In this Let People Prosper episode 69, I sit down with James Quintero, director of the Think Local Liberty project, and Dr. Derek Cohen, director of the Right On Crime project, to discuss the Texas budget, ban-the-box, and annexation. 

You don't want to miss this first episode of many where we'll address a number of good, bad, and pretty good bills that influence our prosperity throughout session while giving you a heads up on which bills will be heard in committee so you can make your voice heard. 

In this episode we discuss the state's recommended budgets by the House and Senate and how they compare with the Conservative Texas Budget, bad bill of HB 495 related to criminal history, and a prosperity-enhancing bill of HB 347 related to annexation that builds on passage of SB 6 during the 2017 special session. 

#LetPeopleProsper

In this Let People Prosper episode 68, I interview James Quintero, Director of the Think Local Liberty project at the Texas Public Policy Foundation, about reining in skyrocketing local property taxes, increasing local debt transparency, and highlighting frivolous local spending. High taxes and debt are always and everywhere a spending problem. James makes that point clear in this episode. Don't miss it!

​#letpeopleprosper

Texas leads the nation in economic growth and international trade. Were Texas a country, it would have the world’s 10th-largest economy—a ranking achieved in no small part by the state’s deep involvement in international trade. Local, national, and international trade provide the ability for more extensive specialization, and each is an important component of Texas’ economy.

Great discussion on these issues with Texas Comptroller Glenn Hegar, Leila Afas of Toyota Motor Co., Representative Matt Shaheen, and Doug McCullough of the Lone Star Policy Institute. 

Read the TPPF report on how people prosper from NAFTA and trade. 

The Texas Teacher Retirement System has had massive debts for years and there is growing concern the system is moving toward insolvency. There are good options the Texas Legislature can pursue to fix the system, but they all require hard choices. Which path will policymakers take, or will they put it off?

Great discussion with Stephen Gassenberger of Reason Foundation, Monty Exter of the Association of Texas Professional Educators, and Josh McGee of the Texas Pension Review Board on TRS issues and potential solutions. 

Check out this recent TPPF-Reason publication that provides an overview of issues facing TRS. 

Perhaps no issue unites Texans across the state like the need to reduce property taxes. But any property tax reform will have consequences that affect how we fund education, pay for roads, grow our economy, improve access to health care, and more. Experts and policymakers take on this critical question and look for solutions in the 86th Legislature.

Great discussion with Dr. John Diamond from Rice University's Baker Institute, Senator Paul Bettencourt, Judge Glenn Whitley, and Representative Drew Springer. 

Read more about TPPF's plan to cut property taxes and find out how much you would save under this plan over time here. 

In this Let People Prosper episode 67, let's discuss the importance of sustaining and improving the Texas Model of no personal income tax, relatively low taxes, relatively less government spending, and sensible regulation that allow entrepreneurs opportunities not available elsewhere. This can be boiled down to: Institutions Matter. Let's recall previous discussions highlighting these key points while noting how Texas led the way in job creation again in 2018. 

#LetPeopleProsper

In this #LetPeopleProsper episode 66, let's discuss what happened during Week 2 of the 86th Texas Legislature.

My op-ed on the need to ban a personal income tax in Texas in the Victoria Advocate was tweeted by Governor Greg Abbott. That op-ed also noted the need to cut the school maintenance and operations property tax with TPPF's plan of simply slowing government spending growth. And I had another piece in The Hill that noted the benefits of free trade. 

Finally, the Legislative Budget Board adopted a spending limit based on population growth and inflation last Friday. Near the end of the discussion (watch starting at 6:20), Chair Jane Nelson notes, at Speaker Dennis Bonnen’s request, that The Honorable Talmadge Heflin said TPPF wouldn’t include Harvey-related money in budget figures. This is correct as long as it is transparent and one-time funding. It's a pleasure to work with him every day. Regarding the recent budgets, we posted a blog post with more information comparing the House and Senate budget recommendations with the Conservative Texas Budget. 

#letpeopleprosper

In this Let People Prosper episode 65, let's discuss the legislative priorities set by the Texas House and Texas Senate in their recently proposed recommended budgets. While there's much to wade through, here’s what I’ve derived so far from the House and Senate recommended budgets. Of course, there will be many discussions over these budgets during the next several months until a final budget is determined and approved by both chambers, but these recommendations give a good indication of the priorities of each chamber, much like your family's budget. 

The first thing to note is that both chambers have prioritized public education and property tax relief to a certain extent. Both chambers have relatively large increases in public education, but the details will need to be worked out throughout the legislative session to determine the allocations to public education spending and tax relief.

In general, there should be a push for spending current resources more wisely within public education before considering any new money. In other words, there could be a large amount of money to buy down the school maintenance and operations property tax as outlined in TPPF's property tax plan (view how much you would save  over time with our online calculator). 

The House budget noted first in the table below shows that the recommendations for state funds and all funds (state and federal) are greater than the Conservative Texas Budget limits based on growth of 8% in population and inflation in the last two fiscal years. The amounts appropriated for 2018-19 budget are from the LBB's Fiscal Size-Up for an apples-to-apples appropriation comparison. I've also noted the Texas Comptroller's Biennial Revenue Estimate (BRE) amounts. The House budget allocates $9 billion towards pub ed/property tax relief but is contingent on bills passed for those. There aren’t specific allocations of that $9 billion for pub ed or property tax relief. 

The Senate budget is noted second and is below our CTB limit for state funds but is above our limit for all funds. The Senate budget provides $6 billion in pub ed/prop relief to the tune of $3.7 billion for increased teacher pay ($5,000) and $2.3 billion for prop relief. 

I've excluded $7.1 billion in federal funds from both chambers' 2020-21 budgets for disaster recovery after Harvey as these should be one-time, unexpected expenses. 

Overall, the Senate budget is in better shape to meet the CTB limits to keep the average taxpayer's ability to pay for government from unnecessarily growth and doesn't include use of the ESF like the House does of $633 million.

Bottom line: There’s work to do to limit government spending and provide tax relief to #letpeopleprosper.

More on this comparison here. 

In this Let People Prosper episode 64, let's discuss the Texas Public Policy Foundation's Policy Orientation, which was a sold out event that helps define the narrative for the 86th Texas Legislature, and highlight the recent spending limit set by the Legislative Budget Board.

The following are the panels that I moderated or participated in some capacity and my key takeaways with resources:

• Panel on the costs and mostly benefits of NAFTA. We need freer trade.
• Panel on TRS pension. There's a crisis coming with the Teacher Retirement System of Texas if nothing is done.
• Panel on property tax relief efforts. Must lower property taxes. See here how your property tax burden would decline over time with TPPF's plan. 
• Panel on the Texas state budget. The upcoming budget could be third straight Conservative Texas Budget but there are many demands for taxpayer dollars, which taxpayers should be prioritized in budget process for tax relief.
• Panel on spending limits. There is a need to reform the state's spending limit to one based on population growth and inflation so that the the tax burden better matches average taxpayer's ability to pay.
• Watch my brief speech of my life story and introduction of Americans for Tax Reform President Grover Norquist
• You can watch all of the keynote speeches and other panels here.

 The other big news on Friday was that the Legislative Budget Board (LBB) set the state's spending limit for the upcoming 2020-21 budget. This spending limit is on only general revenue not dedicated by the constitution which is less than half of the total budget. While statutorily the spending limit should be based on growth in personal income, last session the LBB chose the rate based on population growth and inflation. This time the spending limit is 9.89% for the 2020-21 budget, which is based on an increase of 8.39% in population growth and inflation and 1.5% for Harvey.

​This is another good sign that the LBB continues to use a measure for the limit that better matches the average taxpayer's ability to pay than the inappropriate growth rate of personal income.  This spending limit is in-line with the recent BRE increase of 8.1% in general revenue-related funds and provides funds available to cover needed expenses along with property tax relief. Specifically, the Legislature could use half of the funds of about $4.4 billion for spending and 90% of the rest of the funds of about $4.1 billion to buydown the school maintenance and operations property tax.