Texas political race continues amid forecast of slowing job growth

Ahead of the November 3 election in Texas, political candidates are proposing measures that could impact state finances for local governments and public schools. The Federal Reserve Bank of Dallas forecasts that job growth will slow to 1.2% this year, which is below the state's long-run average of 2%. During fiscal 2026, the sales tax generated $52.24 billion, marking a 6.5% increase from fiscal 2025.

Concerns over affordability and the economic outlook are driving political discussions in Texas. The Federal Reserve Bank of Dallas's forecast of slowing job growth suggests potential pressure on the state's fiscal health. Candidates are proposing legislative actions, such as dedicating surplus sales tax collections to lower homeownership costs.