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This week’s column is the fifth in a series outlining the proposed constitutional amendments on which Texas voters will decide on November 8. These amendments were joint resolutions that were passed during the recent legislative session; however, because they change the Texas Constitution, they need state-wide voter approval before they can take effect. The order that the amendments appear on the ballot has been randomly selected by the secretary of state. I will be providing information about the proposals in the order in which they will appear on the ballot. This information is taken from a report by the House Research Organization, a nonpartisan agency that provides information to the legislature.
Amendment No. 5 The constitutional amendment authorizing the legislature to allow cities or counties to enter into interlocal contracts with other cities or counties without the imposition of a tax or the provision of a sinking fund.
The proposed amendment would authorize the legislature to authorize a city or county to enter into interlocal contracts with other cities or counties without meeting the requirement that, before incurring any debt, the city or county provide for the assessment and collection of a sufficient tax to pay the interest on the debt and that it create a sinking fund of at least two percent. Supporters of the amendment say that current constitutional provisions requiring local governments to impose a tax and create a sinking fund when incurring any debt have been interpreted in a way that limits the ability of a city or county to enter into an interlocal contract with a term of more than one year by treating a longer term contract as a debt under certain circumstances, which would require a debt service tax and sinking fund. This limitation has impeded the ability of cities and counties to enter into contracts to consolidate long-term programs, services, and projects, including the construction of infrastructure. By allowing a local government to enter into a contract with a term of more than one year without having to impose a tax or create a sinking fund, the proposed amendment would increase government efficiency by allowing for the consolidation of more programs, services, and projects. There is no apparent opposition to the amendment.
You can view a complete list of the proposed constitutional amendments with analyses online at www.hro.house.state.tx.us. For more information regarding these propositions, you can contact my office by writing to P.O. Box 2910, Austin, TX 78768-2910 or by emailing me at larry.phillips@house.state.tx.us. My district office phone number is (903) 891-7297.