Amending Texas’ Constitution, understanding the 2023 ballot Propositions 9 and 10
Early voting begins Oct. 23 and the Navasota Examiner will publish the 14 proposed Constitutional amendments over the next seven weeks. The Condensed Analyses of Proposed Constitutional Amendments, 88th Legislative Session for the Nov. 7, 2023, Election is published by the Texas Legislative Council and available at: https://www.tlc.texas.gov/docs/ amendments/analyses23_condensed. pdf. A detailed analysis is available at: https://tlc.texas.gov/ docs/amendments/analyses23. pdf
Summary of Comments The following comments supporting or opposing the proposed constitutional amendment reflect positions that were presented in committee proceedings, during house or senate floor debate, or in the analysis of the resolution prepared by the House Research Organization (HRO) when the resolution was considered by the House of Representatives.
Proposition 9 (H.J.R. 2) The constitutional amendment authorizing the 88th Legislature to provide a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas.
Summary Analysis
H.J.R. 2, 88th Legislature, Regular Session, 2023, proposes a temporary amendment to the Texas Constitution that authorizes the current 88th Legislature to (1) provide by general law a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas and (2) appropriate state money to pay for the adjustment. The legislature has appropriated $3.355 billion to fund the cost-of-living adjustment contingent on voter approval of the proposed amendment.
Comments by Supporters • Because the vast majority of school districts in Texas do not participate in the federal social security system, the annuity from the Teacher Retirement System of Texas (TRS) is the only retirement benefit most retired teachers receive. Without having received a costofliving adjustment (COLA) in nearly 20 years, retired teachers have lost considerable purchasing power with their TRS annuity due to cost increases and high inflation.
• Funding a COLA for TRS retirees will provide the state’s retired teachers with much-needed relief and is a wise use of the state’s surplus revenue.
Comments by Opponents No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.
Proposition 10 (S.J.R. 87) The constitutional amendment to authorize the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain.
Summary Analysis
The constitutional amendment proposed by S.J.R. 87 amends the Texas Constitution to authorize the legislature to exempt from ad valorem taxation the tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.
Comments by Supporters • Despite not having a corporate or individual income tax, Texas has a high effective tax rate for medical manufacturers as compared to other states. Taxes on medical and biomedical manufacturing inventory discourage capital investment in and the expansion of this industry in Texas.
• Most medical and biomedical manufacturing is located abroad, and the cost to ship medical supplies to the United States increased more than 50 percent in 2021, causing Texans to pay more for vital supplies. Encouraging local manufacturing would eliminate the added shipping costs.
• Inflationary pressures and supply chain constraints further contribute to the need to regionalize manufacturing.
• Since 2020, Texas has missed opportunities for billions of dollars in private investment for biomedical manufacturing because it lacks tax incentives that other states provide.
• The proposed tax exemption would encourage investment in medical and biomedical manufacturing in Texas, which in turn would promote innovation and advancement in medical technologies, strengthen Texas’medical supply chain, and create jobs.
Comments by Opponents No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.