Texas Budget Compact, Pt. 4: Rainy Day Fund
An important facet of fiscal responsibility is ensuring the state is financially able to cope with unforeseen events. Just like every home budget needs a savings account for emergencies, we need to preserve our strong Rainy Day Fund.
An adequate Rainy Day Fund is critical to our ability to respond to and recover from disasters and emergencies, whether they're natural or man-made.
A healthy fund also helps us maintain a strong bond rating.
When we do pay money out of the fund, it's important it be used exclusively for one-time-only needs, and never be tapped simply to meet ongoing expenses.
It's the equivalent of using your savings to pay for a car repair, rather than using it to make your car payment.
A healthy Rainy Day Fund is just another way we can keep our economy strong and growing in the years, and decades, to come.
The five simple yet effective principles of the Texas Budget Compact:
• Practice Truth in Budgeting
• Support a Constitutional limit of spending to the growth of population and inflation
• Oppose any new taxes or tax increases, and make the small business tax exemption permanent
» Preserve a strong Rainy Day Fund
• Cut unnecessary and duplicative government programs and agencies