In a recent San Antonio City Council B Session, officials expressed deep concerns over House Bill 19, which proposes significant restrictions on local governments' ability to issue debt for essential capital investments. This legislation, if enacted, would impose a cap on debt service payments, limiting them to 20% of property tax collections averaged over three years. City officials warn that San Antonio is already above this cap, which could prevent new bond programs and capital investments for over a decade.

The implications of this bill are far-reaching, affecting not only the city but also school districts, community colleges, and hospital districts. City representatives highlighted that the current financial health of San Antonio is strong, with a high bond rating and voter approval rates for bond programs around 70%. They argue that the bill does not address any existing financial issues but would instead create significant challenges for the community's growth and infrastructure needs.

City officials have been actively engaging with state lawmakers, including the bill's author, to advocate for amendments that would allow voter-approved bond programs to be exempt from the proposed cap. They believe that if voters support a bond program, the state should not interfere with its funding.

In addition to the debt cap, the bill includes provisions that would change the timing of bond elections to November, impose a five-year waiting period for reissuing debt after a failed bond election, and lower the petition threshold for protesting debt issuance from 5% to 2%. These changes are seen as further tightening local governments' financial flexibility.

The council's discussions reflect a broader concern shared by various stakeholders, including business groups and contractors, who rely on public investment for economic growth. As the city continues to advocate for necessary changes to the bill, the outcome will significantly impact San Antonio's ability to meet the needs of its residents and maintain its infrastructure.