Texas has an unprecedented budget surplus. What can be done with the billions of dollars? [View all]

When the Texas Legislature meets for the first time this year on Tuesday, the state will be in a position it has never been in before.

The state’s budget surplus is unprecedented, with estimates showing it to be at least $27 billion, and possibly as high as $35 billion.

Why is it so high?

Daniel Sánchez-Piñol, an economist with the conservative think-tank Texas Public Policy Foundation, said it’s all due to inflation.

“A lot of it comes from the sales tax, and because we are living in a high-inflation environment, that means the prices have gone up,” Sánchez-Piñol said. “And every time we make a purchase, we are paying the sales tax.”

Read more: https://www.kut.org/politics/2023-01-09/texas-has-an-unprecedented-budget-surplus-what-can-be-done-with-the-billions-of-dollars