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The Texas Legislature begins its work creating a state budget for the next two years with slightly less revenue available than it had during the previous biennium.

Texas Comptroller Glenn Hegar projects lawmakers will have $194.6 billion available during the 2026-27 budget cycle, down 1.1%. Hegar said the decrease is because the state is starting with a beginning balance that is nearly $16 billion less compared to 2024-25.

He noted the state is in good financial shape and predicts revenue collections will continue to rise in the upcoming biennium.