Proposing a constitutional amendment excepting certain appropriations for reducing state debt from the constitutional limitation on the rate of growth of appropriations.
If passed, SJR7 would provide a mechanism for the state to create appropriations that are excluded from the general rule governing the growth of state tax revenues. This would allow the legislature to allocate more funds specifically aimed at reducing state debt without being restricted by the estimated growth rates of the economy. Such an amendment is expected to have a positive impact on the state's financial health by enabling more aggressive actions towards paying off debts, potentially leading to lower interest obligations in the future.
SJR7 is a joint resolution proposing a constitutional amendment that seeks to amend Section 22(a), Article VIII of the Texas Constitution. The main objective of the bill is to except certain appropriations intended to reduce state debt from the existing constitutional limitation on the rate of growth of appropriations from state tax revenues, thereby allowing for increased flexibility in managing state finances. This change is particularly significant as it aims to address the financial constraints imposed by the constitutional limit and provide the legislature with more authority in terms of budgetary decisions aimed at debt reduction.
Historically, discussions around constitutional amendments like SJR7 often include debates concerning fiscal responsibility and the role of the state in managing its debts. Advocates for the bill argue that allowing for exceptions in the appropriations limit is a prudent move to ensure the state's long-term financial stability. However, opponents may raise concerns regarding the potential for misuse or misallocation of funds, arguing that such flexibility could lead to financial imbalance if not managed properly. The temporary nature of the provision until December 1, 2017, also adds a layer of complexity concerning the bill's longevity and its potential to be further debated in subsequent legislative sessions.