Legislative Blog
J.B. Williams, J.D.
Proposition 6 Texas Water Fund
A Blog about Constitutional Water fund
A Bit of Background
The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically Constitutional Water fund as it relates to that topic.
Brief Summary of Texas
Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.
Summary of Constitutional Water fund
This would create a water fund over the multiple water funds that are currently administered by the legislature. Then this new administration would have freedom to determine how to allocate the money that is in the fund. There doesn't even seem to be a report back feature built in, unless there is an overall one for all spending.
Blog Summary
This would create a Constitutional fund that the Legislature would be appropriating funds to, but they would not be determining how they would be spent. Since it is water, I would imagine that not funding it at the rate that is requested would result in it being made an issue with the general public. So a way to spend taxpayer dollars without having the elected individuals making the spending decisions. Just look to the Federal governments multitude of funds to see how poorly this works out for the taxpayer.
Proposition 6 Texas Water Fund
Published: 2023-10-16
So it seems, much like the Federal government, the State of Texas wants to create a fund under which a non-elected individual(s) controls how the funds are to be spent. Generally speaking, when this begins I imagine it works much like it has in the past. By that I mean that in the past the individual(s) had to ask for legislative approval to spend money in a certain manner, and that information was presented in such a way as to seem very logical and necessary. Therefore the funds were appropriated as per the request. But this may have required more reports to be generated and, even perhaps, a special session of the legislature to appropriate funds. However, it did have the elected members of the Legislature in control of how the money was being spent.
Over time, I suspect, much like so many of the Federal government funds have become, this fund will become a money suck. They will clammer that more funds are needed to do X and Y, and that the people deserve better and this needs to be done. And honestly, the items they are stating will, more often than not, be things that the people agree need to be done. However, more and more of the funds will somehow not be spent as fiscally responsibly as they were in the past. And to make changes and return the control to the Legislature would require a Constitutional amendment. Seems doable because people would be upset that things were not happening like they want. But the Fund administrators will claim that the Legislature is starving it by not appropriating the funds necessary to do what it needs to do; and the people won't fund to return power to the Legislature that is not willing to spend the money were it needs to be spent. So the Legislature will appropriate ever larger amounts of money to the fund to reach the point where perhaps the change can be made. But in the end it will forever be taxpayer dollars being spent by unelected individuals will little to no government oversight. Mostly because no one will argue that the Texas Water Fund should not be supported - water is important. The name will overshadow so much until the wrong is too great.
I hate to be viewing this in such a negative light, but its the nature of government bureaucracy. I am not saying that the Fund Administrator will be purposely screwing the taxpayer but it is more likely than not to occur. While I hate government bureaucracy, I think in instances of doling out taxpayer dollars to entities it is better to keep the legislature involved. I cannot imagine that an oversight Administrator for all the Water Funds could not present the information necessary to have the legislature appropriate funds accordingly. And if it is a matter of one fund may need up to $2 million dollars but may not use those funds; and if not that fund 2 could use them to do X because X is important but not critical. Then surely the legislature has a means of allocating funding to a particular fund, but not requiring it to be spent, and allowing that should it not be needed then allocating it to another water fund. I am sure this requires more steps but it still maintains legislature control.
I am just not a fan of funds created outside the general revenue fund. Why not pass legislation that says X dollars are appropriated to be spent by the following funds (list the same funds), have someone administrating this. They could even allocate X tax, pick a tax already levied that seems related to water, to these funds in equal parts or non-equal parts. This could be set to naturally end unless otherwise re-instated. So give them X tax for a period of 4 years; and any income they make on those funds while holding them. This grants them some leeway in spending but ultimately the funds are administrated by the legislature as they should be.
This would create the Texas water fund outside the general revenue fund. It would be administered by the Texas Water Development Board. The legislature may appropriate money to the fund.
Once the funds are in the Texas Water Fund they do not require additional legislative approval to be spent. The Fund administrator may transfer money from or restore money to the fund, including the following:
- Water Assistance fund no 480;
- New Water Supply for Texas Fund;
- Rural Water Assistance Fund no 301; or
- Statewide Water Public Awareness Account.
The Texas Water Fund will consist of:
- money transferred to the fund by general law, including legislative appropriations;
- any other revenue that the legislature dedicates by statute to be deposited with the fund;
- investment earnings and interest earnings on amounts in the fund;
- money from gifts, grants, or donations to the fund;
- money returned from any authorized transfer.
The legislature shall provide the manner by which the funds may be used, subject to any limitations being provided.
Out of the initial appropriation, at least 25% must be used and transferred to the New Water Supply for Texas fund.
Any expenses incurred in managing the fund must be paid by the fund.
These funds would be dedicated by the Texas Constitution.
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