Skip to Content.
Sympa Menu

homestead - [Homestead] Education, pay the goddamned bill---how

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: Tvoivozhd <tvoivozd AT infionline.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: [Homestead] Education, pay the goddamned bill---how
  • Date: Fri, 17 Sep 2004 09:50:11 -0700

Income tax, local property tax, business tax (bad idea), sales tax.



------------------------------------------------------------------------
HoustonChronicle.com -- http://www.HoustonChronicle.com <http://www.chron.com> | Section: Local & State <http://www.chron.com/metro>


/Sept. 16, 2004, 11:55PM/


Craddick: Business tax 'only' solution


Speaker says everyone should pay for schools

*By JANET ELLIOTT*
*Copyright 2004 Houston Chronicle Austin Bureau*

AUSTIN - Texas House Speaker Tom Craddick said Thursday that a broad-based business tax is the "only solution" for ending the burden on local property taxpayers for funding public schools.

ADVERTISEMENT

"I really believe we've got to find a broad-based business tax in this state, across-the-board that everybody pays," Craddick said during a speech to the Texas Farm Bureau.

His remarks came a day after State District Judge John Dietz ruled that the state isn't putting sufficient money into education in violation of the Texas Constitution.

Dietz gave lawmakers until November 2005 to adopt a constitutional finance law and threatened to close schools if they don't.

Craddick said the state might have to raise as much as $9 billion to lower property taxes and provide more education funding. He said that amount of revenue couldn't be raised solely through higher sales taxes.

The state now is paying for 38 percent of the $30 billion school system, with local property taxes making up the rest. Craddick said when the current school finance system was set up, the state was going to pay for 80 percent and 20 percent would be "local enrichment."

But now, with many districts at or near the $1.50 cap on local school maintenance and operations taxes, and unable to tax higher, the system is "totally broken," said Craddick, R-Midland.

"I also believe that we need to look at where we're spending our dollars in education and making sure we're getting every dollar's worth out of it," he said. "I don't think we are, and I think we need to look at that."


Property tax exemptions

Craddick assured the crowd that he would oppose any efforts to eliminate property tax exemption for land used in agriculture. Exemptions for agriculture, timber and wildlife management take $91 billion worth of property off the tax rolls statewide.

Craddick also said that the court ruling might make the House more likely to reconsider expanded gambling as a revenue source to replace property taxes. In an interview after his speech, Craddick said that although a measure to allow video lottery terminals at horse and dog tracks failed in the House during last spring's special session, it might be revived.

"You're kind of under the gun to get it done and if people see we've got a definite plan, it might be (an option now)," he said.


Seeking funding ideas

Lt. Gov. David Dewhurst has previously expressed support for a new business tax to replace an existing franchise tax that most businesses don't pay. Dewhurst plans to hold conference calls with senators today to get their ideas about school finance.

Gov. Rick Perry has opposed new business taxes, including a 1 percent payroll tax proposed by a House committee during the special session.

Kathy Walt, a spokeswoman for Perry, said "everything is back on the table," but that the governor would remain skeptical about a new business tax.

"The governor has not ruled out generating additional business revenues and has in fact recommended closing a loophole in the business franchise tax," Walt said. "Bottom line, he's not going to support a tax bill that kills job creation because job creation and economic expansion are the best way to ensure long-term resources for education."


Special session up to Perry

Walt said that Perry would be willing to call a special session if he, Craddick and Dewhurst could agree on a plan.

Craddick said he thinks that lawmakers will need the rest of the year to decide how to address the issue. He and Dewhurst have asked Perry to make education funding an emergency issue for the regular session that begins in January.

"We've got the election going on between now and November. We could come in during November and December and do it if that's what the governor wants to do," Craddick said.

Also Thursday, state Rep. Garnet Coleman, D-Houston, called on state leaders to drop an appeal of Dietz's ruling and concentrate on finding a new way to fund education.

"Why should we waste more taxpayer dollars defending a school finance system that the state leadership, both parties in the Legislature, and now a state court all agree is broken?" Coleman asked.

janet.elliott AT chron.com <mailto:janet.elliott AT chron.com>

------------------------------------------------------------------------


Dillard's
Houston Hot Sauce Festival



HoustonChronicle.com -- http://www.HoustonChronicle.com <http://www.chron.com> | Section: Local & State <http://www.chron.com/metro>
This article is: http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/2800135 <http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/2800135>





Archive powered by MHonArc 2.6.24.

Top of Page