Texas House Bill HJR56

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment providing for periodic transfers of money from the economic stabilization fund to fully fund the Employees Retirement System of Texas.

Impact

The amendment would require the Texas Comptroller to determine a specific allocation from the economic stabilization fund based on the unencumbered balance at the beginning of each fiscal biennium. If the retirement system is found to be fully funded, transfers may not be made, emphasizing a responsive and cautious approach to financial management. This is significant for the long-term sustainability of the retirement system and affects how the state allocates its financial resources, particularly during economic fluctuations.

Summary

HJR56 proposes a constitutional amendment that aims to provide for periodic transfers of funds from the economic stabilization fund to fully fund the Employees Retirement System of Texas. The bill seeks to address the issue of unfunded actuarial liabilities in the state retirement system by ensuring that financial resources are allocated from the economic stabilization fund when certain conditions are met. This provision would help to maintain the financial health of the retirement system and protect the interests of employees reliant on its solvency.

Contention

Notable points of contention surrounding HJR56 involve concerns from various legislators regarding the implications of relying on the economic stabilization fund for retirement funding. Critics may argue that such transfers could limit funds available for other critical needs and services within the state budget. Additionally, there may be apprehensions about the sustainability of transfers and their potential impact on long-term fiscal policy, particularly if economic conditions change and the stabilization fund does not have sufficient resources to support such allocations.