“I think, therefore I spend,” is the motto of most politicians and the ones in Texas aren’t any different. This why I have created 3 commandments legislators should not break when they consider using the Rainy Day Fund.
Commandment #1 Thy Bond Rating Shall Not Fallith
We need a healthy Rainy Day Fund in order to stabilize and increase Texas’ bond rating. In 1987, Texas faced a worse fiscal crisis than what we see today. At the time Texas did not have any significant funds in reserve, which was one of the contributing factors why Texas lost its AAA bond rating. Even after 23 years, we still have not gained back the premier AAA rating. And we certainly will not gain it back if the funds are depleted over the next few sessions.
Commandment #2 Thy Divine Rath Shall Be Funded
These reserve funds are needed in case of catastrophic emergencies that we cannot predict like hurricanes, floods, tornadoes, wildfires, and so on. If we don’t have sufficient funds to handle the fiscal cost of such tragedies, Texas’ budget will be hit twice as hard.
Commandment #3 Thy Funds Shall Not Go To False Idols
The Rainy Day Fund should be used to plug only the most vital areas of the budget that could not otherwise be funded. This should only be done after across the board spending cuts, elimination of waste, and reprioritization of funds have been made. It should not be used to expand or create programs.
Thy will be done.