Tax cuts

The state faces a $1.2 billion revenue hit in fiscal 2026 , as well as future spending pressures, from President Trump's One Big Beautiful Bill.

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.

The districts, which finance public infrastructure for housing developments, are dealing with limited revenue growth and state actions to cut property taxes.

Initiatives planned for the Nov. 5 ballot raised concerns in the state's municipal bond market over higher borrowing costs and litigation.

State lawmakers will be back in session Aug. 26 in an effort to head off ballot initiatives that worry the state's public finance industry.

Financial markets are trying to "absorb" the outcome of higher odds of Trump winning in November, said James Pruskowski, chief investment officer at 16Rock Asset Management.

Laws enacted in Arkansas and Kansas will reduce income tax revenue by hundreds of millions of dollars in fiscal 2025.

Along with tax cuts and school funding increases, lawmakers created passenger rail funding streams and paved the way for a historic hotel's bond-financed purchase.

The state House easily overrode the governor's veto of a bill aimed at lowering income, sales, and property taxes,but the Senate's attempt failed by one vote.

Democratic Gov. Laura Kelly nixed another tax cut bill passed by the Republican-led legislature this year, while pushing a less-costly plan.

Gov. Spencer Cox wrapped up action on hundreds of bills passed by lawmakers, including measures to boost or limit bond issuance and potentially put some outstanding debt at risk.