Today, I filed H.B. 1930, which creates the Fiscal Risk Management Commission (FRMC). This commission would be comprised of elected officials and members of the public and be tasked with the assessment of, and planning for, a wide spectrum of potential economic threats to the state of Texas.
Other states have already begun to take the initiative by studying and creating long-term contingency plans to protect their credit ratings, economies, and the delivery of fundamental government services. With an unyielding $16 trillion debt, it is apparent that our federal government is fundamentally incapable of solving this crisis. If you look at the current uncertainty in D.C. with the sequester, and before that the fiscal cliff, and before that the debt ceiling, it’s clear Texas needs to step up and take a leadership role in our citizens’ economic security.
The FRMC would study all possible economic threats to Texas, including:
- Effect of political or market-led default on state economy;
- Impact of devaluation of the U.S. Dollar and loss of reserve currency status on Texas;
- Advisability and practicability of developing a contingency currency for Texas;
- Risks presented by acts of economic terrorism (i.e. energy embargo) on Texas;
- Any other macroeconomic threat to Texas FRMC considers appropriate.
The FRMC would be charged with publishing a Fiscal Risk Management Plan, which would contain all research, findings, and drafts of proposed legislation the commission recommends. Governments have contingency plans for a wide array of threats, such as hurricanes and other storms. There is no need for our state to be caught flatfooted by any number of economic storms that are not only possible, but some of them are highly probable. Our citizens and business owners deserve strong action on this matter.