Texas Senate Bill SJR54

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment limiting appropriations from the economic stabilization fund to prevent the fund balance from falling below a prescribed minimum amount, other than in an emergency if certain requirements are met, and limiting the permissible uses of that appropriated money.

Impact

If passed, SJR54 would have significant implications for state fiscal policy and budgetary constraints. Specifically, it will ensure that the balance of the economic stabilization fund does not fall below a predefined minimum level, thereby promoting long-term financial stability. The proposed amendment aims to safeguard the fund from excessive or unnecessary withdrawals that could undermine its purpose of providing a financial cushion during economic downturns or emergencies.

Summary

SJR54 is a joint resolution proposing a constitutional amendment focused on the economic stabilization fund, also known as the 'rainy day fund' in Texas. The bill aims to set a minimum balance for the fund and restrict appropriations from it, except in emergencies that meet certain defined criteria. It amends Article III, Section 49a of the Texas Constitution by establishing rules regarding appropriations, tied closely to the estimates provided by the state's Comptroller of Public Accounts.

Contention

The resolution has stirred discussions among legislators and state officials, as some may view the restrictions on appropriations as a necessary measure for fiscal discipline, while others may oppose it on grounds that it limits legislative flexibility in times of urgent need. Critics may argue that the strict criteria for fund usage could hinder the state's ability to respond effectively to public emergencies, thus stoking debates over the balance between fiscal responsibility and the need for agility in governance.

Notable_points

The requirement for a four-fifths vote of both Houses for emergency appropriations from the fund underscores the resolution's strict approach toward using these resources. Additionally, the amendment includes provisions ensuring that the fund's unappropriated balance is maintained at no less than seven-and-a-half percent of the biennial state revenue estimate, a stipulation that reflects a careful strategy to manage state finances while equipping the government to address sudden fiscal needs.