AUSTIN — Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dustin Burrows have directed most Texas state agencies and public universities to reduce their baseline funding requests by 3% as the state begins preparing its 2028–29 budget.
In joint guidance issued Tuesday, the Republican leaders instructed agencies to submit Legislative Appropriations Requests reflecting a 3% reduction in base funding while identifying efficiencies and lower-priority spending.
The reductions will not apply to the Foundation School Program, which funds Texas public schools, or the Texas Education Savings Account program. The guidance also calls for continued support for teacher pay, public education and additional property tax relief.
“Texas leads the nation with a strong economy and responsible governance that puts families first,” Abbott said in a statement Wednesday, adding that the budget plan protects investments in education while helping reduce the cost of living for Texans.
A Legislative Appropriations Request serves as an agency’s funding proposal, outlining operating needs and spending priorities for the next two-year budget cycle.
The budget guidance follows the 89th Texas Legislature’s approval of teacher pay raises, increased public education funding, water infrastructure investments and billions of dollars in property tax relief.
State agencies will now prepare their budget requests for consideration by lawmakers during the 2027 legislative session, when the 2028–29 state budget will be negotiated.