Finding that the diversion of sales tax funds from general revenue to the state highway fund was approved by Texas voters in 2015 and is required under Section 7-c, Article VIII, of the Texas Constitution.
The resolution highlights a critical issue concerning the adherence to legislative mandates and constitutional requirements. Specifically, HCR118 points to Senate Bill 1's accounting methods that could lead to the double counting of $2.5 billion intended for highway funding. Instead of transferring the funds in the fiscal year they are collected, there is a risk that money could be represented in both the state's general fund and the highway fund simultaneously.
HCR118 is a concurrent resolution expressing the Texas Legislature's position regarding the diversion of sales tax funds to the state highway fund. Passed by an overwhelming 83 percent of Texas voters in 2015, Proposition 7 mandated that a portion of sales tax revenue be allocated for important roadwork. This resolution asserts that any accounting practices that delay this allocation for the highway fund from one fiscal year to the next violate both the Texas Constitution and the expressed will of the voters.
The core contention within this resolution revolves around the legal interpretation of the Texas Constitution, particularly Section 7-c of Article VIII. Critics of Senate Bill 1's approach argue that it could undermine the integrity of the state's budgeting process by failing to appropriately allocate resources as intended by the voters. This creates a possible constitutional conflict that could have long-term implications for public infrastructure funding in Texas, as it raises questions about the accountability of legislative bodies in honoring voter-approved measures.