Hinojosa billed the proposal as relief for Texans struggling to make ends meet. She said she would issue a proclamation declaring affordability an emergency on her first day in office and call on lawmakers to approve pulling $17 billion from the nearly $27 billion in the state’s rainy day fund to spend on the checks.
“People are struggling. People need help. It’s an emergency situation,” Hinojosa said in an interview, pointing to statistics showing the state leads the nation in bankruptcies and rates of uninsured. “My agenda is to put money in your pocket. Texans know how to spend money better than the government. That’s our money. It’s there. It should go to Texans.”
The announcement comes as Democrats have focused on affordability in the run-up to the midterms, which are expected to be bruising for Republicans as voters have soured on President Donald Trump’s handling of the economy. Public polling has shown Hinojosa within single digits of Abbott, even as many voters say they are still unfamiliar with her. Abbott’s campaign did not respond to a request for comment Tuesday.
It’s not the first time a politician has made promises for the rainy day fund, which draws money from excess oil and gas taxes. Tapping into the reserve fund requires the support of two-thirds of lawmakers in the House and Senate, both of which are controlled by Republicans — and likely to remain in GOP hands. The Legislature has mostly dipped into the ballooning fund to pay for water projects, disaster relief and public education, according to the Comptroller.
Hinojosa argues there is more than enough money in the fund to send some back to taxpayers. The state’s reserves have grown from $6 billion in 2013, the year before Abbott took office, to an expected $27 billion by the end of this fiscal year. The Comptroller’s office has projected the fund to grow by at least $2.5 billion per year, as well.
Plus, she said, sending money to voters would be a political win for members of both parties: “I would be surprised if any legislator voted against sending a $1,500 check to their constituents.”
Hinojosa isn’t alone in focusing on the surplus. Abbott is pushing a property tax overhaul that would use a portion of the budget surplus to cover school taxes for homeowners.
She rolled out the proposal in Houston, where she is kicking off a three-city tour focused on the cost of living. She will also make stops in San Antonio and Laredo.
The so-called “Corruption Tax Refund” checks are the latest effort by the Austin Democrat to brand Abbott as beholden to big donors. She has argued that the Republican governor is more focused on luring major businesses to the state through tax breaks and other incentives than he is on Texas residents.
“It’s all money that is going into the government, and it’s coming out of the government to mostly benefit Greg Abbott’s donors and global corporations,” she said. “I’m pulling it out to benefit Texans.”
Abbott is seeking a record fourth term in office and has a massive war chest to fend off the challenge. He has largely ignored Hinojosa and focused his fire on Democratic U.S. Senate hopeful James Talarico, who has become a fundraising juggernaut. By doing so, he avoids drawing attention to Hinojosa, while making the case to voters that Democrats on the ticket are too extreme.