3 Problems + 3 Solutions. Rainy Day Fund. Via TPPF.

The problems with Texas Rainy Day Fund according to TPPF:

• too easily raided for too many purposes
• too easily raided by a low vote threshold
• the cap is too high, money should be the taxpayers

The solutions:

• Require a 4/5 vote to use Rainy Day Funds
• Create a single maximum limit cap of 7% “of certain biennial general revenue (GR)-related funds”
• Use the funds above the cap to return to tax payers via a Sales Tax Reduction Fund or pay down state liabilities

The kicker for the solutions: They all require 2/3 vote of each chamber as constitutional amendments.

TPPF | Leaky Umbrella: The Need to Reform Texas’ Rainy Day Fund