HB 9 would increase contributions by taxpayers collected at the state level from 6.8 percent to 7.8 percent in 2020 (and progressively higher to 8.8 percent in 2026) to decrease the funding period from 87 years to 30 years, respectively. This increase in contributions would cost taxpayers $684 million in the 2020-21 biennium and more thereafter. While this improves the financial soundness of TRS if the assumed rate of return is met, HB 9 does not solve the structural problems of TRS and adds additional costs to taxpayers of $658 million for a 13th payment to retirees in 2020.
Political Earthquake
The following commentary is published on Thursdays as part of TPPF’s subscriber-only newsletter The Post. If you would like to subscribe to The Post, click here. On Wednesday, Texans woke up to the good news that the Texas House will likely have a majority of school choice supporters in its chamber next session. There is still...