BILL ANALYSIS

Senate Research Center	S.J.R. 4
88R17172 KJE-D	By: Bettencourt et al.
	Finance
	3/13/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.J.R. 4 seeks to propose a constitutional amendment to allow the state's voters to determine that state tax revenues not dedicated by the constitution that are made for the purposes of paying for school district tax rate relief, as identified by the legislature in general law, are not included as appropriations used for purposes of determining whether the state's spending growth exceeds the constitutional spending limit.

Currently, when the legislature provides school district maintenance and operations (M&O) tax rate compression it is counted against the constitutional spending limit. Returning money to taxpayers in the form of compression should not be considered spending but rather more like a refund to the individuals and businesses that paid it.

S.J.R. 4 will grant Texans the opportunity to vote on a constitutional amendment to exclude spending on school property tax relief when determining whether state spending exceeds the constitutional spending limit.

S.J.R. 4 proposes a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 22, Article VIII, Texas Constitution, by adding Subsection (a-1), as follows:

(a-1) Provides that appropriations from state tax revenues not dedicated by this constitution that are made for the purpose of paying for school district ad valorem tax relief as identified by the legislature by general law are not included as appropriations for purposes of determining whether the rate of growth of appropriations exceeds the limitation prescribed by Subsection (a) (relating to prohibiting the rate of growth of appropriations from state tax revenues not dedicated by this constitution from exceeding the estimated rate of growth of the state's economy in a biennium) of Section 22 (Restriction on Rate of Growth of Appropriations).

SECTION 2. Adds the following temporary provision to the Texas Constitution:

TEMPORARY PROVISION. (a) Provides that this temporary provision applies to the amendment to Section 22, Article VIII (Taxation and Revenue), of this constitution as proposed by the 88th Legislature, Regular Session, 2023, excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

(b) Provides that the change made to Section 22, Article VIII, of this constitution by the amendment applies to appropriations made for the state fiscal biennium beginning September 1, 2023, and subsequent state fiscal bienniums.

(c) Provides that this temporary provision expires September 1, 2025.

SECTION 3. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 7, 2023. Sets forth the required language of the ballot.