Texas comptroller on property tax relief, affordable housing, budget surplus
Texas Comptroller Glenn Hegar, the state's chief financial officer, is winding down his time in office after accepting the position of chancellor at Texas A&M University in College Station. Before he departed Austin, Hegar sat down with Eye On Politics anchor Jack Fink to speak about some of the top economic issues facing the state.
Texas property tax relief
For the second legislative session in a row, property taxes are high on the agenda for the governor, House and Senate. Booming property values in North Texas and around the state have left homeowners with large increases in their tax bills.
In 2023, voters approved a tax relief plan the Legislature passed, which raised the homestead exemption for school districts among other measures to bring down tax bills. Despite that, many residents saw their tax bills grow, especially the portion that does not go toward funding schools.
Hegar said tax bills would have risen even higher had the Legislature not acted in 2023, and the issue cannot be solved all at once.
"You've got to try to solve or take a step on solving a problem. And if you solve enough problems, then you get further along to a solution," Hegar said.
"And so I try to keep a focus on in my role and talking to the legislature, how do we address one step at a time? You're not going to get to the end destination in one step, but you're going to continue to make progress. And that's what we expect our government to do."
Affordable housing in Texas
High property tax bills are just one of numerous aspects contributing to a decline in affordable housing in Texas. Others include high property values and interest rates, as well as the cost of home insurance.
According to a report from Hegar's office, the average home insurance premium in Texas increased by 45% from 2020 to 2023, and rates are still rising. Factors include the cost of materials and labor needed for home repairs and the increasing risk of natural disasters.
"If it was easy, it would have already been done," Hegar said. "It's difficult, which is the point of your question. It's very difficult. I don't have the best answer, but at least I do feel like it's my responsibility to elevate that discussion, that this is a major issue in the state of Texas."
Hegar said there could be some role for the state government to step in to help control insurance costs. However, he warned that too much government intervention could lead to insurers leaving the state, which would leave consumers with fewer options.
$24 billion Texas budget surplus
As the legislative session was underway, Hegar reported that the state gas a $24 billion surplus available to spend in the next 2-year budget. That is short of the $33 billion surplus from 2023, but Hegar said lower surplus does not mean the economy is in worse shape.
The 2023 surplus "was a result of all kinds of spending individuals and businesses coming out of COVID, 40-year-record-high inflation," Hegar said. "Additionally, all the federal money that was flowing to individuals as stimulus dollars, as well as to state governments and local governments, that adrenaline shot into the economy, right, wrong or indifferent, led to what we had last session."
More than half of the 2025 surplus is carried over from the 2023 surplus, including a $4.5 billion school funding package that did not pass. Hegar said he expects the Legislature to devote much of the surplus on big items that are fundamental to the state economy, like the power grid, water infrastructure and public education.
"The foundation of the Texas economy is extremely strong," Hegar said.
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