Texas’ Economic Stabilization Fund (ESF) acts as a rainy day fund to cover state government budget shortfalls during economic downturns or emergencies and is often used for other purposes. The ESF’s shortcomings include it being rather easily raided for purposes other than covering budget shortfalls and stockpiling of taxpayer dollars in the fund. Legislators should raise the threshold vote to use the ESF for nonemergency purposes to four-fifths of each chamber, and consider lowering the cap and allocating funds above the cap to return to taxpayers or pay state liabilities. Read the full policy perspective below.
Taxes & Spending
Taxes are High. Local Spending is to Blame.
Over the last few months, local property taxes have been described as: “steep,” “burdensome,” “stressful,” “too high,” and “out-of-control.” Yet despite these sharp (and accurate!) criticisms of Texas’ property tax, many local governments seem oblivious to the system’s excesses, as evidenced by the adoption of high tax rates this year (see TPPF’s Taxman Cometh series) as well as historical tax, spending, and debt patterns. Worse, what once may have been excused as indifference or detachment now borders on exploitation. Consider some recent revelations about local government compensation. ...
March 26, 2026