What would Texas do in the event that the United States of America defaulted? It is a very real possibility that one day the massive U.S. debt will become so large and unsustainable that is causes a financial meltdown. Texas, and pretty much everyone else, would all of the sudden be faced with no more federal funds (which is really just Texas tax dollars given to the feds which is then given back to Texas). Yes, Texas is already a sovereign state, but what would we do if face with complete sovereignty and no federal money?
What would Texas do? That is actually a GREAT question. It is something you might not have really thought of before because, well, government is mostly reactive and not pro-active so they wait until something is a problem and then they try to deal with it.
State Representative James White is thinking ahead. He does not want to have to wait until Texas gets cut off from the federal government to determine how Texas will manage on our own. White wants to start planning now.
Bottom line, this is a great bill and it is really thinking ahead. With the way America is going, it is a very real possibility that federal funds to Texas could be drastically limited or even cut off completely in the event of a financial collapse. Texas needs to be ready and know what to expect.
Press Release from Texas State Representative James White:
State Representative James White Files HB 568:
The Texas Self Sufficiency Act
AUSTIN, TEXAS-- State Representative James White has filed HB 568 or the Texas Self-Sufficiency Act. The Texas Self-Sufficiency Act creates a select committee to evaluate the effects of a possible reduction in or elimination of federal funding on the state budget due to federal fiscal policy. "Due to the fiscal dysfunction of Washington, D.C., and the fact that more than a third of our state's budget revenue comes from the federal government, Texas needs to study what it would mean if the Federal Government couldn't meet its obligations," stated Representative White.
The Texas Self-Sufficiency Act directs the Governor, Lieutenant Governor, the Speaker of the Texas House, and the Comptroller to name a committee of made up of legislators, budget experts and citizens from the non-profit sector to analyze not only our state's dependence on federal funds, but the impact of federal funding on Texas' economy. "Speaker Straus should be commended for naming a House interim committee on sequestration. However, we must expand on this work. My district in South East Texas, for example, has a higher proportion of seniors compared to the state overall percentage. What would happen in the event the Federal Government eliminated the funds normally allocated to them? In the current economic climate, exacerbated by out of control spending in Washington, Texas needs to study possible responses to Federal financial turmoil, and our readiness to adjust to such an event. Texans must govern Texas and Texans need to be concerned about Texas."
Representative White is the Member of the Texas House of Representatives for District 19, composed of Polk, Tyler, Jasper, Newton, and Hardin counties.