Dodging Bullets

The Third Called Session of the 79th Legislature adjourned without imposing revenue caps or appraisal caps on county government. That is certainly good news. However, all reports indicate an intense effort to limit local government revenue options in the next regular session in January.
Legislation to impose revenue caps and appraisal caps was introduced during the special sessions. Hearings on these bills were conducted in the House Committee on Ways and Means and the Senate Finance Committee. The Chairs of these committees, Rep. Jim Keffer and Sen. Steve Ogden, kept the focus on school finance, and these bills died in committee.
School districts were not so fortunate. The Legislature imposed a 4-cent limitation on school property tax increases. This is essentially a permanent 3 percent revenue cap. While the state allocated some additional revenue to the schools, additional mandates will likely consume this appropriation. Most observers expect another school funding crisis in the near future.
Speaker Craddick has already announced his renewed support for revenue caps and appraisal caps on other local governments. Proponents of these limitations have requested that Gov. Perry create another commission to study these proposals. The coalition of the County Judges and Commissioners Association of Texas, Texas Association of Counties, Conference of Urban Counties, and Texas Municipal League received valuable support and leadership from Rep. Fred Hill and others during the specials. We need to thank our friends and encourage all legislators to resist these efforts to restrict local government financial options. January will be here soon.
For more information, please call me at 1-800-733-0699.
Jim Allison, General Counsel CJCAT