CPA Rep. John Otto proposes using surplus funds to retire debt

Rep. Otto (R-Dayton) filed a proposed constitutional amendment (HJR 8) that would require excess Rainy Day fund money to be transferred into an early debt retirement fund.  When the Rainy Day Fund exceeds 10% of the general revenue budget the excess is now transferred to the general fund where it can be used by legislators for anything they choose.  Otto's amendment would require these funds to be used for early debt retirement.

In this state, which prides itself on always preparing a balanced budget, Texas has accumulated outstanding debt of $44 billion with over half of that amount used to finance new road construction.  Otto wants to use any extra money the state might accumulate to retire that debt early.

Read more at Extra Cash in the Texas Tribune.

 

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