ABSTRACT
This chapter describes how budgets are drafted in Texas, how revenues are raised, and how the money is spent. Officials in Texas state government make critical decisions about how much revenue to raise, through what kinds of taxes and fees, levied against whom. Prior to 1949, Texas had no systematic budgetary process and no single, unified, coherent budget document. John Connally was a major force in Texas politics for half a century. In the late 1970s, Texas politicians and voters again sought to limit government spending. The Texas Constitution identifies the governor as the state's chief budget officer, but, in fact, the legislature crafts the budget. Specifically, the ten-member Legislative Budget Board (LBB), co-chaired by the lieutenant governor and Speaker, prepare a budget for submission to the legislature. Despite the fact that federal funds pay most Children's Health Insurance Program (CHIP) expenses, Texas sets tight eligibility and low benefit rules to limit the number of eligible children served.
