Shutdowns and stay-at-home orders across Texas due to COVID-19 have spiked unemployment, slowed tax receipts, and forced the permanent closure of 8,900 Texas businesses since March. This, from one of the most dynamic and fast-growing economies in the world.
A return to previous success is possible, and necessary, by safely reopening Texas and promptly strengthening its institutions.
The Texas Model of relatively limited government, along with the pro-growth policies of the Trump administration, provided an institutional framework that helped create an attractive economic environment to let people prosper.
In 2019, Texas led the nation with GDP growth of 4.4% and with the most jobs added of nearly 350,000 (and the fourth-fastest growth rate of 2.7%). Also, Texas had the lowest supplemental poverty measure rate of 13.7%, (the SPM accounts for cost of housing differences across the nation and other key metrics), compared with other large states of New York (14.4%), Florida (15.4%), and California (17.2%)—the highest in the nation.
In addition, the Texas model was strengthened by a voter-approved constitutional ban on a personal income tax last year, property tax relief through reform and reductions, and a track record over the last three sessions of passing conservative budgets.
But these benefits couldn’t withstand the economic destruction of fear.
Fear led the public to decrease their interactions early on during the COVID-19 pandemic, before state and local governments created a whiplash of openings and closures with questionable results.
At the state level, Texas Gov. Greg Abbott issued a disaster proclamation on March 13, near the start of the pandemic, and then a stay-at-home order on March 31.
Some restrictions were lifted on April 17 and more were eased a couple of weeks later before another the rise in COVID-19 cases and positive tests—both have been questionable measures to consider when making policy— over the summer raised concern, resulting in a statewide mask mandate and further restrictions.
This sort of uncertainty makes it practically impossible for entrepreneurs to run a business or for job-seekers to find steady employment.
The recently released GDP by state figures for the second quarter of 2020 accounted for this destruction. Dealing with a U.S. economy contracting by an annualized rate of 5% in the first quarter and 31.4% in the second, Texas’s GDP shrank by a record-breaking 29% in the second quarter. But this put it in the second quintile of best-performing states, if contracting at a record annual pace can be considered “best,” with less loss than Florida (-30.1%), California (-31.5%), and New York (-36.3%).
While the third quarter growth improved dramatically across the U.S., the same is true in Texas as some restrictions were eased.
And on Sept. 17, Texas changed the metric used to evaluate the situation to COVID-19 hospitalizations as a share of all hospitalized patients, which aligns with the initial reasoning for government overreach to avoid overwhelming hospital capacity. This allowed some trauma service areas (TSA) with that metric below 15% for seven consecutive days to open most businesses to 75% capacity.
Then, on Oct. 7, a new Executive Order was issued that changed the metric to COVID-19 hospitalizations as a share of total hospital capacity, an improvement that better accounts for the flexibility that hospital managers have with beds. This order also expanded most businesses capacity to 75% in TSAs with less than 15% of this metric and allowed bars to open to 50% capacity—assuming a county’s judge approves it, which hasn’t been the case in most large urban counties.
The new metric results in only three (Amarillo, Lubbock, and El Paso) of 22 TSAs with a hospitalization rate above 15%, as of Nov. 9, meaning that 94% of Texans can have access to 75% of certain business capacity.
As COVID cases rise once more during flu season, calls for a second round of harsh restrictions are sure to happen. What these demands fail to understand is that the re-opening measures in place are not due to a blind indifference to human suffering, but rather a different, better path to evaluate tradeoffs.
In addition, the catastrophic drop in GDP across the state was due in no small part to the swinging pendulum of shutdown to rollback to shut down again, with unemployment rising to a historically high 8.3%. Another statewide shutdown would deal another staggering blow to an economy recovering from the fallout of the pandemic.
The Texas Model was responsible for the economic boom before the pandemic, and what comparative success we’ve had during the COVID-19 crisis was due to efforts to roll back restrictions in line with that model.
If the state is to fully recover, the next steps to do so must be made clear soon as without it the uncertainty and fear will contribute to more job losses and the demise of the once successful Texas Model.
Watch my presentation “Was the Cure Worse than #COVID19?” This presentation is part of the Free Market Institute at Texas Tech University's Public Speaker Series, where I explain the economics of how institutions, tradeoffs, and policy matters when dealing with this situation. You can also view my slides below.
With the Texas economy reeling in the wake of the COVID-19 pandemic and the resulting statewide shutdowns, economic recovery will be the top issue for the upcoming legislative session. Key to any attempt at recovery will be determining how much the state should spend.
The prosperity of many Texans at stake and the Texas Legislature ought to consider fiscal savings to cover any shortfall in the current budget period and pass a responsible budget in the upcoming session that starts in January.
The Texas economy has taken a beating from the COVID-19 pandemic and associated lockdowns by state and local governments. Many Texans are struggling. And a recent national poll found 65% of voters say it will take more than a year for the U.S. economy to recover.
As Texas continues to recover, the necessity of keeping the government’s hands out of the taxpayer’s pockets is as important as ever. As the economy recovers, the natural inclination is to spend as much as necessary to support Texans reeling from the effects of COVID-19.
However, the old adage that there is no such thing as government funds, only taxpayer funds, should be at the front of legislators’ minds as they attempt to address the fallout from the pandemic.
With that spirit in mind, we at TPPF recently released our latest 2022-23 Conservative Texas Budget (CTB) that sets a maximum threshold on appropriations at $246.8 billion.
This amount is the result of increasing the 2020-21 appropriations by 5% growth rate, which was calculated using the state’s population growth plus consumer price inflation to capture taxpayers’ ability to pay for their government. These appropriations exclude extraordinary funds that shouldn’t go into the baseline budget because they’re one-time costs, such as funds to Hurricane Harvey recovery and property tax relief last session and those explicitly to COVID-19 efforts.
The CTB has been a success in the sense that it has helped give state officials a maximum benchmark with which to hold appropriations to within taxpayers’ ability to pay for it. By limiting growth in the budget, legislators have helped strengthen the Texas Model of low taxes and more freedom by cutting the business margins tax and property taxes by billions of dollars since the 2015 session when TPPF created the CTB.
Specifically, the average growth of the two-year state appropriations fell from 12% during the five budgets from 2004 to 2015 to an average of just 5.5% during the last three budgets. And after appropriations grew well above population growth plus inflation of 7.3% in the earlier period, the more recent growth was below this key metric of 6.3%.
This fiscal responsibility in the last three budget cycles must be continued because the excess in the earlier period has compounded to put more pressure on taxpayers’ budgets.
For example, if the state had adhered to this metric every budget period since the 2004-05 budget, appropriations would be $37.3 billion less, saving families of four, on average, about $2,500 per year—savings which would have been invaluable with the lockdowns’ lost wages and jobs.
Texas Comptroller Glenn Hegar recently reported that state sales taxes were down a whopping 6.1% in September over the prior year. This has contributed to a projected $4.6 billion deficit by the end of fiscal year 2021. Any attempt to raise appropriations above population growth plus inflation or raise taxes fails to take into consideration this deficit because it will detrimental to the recovery. The responsible action now is to cut spending as much as possible to make up the shortfall.
And to help put Texans on the best path to a full recovery from this unprecedented situation is to consider cutting wasteful and unnecessary appropriations at the very least not appropriate more than the Conservative Texas Budget in the upcoming session. Doing so will improve the proven successful Texas Model so more people have the chance to fully recover much faster than anticipated.
After the year we’ve had, we need a clear conservative fiscal approach in the upcoming session.
Americans want to return to work after months of joblessness due to the COVID-19 pandemic-related business closures. But too many Texans can’t—because of the industry they work in.
There was some hope that this might change after Gov. Greg Abbott’s executive order that took effect on Oct. 14 expanded the state’s reopening plan by adding bars to the list of certain businesses allowed to partially open. But one of the stipulations in the order to open bars to 50% capacity is already proving hardest to overcome: gaining the approval from the county judge.
Despite low COVID-19 hospitalization rates in most of the 22 trauma service areas across the state, many bars do not have the judge’s approval they need to open.
This limitation—among others—hits many Texans while they’re down. For example, Texas’s 8.3% unemployment rate in September is historically high and substantially higher than the near record-low rate of 3.5% in February before the COVID-19 pandemic.
Under the latest order, fewer restrictions are placed on those areas that are below the 15% threshold metric of COVID-19 hospitalizations as a share of total hospital capacity for at least seven consecutive days. These areas can have most businesses expand to 75% capacity and allow bars to open to 50% capacity with the approval of the county’s judge. But if an area’s metric is above this 15% threshold for seven straight days, then certain businesses are rolled back to 50% capacity and bars must close.
Fortunately, this order allows a more targeted policy approach to focus public and government assistance on populations that need it most. The chosen metric also helps bring a more objective measure that’s less susceptible to manipulation—intentional or otherwise—while supporting the government’s initial argument for preventing COVID-19 from overwhelming hospitals.
While this is an appropriate and safe step towards opening Texas, uncertainty remains for employers and workers who are left in the dark without a timeline for when the state will be fully open. In other words, when will Texans have their freedoms back so that they can live out their dreams responsibly?
This sort of certainty is what will help give people a sense of calm in this storm and support a more vibrant economy that will lead us back to a robust situation like we had in February. Adding to the current uncertainty, local officials are making bad decisions by refusing to rely on the evidence.
Specifically, many of the major county judges insist that the threat levels are still too high for any further reopening efforts. But the data indicate otherwise. In fact, as of Oct. 27, most areas where 94% of Texans reside are maintaining a hospitalization rate below 15% with only the three trauma service areas that include El Paso, Amarillo, and Lubbock on the restricted list.
The evidence did not stop the counties of Dallas, Harris, and Travis from firmly putting their feet down when it comes to reopening bars. Judges in Dallas and Harris counties quickly announced their rejection of opting into the order despite their preceding seven-day COVID-19 hospitalization rate at that time holding steady around 8% and 4%, respectively.
Dallas and Houston are not alone. The Travis County judge, which houses the state’s capitol in Austin, announced its intention to keep bars closed until further notice. Its preceding seven-day average was even lower than Dallas and Houston, running below 3%. In fact, the Austin area’s rate has been below the Governor’s 15% threshold since July 22.
With numbers this low and personal responsibility in place, why shouldn’t bars and similar businesses be allowed to open?
Failing to rely on the data when making life-altering decisions demonstrates that these decisions are not based solely on the health, safety, and livelihoods of Texans. If they were, Texas would be further along to fully opening, and Texans could live their lives more freely.
The evidence supports further reopening and local officials would do right by Texans to allow it. One thing is clear: Texans want to get back to normal.
The Texas economy is recovering, but there’s much room for improvement. The Texas Workforce Commission recently released the Texas jobs report for August 2020. While there have been improvements in the state’s labor market, there are challenges to return to the robust situation of February 2020 before the COVID-19 pandemic and lockdowns by state and local governments. The U.S. Bureau of Economic Analysis recently reported that in Texas in the second quarter of 2020 on an annualized basis GDP growth declined by 29% and personal income increased by 34.1%.
The Tax Foundation recently published a map of the country illustrating the property taxes paid in each state as a percentage of owner-occupied housing value in 2018. Of all 50 states, Texas had the seventh highest property tax burden in the country, with an effective rate of 1.69% of occupied housing value. This burden is something that Texans across the state know too well.
The article accompanying the map acknowledges that Texas to some extent relies on high property taxes in lieu of other tax categories – i.e., income taxes – though other states without an income tax do not necessarily have a high property tax burden (e.g., Florida). Regardless, in an economy hampered by COVID-19 and government lockdowns and with homeowners under substantial financial and mental stress, local governments have a responsibility to reduce the burden on taxpayers.
The Texas Public Policy Foundation has put forward proposals to reduce burdensome property taxes by focusing on Texas embracing final sales taxes over property taxes and governments implementing sound budget practices.
A final sales tax system is a more attractive alternative to a property tax. Property taxes are calculated on oftentimes subjective property values, which can rise without a change in homeowners’ ability to pay; Texans can adjust their spending habits to a sales tax, however. This results in a compounding effect of property taxes on holders of property every year that reduces their ability to pay them, forcing many to lose their property and to never truly own it.
One way to ease the property tax burden across Texas is to buy down school districts’ maintenance and operations (M&O) property taxes, which is about half of the property tax burden. This could be done by limiting state spending and using any surplus funds to cut the local property tax until it is eliminated, which could take roughly a decade, moving Texas towards sales taxes as they are the state’s top revenue source. However, this could be difficult to maintain session after session with the limitations on state and local government spending to achieve this in a timely manner, if at all.
Another way is for the state to immediately replace school M&O property taxes with higher sales taxes. An immediate swap would eliminate the risk that the switch to a final sales tax would be only temporary, a failure common to past property tax relief efforts. However, an immediate switch may be politically challenging to implement, so a way to mitigate this is to limit state spending and use surplus funds to cut the sales tax rate over time.
Switching M&O costs to sales taxes is not the only measure local (or state) governments should adopt. The other, and possibly even more fundamental to reducing barriers for opportunities to let people prosper, is implementing sound budgetary practices.
By reducing government spending through things like freezing new hires and pay raises and placing a moratorium on incurring any new taxpayer-funded debt, there are plenty of opportunities to cut taxes.
Local governments should volunteer for third-party audits to determine where areas of waste can be eliminated along with expensive lobbying contracts and longevity pay. Ultimately, practicing zero-based-budgeting, whereby local governments must justify every expenditure, could help achieve setting budget priorities that support effective government programs.
Any government approach to supporting an economic recovery in the wake of COVID-19 must begin with easing the burden on Texas taxpayers, and that approach must include reducing the burden of soaring property taxes and implementing sound budgeting at all levels of government.
Today the Texas Public Policy Foundation released the threshold number for the 2022-23 Conservative Texas Budget in a live event and released a paper on the topic. The Conservative Texas Budget is an approach to the state budget limiting its growth so spending doesn’t outpace Texans’ ability to pay for it. Measured in terms of population growth plus inflation, the Conservative Texas Budget establishes a maximum threshold for growth in the state’s initial appropriations.
For the 2022-23 state budget that percentage is 5% for a total appropriation of $246.8 Billion.
“The Conservative Texas Budget is an effective maximum threshold for prioritizing the taxpayer in the state budget process as every dollar spent comes out of the pocket of Texans,” said TPPF’s Chief Economist Vance Ginn, Ph.D. “Since this approach was implemented ahead of the 2015 legislative session, budgets have grown less than half the rate of the five prior state budgets. This trend should continue for the 2022-23 Texas budget especially as many families are recovering from the recession due to COVID-19 and government lockdowns.”
The 2022-23 Conservative Texas Budget sets a maximum threshold for the state’s budget that will be passed during the 2021 Legislature so government grows by less than taxpayers’ ability to pay for it.
Production of crude oil and natural gas has historically fluctuated based on many market-driven and geopolitical factors. Because the Texas Legislature collects severance taxes from this volatile production to primarily fund the state’s rainy day fund, the purpose for and use of the ESF must be worthy.
Texas’s economy took a major blow in March from COVID-19 as it reduced Texans’ activity across the state. Then lockdowns by state and local governments in response to the novel coronavirus further exacerbated the economic fallout. The economic data are clear that the labor market, economic outlook, and social mobility remain well below where it was in February. These weaknesses tell the story of how many Texas families and employers are struggling in their lives and livelihoods during this trying time without hope until government reopens the economy.
I provide options for how to substantially reduce the high property tax burden in Texas by limiting government spending with either a buydown of property taxes over time or a swap with sales taxes immediately so that Texans have more opportunities to prosper.
Overview: The Texas Workforce Commission recently released the Texas jobs report for July 2020. The report highlights improvements in the state’s labor market but there are challenges to get back to its peak in February 2020, which was before the COVID-19 pandemic and subsequent lockdowns of society by state and local governments. Texas’s private employment in July during the government-induced recession due to COVID-19 is at the lowest level since December 2016.
Lawmaker: At least 38 local government in Texas have attempted to raise property taxes above state cap
(The Center Square) – Several Texas counties have chosen to not raise county property taxes this year, keeping rates the same or lowering them in some cases. But 38 taxing entities have tried to increase property taxes over the state-mandated cap requiring taxpayer approval, state Sen. Paul Bettencourt said.
At a Texas Public Policy Foundation (TPPF) panel discussion last week, the Houston-area senator who serves as the Senate Property Tax Committee Chair said 16 counties and 23 cities attempted to increase taxes over the limit set by the legislature.
Austin was among them. The Austin City Council recently voted to increase taxes above the limit enacted by the legislature last year, and voters will either approve or reject it this November. Several cities rejected increases in property taxes, including Dallas and Longview.
For the fifth year in a row, Collin County announced it was lowering its property tax rate in order to keep homeowners’ bills roughly unchanged from the previous year. In the past decade, the county has adopted no increased revenue rates nine times.
Previously referred to as the effective rate, the no-new-revenue rate collects the same total amount of property tax revenue as it did the previous year. However, what homeowners owe might go up depending on their property’s value increasing. A static or lower rate on a higher value still results in a higher tax bill for some.
In Denton County, the new tax rate is below the current tax rate and the no-new-revenue tax rate. Plano County’s budget is based on a “no-new-revenue” property tax rate.
Tarrant County also kept its property tax rate the same, which is slightly below the no-new-revenue rate. But because of rising home values, the average property tax bill will increase by roughly $9.
“The problem with Texas property taxes has always been as property values go up, tax rates never came down," Bettencourt said. "So values inched up and in some cases increased by 10 percent each year and were never offset by taxes going down.”
Bettencourt helped pave the way for property tax reform in the last legislative session. SB2 reduced cap on potential property tax increases for the first time in 30 years, from 8 percent to 3.5 percent. HB3 placed a hard cap of 2.5 percent for school districts. Both were combined in the property tax bill signed by Gov. Greg Abbott.
Any attempt to increase taxes over the caps requires approval by voters.
Dr. Vance Ginn, chief economist at TPPF, said that the rollback rate was established in 1979. In 1981, it was raised from 5 percent to 8 percent when inflation was running double digits. But over the past 25 years, inflation hasn’t been above 4 percent.
In 2019, it was time to adjust the rates, Ginn said, to protect homeowners from ongoing increased taxation. It couldn’t have been more timely, he said, since within less than a year more than 4 million Texans filed for unemployment during COVID-19 restrictions and state and local governments were seeing less revenue.
It’s problematic that local governments “need to expand their budgets in some capacity by more than 3.5 percent,” Ginn said, “when Texas families are often times seeing their incomes fall dramatically from having some sort of income down to zero, [… receiving unemployment], and some of these local taxing entities are saying, ‘You know what, we need to raise our taxes more. By the way, the way we are going to do that is spending more along the way.’”
In Harris County, property taxes increased by 29 percent from 2014 to 2018, whereas population growth and inflation increased by 11 percent, Ginn said. The comparison between taxes and population growth and inflation is often used as a metric to determine how much the burden of government should grow to stay within the means of taxpayers, he said.
According to a recent WalletHub study, Texas ranked 32nd highest among 50 states for its overall tax burden of 8.2 percent. Texas property owners paid 3.95 percent in property taxes and 4.25 percent in sales and excise taxes.
It took a decade to get tax relief on both sides, Bettencourt said, adding that, “The pressure to spend more taxpayer money is ingrained in government.”
Today, Texas Comptroller Glenn Hegar revised the Certification Revenue Estimate (CRE) to project a fiscal 2021 ending shortfall of $4.58 billion which Hegar attributed to the COVID-19 pandemic and recent volatility in oil prices.
“Today’s update by Texas Comptroller Hegar on the budget shortfall shows the importance of reining in government spending without raising taxes as families across the state are struggling financially from the COVID-19 situation,” said TPPF’s Chief Economist Vance Ginn, Ph.D. “Fortunately, state leaders have already asked some agencies to find 5% savings to cover part of this shortfall, and we recommend that every agency use all efforts, including zero-based budgeting to find additional savings up to 15% by cutting wasteful and unnecessary spending. This would also alleviate the need for any more state bailouts from the federal government. By safely reopening Texas and getting people back to work and students in schools, the state will be best positioned to deal with any tax receipts shortfall while providing the best opportunities for Texans to flourish.”
The projection is a decrease from the $2.89 billion positive year-end balance originally projected in the Oct. 2019 CRE.
As of February, the US is in a recession, and Texas is no different. While the cause is different than prior recessions, people’s financial struggles are the same.
With the voluntary social distancing and forced disruptions by state and local governments due to COVID-19, economic activity has collapsed, people have lost their jobs, and employers have lost their business. This economic recession means the state of Texas may face a shortfall in tax receipts compared with prior projections.
For example, the Texas Comptroller notes in a recent report that sales tax collections are the state’s biggest source of tax receipts, and they have declined greatly this year as many Texans are out of work, stuck at home, or simply adjusting their spending habits. The Texas budget will face a drop in oil-related taxes as well, as oil prices have fluctuated drastically in recent months.
When the Texas Legislature passed the 2020-21 budget last year, they could not have known the novel coronavirus and its effects. Now, Texas leaders must take action to adapt in these hard times.
In order to deal with a likely shortfall in tax receipts given the state’s balanced budget amendment, the state government can usually:
1) Raise taxes,
2) Use funds in the Economic Stabilization Fund (ESF), and/or
3) Lower government spending.
Raising taxes would only make the problems Texans face worse by raising the cost of living at a time when they’re already struggling financially.
Using the ESF is a viable option. However, with an expected total of $9 billion in the fund going into the 2021 Legislative Session and a sufficient fund balance needed for a high credit rating, there may not be too much to tap.
Therefore, the most responsible choice is to decrease government spending. Texas leaders have experience with this solution, and it can help to reignite the dynamic Texas economy.
In 2003, The Honorable Talmadge Heflin helped to navigate a $10 billion shortfall in tax receipts as Chairman of the Texas House Committee on Appropriations. Describing the success in 2003, Chairman Heflin wrote, “we dealt with the shortfall through targeted budget cuts and avoided raising taxes on already hard-pressed Texas families.” This is sage advice, and we would do well to follow it.
Then-Texas Governor Rick Perry adopted a budgeting strategy called “zero-based budgeting” that encouraged responsible spending. Further, the heads of state agencies and legislators worked together to find workable solutions for the budget gap. For example, 12 state agencies were consolidated into 5 agencies, and this effort saved taxpayers $1 billion.
Solutions are possible if our leaders are willing to work hard to make necessary changes.
While the big three Texas leaders have asked for some state agencies to find savings of 5% to cover some losses, the Foundation has called for all state agencies to find 15% in savings so there is shared sacrifice with Texas families, and their tax burden won’t increase.
There is a fourth consideration this time around as the U.S. Congress has provided federal funds to Texas through the CARES Act with $8.3 billion to state government and $3.1 billion to local governments. This means even more money is sloshing around, but the Legislature must not let federal funds be counted as permanent funds to the budget like some did in 2011 and then consider there to be cuts to government education or other programs when those funds dried up. There weren’t cuts to government education then but that false claim continues to scare people.
We must work to rejuvenate the Texas economy and the lives and livelihoods of Texans by ending the government’s shutdown of society, rein in wasteful spending, and permanently roll back unnecessary regulations so families can flourish.
In this Let People Prosper episode, we discuss the key elements of real property tax cuts (slower growth rates and lasting tax reductions), movement afoot to eliminate civil asset forfeiture, and potential expansions in local liberty that are being discussed at the Texas Legislature. As we get closer to the end of session, these are critical aspects that you don't want to miss.
In this Let People Prosper episode, we discuss local government transparency and efforts to rein in progressive policies like government-mandated paid sick leave, state reforms to the criminal justice system, and the failure of the Texas House to pass a Conservative Texas budget...but there was a good discussion about property tax relief!
In this Let People Prosper episode, we discuss how to unveil government excess whether it be with pension obligation bonds, bail (register for upcoming TPPF event), occupational licensing burdens reduced for military spouses, TRS pension structural problems, and the Texas House budget that increases far more than the average taxpayer's ability to pay.
In this Current Events Friday episode of the Let People Prosper show, James Quintero, Dr. Derek Cohen, and I discuss:
Thanks for watching and be sure to subscribe. #letpeopleprosper
Amazon Favoritism Problem, TX Property Tax Update, & Committee Org Meetings: Let People Prosper Ep 74
In this Let People Prosper episode, James Quintero, Derek Cohen, and I discuss key topics this week for Current Events Friday.
More to come on Monday. #LetPeopleProsper
It's Current Events Friday!
In this Let People Prosper episode 72, James Quintero, Dr. Derek Cohen, and I discuss this week's current events. The big stories this week are Governor Abbott's State of the State, President Trump's State of the Union, and property tax hearing held by the Texas Senate Committee on Property Taxes. We dive into each of these issues to consider which government actions preserve liberty and which ones don't.
Regarding property taxes, there's some hope in sight! Senate Bill 2 could provide historic property tax reform (read my written testimony and watch testimony at time 1:13:10) that would put in place a 2.5% property tax revenue rate that would trigger an automatic election in November for a local government that wanted to increase their revenue above that point. This reform is an essential element for any property tax relief of lowering property tax bills like TPPF’s plan to eliminate the school M&O property tax over time by slowing spending growth.
In this Let People Prosper episode 71, I chat with James Quintero and Dr. Derek Cohen of TPPF about the benefits of bail reform (SB 628 & SJR 37), the costs and benefits of the latest version of reforming the Teacher Retirement System of Texas (SB 393) (more on TRS problems here), and what to expect in Gov. Abbott's State of the State (like a possible emergency item of property tax reform).
In this Let People Prosper episode 70, I chat with James Quintero and Dr. Derek Cohen about the recently released bills that would both provide property tax reform with the same language (Senate Bill 2 & House Bill 2). Read TPPF's press release here.
The press conference attended by Governor Greg Abbott, Lt. Governor Dan Patrick, Speaker Dennis Bonnen, Chairman Paul Bettencourt, and Chairman Dustin Burrows shows the unity of this particular measure. These bills would provide property tax reforms to increase transparency, change up the appraisal system, and impose a revenue trigger of an automatic rollback election: (1) if revenue is set to grow by more than 8% for local tax jurisdictions with less than $15 million in total revenue from sales and property taxes, and (2) if revenue is set to grow by more than 2.5% for all other taxing entities.
This is a step in the right direction to slowing the growth of skyrocketing property taxes and we look forward to working with leadership and legislators to lower tax bills by limiting state spending as well.
We also discuss the benefits of SB 523, which would restructure occupational licenses for those with particular criminal records.
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.
Vance Ginn, Ph.D.