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Should Texas Ban Taxpayer-Funded Lobbying?

8/20/2025

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A version of this policy brief is also posted here. 

Taxpayer-funded lobbying happens when government entities—cities, counties, school districts, and special districts—use taxpayer money to hire lobbyists or pay dues to associations that lobby lawmakers. In plain terms, it’s government lobbying other government, usually in pursuit of more taxpayer money and more power, or opposing pro-taxpayer reforms. 

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How It Started in Texas
This practice began decades ago when cities and counties realized they could pool taxpayer dollars to strengthen their political influence in Austin. Over time, groups like the Texas Municipal League (TML) and the Texas Association of School Boards (TASB) became permanent fixtures at the Capitol, funded almost entirely by local taxpayer dollars. What started as an effort to “educate” legislators has grown into a powerful lobbying machine, working daily to influence policy outcomes—often at odds with the interests of taxpayers.

The numbers tell the story.

In 2017, local governments in Texas spent about $40 million on direct, contract-lobbying, roughly 11 percent of all lobbying expenditures in the state. By 2021, that number had grown to around $75 million. In 2023, it climbed further to nearly $99 million. This could be as much as $100 million for 2025. And these numbers exclude the lobbying efforts of associations like TML and TASB. 

That is money that could otherwise be used for property tax relief, public safety, or infrastructure. Instead, it is diverted to influence lawmakers to preserve or expand government power.

The Argument in Favor
Supporters argue that local governments need a voice at the Capitol. Smaller or rural communities claim they lack the staff or expertise – so lobbyists paid for with tax dollars act as the middlemen. 

But local officials already have direct access to legislators. They can testify in hearings, provide information, and contact lawmakers directly. They don’t need expensive lobbyists paid for by taxpayers. What began as a way to “communicate” has become a taxpayer-funded tool to block reforms and grow government.

Three Reasons Taxpayer-Funded Lobbying Should End
1. It Undermines Liberty and Accountability
When government entities spend taxpayer money to lobby, they almost always push for more taxing authority, more spending, or more regulation. That means taxpayers are forced to bankroll efforts that work against their own financial interests.

This is a direct conflict of interest. Citizens and private groups must raise money voluntarily to advocate for their causes. Governments simply tax and spend.

Texans end up paying for campaigns that resist property tax relief, oppose spending limits, and weaken transparency. Instead of the government being accountable to the people, taxpayers are subsidizing the government to lobby against them.

2. It Tilts the Playing Field Against Citizens
Taxpayer-funded lobbying gives government entities preferential treatment over taxpayers. Cities, counties, and school districts pool taxpayer resources to fund associations that hire professional lobbyists to work full time at the Capitol.

The result? Ordinary Texans who testify or call their representatives are up against well-funded lobbyists—paid with their own tax dollars. This tilts the process in favor of entrenched interests and leaves citizens at a disadvantage.
Many lawmakers campaign on promises of fiscal restraint but then allow taxpayer money to be used to lobby against reforms their constituents support.

3. It Fuels Government Growth and Blocks Reform
Finally, taxpayer-funded lobbying props up bigger government. Local governments and school districts almost never lobby to reduce their budgets. Instead, they fight property tax caps, push for more spending, and oppose reforms like school choice.

These lobbying efforts directly undermine taxpayer priorities. They have been used to derail school finance reform, slow efforts to cap local property tax hikes, and block meaningful tax relief.

If Texas finally bans taxpayer-funded lobbying, it would set an example for other states. If it fails, the message will be clear: even in a conservative state, entrenched interests can block reform and protect their perks.

Why This Fight Matters Now
Lieutenant Governor Dan Patrick and Sen. Mayes Middleton have worked hard to pass a ban, and Governor Greg Abbott has repeatedly added it to the call for special sessions. The Senate has acted multiple times—passing SB 19 in the regular session, SB 12 in the first special session, and now SB 13 in the second special session.
Yet the House has not followed through. What’s holding them back? The very problem this bill seeks to fix: taxpayer-funded lobbyists themselves, along with the cozy relationships many legislators have with their local elected friends who benefit from the system.

The Path Forward
The case against taxpayer-funded lobbying is overwhelming. It undermines liberty by forcing taxpayers to fund advocacy against their own interests. It tilts the political process in favor of the government and against citizens. And it props up bigger government while blocking the reforms Texans desperately need.

The defense of the practice—that local governments need a voice—can be solved without lobbyists. Local officials already have direct access to lawmakers. They can and should speak for themselves, not outsource that responsibility to taxpayer-funded intermediaries.

It’s disappointing that the Legislature hasn’t already banned this practice. Texans have demanded it for years, and the Senate has acted repeatedly. The only obstacle left is a House that refuses to side with taxpayers over entrenched lobby interests.

Texas now has a chance in this second special session to lead the nation by passing Senate Bill 13 and ending taxpayer-funded lobbying once and for all. Doing so would restore accountability, protect liberty, and ensure taxpayer money is spent serving Texans—not lobbying for more government.
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    Vance Ginn, Ph.D.
    ​@LetPeopleProsper

    Vance Ginn, Ph.D., is President of Ginn Economic Consulting and collaborates with more than 20 free-market think tanks to let people prosper. Follow him on X: @vanceginn and subscribe to his newsletter: vanceginn.substack.com

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