Democratic Candidate for Texas Governor Gina Hinojosa told Fox 26 Houston Wednesday that she favors returning a chunk of the state's "Rainy Day" fund back to Texans.
Hinojosa criticized incumbent Greg Abbott for leaving the working class to struggle as his policies, during his past three terms, have helped the rich get richer.
"We need a governor who focuses on the working people of Texas and not the special interests, not the global corporations who give him contributions, but rather the hard-working people of Texas who deserve the American dream, which is so out of reach for so many working Texans," she said.
The state currently has a $28 billion "Rainy Day" fund, or Economic Stabilization Fund (ESF), which is primarily funded by oil and natural gas taxes. The fund is estimated to fund 65.8 days of government operations.
The fund can be used with a supermajority vote in certain circumstances. The last time the fund was used was in 2023, when ongoing funding was created for the Texas University Fund through appropriating the ESF's yearly interest, dividends and investment revenue up to $100 million adjusted for inflation of no more than two percent.
Hinojosa has called for a suspension of the state fuel tax, which fuels the fund. She said she favors returning a chunk of the $28 billion to Texans in the form of direct cash payments and targeted property tax relief.
"Greg Abbott is hoarding our taxpayer dollars and has been doing it for a long time now. That is our money... If we are not using that money, that's money that should be returned to Texans," Hinojosa argued.
As Texas grows and more businesses move to the state due to more pro-business policies, debates will continue over taxation of the working class versus big businesses. The ESF has had many important uses in the past, but with billions of dollars held to the side, many like Hinojosa have begun discussing other uses for the money.
