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Bill

Bill

HJR 9

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.

89th Legislature, 1st Called Session (2025) Introduced by Steve Toth

Constitutional amendment limiting state/local spending growth and mandating tax refunds for over-collected revenues, constraining government budget flexibility.

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Bill Summary · HJR 9

Legislative bill overview

HJR 9 proposes a constitutional amendment that would limit how fast state and local government spending can grow year-to-year and require that excess tax revenues be returned to taxpayers through tax reductions rather than kept by government. This would require voter approval and, if passed, would amend the Texas Constitution to create a permanent spending growth cap mechanism.

Why is this important

Spending caps directly affect government's ability to fund services like education, infrastructure, and public safety as populations grow and costs rise. The requirement to return "over-collected" taxes could significantly constrain public budgets during economic booms, potentially forcing service reductions or creating structural deficits during downturns when revenues naturally decline.

Potential points of contention

  • Defining "over-collection": Unclear methodology for determining excess revenue versus legitimate needs for reserves or unexpected expenses
  • Impact on essential services: Fixed spending growth rates may not accommodate population growth, inflation, or emergencies (natural disasters, public health crises)
  • Economic cycle mismatch: Spending caps work poorly during recessions when revenues drop but service demand increases, potentially forcing pro-cyclical budget cuts
  • Local government autonomy: May override local voters' and elected officials' spending priorities by imposing state-level constitutional constraints

Compiled from official sources — confirm details with the bill’s official record.

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