Texas House Bill HJR1

Texas 2013 - 83rd 3rd C.S.

Caption

Proposing a constitutional amendment to provide for the transfer of certain general revenue to the economic stabilization fund and to the state highway fund and for the dedication of the revenue transferred to the state highway fund.

Impact

The implications of HJR1 on state law are significant, especially in terms of how revenue from oil and gas production taxes is managed. The amendment stipulates that if the state receives more in oil production taxes than it did in the fiscal year ending August 31, 1987, a certain percentage will be allocated to the economic stabilization fund. This provides a stabilization mechanism during economic fluctuations, enhancing the state's financial resilience.

Summary

HJR1, also known as the Joint Resolution proposing a constitutional amendment, aims to amend Section 49-g, Article III, of the Texas Constitution. The resolution proposes to facilitate the transfer of certain amounts of general revenue to both the economic stabilization fund and the state highway fund. The proposed changes specify how the funds will be allocated, ensuring that the state has a structured methodology for dedicating revenues to necessary areas, primarily focusing on infrastructure and economic stability.

Contention

While HJR1 primarily seeks to allocate funding for essential state infrastructure and ensure economic stability, there may be concerns regarding the earmarking of funds. Critics might argue that overly committing general revenue to specific funds could limit flexibility in addressing various state needs, particularly if unforeseen fiscal challenges arise. Furthermore, the dependence on oil and gas revenue could raise issues if those markets face downturns, impacting the sustainability of both the economic stabilization and highway funds.