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Committee clears SJR 57 to clarify State not liable for local pension debts
Summary
The committee voted 11–0 to report Senate Joint Resolution 57, a proposed constitutional amendment to state that the State of Texas is not liable for debts or obligations of local retirement systems and to prohibit legislative bailout appropriations.
The Committee on Finance voted to report Senate Joint Resolution 57 to the full Senate with a favorable recommendation, 11 ayes, no nays.
Chair Huffman said SJR 57 would amend the Texas Constitution, subject to voter approval, to make explicit that the State is not liable for debts or other obligations of a local retirement system and would prohibit the legislature from appropriating funds to bail out a local retirement system. The chair cited an analysis by the Pension Review Board showing that many local pension plans face amortization periods of more than 30 years and noted the unfunded liability of one local plan as an example.
A witness from the Pension Integrity Project at Reason Foundation testified in support, praising the committee’s work on local pension best practices. No public opposition was noted on the record. The committee recorded 11 ayes, no nays and reported SJR 57 favorably to the full Senate.
