Texas Senate Bill SB421

Texas 2011 - 82nd Regular

• Introduced: 1/26/11
• Refer: 2/2/11

Caption

Relating to the computation of the state debt limit.

Impact

The enactment of SB421 is intended to improve transparency and accountability regarding the management of state debt. By imposing a structured framework for the computation of state debt liability, it seeks to ensure that the issuance of additional state debt does not exceed the constitutionally mandated limits. This stiffening of fiscal discipline may lead to more prudent financial practices in state governance, potentially affecting decisions related to future borrowing and budgeting.

Summary

SB421 is a bill that aims to regulate the computation of the state debt limit, specifically focusing on the debts payable from the general revenue fund. The bill amends Chapter 1231 of the Government Code to include new provisions that define the terms related to the state debt and establish a structured methodology for computing annual debt service. This includes defining maximum annual debt service limits, reporting obligations, and the parameters that the board may consider while calculating the annual debt service for state debt, whether it is issued or unissued.

Sentiment

Overall, the sentiment surrounding SB421 appears to be positive among those who advocate for fiscal responsibility and transparency in state financial matters. Supporters likely view the bill as a necessary measure to safeguard against excessive borrowing and assure taxpayers of responsible governance. However, there may be concerns raised by some factions about the implications of such regulations on future fiscal flexibility or the execution of government projects that rely on timely funding.

Contention

While specific points of contention were not highlighted in the available documents, it is not uncommon for debates on state debt management to focus on issues such as the balance between necessary borrowing for public projects and the need to maintain fiscal solvency. Stakeholders may differ on how strictly the state should adhere to these limits, especially considering the varying financial needs across different sectors of government. As such, discussions surrounding SB421 may evoke broader conversations about priorities in state funding and resource allocation.