A.G. Opinion. Local Pensions. Is the state liable for the obligation?

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September 6, 2016

No, the state isn’t liable for local pension obligations.

Why isn’t the state liable? Two reasons according to the rational in the Attorney General opinion:

no specific statutory authority
the constitution prohibits it by:
- Article III, section 49(a) limits the creation of state debt and does not include local pensions
- Article III, section 50 prohibits the state from lending its credit, which it has not

Southeast Texas Record | Texas AG opinion: State not ‘liable’ for municipal pension shortfalls