Texas House Bill HB236

Texas 2019 - 86th Regular

Caption

Relating to the creation of the Fiscal Risk Management Commission.

Impact

The establishment of the Fiscal Risk Management Commission could have significant implications for the state's fiscal policies. It aims to create a structured approach to assessing risks associated with dependency on federal funds and to prepare the state for economic variability. By focusing on developing a cohesive fiscal risk management plan, the commission intends to fortify the state's financial infrastructure against possible federal funding cuts or economic downturns.

Summary

House Bill 236 establishes the Fiscal Risk Management Commission in Texas, aimed at addressing and managing potential economic risks that could impact the state's fiscal health. The commission will consist of seven members, including high-ranking state officials such as the comptroller, the speaker of the house, and the lieutenant governor, alongside four public members with expertise in fiscal policy. This diverse composition is intended to provide a balanced perspective on the financial challenges facing the state and how best to address them. The primary responsibilities of the commission involve conducting thorough studies on the impact of federal fiscal policy on the state's economy, particularly concerning how federal funding supports state operations. The commission is tasked with analyzing factors such as the proportionality of federal funds in the state budget, the potential effects of reduced federal funding, and the overall economic implications should there be a collapse of the U.S. dollar. Additionally, the commission is instructed to assess macroeconomic threats, including the risks of acts of economic terrorism and other potential disruptions to critical services such as power and water. Reports generated by the commission will include findings and recommendations for legislation, reinforcing the commission's proactive role in fiscal planning and risk management. Notable points of contention may arise regarding the commission's scope, particularly if its findings lead to proposals for contingency measures such as a separate currency. Concerns about the commission's authority in influencing broader economic policies or its focus could also lead to debates among lawmakers, especially regarding the balance of state versus federal fiscal responsibilities.

Contention

Some potential areas of contention could include discussions on the depth of the commission's authority in suggesting legislative changes or its interpretation of economic threats. Additionally, if the commission's recommendations lean towards radical measures such as creating a contingency currency, this could provoke strong opposition from various stakeholders wary of deviating from established federal financial systems.