Amending Texas’ Constitution, understanding the 2023 ballot Propositions 5 and 6
Early voting begins Oct. 23 and the Navasota Examiner will publish the 14 proposed Constitutional amendments over the next seven weeks. The Condensed Analyses of Proposed Constitutional Amendments, 88th Legislative Session for the Nov. 7, 2023, Election is published by the Texas Legislative Council and available at: https://www.tlc.texas.gov/ docs/amendments/analyses23_ condensed.pdf.
A detailed analysis is available at: https://tlc.texas. gov/docs/amendments/ analyses23.pdf
Summary of Comments The following comments supporting or opposing the proposed constitutional amendment reflect positions that were presented in committee proceedings, during house or senate floor debate, or in the analysis of the resolution prepared by the House Research Organization (HRO) when the resolution was considered by the House of Representatives.
Proposition 5 (H.J.R. 3) The constitutional amendment relating to the Texas University Fund, which provides funding to certain institutions of higher education to achieve national prominence as major research universities and drive the state economy.
Summary Analysis
H.J.R. 3, 88th Legislature, Regular Session, 2023, proposes an amendment to the Texas Constitution to rename the national research university fund, which is used to support emerging research universities in Texas, as the Texas University Fund. The amendment would exclude state universities that are supported by the Permanent University Fund (PUF) from eligibility to receive money from the Texas University Fund, and exempt money in the fund and state tax revenues appropriated to the fund from the constitutional state spending cap, which generally limits the rate of growth of appropriations. The proposed amendment further provides for a dedicated source of revenue for the Texas University Fund from the interest income, dividends, and investment earnings attributable to the state’s economic stabilization fund (“rainy day fund”), not to exceed $100 million per state fiscal year, as adjusted for inflation up to two percent per state fiscal year after the 2024 state fiscal year.
Comments by Supporters • Providing a predictable and sustainable source of funding for high-quality research at universities in Texas that do not have access to the Permanent University Fund will help ensure that the future workforce needs of the state are met and that the state’s economy continues to grow.
• Increased investment in cutting-edge research at universities in Texas is key to the state remaining competitive with other states making similar investments.
•Investing in research at the state level will help attract federal and private research funding and improve the caliber of the state’s research universities. This will make it easier to recruit students and faculty.
• Previous legislation establishing higher education research funds has been successful in helping universities increase their research capabilities. The additional funding provided through H.J.R. 3 will allow these universities to continue their growth.
Comments by Opponents No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal. However, a review of other sources indicates concern about the use of money from the economic stabilization fund (often referred to as the “rainy day fund”) to fund higher education initiatives since that fund was not designed for such purposes.
Proposition 6 (S.J.R. 75) The constitutional amendment creating the Texas water fund to assist in financing water projects in this state.
Summary Analysis
S.J.R. 75 proposes an amendment to the Texas Constitution to create the Texas water fund as a special fund in the state treasury outside the general revenue fund to be administered by the Texas Water Development Board or that board’s successor in function. The resolution authorizes the administrator of the fund to use the fund only to transfer money to other funds or accounts administered by the board or its successor in function. The resolution also provides that money transferred from the fund to another fund or account may be spent as provided by general law, or may be restored to the Texas water fund without further appropriation. The resolution provides that not less than 25 percent of the initial appropriation to the fund must be used for transfer to the New Water Supply for Texas Fund. The resolution authorizes the expenses of managing the investments of the Texas water fund to be paid from that fund. Finally, the resolution provides that an appropriation of state tax revenues for the purpose of depositing money to the credit of the fund does not count against the constitutional limit on the rate of growth of appropriations, which has the effect of excluding the appropriation from the state spending limit.
Comments by Supporters • Texas is in need of significant financial investment in water infrastructure and water supply development to address both aging infrastructure, the failure of which causes the state to lose an estimated 136 billion gallons of water each year and often subjects Texans to boil water notices, and the need for new water supply projects to support Texas’ growing population amid perennial drought conditions that deplete existing water sources.
• The creation of the Texas water fund would further the state’s investment in water infrastructure and would give the Texas Water Development Board flexibility in allocating financial assistance through existing and newly created funds to address issues with existing water infrastructure and support new water supply projects across the state for years to come.
• Small water systems in less urban areas of the state do not have the tax base to support large water infrastructure projects, and a statewide approach is needed to ensure water resources are available to all Texans.
Comments by Opponents The Texas Water Development Board should be able to address the state’s water needs without the creation of new programs.