Discussion: Should Texas Use Our Rainy Day Fund?
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https://www.texastribune.org/2020/12/28/texas-budget-2021/Links to an external site.
https://www.houstonchronicle.com/politics/texas/article/Deficit-of-up-to-20-billion-points-to-no-frills-15857319.phpLinks to an external site.
https://blog.bakerinstitute.org/2020/11/04/covid-19-and-the-texas-rainy-day-fund/Links to an external site.
There seems to be an agreement that Texas will need to use some of its “Rainy Day” fund to help Texas get back its feet financially after the coronovirus. The fund currently has about $11 billion.
Write discussion and follow-up posts which address these questions.
Should the fund be used to cover for expected shortfalls in the state budget? Or, should the fund be used to provide a state-level version of an economic relief package to citizens and local governments like Congress passed? Should it be used only for one-time expenses or for continuing expenses? On what areas of the budget (pick 2) do you think Texas should increase its spending? Why? Of the $10.2 billion in the fund, how much do you want the legislature to spend and why this amount? Explain your answer.