According to the Legislative Budget Board (LBB), HB 2626 is not expected to have a significant fiscal impact on the state government. Any costs associated with the bill, such as administrative or regulatory expenses, are anticipated to be absorbed using existing state resources. Additionally, any revenue implications, such as fees collected by the alliance, are expected to be minimal at the state level.

For local governments, however, the fiscal impact is uncertain. The bill grants the Central Texas Water Alliance the authority to issue bonds, impose fees, and levy assessments to fund water infrastructure projects. The actual financial burden on local entities will depend on how aggressively the alliance utilizes these financial mechanisms. If substantial bonds are issued, local taxpayers and ratepayers could face higher costs through fees or assessments. However, if managed efficiently, the alliance could provide long-term cost savings by ensuring a more reliable and sustainable regional water supply.

Overall, while no immediate state-level costs are projected, the potential fiscal burden on local governments and taxpayers remains uncertain. Careful oversight and transparency will be necessary to prevent excessive debt accumulation and ensure fair fee structures.

HB 2626 seeks to establish the Central Texas Water Alliance (CTWA) as a regional water authority to address growing water supply concerns in Bell, Coryell, Falls, Lampasas, and McLennan counties. The bill grants CTWA significant powers, including the issuance of bonds, the ability to impose fees, and the authority to exercise eminent domain, albeit with limitations on condemning private water rights. While the bill aims to facilitate regional cooperation for water management and infrastructure, it also raises concerns regarding property rights, government overreach, and financial transparency.

From a liberty-focused perspective, the bill partially supports individual liberty by ensuring stable water access but also introduces risks to private property rights through eminent domain authority. While the bill explicitly prohibits the use of eminent domain to seize private water rights, it still allows land condemnation for infrastructure projects, raising concerns about government encroachment. Fiscal responsibility is another issue, as the bill enables the CTWA to issue revenue bonds without requiring voter approval, which could lead to financial risks for taxpayers if not properly managed.

Given these factors, the bill should be amended to include stronger safeguards on eminent domain use, require greater financial oversight on bond issuance, and enhance transparency in fee structures. If these protections are put in place, the bill could be a valuable tool for regional water management without compromising private property rights or increasing government overreach. Without these amendments, however, the bill risks expanding government power beyond necessary limits, making it difficult to fully support in its current form. As such, Texas Policy Research recommends lawmakers vote NO on HB 2626 unless the aforementioned amendments are adopted.

• SB 1194 (Same As)