Travis County Commissioners Court
May 9, 2006
Item 19
Number 19, which is to consider and take appropriate action on legislation pending in the current special session of the Texas legislature regarding homestead exemptions, appraisal caps, and tax rate limitations and revenue caps. Mr. C.a.n.
>> good afternoon, judge, Commissioners. Happy to answer any questions that you had about the current session. As you know, we're beginning the fourth week of a four-week special session that will end next week. Of course, the governor can call them back. They're facing a June 1 deadline, so backs are against the wall. And the call is to get property taxes and to fix school finance, and that's what they've set out to do. As you know, the house started out with five bills, the house passed it over to the senate. The senate has gotten through three of them, but they stalled out on house bill 1 and also house bill 5. House bill 5 is the tobacco tax. And house bill 1 is the actual property tax reduction. And there's debate going on, those bills are on the senate calendar, but they've been negotiating since last Friday when an amendment was introduced that deals with the recapture issue. And that was something that the house bill didn't deal with. It's sort of an issue and working through that, we don't know how that will turn out, but we'll find out soon. The other issue that you're interested in is of course the caps, appraisal caps and revenue caps. There are of course senate bills that have been filed to do that. Two of those bills are having heard as we speak in the house dealing with revenue caps. There's also an appraisal cap bill out there and I think that's being heard as well. The appraisal cap bill will have to change the institution, so they will need 100 votes. So right now that looks less likely given the fact that we're running out of time and they're trying to focus on the core call issue. So that brings it back to revenue caps. As reported to you by susan spiritaro there's been some local option. The the ones that are there now would change the rollback rate. One just puts it back to polly fife percent and the -- positive the five percent and the other takes it back to the inflation rate, whatever the current formula, but substitute that inflation rate for the five percent. So we've got some variations out there. There have been bills on the house agenda the last two days. And when they came in this session they went ahead and adjourned because those bills were not within the call. And the best I can tell right now that's the first hurdle for those revenue cap bills is that arguably they're not in the call. And once they get past that, they have to get the votes for those bills and those bills are still highly contentious bills, lightning rod issues. And whether or not -- the question is whether or not they can do it as the session pushes to an end here.
>> as far as the Texas association of counties and also the council of urban counties as far as representation on this, are they pretty much holding firm? Has there been any movement, per se, that we should be aware of from those particular organizations as far as --
>> the counties -- the two associations that you mentioned, Texas association of counties and the conference of urban counties, are still steadfastly against both appraisal caps and revenue caps. And they've been actively lobbying at the capital against those and encouraging the Commissioners courts to talk too their representatives and oppose those.
>> are they really paying attention to those organizations and the position --
>> I think when you -- it's not so much I don't think what has happened in the last three weeks, but it's the effort that the counties and cities put together last session, regular session, I think. And susan made a real good point of this as to slowly as you can provide information, good information to the legislators on why this is good or bad public policy, I think many of legislators are starting to listen and some are in fact changing their minds. So yes, I think some progress has been made. There was some momentum from last session that I think it's less likely that you will see anything this special session. I hate to say that because they'll go pass something over there, but if nothing happens this essential session, I think that -- this special session, I think the regular session in '07, this issue will come back. And certainly on the senate side you have a new senator there, dan patrick from houston, this was an issue he ran on. So I’m sure we will see a number of bills next session. And what the dynamics will be next session, assuming that they resolve school finance right now, and the legislature moves on from that issue, it's hard to say. They'll have more time on their hands and maybe they'll have more time to get back into this issue.
>> thank you.
>> what's also interesting is that the city of houston voters, I guess last year, passed two competing local revenue cap proposals that quite frankly one or both of them might be triggered, so we might have one of the largest cities in the state of Texas that voluntarily changed their charter to give themselves revenue caps within their budgets. They may have some real life examples of be careful what you ask for because you just might get it because they are being overwhelmed by katrina and all sorts of other katrina/rita challenges down there. And all of a sudden things that they talked about of keeping a handle on growth and -- may come back to haunt them and they may have to be giving back money to their taxpayers. They will leave a lot of stuff undone on the table and I don't think that's something that they thought would happen.
>> do we need to take action today?
>> in my judgment, no.
>> we're in opposition to revenue caps and appraisal caps continues? The tax rate limitation, I guess we're against that too? But the homestead exemptions I know we bfi probably higher than -- I know we give probably higher than any county and most cities. It seems to me if you want to reduce taxes, that's the best place to go, and you can do that without the state acting at all.
>> and as you know, senator barrientos has introduced a bill to that effect and another senator had the same type of bill that session and I think he's got one filed this session.
>> now, have those been actively considered? Has the governor allowed them to be considered?
>> I’m trying to remember if -- I think he was able to introduce his amendment in the house debate, but I think he was unsuccessful. But I do think that --
>> (indiscernible).
>> yes.
>> ms. Dingler?
>> judge, in terms of -- maybe for your question, Commissioner Davis, your two local senators are publicly and firmly opposed to the caps. On the house side I think it's a little more mixed. I think at least half of your delegation is on record in opposition, and I think the others it depends on what it looks like and that type of thing.
>> half?
>> at least half. It may be more. At least there you're fairly solid. I’m not sure there's going to be a vote this session on that issue.
>> there's good work to be done on public education and tax relief.
>> anne, we got the letters over. You want to update everybody?
>> that bill was heard and it's been left pending in committee.
>> thank you very much. Appreciate it. Do we need this item back week?
>> all right.
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Last Modified:
Wednesday, May 10, 2006 1:15 PM