Which issues will likely continue to dominate public finance in texas over the next biennium?

Which issues will likely continue to dominate public finance in texas over the next biennium?

Which issues will likely continue to dominate public finance in texas over the next biennium?



As Texas moves into the next biennium, several key issues are expected to dominate public finance in the state. From budgetary concerns to infrastructure investments, policymakers will face significant challenges in managing the financial landscape. This article explores the issues that are likely to take center stage and shape public finance in Texas over the next two years.

Budgetary Constraints

Revenue Shortfalls: One of the primary concerns for Texas public finance will be addressing revenue shortfalls caused by the economic downturn resulting from the COVID-19 pandemic. With reduced tax revenues and increased demand for public services, the state will need to find innovative ways to bridge the budget gap.

Healthcare and Education Funding: Healthcare and education are two critical areas that will require sustained funding. The pandemic has highlighted the importance of a robust healthcare system and the need to invest in public health infrastructure. Similarly, ensuring adequate funding for education will be crucial to support students and address learning gaps resulting from disruptions caused by the pandemic.

Infrastructure Investments

Transportation: Texas has experienced significant population growth, leading to increased strain on transportation infrastructure. Addressing congestion and improving connectivity will be vital for the state’s economic growth. Public finance will play a key role in funding transportation projects, including road improvements, public transit expansion, and the development of smart transportation systems.

Water and Energy: As a state prone to droughts and with a growing population, Texas must invest in water and energy infrastructure to meet future demands. Public finance will be essential in funding projects related to water conservation, reservoirs, and expanding renewable energy sources.

Economic Development and Job Creation

Business Incentives: Texas has been known for its business-friendly environment, and attracting new businesses will continue to be a priority. Public finance will be utilized to provide incentives for companies to relocate or expand operations in the state, stimulating economic growth and job creation.

Workforce Training: To remain competitive, Texas will need to invest in workforce training programs that equip residents with the skills needed for emerging industries. Public finance will play a crucial role in funding these programs, ensuring a skilled workforce that can meet the demands of a rapidly changing economy.

Tax Reform

Property Taxes: Property taxes have been a long-standing concern in Texas, with many residents feeling the burden of high tax rates. Addressing property tax reform will be a priority for policymakers, as they seek to strike a balance between funding public services and providing relief to taxpayers.

Business Taxes: The state’s tax structure for businesses may also come under scrutiny. Policymakers will need to evaluate the effectiveness of existing business tax incentives and consider potential reforms that promote economic growth while maintaining a fair and equitable tax system.


Over the next biennium, public finance in Texas will be shaped by various challenges and priorities. From addressing revenue shortfalls and funding critical areas like healthcare and education to investing in infrastructure and promoting economic development, policymakers will need to navigate a complex financial landscape. Additionally, tax reform will likely be a key focus as the state seeks to balance the needs of taxpayers and public services. By addressing these issues effectively, Texas can position itself for continued growth and prosperity.


– Texas Comptroller of Public Accounts: comptroller.texas.gov
– Texas Department of Transportation: txdot.gov
– Texas Water Development Board: twdb.texas.gov
– Texas Economic Development Corporation: businessintexas.com
– Texas Legislature Online: capitol.texas.gov