Austin Water reviews 2025 Texas legislative outcomes including proposed $1 billion annual water fund (HJ 7)

Austin Water briefed the commission on outcomes from the 2025 Texas legislative session and two subsequent special sessions that concluded this summer. Heather Cook, Chief Administrative Officer for Austin Water, reviewed more than a dozen bills and resolutions that staff expect will affect the utility’s finance, planning and operating programs.

Key items summarized by staff:

• House Joint Resolution 7 (HJ 7). Cook said HJ 7 is a constitutional amendment that will require voter approval in November. If approved, the resolution would dedicate $1,000,000,000 annually — once a sales-tax threshold is reached — to the Texas Water Development Board for water infrastructure from 2027 through 2047. The law would not raise the sales-tax rate; half of the annual allocation would be required to go to the state’s water-supply funds. Cook said the governor can suspend the funding in a disaster year and that the language allows restoration when practicable; staff noted the final effect will depend on voter approval and implementation details. (Cook offered to provide the commission with the specific bill language on request.)

• Senate Bill 7. Cook said SB 7 expands the Texas Water…