Saving for a “rainy day” is something all Texans are familiar with. Well, all of us who don’t have the luxury of spending other peoples’ money like they do in Austin.
Effectively preparing for the future is something that takes time and effort. For the sake of Texas’ fiscal stability, it’s imperative for our state government to plan for future costs, both known and those inevitably unforeseen.
Having a healthy savings account is vital for Texas’ credit rating and the state’s fiscal future. Preserving the fund gives Texas the flexibility to respond to economic crises that general revenues won’t cover.The Texas Budget Compact ensures this by calling for legislators to preserve a strong Rainy Day Fund.
Last session, some legislators tried to raid the RDF for a plethora of bad reasons. Some of the loudest RDF raiders were educrats claiming our schools would fail if they didn’t receive more money – their predictions were false, again.
Don’t be surprised when similar tactics are used in 2013; only this time the drumbeat will be louder. Texas has hills yet to climb, as big-spenders will want more money, and solutions will have to be found to fix last session’s budget gimmicks and the under-funding of Medicaid.
The point is, the RDF should be used for one-time expenses, not reoccurring costs.
Currently, Texas appears to be doing well economically, but we should tread lightly in this regard. Just because we aren’t as bad as California or New York, doesn’t mean Texas is the best it can be.
Texas is still susceptible to the economic downturns of the U.S. economy, and we have a state legislature whose leadership won’t get serious about capping spending.
Just because the RDF is strong now, doesn’t mean we need to recklessly spend the money. As is often said, “the best time to save money, is when you have some.”
In the midst of our spend-happy culture, the Texas Budget Compact puts into practice the “a penny saved, is a penny earned” mindset that will keep Texas on the right fiscal track.
To show your support, visit TXBudgetCompact.com. We’ll deliver a letter to your legislator on your behalf for each plank of the compact you support.
