AUSTIN - I just don’t understand what all the hoopla is about using the Rainy Day Fund to help Texas get out of its budget shortfall dilemma. The Rainy Day Fund is a savings fund that allows the state to set aside excess revenue for use in times of unexpected revenue shortfall. It can plug holes in the budget and defend against an economic disaster. If the economy went belly up after the Legislature wrote its budget, the fund would offer an escape from deficit. The money comes from several sources, but natural gas and oil tax revenues have been the driving factor in the fund’s growth and the state could rely on it to fill in budget holes. The fund can replenish money needed for education, healthcare, correctional facilities, etc. With that said, I say to myself, “I must be missing something here? Wouldn’t this help alleviate some of the problem?”
Even though using the fund isn’t particularly easy, that is, if the comptroller says that revenue will decrease between legislative sessions or if a budget deficit unexpectedly develops, it requires a vote to transfer money away from the fund. The fact is the Lege already had decided that it wanted to tap into the fund and had the votes to do so but Gov. Perry initially insisted that he would veto any use of the fund, totally against using the fund at all. For some reason, he has and still believes that Texas’ economy is not at all as bad as it seems. He later agreed with House leaders to use about $3.2 billion of the $12.6 billion dollar fund to address a deficit in the 2011 fiscal year but is still adamant about not using any of the remaining fund for the expected shortfalls in 2012 and 2013. “Governor, look around. What do you see? It’s not pretty!” Again I ask myself, “What am I missing here?”
It has been asked, “What's Perry waiting for? Armageddon? The Dallas Cowboys to make the Super Bowl? What else is he fixing to do with the money? Pile it up in the Rotunda and take a picture of it for his Christmas card?”
Governor, it’s time to be the peoples' Governor and look out for them. Set aside special and personal interests during this crisis.
I just hope that Gov. Perry’s opposition to using the Rainy Day Fund was not in retaliation for the lack of precipitation in the state.
Written by John Commentary for GOVT 2306 – 025 August 01, 2011
No comments:
Post a Comment