Article Archives

Article Categories

Articles

Get Out the Vote on Proposition 6

Posted by jen on 10/01/2013 12:00 am  /   Announcement

What Does Prop 6 Do? 

 

The proposal will authorize the transfer of $2 billion from the state’s Economic Stabilization Fund (ESF or “Rainy Day Fund”) to a State Water Implementation Fund for Texas (SWIFT). The $2 billion one-time cash infusion will be used with already authorized bonds to provide low interest loans, credit enhancement, interest deferrals, and other financial assistance to projects approved in the State Water Plan. It is expected that the SWIFT will operate as a revolving fund; with repayments funding new loans, the program should provide the financing needed to implement the projects in the 50-year State Water Plan.  Prop 6 is a Fiscally Responsible Use of the Rainy Day Fund.

One of the major issues in the campaign will be the effect on the Rainy Day Fund and whether this move is fiscally responsible. The Rainy Day Fund is the state’s “savings account” intended to provide a cushion for fluctuations in the state’s economy. The RDF is funded by revenues from the oil and gas severance tax – 75% of the amount collected over and above the amount collected in 1987 is deposited to the RDF.
 
Because of robust oil and gas production, over $2 billion is expected to be deposited to the Fund each year over the next two years. Even after the $2 billion transfer for the Water Plan authorized in Proposition 6 (and with some of the revenue redirected to transportation if an amendment to be voted on in 2014 is approved), the Rainy Day Fund is expected to have a balance of $8 billion at the end of 2015. The future income from oil and gas severance taxes is, of course, unpredictable in the long term, but in the short term a one-time transfer of this magnitude is fiscally responsible.

The Need is Significant:

  • According to US Census data, Texas has 8 of the top 15 fastest growing cities. The state population is expected to increase 82 percent between 2010 and 2060, growing from 25 million to 46 million people.
  • Available water supplies are expected to decline over this period from 17 million acre-feet to 15 million acre-feet, primarily because of groundwater depletion.
  • The projected population will require an additional 8.3 million acre-feet of water by 2060 (above what is presently available) through new development and water management strategies. Regional planning groups recommend 562 unique projects to meet these needs, which if implemented would produce 9 million acre-feet of supplies. These are a balanced mix of new reservoirs, new well fields, conservation, conjunctive management projects, desalination, and other strategies.
  • The capital cost of these strategies is projected at $53 billion over 50 years. Municipal water providers are expected to need $27 billion in state financial assistance which would be provided by the Proposition 6 funds and already approved bonds.
Election turnout is critical:

In 2011, when Texans voted on a previous constitutional amendment for water bonds, less than 700,000 people voted (out of a population of 26 million).


More info can be found at www.texasce.org/TXprops

A flyer with more info is available here.

                 

Join our mailing list