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City warns of multiple Texas bills that could limit municipal finance tools during 89th Legislature
Summary
Austin’s intergovernmental relations officer told the Audit and Finance Committee that the Texas Legislature filed numerous bills that would affect cities’ debt tools, certificate of obligation use and transfers from enterprise funds to the general fund.
Carrie Rogers, the city’s intergovernmental relations officer, briefed the Audit and Finance Committee on March 26 about finance‑related bills filed in the Texas 89th Legislature and their potential impacts on Austin.
Rogers said about 8,900 bills were filed when filing closed and roughly 2,400 of those could affect cities. She highlighted a legislative trend of proposals that would restrict the use of certificates of obligation, limit municipal debt issuance, add voter requirements for certain debt instruments and cap municipal expenditures to the previous year’s spending adjusted only for population growth. Rogers said the last day of the session is June 2.
Why it matters: Several bills Rogers flagged would limit tools cities use for capital and emergency finance — for example, restricting certificates of obligation and limiting the ability to transfer enterprise‑fund revenues (such as from Austin Energy) to support general fund purposes. Rogers said the city is coordinating with peer cities and organizations (TML and others) to respond to preemption efforts and bills affecting municipal finance.
Pension and retirement bills: Rogers noted separate bills related to the Austin Firefighters Retirement Fund and a city pension reform bill carried by Representative Busey. The city is responding to questions from the legislative delegation and expects hearings soon.
Ending: Rogers urged the committee to monitor the session and stay prepared for changes that could alter the city’s fiscal options. Committee members did not take formal action but thanked the intergovernmental relations office for the update.
