Texas Senate Bill SJR19

Texas 2015 - 84th Regular

Caption

Proposing a constitutional amendment limiting appropriations from the economic stabilization fund to a total amount that the comptroller of public accounts estimates will not result at any time in a fund balance of less than a prescribed minimum amount, other than in an emergency if certain requirements are met.

Impact

The implications of SJR19 on state laws are significant, as it seeks to amend existing provisions regarding how appropriations from the economic stabilization fund are handled. By placing restrictions on spending from this fund, the bill emphasizes a commitment to fiscal responsibility and aims to ensure that the state retains a sufficient reserve of funds to address unexpected financial challenges. The proposed changes could shift the way state lawmakers view budgeting and spending priorities, potentially resulting in more conservative fiscal policies.

Summary

SJR19 is a proposed constitutional amendment that aims to limit appropriations from the economic stabilization fund, commonly known as the 'rainy day fund.' The legislation stipulates that the appropriations must not result in a fund balance below a certain minimum amount, except in the case of emergencies as defined by the amendment. This establishes a framework for managing state funds more prudently and introduces checks on fiscal spending, which could potentially enhance the state’s financial stability.

Contention

Notable points of contention surrounding SJR19 include concerns that the restrictions it proposes could hinder the state's ability to respond effectively in times of economic crisis. Critics argue that while fiscal discipline is crucial, overly stringent rules may limit legislative flexibility, particularly during emergencies when swift action may be needed. Additionally, questions may arise regarding what constitutes an 'emergency' and how this definition could impact fund accessibility during critical situations.