Proposing a constitutional amendment dedicating a portion of the revenue derived from the state sales and use tax to the Texas Water Development Fund II.
If passed, this legislation will significantly bolster funding for water infrastructure projects, particularly seawater desalination and aquifer storage and recovery projects. This constitutional amendment sets an upper limit on the fund's balance, capping it at $4 billion to ensure fiscal responsibility. Furthermore, it includes provisions allowing the legislature to modify the amount deposited under certain conditions, providing a mechanism for financial flexibility depending on the state's economic situation and water infrastructure needs.
HJR101 is a joint resolution proposing a constitutional amendment that dedicates a portion of the revenue derived from the state sales and use tax to the Texas Water Development Fund II. Specifically, the resolution mandates that each year, after the first $30.5 billion of revenue is collected, $1 billion of net revenue from the state sales and use tax shall be allocated to this fund. The intent is to secure consistent financial support for critical water development projects within Texas, addressing the state's growing water needs.
The resolution is likely to stir debate among legislators and constituents alike, as funding for infrastructure is a priority for many. Proponents argue that securing this funding is vital for sustainable water management and addressing shortages, especially as Texas continues to grow. Critics, however, may raise concerns over dedicating sales tax revenue in a way that may limit funding available for other pressing state needs. Additionally, the potential for reallocating funds only through supermajority votes could lead to legislative gridlock.
Overall, HJR101 positions the Texas legislature to enhance its water management strategies through dedicated funding sources. By generating a stable revenue stream earmarked specifically for water-related projects, the amendment aims to improve water supply reliability and quality across the state, aligning with broader state goals for infrastructure investment and environmental stewardship.