Rainy Day Fund and Water

People keep moving to Texas because our policies foster economic growth. This growth has caused a boom in tax revenue which ironically threatens to grow government, the limited nature of which in Texas is largely responsible for our prosperity. Speaking of irony, how is it that in 2011, when lawmakers struggled with a huge biennial deficit, they decided to use $3.2 billion from the Rainy Day Fund (formally known as the Economic Stabilization Fund) to cover a shortfall that year’s budget. But now, in 2013, in a time of sunshine, some lawmakers are proposing to again use the Rainy Day Fund, this time to spend $2 billion to create another water fund on top of the existing $6 billion water fund.  In any case, the newly proposed state budget is very close to its spending cap. Spending for a purpose other than what the Rainy Day Fund was created for would require a two-thirds vote in both houses as well as a vote to bust the spending cap—two votes that would set a dangerous precedent in setting Texas on the path of growing government ahead of the people’s ability to pay for it.  Further, as important as water is, it ought to be debated in the context of the existing budget and under the current constitutional spending cap along with other important programs such as education, transportation or Medicaid. No one denies that Texas is in need of more water. But, what Texas needs more than money is reform at both the federal and state level. In addition to environmental regulations, Texas can improve its own water picture by eliminating state restrictions on the sale and repurposing of water rights and inter-basin water transfers.  Having what will be an $11.8 billion pile of money laying around in 2015 is giving some lawmakers an urge to burn a hole in the public purse. If lawmakers really want to dip into the Rainy Day Fund, we have a suggestion: return the money to the people with a tax cut. Putting the complex and expensive to comply with Texas franchise tax on the road to elimination over six years would be an excellent use for $1.2 billion of this fund.  

Press Release March 26, 2013

Millions of Reasons to Pass HB 335

Current state law requires all cities, counties, school districts, and special districts in Texas to purchase advertising space in print newspapers to publicize their public notices. House Bill 335 would relax that requirement to allow local governments to post public notices online instead of in print, potentially saving taxpayers millions of dollars every year.    To better illustrate the savings at stake, we decided to submit Public Information Act requests to the top 5 counties, cities, and school districts in Texas asking them for the following information:   “…the total amount expended by [NAME OF LOCAL ENTITY] for newspaper ads for public notices for the fiscal year of 2012.”     Here is what we found:   Local Govt. FY 2012 Estimate City of Dallas $3,018 City of Fort Worth $17,274 City of Austin $30,069 Tarrant County $49,216 Travis County $64,485 Harris County $266,146[i] Bexar County $276,601 Dallas County $350,480 Fort Worth ISD $12,953 Austin ISD $45,244 Dallas ISD $75,762 Northside ISD $81,324 Houston ISD $291,561 TOTAL $1.56 million     According to James Quintero, TPPF’s Sr. Fiscal Policy Analyst who testified recently to the House Committee on Technology on this issue: “As you can see from the totals listed above, local governments around the state are incurring annual expenses for advertising that run into the millions. For just the [13] cities, counties, and school districts listed above, the total amounts to [$1.56] million. These are resources that are not available to schools, roads, libraries, or any other purpose—but they could be.”     [i] Harris County’s response to the open records request could not be tabulated before the committee hearing.

Press Release March 25, 2013

TUESDAY: Texas Public Policy Foundation joins The Heritage Foundation on “The Urgency for School Choice in Texas”

AUSTIN – The Texas Public Policy Foundation and The Heritage Foundation will host a panel discussion and luncheon concerning school choice in Texas on Tuesday, March 26, at the Stephen F. Austin Intercontinental Hotel. The Honorable Jim DeMint, president of The Heritage Foundation and former United States Senator, will be a featured speaker and participant. ...

Press Release March 22, 2013

Texas Pummels California in Latest Jobs Report

The Bureau of Labor Statistics today released state employment and unemployment data for January 2013, and we took the liberty of comparing the nation’s two economic heavyweights, Texas and California, to see who outperformed who. The winner is clear.    Two-year trend        From Jan. 2011 to Jan. 2013, California added 488,600 jobs.      From Jan. 2011 to Jan. 2013, Texas added 581,300 jobs.   One-year trend       From Jan. 2012 to Jan. 2013, California added 254,900 jobs.       From Jan. 2012 to Jan. 2013, Texas added 310,900 jobs.     Unemployment          California is tied with Rhode Island for having the highest unemployment rate: 9.8 percent,       unchanged from last month.       Texas’ unemployment rate is: 6.3 percent, up from 6.2 percent in December, even as Texas         added 10,400 jobs in January and California added 1,700 jobs.     To show how remarkable Texas’ numbers are, consider this: California has a civilian labor force of 18,591,111 while Texas has a labor force of 12,680,661. This means that California has a workforce that’s 47 percent larger than Texas’ but Texas created 19 percent more jobs in the past 2 years and 22 percent more jobs in the past year!   Texas again proves that its model of low taxes and limited government is a success.    

Press Release March 18, 2013

Texas Pummels California in Latest Jobs Report

The Bureau of Labor Statistics today released state employment and unemployment data for January 2013, and we took the liberty of comparing the nation’s two economic heavyweights, Texas and California, to see who outperformed who. The winner is clear.    Two-year trend        From Jan. 2011 to Jan. 2013, California added 488,600 jobs.      From Jan. 2011 to Jan. 2013, Texas added 581,300 jobs.   One-year trend       From Jan. 2012 to Jan. 2013, California added 254,900 jobs.       From Jan. 2012 to Jan. 2013, Texas added 310,900 jobs.     Unemployment          California is tied with Rhode Island for having the highest unemployment rate: 9.8 percent,       unchanged from last month.       Texas’ unemployment rate is: 6.3 percent, up from 6.2 percent in December, even as Texas         added 10,400 jobs in January and California added 1,700 jobs.     To show how remarkable Texas’ numbers are, consider this: California has a civilian labor force of 18,591,111 while Texas has a labor force of 12,680,661. This means that California has a workforce that’s 47 percent larger than Texas’ but Texas created 19 percent more jobs in the past 2 years and 22 percent more jobs in the past year!   Texas again proves that its model of low taxes and limited government is a success.    

Press Release March 18, 2013

Texas Public Policy Foundation energy and environmental expert to participate on Conservative Political Action Conference panel

AUSTIN – The Texas Public Policy Foundation’s Kathleen Hartnett White, Distinguished Senior Fellow and Director of the Armstrong Center for Energy and the Environment, will speak on the “Individuals, Liberty, and the Environment: Seizing the Environmental Issue” panel at the Conservative Political Action Conference on Friday, March 15, 2013, at 10:30 a.m.   “Conservatives need to reclaim...

Press Release March 14, 2013