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Ahead of Texas’ 89th Legislative Session, set to begin in January 2025, State Representative Brian Harrison (R-Midlothian) has filed House Bill 901 (HB 901), which seeks to cap taxpayer-funded salaries for public sector employees and officials. This legislation establishes a salary limit equal to the Governor’s annual pay, as determined by the state’s biennial appropriations act. If enacted, HB 901 would apply to state employees and those working in political subdivisions, including municipalities, counties, school districts, and special districts.
Understanding HB 901
House Bill 901 amends the Texas Government Code and the Local Government Code to ensure that no taxpayer-funded salary exceeds the Governor’s annual salary, currently set at $153,750. This cap applies uniformly across all political subdivisions, regardless of size, from rural counties to large urban municipalities.
To facilitate a smooth transition, HB 901 only applies to salary agreements or contracts entered into after its effective date, September 1, 2025. Existing agreements will remain governed by current law, giving institutions time to adjust their compensation structures without causing immediate disruptions.
The Need for HB 901
HB 901 addresses concerns over disproportionately high salaries for certain public sector roles. For example, during the 2023-24 school year, the superintendent of Cypress-Fairbanks Independent School District earned a base salary of $537,775—more than triple the Governor’s salary. Over 500 school superintendents in Texas also earned more than the Governor, prompting questions about whether taxpayer dollars are being allocated efficiently.
This issue is not confined to education. In municipalities and other local governments, roles such as city managers, police chiefs, and healthcare administrators frequently come with six-figure salaries that exceed the Governor’s pay. Supporters of HB 901 argue that capping these salaries would promote fiscal discipline and ensure consistent use of public funds.
Context and Broader Implications
Public sector salaries have been a topic of debate in Texas and nationwide. Proponents of salary caps believe they help ensure that taxpayer-funded positions remain reasonable and aligned with the responsibilities of the role. HB 901 aligns with broader efforts to enhance fiscal accountability and transparency in government operations.
Harrison reinforced this position in a recent statement on social media, posting:
“Proud to file HB 901 to keep state and local bureacrats from making more than the Governor! No bureacrat has more constituents, staff, authority, or responsibility than the Governor. They should not make more than him and should not get rich off of the backs of taxpayers.”
Source: Twitter/X Post by State Rep. Brian Harrison on filing HB 901
While advocates highlight the benefits of fiscal restraint, critics raise concerns about the potential unintended consequences. Many public sector roles require specialized expertise, and competitive salaries are often necessary to attract qualified professionals. This challenge could be particularly pronounced in urban areas, where leadership roles oversee large, complex operations. Applying a uniform cap across diverse regions could also limit local governments’ ability to tailor compensation to meet their needs.
Legislative History and Similar Efforts
HB 901 is not Harrison’s first attempt to address this issue. During the 88th Legislative Session (2023), he filed House Bill 1476, which sought to cap future state employee salaries at the Governor’s level. However, the bill was referred to the House State Affairs Committee and never received a public hearing.
Other states have also explored similar measures. In New Jersey, a 2011 law capped superintendent salaries at $175,000, with exceptions for the largest districts. While the cap was later raised to $191,584, it led to mixed results, including high turnover and attempts to circumvent the cap through merit-based bonuses. In North Dakota, proposed legislation sought to tie superintendent salaries to a percentage of tax revenue and require smaller districts to share superintendents. Although this effort failed, it highlighted the broader push to reduce administrative costs and redirect funds to classrooms. In Nebraska, a bipartisan proposal to limit superintendent salaries to five times the pay of a first-year teacher also failed to pass.
Conclusion
Texas House Bill 901 proposes significant changes to how taxpayer-funded salaries are managed at the state and local levels. By capping salaries at the Governor’s pay level, the bill aims to address concerns over excessive public sector compensation and promote fiscal accountability. As the legislative process unfolds, lawmakers will likely weigh the potential benefits of cost savings against the challenges of recruitment and retention, particularly in larger jurisdictions with complex governance needs.
HB 901 offers a unique opportunity for Texas to lead on fiscal reform, and its progress through the legislative session will be closely watched by stakeholders across the state.
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