Texas Senate Bill SJR50

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/15/09
• Voted on by Senate: 4/30/09
• Out of House Committee: 5/15/09

Caption

Proposing a constitutional amendment relating to the issuance of additional general obligation bonds by the Texas Water Development Board.

Impact

The proposed amendment would amend Article III of the Texas Constitution by adding Section 49-d-11, which specifically addresses the issuance and management of these additional bonds. By imposing a relatively high limit on the bond amount, the bill aims to ensure that the TWDB has the necessary resources to fund various water projects, thereby potentially improving water supply and management within the state. This legislative initiative reflects an ongoing commitment to address water scarcity and related infrastructure challenges faced in Texas.

Summary

SJR50 is a joint resolution proposing a constitutional amendment to allow the Texas Water Development Board (TWDB) to issue additional general obligation bonds. This capability is designed to enhance the funding for water projects across the state. The bill proposes that the TWDB may issue these bonds on a continuing basis, with a cap on the total amount outstanding at any time not to exceed $6 billion. The intention behind this amendment is to provide a critical financial mechanism to support the growing water infrastructure needs in Texas.

Contention

While proponents argue that SJR50 will aid in crucial water management and infrastructure funding, there may be concerns related to increased state debt and fiscal responsibility. Opponents of this type of expansion in bond issuance might highlight the risks associated with accruing large amounts of debt, especially if water resource management policies are not effectively executed. The discussion surrounding this resolution points towards a balancing act between securing immediate funding for critical projects and ensuring long-term financial sustainability for state resources.