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Proposing a constitutional amendment authorizing the issuance of
general obligation bonds to provide financial assistance to
political subdivisions located in areas of the state affected by a
From the LBB: There would be a negative fiscal impact to the state depending on the amount, timing, and structure of general obligation bonds issued under provisions of the bill.
HJR 145 proposes a constitutional amendment to authorize the disaster reinvestment and infrastructure planning board to issue general obligation bonds to help fund recovery efforts for political subdivisions located in a disaster area. The amount of the bonds would be capped at $500 million dollars.
We recognize that disaster planning and response are a legitimate function of state government. We are concerned about adding new general obligation bond debt to the growing debt problem the state faces. On the other hand, there are few good options for addressing the massive cost of natural disasters, particularly considering that funds promised by the federal government are slow to trickle in. For these reasons we remain cautiously neutral on HJR 145.