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Thanks to the passage of HJR 7 this year, Texas voters will soon have a historic opportunity to secure the future of our state’s water supply by passing Proposition 4 during the upcoming statewide Constitutional Amendment Election in November.

Proposition 4 will create a $1 billion annual state sales tax revenue dedication to the Texas Water Fund, starting in 2027, allowing for an allocation of up to $20 billion toward our state’s long-term water infrastructure needs – including expanding our water supply portfolio, fixing aging systems, and building flood protection projects.

Importantly, this proposition would not increase the current state sales tax rate, but would instead dedicate existing state sales tax revenues to the Texas Water Fund, managed by the Texas Water Development Board (TWDB). This is similar to voters’ 2015 approval of the State Highway Fund, which did not affect state sales tax rates.

This important proposition will build upon the important reforms spearheaded by Senator Charles Perry (R-Lubbock) and Representative Cody Harris (R-Palestine) through the passage of Senate Bill 7 during the 89th Legislative Session, which establishes a statewide coordinated approach to water supply planning that eliminates red tape and bureaucratic delays so that our state can address our water infrastructure challenges more efficiently.

These reforms complement an additional $2.5 billion appropriation by the Texas Legislature toward the Texas Water Fund over the next two years – a strong and important start to what will be a long-term funding stream that ensures Texas can meet the ever-rising demand for water to continue supporting our homes and businesses.

In 2023, Texas voters overwhelmingly approved Proposition 6, creating the Texas Water Fund and authorizing a $1 billion initial appropriation to help repair our state’s aging water infrastructure and strengthen our ability to provide sufficient water to our ever-expanding communities. With 78% of voters approving the amendment to the Texas Constitution, Texans have demonstrated that they are acutely aware of the need to dedicate more investment toward the future of our state’s water supply.

At the outset of this year’s legislative session, Governor Greg Abbott made clear that Texas needed a “generational investment in water” and declared “the largest investment in water in the history of the state of Texas” an emergency item during his State of the State address.

Indeed, experts have shown that underinvestment in our water infrastructure is costing as much as $2 billion each year just for revenue water lost from utility systems.

Earlier this year, the Texas Association of Business (TAB) joined Texas 2036 in leading more than 100 business organizations across the state through the Texas Water Fund Coalition, which urged state leaders to take immediate action to ensure Texas’ water infrastructure is prepared for the coming decades of economic and population growth.

To ensure the ‘Texas Miracle’ continues, we need a historic, bold investment in our state’s water infrastructure now. Texas voters should again vote overwhelmingly to secure a sustainable future for Texas water by voting for Proposition 4 on the November 4th ballot, ensuring an even more prosperous future for all our residents and businesses.

To read the full text and explanatory statement for Proposition 4, click here.

–Glenn Hamer, President & CEO, Texas Association of Business

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