Texas Senate Bill SB249

Texas 2015 - 84th Regular

• Filed: 12/16/14

Caption

Relating to dedicating certain state revenue to the purpose of retiring state general obligation debt.

Impact

The implications of SB249 are significant for Texas state financial management and fiscal policy. By dedicating a specific revenue stream to debt repayment, the bill may foster a more disciplined approach to managing the state’s obligations. This could enhance the state's credit rating over time by demonstrating a commitment to repaying debts. Additionally, the bill mitigates the risk of funds being diverted to other expenditures, thereby promoting fiscal responsibility and stability in state financial planning.

Summary

Senate Bill 249 focuses on the allocation of state revenue specifically for the purpose of retiring state general obligation debt. It proposes the creation of a 'state debt retirement account' within the general revenue fund. The bill outlines that funds within this account can be used exclusively to pay the principal and interest on state debts, and includes a provision allowing for other appropriations if approved by a two-thirds majority vote in each house of the legislature. This legislative approach aims to ensure that funds are reserved for debt retirement purposes, potentially stabilizing the state's financial commitments.

Contention

While the provisions in SB249 are largely aimed at ensuring fiscal discipline, there could be areas of contention regarding the limitations on the appropriation of funds within the state debt retirement account. Critics may argue that the requirement for a two-thirds majority vote for reallocating funds could hinder the legislature's ability to respond quickly to changing circumstances or emergencies that may require financial flexibility. Furthermore, the bill's strict dedication of funds may face scrutiny from those who believe that a more versatile approach to budget management is necessary for addressing urgent needs within the state.