Texas voters to decide on transportation bonds

Texas voters this fall will be able to decide whether to give counties authorization to use bonds for transportation work in certain areas. Limitations would be included.

The Texas Legislature acted earlier this year to approve HJR99 to add the bond question to the Nov. 2 ballot. Any effort to amend the state’s constitution requires a two-thirds supermajority vote for consideration on a ballot.

Texas statute already authorizes an incorporated city or town to issue bonds or notes to finance development of “an unproductive, underdeveloped, or blighted area.” Localities can increase property tax revenue in the area to repay the bonds.

The legislatively referred constitutional amendment, Proposition 2, would add counties to the political entities authorized to issue bonds or notes for the same purpose.

Pros and cons

Advocates say adding counties to the authorization is a logical extension of the authority to issue bonds or notes.

They add that the method of financing does not increase taxes but allows local governments to redirect any additional property tax revenue to certain reinvestment zones to finance improvements within the zone, including transportation projects.

Critics say the ballot question would expand taxpayer-backed debt by allowing counties to use tax increment financing, which could raise local property taxes.

Additionally, they say the extension to counties is unnecessary because cities and towns already can use bonds or notes to finance infrastructure projects in blighted areas.

Restrictions would be put into place

Proposition 2 would prohibit counties from allocating more than 65% of annual property tax revenue increases annually to repay the bonds. Counties also would be prohibited from using the funds from the bond issuance to build a toll road. LL

More Land Line coverage of news from Texas.