 | Constitutional Amendments - Summary | |
| Election Day: Tuesday, November 3, 2009 | ||
Proposition No. 6
Heritage Alliance Recommendation: FOR
How the proposition will appear on the ballot:
The constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in amounts equal to or less than amounts previously authorized.
Summary:
Texas Constitution, Art. 3, sec. 49‑b establishes the Veterans' Land Board (VLB), whose members are the land commissioner, a person well versed in veterans' issues, and a member well versed in finance. The VLB may issue and sell state bonds, as authorized by the Constitution, to finance land purchases and home mortgages for Texas veterans. The principal amount of outstanding bonds currently may not exceed $500 million at any one time.
Under this proposed amendment, the principal amount of any outstanding bonds could not exceed the principal amount of state obligation bonds previously authorized by constitutional amendments. The VLB would be permitted to deposit the bond proceeds in or use them to augment the Veterans' Land Fund and the Veterans' Housing Assistance Fund, in addition to the Veterans' Housing Assistance Fund II. Bonds issued under this authority would not be considered payable from the general revenue fund. The $500 million cap on total bonds outstanding at any one time would be eliminated.
Heritage Alliance Recommendation:
FOR
Conservative Principles which are the basis for this recommendation:
The Veterans Land Board has operated very efficiently over the years. There has been very low default on bonds issued to support loans to veterans. A vote for this proposition will make government more efficient by eliminating the necessity for the Veterans Land Board to seek Legislative authority every two years to issue low risk bonds.