A week into the special session on school finance, the House countered Gov. Rick Perry’s revenue proposals with a combination of state property taxes, new and higher sales taxes, a new tax on payrolls and a $1 dollar surcharge on tickets for movies, sporting events, concerts and other amusements. In return, school property taxes that now average about $1.47 would be capped at $1, and the increasingly unworkable business franchise tax would be eliminated altogether. They raised the estimate of what they think they could raise from new gambling, even as support for slot machines — video lottery terminals, if you prefer — came under fire.
Robin Hood: Hobbled, but Not Dead
In with a Bang
Texas lawmakers returned to Austin for school finance, met as two large groups and then promptly adjourned for a week. That stifles legislative mischief while committees meet to talk about taxes and education and nothing else is going on. And it serves to get them out of the way of the nastiest comptroller-governor squabble since Mark White and Bob Bullock formed their mutual admiration society in the mid-1980s.
Back So Soon?
Gov. Rick Perry wants the Legislature to interrupt its off year for a special session on public school finance, and he says he’ll call them back for a second session, and maybe a third, until they solve it. He doesn’t have the consensus he wanted, but the threat of a long summer grind might force a fix.
The Wages of Sin
Now that Gov. Rick Perry has finally and publicly made his proposals for school finance, we’ve got everything but the date of the dance. Perry told reporters he’s not ready to announce that, but said with some conviction that the special session will start this month. April 19 is still a contender, and we’re starting to hear talk of April 26. If he were to wait any longer, he’d risk a legislative session in the middle of a sea of educators on summer break, and the management wants to avoid that scene if they can. The implication is that Perry wants to get this thing through the Pink Building in one session, starting this month and ending before the rug rats and their seasonal handlers are free for summer.
Pencil in April 19
Gov. Rick Perry isn’t going to get a consensus in favor of a school finance plan without calling the Legislature back to town, and his aides are telling other state officials to saddle up for a mid-month special session, with a consensus hopefully to follow. He plans to unwrap a revenue plan – don’t go calling it a tax plan or they’ll bite you – within the next week. That, along with his incentive plans and his local property tax caps, will form the structure for his call on lawmakers.
Tick, Tock, Tick, Tock
Take a look at the clock: The next available date for a regular constitutional amendment in Texas is in November. Tax appraisal notices go out in late spring — May or so — and people pay their property taxes — or their mortgage companies pay and then send out escrow notices — in December and January. Most cities and counties and school districts set their property tax rates in mid- to late-summer. And then the cycle starts all over again.
The 3% Solution: Give at the Office
Limiting the growth of homeowners’ taxable property value can shift the property tax burden to businesses and other commercial property owners even when cities and counties and hospital districts aren’t increasing the revenue they receive from those taxes. We erred — semantically — when we called it a split roll in last week’s issue. But the 3 percent limit on homeowner appraisal increases touted by Gov. Rick Perry and others ends up shifting the cost of public schools from Texans who own homes to businesses and, indirectly, to renters.
Location, Location, Location
Geography played as big a role in the primaries as politics. The Panhandle outvoted the Permian Basin again, keeping new Sen. Kel Seliger, R-Amarillo, in office for five years instead of just one. Travis County overpowered Hidalgo County in a congressional race, giving U.S Rep. Lloyd Doggett room to run against a Republican in a heavily Democratic district in November. In another, Bexar County was enough to barely overcome Webb County, and with 126 votes to spare after the unofficial count, U.S Rep. Ciro Rodriguez, D-San Antonio, staved off a challenge from his former buddy in the Texas House, Democrat Henry Cuellar of Laredo. (Keep watching: Cuellar’s campaign manager told us “Ciro received a stay of execution, but not a pardon.”) Cities outvoted towns in East Texas, sending state Rep. Wayne Christian, R-Center, home in a congressional race that will now pit two Republicans from Tyler and Longview in a runoff.
No Talking Until Tuesday
House Speaker Tom Craddick isn’t showing any preference for school finance plans, but he’s been quietly meeting with members to talk about some of the possibilities. Nobody wants to talk out loud until Election Day, which should tell you that there’s no way to fix or even patch the state’s school finance system without a tax bill.
The Best Laid Plans
One way to torture public officials is to say or imply negative things about them while taking away their chance to respond. Travis County prosecutors are spreading the net on their investigation of campaign finance practice in the 2002 elections, adding five-dozen subpoenas to the half dozen revealed last week. They’re working with a grand jury that will remain in business through the end of March. And lawyers frown when their clients spit at prosecutors while grand juries are in session.

