Texas House Bill HB5227

Texas 2023 - 88th Regular

• Filed: 3/10/23

Caption

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the Texas legacy fund, and the state highway fund and to the management and investment of the economic stabilization fund, the Texas legacy fund, and the Texas legacy distribution fund.

Impact

One notable aspect of HB5227 is its potential to alter the state's fiscal landscape by providing a structured method of allocating funds during times of economic fluctuation. This bill could significantly impact state law by reinforcing the mechanism that determines how surplus state revenue is distributed. Specifically, it is designed to create a safety net for economic downturns while also allowing for structured investment in long-term projects through the Texas legacy fund.

Summary

House Bill 5227 aims to amend and expand the framework surrounding the allocation of funds to the economic stabilization fund, the Texas legacy fund, and the state highway fund in Texas. The bill includes provisions for how the comptroller will manage transfers to these funds, particularly in periods when general revenue is limited. The goal is to ensure that certain thresholds for funding are met, thereby promoting economic stability and the ability to fund important state projects efficiently.

Sentiment

The sentiment around the bill is generally positive among proponents who view it as a necessary step toward prudent fiscal management. Supporters argue that the bill ensures that vital state funds are maintained at necessary levels, thus encouraging infrastructure development and state investment. However, there is concern from some groups about the implications of reallocating funds, specifically regarding potential impacts on less prioritized state services.

Contention

However, there are points of contention regarding the bill's execution and its long-term implications. Critics fear that the emphasis on the economic stabilization fund might detract from immediate spending on essential services. There is also concern over whether the redistribution of funds could lead to fluctuations that could destabilize other programs currently supported by state funding, leading to a complex interplay between immediate fiscal needs and long-term financial planning.

Texas Constitutional Statutes Affected

Government Code

• Chapter 316. Appropriations
  • Section: New Section
  • Section: 092

• Chapter 404. State Treasury Operations Of Comptroller
  • Section: New Section