Some parents tell their children, “Do as I say, not as I do.” Texas government sometimes looks a little like that.
State law tells many cities and counties that their property-tax revenue for day-to-day operations can generally rise only about 3.5% before voter approval is required. The stated idea is restraint: local government should control spending and should not simply let taxes rise unchecked. (Texas Comptroller)
But look at what has happened to money flowing to the state itself. Texas collected about $36.0 billion in state sales taxes in fiscal 2021. In fiscal 2026, collections reached about $52.24 billion — an increase of roughly 45%. (Texas Comptroller)
Inflation over roughly the same period has been much lower, around the mid-20% range. Even in the latest year, overall consumer prices were up 3.4% through August 2026, while Texas sales-tax collections for fiscal 2026 increased 6.5% from the year before. (Bureau of Labor Statistics)
Then there is electricity. Since 2021, the average residential price of electricity in Texas has also risen faster than overall inflation. Texans are still buying the same kilowatt-hour. It does not light the house any brighter or make the air conditioner cool any better; it simply costs more.
There are legitimate reasons state revenues can grow faster than inflation. Texas has added people, jobs, and business activity. But that does not erase the comparison.
The state tells local governments to control revenue growth and keep spending under tight limits. Meanwhile, the state’s own sales-tax collections have grown far faster than inflation, and electricity costs under the system Texas oversees have also outpaced inflation.
Maybe the lesson is one many of us heard growing up:
Do as I say, not as I do.
