Tax cuts

Legislative leaders said they agreed to an $18 billion package that includes a reduction in school property taxes and a higher homestead exemption.

The $54.3 billion spending plan for fiscal 2024 is $5.4 billion larger than last year's and $1.2 billion more than the proposal Gov. Phil Murphy pitched in February. It features tax-relief programs and tax code changes.

With no agreement on how to structure a historic property tax cut, Gov. Greg Abbott ordered state lawmakers back for a second special session.

As the Republican-controlled state House and Senate remain divided on how to deliver a historic tax cut, the governor vetoed dozens of bills to pressure lawmakers.

A bill passed this week would place a measure on the November statewide ballot to prevent growing home values from raising property taxes.

The Republican-controlled legislature sent the governor a tax cut bill that included replacing the state's three-tier personal income tax structure with a flat 5.15% rate.

The bill follows the same lines as Gov. Maura Healey's tax relief package proposed in February, but comes with a smaller price tag.

The rating agency said it could upgrade the state's ratings over a two-year period if recent healthy fund balances are maintained.

Gov. Greg Abbott used his State of the State address to fast track his priorities for the legislative session and drop a hint about an upcoming $100 billion transportation infrastructure plan.

The scheduled expiration of the TCJA tax cuts "is the most significant factor pushing up tax revenues relative to income over the next 10 years," the CBO said.