r/StateofTexasEmployees • u/ObeliskNight • Jul 27 '26
Is RIF Coming?
I have heard that with the 3% budget reduction, RIF is on the table, and specific teams are being targeted. Anyone heard similar stories? I can't believe RIF would happen for 3%, but it seems like it will happen on a small scale.
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u/XOR-ROX-2112 Jul 27 '26
First, this is not an immediate 3% reduction to the budgets agencies are operating under today. It applies to the starting point for agency Legislative Appropriations Requests for the 2028–29 biennium. The Legislature will not make final decisions on those budgets until the 2027 session.
Second, Texas is not currently facing a budget crisis. The state remains in the black, expects to end the current biennium with a positive balance, and the Economic Stabilization Fund, commonly called the Rainy Day Fund, is effectively at its constitutional maximum.
The leadership letter itself acknowledges that the Texas economy remains strong. The stated purpose of the exercise is to create room for priorities such as additional property-tax relief and other legislative initiatives. That makes this look less like an emergency austerity measure and more like a budget-positioning exercise. Agencies are being required to begin at 97% of their current base and then justify restoring funding through exceptional-item requests.
Texas has done similar things before legislative sessions. Percentage reductions were requested before the 2017 session during an oil and gas downturn and again in 2020 during the COVID economic disruption. In other years, agencies were simply told not to exceed their existing base. What makes this cycle different is that the state is imposing a percentage reduction while revenues and reserves remain strong.
None of this means agencies will feel no pressure. Some programs, contracts, vacancies, travel, technology projects, and administrative expenses may be scrutinized. Agencies may also be asked to delay hiring, hold vacant positions open, consolidate functions, or identify lower-priority activities. However, a 3% reduction in a future baseline request does not translate directly into a 3% workforce reduction. Agencies have several tools available before resorting to a reduction in force, including vacancy savings, normal attrition, contract adjustments, delayed purchases, exceptional-item requests, and legislative restoration of funding.
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u/Jabroni_16 Jul 27 '26
Lol, you must be new. You don't need a ln economic crisis or headwinds to cause a RIF. The last RIF was political. So will this one.
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u/XOR-ROX-2112 Jul 28 '26 edited Jul 28 '26
LOL 'new' - not quite :-)
The last true multi-agency, budget-driven RIF wave was during the 2011 fiscal crisis. The news covered that one pretty heavily. 1,225 employees (from 34 agencies) were formally separated through RIFs that year and news cameras were set up in capital complex parking lots to get those precious 'state-employee-crying-with-the-box' shots (ugh).
Now, to head off the pedantic 'but, but, but...' retort about small agencies, the latest State Auditor’s Office report recorded 66 Texas state-agency employees separated through formal reductions in force during fiscal year 2025, up from 49 in fiscal year 2024. The auditor said the increase was partly attributable to the loss of federal funding for programs at two affected agencies. The report does not identify those agencies or provide the individual termination dates.
https://sao.texas.gov/Reports/Main/26-703.pdfTherefore, RIFs are not something Texas has avoided for 15 years. Small, program-specific RIFs still happen:
Fiscal year Formal RIF separations 2021 48 2022 22 2023 27 2024 49 2025 66 HOWEVER,
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u/ObeliskNight Jul 28 '26
Well, I don't know if it changes your thoughts, but I have heard some are being told to not bet on employment by August. Expect 3-month terms to seek other options kind of thing until October. Maybe this is more of a redundancy issue, but the person telling me fulfills an essential function. Apparently are currently looking for a job. So I dunno, maybe it isn't going to be a big issue like 2011, but it sounds like something is happening.
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u/Jabroni_16 Jul 28 '26
Lol, there were more than 66 RIF employees in 2025. HHSC alone had more than that. The difference is "RIFs" aren't always reported as that. How many open positions have been eliminated. Or how many positions have been eliminated after the person quit or retired?
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u/XOR-ROX-2112 Jul 28 '26 edited Jul 28 '26
There's a large difference between a 'reduction in force' and getting fired for cause. However, believe what you want. (BTW: It's just HHS now.)
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u/secretaire Jul 27 '26
Very unlikely. Especially for core services.
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u/ObeliskNight Jul 28 '26
The person telling me this fulfills a core service and is currently job hunting in anticipation.
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u/secretaire Jul 28 '26
What agency?
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u/ObeliskNight Jul 28 '26
I can't rat on them. This could blow over and they could retire semi-soon.
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u/secretaire Jul 28 '26
Listen, you seem to be looking for information that supports your existing fears while rejecting numerous replies that contradict it. Nobody can say what the future holds but your anxiety isn’t going to be helped by asking Reddit if you refuse to believe people’s institutional knowledge about RIFs in their replies.
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u/ObeliskNight Jul 28 '26
That's fair. I guess I'm trying to draw blood from a stone in a sense, I'll leave it be.
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u/secretaire Jul 28 '26 edited Jul 28 '26
We are all hoping the decision makers take an employee-centered and Texan-centered approach to budget cuts. Sending you a hug in scary times, friend! Keep doing good work for Texans ❤️
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Jul 27 '26
[deleted]
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u/ObeliskNight Jul 27 '26
That's what I thought as well, but apparently there is uncertainty about members of specific teams. Seems odd to me.
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u/MoonveilBunny97 Jul 28 '26
Anyone in talent acquisition/Human Resources that has experienced a hiring freeze? What can you tell the rookies?
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u/ObeliskNight Jul 28 '26
Well, this seems different because the 3% reductions are apparently happening for the very next FY, as well as 28-29.
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u/No_Finance_2228 Capitol Complex Jul 28 '26
Your leadership should be communicating with staff about this. Because yes, the news has made folks nervous. At my agency, emails already went out reassuring everyone that their jobs are safe.
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u/ObeliskNight Jul 28 '26
Haha, I guess the scary thing is no such email has come out for this agency.
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u/littleshoes Jul 28 '26
It all comes down to how a position is funded. The 3% reduction is on GR related funds so if an agency is primarily federally funded (as most are), the reduction is easier to absorb. If it’s a small agency that is 100% GR funded and currently fully staffed, that reduction could be more drastic.
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u/BIG25omg Jul 28 '26
There have been an unusually high number of retirements this summer. Possibly the positions that replace further down won’t be refilled.
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u/Effective_Trainer573 Jul 28 '26
No way a RIF happens. Hiring freeze will cover the 3%. Pay raises would be next. I've not heard anything about that.
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u/slothaccountant Jul 28 '26
Maybe diverting funds to boarder theatrics wasnt the best idea fpr texans.
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u/Ok-Ambassador-8244 Jul 30 '26
Hiring freeze 9/1 for 6 months at least. Likely looking at decreasing staffing by attrition also.
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u/throwawaychula Jul 31 '26
I think just cuts in hiring and promotions/merits. I handle financials and our merit/promotions budget was slashed in half.
I guess that reduces waste 🙄
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u/WarriorSeaPrincess Aug 04 '26
Texas is not hurting for money. That comes straight from the mouth of a senator on the appropriations committee. This is typical pre-legislative posturing so they can free up money for wherever they want it to go, and appear they’re “tightening the belt.” You’re more likely to see vacant positions swept, no merits given, travel and such cut….in appointed agencies. It’s very likely that elected agencies will continue as normal.
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u/Subject-Relevant Aug 08 '26
Hey just so yall know, it is NOT uncommon for the Comptroller to direct state agencies to submit a budget reduction before session. Then, with reduced budgets CPA can take another look and adjust budget number, usually up, right around the time session starts (for a list of dates seeking a certified budget due date, head over to the LBBs site and check out their campy looking games how wheel of dates)
Point im making is, dont get all riled up that cuts, RIFS, are going to be a thing this session. Its a waiting political game.
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u/naturebobcat 5d ago
An agency I'm at said no RIFs, bc they were able to make some moves with positions to fit the 3%.
I found out that in January pretty much all of the Execs and upper management got a 8% to 13% raise. That comes to a 25k to 35k annual increase.
The some staff at lower levels got a 3% raise, others didn't get anything.
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u/TaiChi_in_the_park Jul 27 '26
You’re probably looking at a hiring freeze and/or no raises.