PROPOSITION 6 UNNECESSARILY EXPANDS STATE GOVERNMENT INTO INVESTMENT BANKING, REPLACING THE FREE MARKET
(Irving) – Representative David Simpson (R-Longview) expressed his opposition to Proposition 6 at a press conference today because “it would unnecessarily expand state government into investment banking, which is better performed by the private sector in a free market, allocating limited resources based on financial risk and return instead of political considerations.”
Simpson asked, “Do we want the state to fund water infrastructure like we have funded research and commercialization with CPRIT? Do we want state government handing out sweetheart loans based on political connections instead of economic realities? Government's track record on this count is poor at best, as our recent experience with CPRIT has demonstrated once again.”
“The Legislature played an elaborate shell game with the appropriation of funds for this program. The $2 billion appropriation for this program will come from the Economic Stabilization Fund (ESF), or 'Rainy Day Fund,' if this amendment is approved by the people. However, the ballot language fails to inform the voter they are moving money from the state’s ESF or that the move would exceed the spending cap if the funds were not being constitutionally dedicated,” Simpson further explained.
“The appropriate role of the state is to protect private and regional water rights.”
“Intervention in the market by the state will no doubt favor some at the expense of others, such as East Texans. Because East Texas is blessed with more water resources than other parts of the state, it is likely those resources will be sought after by others and this proposal jeopardizes the ability for East Texas to protect its resources from being taken away by force, without its consent.”
“With their consent in a free market, I believe East Texans would develop infrastructure to collect and distribute water if their rights are protected like their oil and gas resources are currently. The region’s normally abundant water supply could meet the demands for water in other places of the state.”
Representative Simpson, Republican from Longview, serves House District 7, comprised of Gregg and Upshur Counties.
