Capitol Update: Paying Down State Debt

January 26, 2015

 

Dear Friends,

There’s no doubt Texas’ strong economy is a shining example of fiscal responsibility. But we can do even better.

Though the Lone Star State has a low debt burden compared with other states, that debt has risen in recent years. According to the Bond Review Board, we had about $38.9 billion in state bonds outstanding as of August 31, 2014.

People often talk about paying down the state debt. I recently filed Senate Bill 307 to do just that. The Texas Constitution limits how large the Economic Stabilization Fund, or Rainy Day Fund as it is sometimes called, can grow. Currently, any funds in excess of the cap go back into the General Revenue Fund to be spent. If funds exceed the cap, SB 307 would redirect that extra money to paying down our state debt.

The result? A solid savings account and lower state debt. I believe this is a sensible solution and look forward to championing this bill throughout 84th Legislative Session.

To check on the status of this bill or see more information about the Texas Legislature go to: Texas Legislature Online.

Sincerely,

Kelly Hancock
State Senator, District 9


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