This may depend on the job. A family member of mine has rejected moving "up" to a salaried position (exempt) because his union-protected, hourly job (non-exempt) provides great overtime pay and he earns more than if he was in a management role. He works for a telcomm company. So it could be your friend was told the only way to meet her salary request/need is to step into another role- there may not be budget for her request on the salaried side.
Also-- the job description would have to change to shift from salary to hourly. There are pretty strict guidelines on this. It has to do with the level of independent decision making ability, in part. (I'm sure HR pros can clarify and correct!) Legally they can't just change it from salaried to hourly. The job itself has to change.
Otherwise-- I'm unaware of any "legal" maximum salary wages. If it is a job with the Texas State Government, maybe they have guidelines for salary and her current role's salary is legislated within certain bounds? Otherwise it's an odd thing for an employer to say. I think Texas would be the last state to tell an employer how much they could or couldn't pay an employee!
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