Texas House Bill HJR75

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment prohibiting the use of state funds to pay for the obligations of a local public retirement system.

Impact

If enacted, HJR75 would significantly reshape the financial responsibilities of local public retirement systems. By cutting off state funding for their obligations, it places the onus of managing these financial commitments solely on local governments. This could lead to increased financial strain on local retirement systems, potentially affecting the benefits received by retirees if these systems face insolvency. Local governments may have to explore alternative funding mechanisms or adjust benefits as a result.

Summary

HJR75, proposed by Representative Murphy, is a joint resolution aimed at amending the Texas Constitution to prohibit the use of state funds for obligations of local public retirement systems. The proposed amendment adds a new subsection to Section 67 of Article XVI of the Texas Constitution, establishing that the state shall not be liable for the debts or obligations of local retirement systems. Furthermore, it explicitly states that the legislature is forbidden from appropriating state money to cover these financial obligations.

Contention

The bill has sparked debates regarding its implications for local governance and public retirement systems. Supporters argue that it reinforces the principle of local control and fiscal responsibility, ensuring that local entities manage their retirement obligations without relying on state support. However, opponents raise concerns that this amendment could jeopardize the financial stability of many local retirement systems, potentially threatening the financial security of public sector employees depending on these benefits. The dialogue over HJR75 highlights the tension between state oversight and local autonomy in managing public retirement responsibilities.