With the election concluded, it is time to prepare for the next legislative session beginning in January. While a few incumbent proponents of revenue caps and appraisal caps were replaced in the House of Representatives, there was no major shift in the leadership. Governor Perry and Speaker Craddick continue to advocate for additional spending limitations on local governments. These issues will again require close attention by county officials. There are several ways to influence this debate.
Educate your constituents. The supporters of cap proposals promise lower taxes would result from their radical changes. Everyone wants lower taxes. Unfortunately, this is a false illusion. Appraisal caps simply shift the tax burden between property owners, distorting the market and creating inequities between taxpayers. Revenue caps result in unnecessary election expenses for referendum and overuse of debt financing. None of these proposals reduce the cost of government. The county budget must still provide for every unfunded mandate adopted by the Legislature and the increasing costs of health care, motor fuel, and other uncontrollable expenses. Caps will only shift the decision-making authority from local elected officials to the state government.
Educate your legislators. While a few members of the Legislature have studied these proposals and understand the fallacy of caps, many have only a limited knowledge of the complexity of these matters. Let them know that caps will only force more reliance on state revenues. Urge them to support a constitutional amendment to prohibit unfunded mandates and to provide revenue alternatives to the property tax. Local governments need more options and more flexibility, not less.
Stay tuned. Until the end of May, watch the actions of the Legislature closely. Monitor the legislative alerts provided by the County Judges and Commissioners Association of Texas, TAC and others. Be prepared to contact your legislator immediately and come to Austin if necessary.
For more information, please call me at 1-800-733-0699.
Jim Allison, General Counsel CJCAT
