Gina Hinajosa, my Democratic opponent, is proposing to give Texans one-time $1,500 payments if she is elected.
Where will that money come from? The “Rainy Day Fund”, which provides a financial reserve for state government. The fund currently has about $25 billion for a biennium state general revenue budget of about $200 billion. That makes the reserve ratio about 15% or 3 months, which is decent. If Gina actually did what she says, that would take about $17 billion out of the reserve, reducing the reserve ratio to about 5% or less than a month. That is very bad policy and risky.
To take money out of the Rainy-Day fund would require 2/3 vote of the legislature. That makes this proposal very unlikely.
The right way to put money back in your pocket is to reduce spending. We can start with the many big-government programs mentioned in Greg Abbott’s annual report that promote the growth of AI data centers and other industries that impact Texas resources. We also have many stupid programs such as requiring the department of agriculture to inspect scales at BBQ restaurants, as if skimpy plates of brisket leave customers with no other choices. As a Libertarian, I support many other spending cuts. It is important spending cuts are targeted cuts in the scope of government instead of sloppy and lazy across the board cuts. When spending is reduced, the one lever state government can use is to lower the state retail tax. This approach provides a persistent and sustainable savings without the stench of electoral bribery. Reducing the retail tax rate returns money to Texas taxpayers by taking less of it to start with.
If you want someone in the governor’s office with a proper sense of ethics and competent financial management, I am giving you that option on the ballot.