Texas Senate Bill SB334

Texas 2011 - 82nd Regular

• Introduced: 1/12/11
• Refer: 2/14/11

Caption

Relating to the applicability of the constitutional limit on state debt payable from the general revenues of the state to bonds issued by the Texas Water Development Board.

Impact

Should SB334 be enacted, it would require the Texas Water Development Board to provide an accurate certification related to the anticipated debt service from both state revenues and other revenue sources when seeking bond issuance approval. This measure is intended to promote fiscal accountability and transparency, especially regarding how state debt is managed and reported, thus potentially reshaping existing practices around debt management.

Summary

SB334 addresses the applicability of Texas's constitutional limit on state debt as it pertains to bonds issued by the Texas Water Development Board. It introduces amendments to the Water Code, specifically adding new subsections that detail how bonds are to be evaluated regarding debt service and their backing by sources other than state revenues. The bill aims to enhance clarity and efficiency in the process of bond issuance while ensuring that any impact on general revenues is carefully monitored and reviewed.

Sentiment

The general sentiment surrounding SB334 appears to lean towards support from fiscal conservatives who prioritize higher accountability and transparency in state finances. Advocates suggest that by clarifying limits on debt and ensuring proper backing for bonds, the state can operate more prudently in financial matters. However, there may also be concerns from fiscal progressives regarding how these changes could affect funding for public services if they lead to stricter limitations on available funds.

Contention

While SB334 focuses heavily on improving the processes for bond issuance and ensuring fiscal responsibility, discussions could arise about the balance of power in financial decision-making. Some stakeholders may argue that tightening these regulations could inadvertently hamper the Texas Water Development Board's ability to react swiftly in financial matters, particularly in funding state water infrastructure projects where timely responses are crucial. The debate may revolve around finding a balance between accountability and flexibility in state financial operations.