Texas House Bill HJR 212

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Proposing a constitutional amendment concerning the limitation on the rate of growth in state and local appropriations with the return of over-collected taxpayer money by reducing taxes.

Summary

HJR 212 proposes a constitutional amendment to limit the growth of state and local appropriations in Texas. It would require appropriations growth to stay within a cap tied to the average taxpayer’s ability to pay for government, as calculated using available data and set by the Legislative Budget Board before each regular legislative session. The measure applies broadly to state and local budgets, including general revenue, dedicated accounts, general-revenue-related funds, other state and local funds, and federal funds held in the treasury. The resolution also creates a supermajority exception: state or local governments could exceed the limit only with approval of three-fourths of the members of each house of the Legislature or the relevant local governing body, along with a resolution identifying the amount above the limit and the emergency justifying it. In addition, any “over-collected” taxpayer money would be returned by reducing tax rates, rather than being retained as excess revenue. The proposal would be submitted to voters at the November 4, 2025 election, and it would take effect only if a related constitutional amendment authorizing an appropriations limitation is approved.

Impact

If adopted, HJR 212 would amend Article VIII of the Texas Constitution and significantly constrain both state and local fiscal growth by tying spending increases to a taxpayer-affordability metric. It would affect budgeting practices for state agencies, local governments, and the Legislative Budget Board, while also establishing a constitutional mechanism for tax-rate reductions when collections exceed the permitted level. Because it is a joint resolution, it does not itself change statutes immediately; it proposes a constitutional amendment that would alter the legal framework governing appropriations and tax policy if approved by voters.

Sentiment

The available record shows the bill was referred to the House Appropriations Committee, with no recorded committee transcript or vote history in the provided materials. Based on the text, the resolution reflects a fiscally restrictive, taxpayer-focused approach that is generally associated with limiting government growth and returning excess revenue to taxpayers. No formal opposition or support statements are included in the record provided, so the sentiment can only be characterized from the proposal itself rather than from debate or votes.

Contention

The main points of contention likely concern the breadth and rigidity of the spending cap, the use of an affordability-based formula to measure government growth, and the requirement that any exception be approved by a three-fourths supermajority. Local governments may also view the measure as limiting budget flexibility and emergency response capacity, while supporters would likely argue it protects taxpayers and restrains spending. The provision requiring tax-rate reductions for over-collected revenue could also raise questions about implementation, revenue forecasting, and whether the amendment would constrain essential public services.