Texas House Bill HJR110

Texas 2009 - 81st Regular

Caption

Proposing a constitutional amendment regarding the limit on the amount in the economic stabilization fund (rainy day fund) and establishing an infrastructure fund.

Impact

This proposed amendment aims to ensure that the economic stabilization fund does not exceed a set percentage of general revenue appropriated, currently capped at 7.5%. By clearly defining the limits and proportionality of transfers, the amendment intends to stabilize the fund while allowing the creation and funding of critical infrastructure projects. The establishment of the infrastructure fund is also of significant note as it focuses on transportation, rail relocation, and water-related projects, addressing immediate and essential infrastructural needs across the state.

Summary

HJR110 is a joint resolution proposing an amendment to the Texas Constitution that seeks to modify the management of the economic stabilization fund, commonly referred to as the 'rainy day fund', while also establishing a new infrastructure fund. The amendment specifies the mechanisms of how funds are collected, transferred, and appropriated, emphasizing a controlled approach to state finances. New subsections are introduced to dictate transfers from unencumbered positive balances of general revenue into both the economic stabilization fund and the infrastructure fund, which underlines the state's commitment to financial prudence and development projects.

Contention

Discussions and debates around HJR110 may highlight concerns regarding the reliance on the economic stabilization fund for infrastructure funding, raising questions about the adequacy of resources when economic downturns occur. Potential points of contention will revolve around whether the amendment might create limitations on future legislative appropriations and how it may affect the state's flexibility in times of fiscal need. Ensuring transparency in fund utilization and the prioritization of projects funded from the infrastructure fund could become significant topics as the proposal moves forward.