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Many #Chapter313 deals are unjustified, lack responsible oversight, and exacerbate school inequities. They are projected to create a $1 billion hole in the Texas budget moving forward, annually. #txlege #txed 1/11 https://www.expressnews.com/opinion/commentary/article/Commentary-Texas-tax-deals-exacerbate-school-16118260.php
The idea behind these agreements is to lure businesses that would not have come to Texas with tax breaks. The hope is that these companies will employ our workers and contribute to our local economy. Unfortunately, that is not how these deals have worked out. 2/11
Researchers from the University of Texas have found that 85% of companies participating in this program would have come to Texas without #Chapter313. So why are taxpayers giving $1 billion in subsidies to these businesses every year? 3/11
http://www.natemjensen.com/wp-content/uploads/2017/02/Jensen-Chapter-313-Policy-Brief-1.pdf
http://www.natemjensen.com/wp-content/uploads/2017/02/Jensen-Chapter-313-Policy-Brief-1.pdf
Another important thing to know is that these companies do not produce many jobs, either. About half of them receive waivers allowing them to bypass that requirement, according to the Texas Observer. 4/11 https://www.texasobserver.org/chapter-313-texas-tax-incentive/
School districts are responsible for negotiating and overseeing these agreements. Once the deals are certified by the comptroller, the state ensures the districts' funding is kept whole. On top of that, the districts negotiate supplemental payments from the companies. 5/11
The supplemental payments are NOT included in Texas' school funding formulas. There are districts with MANY of these payments, giving them resources unavailable to many others because of the limitations of where these agreements can occur. 6/11
It isn't an accident that Barbers Hill ISD is able to pay teachers an average of $73k, compared to the state average of $57k. They currently have 34 active agreements, the most in the state. 7/11
These payments are essentially an end-run around the Robin Hood system in Texas, created to ensure a child's zip code didn't determine the funding their school receives. When it comes to this extra funding source, zip code definitely matters. 8/11
@JimMurphy133 has filed HB 1556 to make these tax breaks more expensive for Texas taxpayers by expanding eligibility for #Chapter313 and allowing for 100% tax abatement. 9/11 https://everytexan.org/2021/03/23/opposing-hb-1556-end-chapter-313-abatements-and-free-up-future-state-revenue/
HB 4242 will extend #Chapter313 and has a hearing in Ways and Means. If you'd like to submit a public comment, you can do so here until the hearing finishes on Monday. 10/11
https://comments.house.texas.gov/home?c=c490
https://comments.house.texas.gov/home?c=c490
Ultimately, #Chapter313 does not deliver the economic development promised, does not deliver the expected number of jobs, and creates a budgetary hole regular homeowners have to fill through higher property taxes. It is time for this program to end. 11/11 #txlege #txed
