Proposing a constitutional amendment dedicating a portion of the revenue derived from state sales and use taxes and insurance premium taxes to the Texas water fund.
This constitutional change would potentially consolidate and secure funding for Texas' water needs over coming decades. Specifically, it allocates net revenue from state sales taxes exceeding $46.5 billion and a fixed portion of insurance premium taxes, thereby creating a robust financial framework aimed at tackling major water supply issues. The legislature will have the power to dictate how funds are allocated but cannot amend the allocation once established for a ten-year period, ensuring stability in funding.
SJR66 proposes a constitutional amendment aimed at dedicating a portion of revenue from state sales and use taxes, as well as insurance premium taxes, to the Texas water fund. The resolution intends to address the state's water supply challenges by ensuring a sustainable funding source for water conservation and infrastructure projects. Such an amendment is anticipated to bolster water management strategies, benefiting both urban and rural communities across Texas.
Despite its anticipated benefits, the bill has faced scrutiny regarding its long-term fiscal implications. Opponents argue that tying these revenues directly to the water fund might limit the state's flexibility in addressing other pressing budgetary concerns. Furthermore, there are concerns regarding the necessity of requiring voter approval for accessing these funds, which may complicate the funding process and slow down crucial water infrastructure projects, potentially exacerbating existing water issues in the state.