SJR 4 - Expands Rainy Day Fund

This proposed constitutional amendment would raise the limit on how much money Texas can store in its “Rainy Day Fund” from 10% to 15% of the state’s revenue from the last two years. If voters approve it, the state would begin setting aside more taxpayer money into this reserve fund starting in 2027. While rainy day funds are meant to prepare for emergencies, this bill would redirect nearly $7 billion over the next four years away from general use — money that could otherwise be used for tax relief or paying down state debt. From a fiscally conservative and limited government perspective, locking away more public funds reduces legislative flexibility and encourages hoarding instead of returning excess collections to taxpayers. It also diminishes transparency and makes government growth easier by cushioning budget shortfalls without meaningful reforms. With the current cap already providing a strong safety net, expanding it risks enabling bigger government with less oversight.