Tax cuts

Municipal bond issuers in the state dodged a barrage of bills in this year's legislative session seeking to constrain their debt sales.

The agreement includes $12.6 billion in spending for the fiscal year that begins July 1 and an income tax cut estimated to cost $160 million.

The state, which lost its positive S&P outlook due in part to previous tax cuts, could have further reductions under a bill that survived the governor's veto.

The law cuts the individual income tax rate to 3% by calendar year 2030, with triggers that may drive future annual decreases until it ultimately falls to zero.

Legislation addressed expanding water supply, paying for flood damage, financing for capital projects, as well as a fiscal 2026 spending plan.

The state will have less money to spend in the upcoming fiscal year, according to projections certified in a process criticized by Oklahoma's attorney general.

Texas officials are eying ways to protect a massive state-funded school property tax cut from being eroded by local bond issues and tax increases.

While Texas is forecasting a big budget balance, fiscal boom times are ebbing for it and other Southwest states amid tax cuts and depleted federal funding.

Many states are capping or trying to eliminate property taxes that support bond issuance.

Two former Congressional staffers offered insight into how the debate may play out, but said the industry needs to be vocal and educate lawmakers how bonds help their district.