Texas House Bill HJR1

Texas 2013 - 83rd 2nd C.S.

Caption

Proposing a constitutional amendment to provide for the transfer of certain general revenue to the economic stabilization fund, to provide for the transfer of certain general revenue to the state highway fund and the dedication of that revenue, and to authorize the payment of the principal and interest on certain highway improvement bonds from certain general revenue transferred to the state highway fund.

Impact

If enacted, HJR1 will have a notable impact on Texas state laws regarding finances and revenues. It will amend Section 49-g of Article III, thereby allowing the comptroller more flexibility in transferring funds derived from general revenue. The legislation stipulates that the sum allocated to the economic stabilization fund will be based on oil and gas production tax revenues, reinforcing the importance of these natural resources to the state's economic framework. Since it establishes clear directives on the allocation and usage of these funds, it potentially sets a precedent on state and local economic management practices.

Summary

HJR1 proposes an amendment to the Texas Constitution that would involve the transfer of specific general revenues to the economic stabilization fund and the state highway fund. This legislation seeks to ensure that a portion of surplus state revenue, particularly from oil and gas production taxes, is allocated to these funds, which hold significance for state financial stability and infrastructure funding. The measure aims to authorize the payment of principal and interest on highway improvement bonds using the funds allocated to this highway fund, thus directly linking revenue management to transportation infrastructure projects.

Sentiment

The general sentiment surrounding HJR1 appears to be supportive among those who prioritize infrastructure and economic stability. Proponents argue that this bill is essential for maintaining road safety and enhancing the state's transportation systems, especially given the ongoing demand for infrastructure repairs and improvements. However, there may be scrutiny over the reliance on fluctuating revenue sources such as oil and gas taxes, and concerns regarding over-dependence on these sectors could be raised by opponents who advocate for a more diversified funding approach.

Contention

Points of contention primarily revolve around the implications of tying general revenue from oil and gas taxation to fixed funds. Critics argue that this could lead to financial instability if the anticipated revenue fails to meet expectations, particularly in volatile markets. Additionally, discussions may emerge regarding the priority of funds; opponents may feel that a dedicated portion of revenue could limit flexibility in addressing various state needs. The bill's success will rely on a broader consensus on fiscal management strategies and the role of natural resources in funding state obligations.