)

The Texas Comptroller's estimate of the revenue available to finance the state budget for the upcoming biennium, which determines the amount available for legislative appropriation.

Budget Hearing

A meeting where an agency explains its budget request, program needs, performance, and financial requirements to decision-makers.

Conference Committee

A committee that works to resolve differences between the House and Senate versions of a bill, including the appropriations bill.

Budget Execution

The process of managing and monitoring appropriated funds after the budget is enacted to ensure resources are used appropriately and remain within legal authority.

Budget Monitoring

An ongoing agency process conducted throughout the year to identify spending risks, forecast future needs, manage available funding, comply with appropriations, and prevent deficits or unauthorized expenditures.