Proposing a constitutional amendment dedicating certain general revenue that would otherwise be transferred to the economic stabilization fund to the Texas water fund.

HJR 126 proposes a constitutional amendment to redirect certain general revenue that would otherwise fund Texas' Economic Stabilization Fund into the Texas Water Fund. Specifically, when the comptroller prevents the Economic Stabilization Fund from exceeding its limit by reducing general revenue transfers or crediting interest to general revenue, the comptroller must transfer up to $1 billion annually (adjusted annually for inflation or 2%, whichever is lower) to the Water Fund. This change would alter the state's budget allocation process, directly affecting how funds are distributed between these two state accounts without creating new revenue. The amendment requires voter approval after legislative passage.