Off the Kuff Rotating Header Image

Senate officially taps the Rainy Day Fund

Well done.

BagOfMoney

Texas senators hammered out a sweeping deal to increase state funding for water and transportation projects and schools on Tuesday, tackling some of the thorniest issues of the legislative session all at once.

The senators voted 31-0 for Senate Joint Resolution 1, which would ask Texas voters to approve taking $5.7 billion out of the state’s Rainy Day Fund. Of that amount, $2.9 billion would go to transportation, $2 billion to water infrastructure projects and $800 million to public education.

“I woke up at 2:30 this morning worried about how I was going to get this bill out of the ditch,” Senate Finance Chair Tommy Williams, R-The Woodlands and the bill’s author, said. “It’s a miracle.”

Senators also annonunced plans to allocate an extra $1.4 billion for schools that came about after the Comptroller’s office informed the senators that property valuations have come in higher than previously estimated. Put together, the Senate’s actions would restore $3.7 billion of the $5.4 billion in cuts to public education made in 2011, Williams said.

[…]

The measure passed Tuesday is significantly different than what Williams originally proposed. His original plan had no money for education. The $800 million in the package approved Tuesday includes $500 million in formula funding and $300 million in merit pay for teachers.

On transportation, Williams had wanted to spend $3.5 billion on a State Infrastructure Fund that would either loan out money to local communities for road projects or help them borrow money more cheaply to fund the projects. Williams said late Tuesday that a majority of Senators made clear to him they were not interested in a plan that increased public borrowing.

The measure approved Tuesday will put $2.9 billion directly into the state highway fund, which the Texas Department of Transportation will use instead of issuing that much in bond debt. That will save the agency about $6 billion over the next 30 years in avoided debt service costs, Williams said.

All things considered, not too bad. I prefer this way of using the RDF for transportation, and if the Senate water plan emphasized conservation in the same way as the House plan, it’s all to the good. There will still be plenty of money left in the RDF after these expenditures, and the way the energy business is going these days, it’ll fill back up soon enough. Comptroller Susan Combs has endorsed the idea. The best part of all this is that as a joint resolution, it doesn’t need Rick Perry’s signature, just 100 votes in the House. Of course, that could be a heavy lift, but if the likes of Patrick, Birdwell, Campbell, Paxton, et al can vote for this, there’s no reason why the House teabaggers can’t as well. A statement from Sen. Jose Rodriguez on the passage of SJR1 is here, and the Observer has more.

Related Posts:

2 Comments

  1. […] Perry is very likely to get the first two items on his wish list regardless of any threats. His ridiculous tax cut, I hope not. I note that story […]

  2. […] and transportation – This is where it has gotten sticky. The Senate passed a joint resolution to allocate up to $5.7 billion from the Rainy Day fund for water and transportation projects, with […]

Bookmark and Share