Proposition 4 Explained: The Water Infrastructure Texas Needs
This is the third in a three-part series exploring how Proposition 4 on November’s state constitutional amendment ballot changes Texas’ water infrastructure funding strategy, specifically addressing the state’s major water challenges. Read Part 1 here; read Part 2 here.
Texas faces three major water infrastructure challenges. The first involves the need to expand and diversify its water supply for a drought-prone and growing state. Failing to do this invites billions in economic damages combined with significant job losses.
Our second challenge is the need to fix the aging, deteriorating and leaking drinking and wastewater systems that are fast becoming liabilities to the communities that they serve. Authorities issue several thousand boil water notices to communities across the state every year, as our water systems leak enough water to fill a major reservoir.
The third, and final challenge, involves the need to protect lives and communities from the ravages of floods. Recent flooding disasters, including Hurricane Harvey in 2017 and the Hill Country Floods this year, have underscored the need for flood protection infrastructure.
Proposition 4 on November’s ballot dedicates $1 billion in state sales tax revenues per year to the Texas Water Fund. If approved by voters, Proposition 4 will direct up to $20 billion over 20 years toward addressing Texas’ water infrastructure challenges. This article explains what types of water projects will receive funding through this new revenue stream.
1.) Water supplies
According to the recent state water plan, Texas faces a long-term water supply deficit if the state endures a long, severe drought and has not expanded its water supply portfolio. Given the strains that drought and population and economic growth are placing on our water supplies, the Legislature passed Senate Bill 7 requiring that at least 50% of revenues dedicated by Proposition 4 go toward water supply projects.
The universe of what qualifies as a water supply project in Texas is quite large. This can include projects that expand the number of water molecules available for beneficial use, such as seawater desalination, reservoirs, produced water recycling, or purchasing water from another state. Water conservation, which includes more water-efficient agricultural irrigation, and the recycling and reuse of wastewater also qualifies as a water supply enhancement. Other types of water supply projects include expanding the capacity of water treatment plants to serve growing communities, banking water in aquifer storage facilities and new groundwater wells.
Simply put, Proposition 4 opens the door to funding a wide range of water supply projects needed to address the challenges associated with drought and growth.
2.) Fixing failing systems
Earlier this year, the Texas Section of the American Society of Civil Engineers released a report card downgrading Texas’ drinking water and wastewater infrastructure. The engineers found that drinking water infrastructure declined from a C- to a D+, as wastewater dropped from a near-failing D to a just-about-to-fail D-. ASCE attributed these declines to problems associated with deteriorating water systems, including an uptick in boil water notices, increased water shortages and more water quality violations.
Part of the remaining portion of the revenue dedication from Proposition 4 (that portion not used for the water supply project described above) may be used for fixing or replacing aging, deteriorating drinking water and wastewater systems. Toward this end, the Legislature passed SB 7 instructing that the Texas Water Development Board (TWDB) ensure that a portion of the funds transferred from the Texas Water Fund be used for this purpose.
3.) Flood protection
In addition to water supplies and infrastructure upgrades, the funding stream from Proposition 4 can pay for flood protection infrastructure. SB 7 authorizes the money within the Texas Water Fund for transferred to the Flood Infrastructure Fund, which can pay for flood control and mitigation projects.
The first State Flood Plan published by TWDB in 2024 recommends over $54 billion in projects needed to protect communities from flooding. The funding stream made available by Proposition 4 may be used to begin financing these critical flood protection projects.
Political advertising paid for by Texas 2036.