The major difference is spending money Texas already took in, while still contributing to the rainy day fund. We are not going deep into debt. Yes, we have a growing population and a growing economy; that has increased our spending. But we are paying our bills while saving for the future.
Rainy Day Fund 101
http://www.window.state.tx.us/comptrol/fnotes/fn1102/
Don’t spend more than you have — that’s wise financial advice for anyone, but it’s a budgeting rule that Texas state government can’t break.
Right now, Texas lawmakers are grappling with the next state budget, for 2012 and 2013. They will consider how to spend revenues available from various taxes, fees and, perhaps, the Economic Stabilization Fund (ESF), Texas’ so-called rainy day fund.
This fund may provide some good news in tight budgetary times, as our state attempts to provide ever more-expensive services to a growing population.
You do realize if Prop 1 passes, then half of the Rainy Day fund’s revenue gets diverted away?
That will be much less saving.