Prop. #2 Water Projects in Distressed Areas

Prop. #2 Water Projects in Distressed Areas

Prop 2 Water Projects

Proposition 2 (SJR 79) “The constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board in an amount not to exceed $200 million to provide financial assistance for the development of certain projects in economically distressed areas.”

Explanation

Proposition 2 would allow the Water Development Board to issue general obligation bonds for the Economically Distressed Areas Program (EDAP). The outstanding bonds could not exceed $200 million. The bonds would be used to develop water supply and sewer projects in economically depressed areas of the state.

EDAP assists water infrastructure projects when the median income of a region is less than 75% of the state’s median income. The proposed amendment would give the Water Development Board the money to finance water and wastewater infrastructure in economically distressed areas.

Arguments For

  • All citizens deserve clean water, regardless of their income. Socioeconomic factors should not determine access to safe water. It’s a basic right.
  • This program needs to be replenished so it can continue funding existing and future  projects for communities that could not otherwise afford it. 
  • Financing with bonds will provide more reliable funding over a longer period of time. Using general revenue would strain limited resources.

Arguments Against 

  • The net impact to the general revenue fund will be $3,375,000 through 2021. 
  • This is another constitutionally dedicated fund which the state should avoid.  Infrastructure improvements should be funded using general revenue.
  • This is a local issue and should not be handled by the state. 

For more information: House Research Organization SJR 79