#TXLEGE: Senate likely to pass meaningful local debt transparency

"The rich rules over the poor,
And the borrower is servant to the lender."
Proverbs 22:7

[Note: The committee hearing can be viewed here; our testimony is somewhere between the half hour and forty five minute mark.]

Earlier this afternoon, we testified in favor of SB 462 in front of the Senate Property tax committee: Relating to ballot propositions authorizing certain political subdivisions to issue debt obligations.

SB 462 would require local governments to disclose, on the ballot, the size of the tax increases required to pay back proposed bond packages.  It does a number of other worthwhile things.  But the major part is the disclosure of the size of the tax increase.

We've been on this issue for a long time.  This was one of the original issues that interested us in state level activism four sessions ago.  It was also on this issue where we learned the truth about how the Capitol all too frequently works.  The only thing that's changed in that time is the amount owed.

We also testified that, for down ballot campaigns in high turnout elections, information on the ballot is key.  Like it or not, 30% of voters in those type of situations are clueless.  Debt transparency, on the ballot, is the last line of defense for voter education.

We would like to correct one error: During our testimony, we stated that local government debt had grown by $50 billion during the time we've been following this issue.  It's actually $32 Billion.  We regret the error.  That being said, we got the direction right.

During the hearing, Chuy Hinojosa announced that we was supporting Campbell's bill.  With Hinojosa's support, that likely means this bill has the votes to pass.  The only opposition came from taxpayer funded lobbyists.

Bottom Line: This needs to get done this session....

Why TF is John Cornyn quoting Mussolini?!?

"If a ruler pays attention to lies,
All his servants become wicked."
Proverbs 29:12

Ummm, so this happened:

Huh?!?

In fairness to Cornyn, he later offered a lame rationalization:

Horse manure.  Cornyn never offered any of that context.  At best, the quote was embarrassingly reckless.  Otherwise, it was a Freudian slip from the guy who supported the 2008 TARP bailout.

Bottom Line: If John Cornyn's longstanding comfort with collusion between big business and big government didn't already make you nervous, yesterday's news didn't help....

#TXLEGE: (at least) 5 Good Bills Getting Hearings Next Week

"For where your treasure is, there your heart will be also."
Luke 12:34

Tuesday; Senate Property Tax:

• SB 462         Campbell                
  Relating to ballot propositions authorizing certain political subdivisions to issue debt obligations.

Wednesday; House Homeland Security:

• HB 238         Krause                  
  Relating to the enforcement of certain federal laws regulating firearms, firearm accessories, and firearm ammunition within the State of Texas.

Wednesday; House Ways and Means:

• HB 2                         Burrows
  Relating to ad valorem taxation.
  
• HB 705         Geren                
  Relating to the substitution of a county sales and use tax for all or a portion of property taxes imposed by the county; authorizing the imposition of a tax.

Wednesday; House State Affairs:

• HB 281         Middleton               
  Relating to the use by a political subdivision of public money for lobbying activities.
  [Note: They're not on this website's priority issues, but several other bills on the State Affairs docket also look good.]

Bottom Line: Just because a bill gets a committee hearing does not mean that bill will make it to the Governor's desk, but it's virtually impossible for that to happen without one.

#TXLEGE: Israel outing herself over dishonest elections

"Wealth gained by dishonesty will be diminished,
But he who gathers by labor will increase."
Proverbs 13:11

Last week's Bad Bill of the Week segment from Jonathan Stickland raises interesting local questions:



Repealing voter ID...wow.

Obviously, Celia Israel has never been a champion of election integrity.  But to abolish basic safeguards is new.  Quite the escalation.

Here's the thing: Celia Israel's district isn't necessarily a gimme for Democrats.  Yes, it leans that way (fairly strongly).  Yes, next year's national environment likely means lousy down ballot conditions in Travis County.

That being said, Voter ID laws are popular.  Even among Democrats.  If an incumbent elected official gets on the wrong side of this issue, the national environment will not bail them out indefinitely.

Bottom Line: This could be a foot in the door, if anyone in Northeast Travis County is smart enough to kick it open....

#TXLEGE: Some VERY GOOD NEWS (and some concerns) from Taylor

"Train up a child in the way he should go,
And when he is old he will not depart from it."
Proverbs 22:6

Due to a late breaking personal issue, we were not able to attend Larry Taylor's Trib appearance this morning, but we did watch it online:



The top-line takeaway is that Taylor unequivocally endorsed cutting property taxes as part of an school finance package.  Period.  End of story.  Specifically, Taylor promised Texans "significant property tax savings."

We thank Chairman Taylor for making this promise, but we expect him to follow through.

Taylor also had some very good things to say about the difference between paying teachers and shoveling money into bureaucracy.  We should (within reason) support the former but oppose the latter.  Taylor also explained the relationship between the Senate's base-pay proposal and the soon to be forthcoming merit pay plan.  It's along the lines of what we suspected last month.

Unfortunately...there was also pre-K.  Specifically, Taylor said he wants to "fully fund" "full day" pre-K.  In fairness to Taylor, he hid behind euphemisms like "high quality" and promised to restrict the program to "low income" students.  Nothing good can come from this proposal.

Bottom Line: All things considered, it was probably about a 70% positive performance.  If you're getting a merit pay system AND a big property tax cut, across the board teacher pay raises are a good trade.  But yikes on pre-K....

#TXLEGE: "Rollback" rates, Inflation, and Historical Accident

"Your gold and silver are corroded, and their corrosion will be a witness against you and will eat your flesh like fire. You have heaped up treasure in the last days."
James 5:3

From TPPF:

AUSTIN— Today, the Texas Public Policy Foundation published the policy brief, The Rollback Rate: Legislative Intent & Inflation.

“Local government budgets shouldn’t grow faster than the taxpayer’s ability to keep up with them,” said Mikael Garcia, director of Public Affairs at the Texas Public Policy Foundation. “That’s why the rollback rate was created in the first place—to be a ‘moderating influence’ on big property tax hikes. Lowering the rate closer to inflation follows legislative intent and guarantees that budgets won’t grow faster than do taxpayers’ wallets.”

Identical bills have been filed in the Texas House and Senate that seek to achieve meaningful property tax reform. A major component of both introduced bills— Senate Bill 2 (Bettencourt et. al) and House Bill 2 (Burrows)—is a lowering of the rollback tax rate from 8 percent to 2.5 percent. This downward adjustment is highly significant as the rollback rate was established in 1979 at 5 percent, increased in 1981 to 8 percent, and has not been modified since that time.

“It’s time to modernize the rollback rate from 8 percent to 2.5 percent,” said James Quintero, director of the Texas Public Policy Foundation’s Think Local Liberty project. “Updating this important safeguard will better protect taxpayers from local largesse and keep the Texas economy the envy of the nation.”

Key Points:

• In 1979, state lawmakers created a rollback tax rate to help moderate tax levy growth. The rate was set at 5 percent. 

• In 1981, state lawmakers raised the rollback rate from 5 percent to 8 percent on the grounds that inflation was high. It was high, but it also soon fell. 

• Over the last 25 years, inflation has never risen above 4 percent. Over the last 12 months, inflation increased less than 2 percent. Yet the rollback rate remains at 8 percent.

Bottom Line: Even setting aside the other godawful consequences of how Texas levies property taxes, a system designed to reflect the economy of the 1970's is simply obsolete.

-------

Full paper:

TPPF Rollback Rate by on Scribd

#TXLEGE: Freedom Caucus unveils priorities (while Swanson has hearing on debt transparency bill)

"Because of the transgression of a land, many are its princes;
But by a man of understanding and knowledge
Right will be prolonged."
Proverbs 28:2

The Texas Freedom Caucus unveiled its priorities for the current legislative session:



Highlights:

• Same top priority as everyone else -- Property taxes/school finance.

• Austin ISD + Plano ISD will pay $900 million into Robin Hood just by themselves.

• Merit pay for teachers.

• "Our hearts are broken by the actions of the New York legislature." re: Abortion.
• Several related priorities.

• Pass Constitutional Carry/oppose "Red Flag" laws.

• Uniform Election Dates.

• Paper trail for ballot results.

• Religious liberty.

• Border stuff.

• Expand career and trade schools.

• Ban taxpayer funded lobbying.

It's a solid list.  It's basically the RPT priorities, plus some others added by the grassroots.  That being said, as someone who served on the committee, this author can assure readers that most of these items would have been RPT priorities had the committee not been limited to five.

However, the biggest story was who was not there.  Valoree Swanson had to miss the press conference...because she was laying out a bill in committee.  If you're looking for a sign things are moving in a better direction at the Capitol, the fact that Valoree Swanson is laying out a bill in February is a pretty good one.

Swanson's bill was a simple debt transparency bill that would restrict the number of items school districts can put on a bond proposition:

HB 134             Swanson                 
Relating to the form of ballot propositions in an election seeking authorization for the issuance of school district bonds supported by property taxes.

Putting it mildly, that bill does not get a hearing last session (especially in February).

Bottom Line: The process will continue, but today was a good day....