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This week's column continues the series outlining the proposed constitutional amendments on which Texas voters will decide on September 13. Please feel free to contact me if you have any questions on any of the constitutional amendments. You can view a document which explains the amendments along with arguments for and against each amendment at http://www.tlc.state.tx.us/research/pdf/analyses-sept13-condensed.pdf.
Amendment 9: "The constitutional amendment relating to the use of income and appreciation of the permanent school fund."
The Permanent School Fund (PSF) is a $16.6 billion perpetual endowment for public schools that generates interest and dividend income of about $765 million annually. The PSF contributes to the Available School Fund (ASF). The ASF is distributed to public schools according to the number of students and also is used to pay for textbooks.
This amendment allows the State Board of Education or the legislature to determine the amount taken from the PSF and sent to the ASF from a portion of the "total return" on all investments of the PSF. Currently, the PSF may only distribute interest and dividend income to the ASF.
Supporters say this amendment would increase ASF payments on a recurring basis by an amount estimated at between $125 million and $130 million per year. They also say that the amendment builds in protections to avoid risk to the fund. Opponents say drawing off capital gains would be a short-term strategy that would not protect the fund to cover long-term enrollment growth in Texas public schools.
Amendment 10: "The constitutional amendment authorizing municipalities to donate surplus fire-fighting equipment or supplies for the benefit of rural volunteer fire departments."
This amendment authorizes a municipality to donate surplus equipment, supplies, or other materials used in fighting fires to the Texas Forest Service or a successor agency authorized to cooperate in the development of rural fire protection plans. The Texas Forest Service, in turn, could redistribute these materials to rural volunteer fire departments based on need.
Supporters say this amendment would facilitate crucial aid to volunteer fire departments operating with minimal funds. Opponents say that because Texas taxpayers have paid for firefighting equipment, they should retain part of their investment when the asset leaves their municipality. Municipalities should not be allowed to donate equipment outright but should be allowed to sell it at a reduced cost to volunteer departments.
You can contact me by writing to P.O. Box 2910, Austin, TX 78768-2910 or by e-mailing me at larry.phillips@house.state.tx.us.
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