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Bill

SJR 57

Proposing a constitutional amendment prohibiting the use of state funds to pay for the obligations of a local public retirement system.

89th Legislature (2025) Introduced by Brian Birdwell and 3 co-sponsors

Constitutional amendment prohibiting Texas from funding local public retirement system obligations, shifting full pension costs to municipalities and counties.

Committee report sent to Calendars
#resolutions--constitutionalamendments(i0661) #retirementsystems--general(i0725) #retirementsystems--municipal(i0729) #retirementsystems--police&firefighters(i0730)
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Bill Summary · SJR 57

Legislative bill overview

SJR 57 proposes a constitutional amendment that would explicitly prohibit Texas from using state funds to cover unfunded liabilities or operational costs of local public retirement systems. Currently, state law allows for state financial assistance to local pension systems under certain circumstances. This amendment would constitutionally restrict that authority.

Why is this important

Local public retirement systems (like municipal employee pensions) sometimes face funding shortfalls. Currently, the state can help cover these gaps, which shifts costs to state taxpayers. This amendment would prevent that cost-shifting, forcing local governments to fully fund their own pension obligations or restructure their retirement benefits. The fiscal impact depends on how many local systems currently rely on state support and whether they would adjust benefits or increase local taxes instead.

Potential points of contention

  • Fiscal burden on localities: Municipalities and counties would lose a potential funding source, potentially forcing them to raise property taxes, cut services, or reduce pension benefits to current/future employees
  • Pension obligation fairness: Public employees hired under existing pension promises may see benefits reduced retroactively, raising fairness and legal concerns
  • Economic development competition: Cities unable to offer competitive pension benefits might struggle to attract quality employees compared to states that allow state pension support

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

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