By Ender Reed
TAC Senior Policy Advisor
The House Committee on Appropriations passed a series of fiscal matter bills out of committee. These bills are expected to add $3 billion in additional non-tax revenue to the budget in the form of accelerated tax payments and payment deferrals.
From a county perspective, the passage of these bills will result in state funding cuts to juror pay, supplemental salary funding for courts and judicial training funds. State agencies are also given broad authority to create fees for services that they provide and to modify eligibility requirements for health benefits that they disperse. There is a very real danger that other amendments may be adopted on the House floor that will result in further cuts to counties when the bills are heard by the full House.
The Senate Finance Subcommittee on Fiscal Matters is expected to present its version of these fiscal matter bills this week to the Senate Finance Committee.
Fiscal Matter Bills Passed by House Appropriations
HB 3790 by Pitts: Relating to state fiscal matters.
HB 3648 by Otto: Relating to state fiscal matters related to the judiciary.
HB 3665 by Otto: Relating to state fiscal matters related to general government.
HB 3649 by Otto: Relating to state fiscal matters related to law enforcement and criminal justice.
HB 3418 by Darby: Relating to the state fiscal matters related to natural resources and the environment.
On Wednesday, April 20, the House Ways & Means Committee voted favorably from committee CSHB 889, legislation to correct the undervaluation of and utilize market-based methodology to value crude oil and natural gas for property tax purposes.
In addition, CSSB 1505 by Sen. Carlos Uresti (D-San Antonio) was voted favorably from the Senate Finance Committee on Monday, April 18. Rep. Tryon Lewis (R-Odessa) and Uresti both filed legislation this session that incorporates the agreement reached by counties and other stakeholders.
From analyses by Texas Association of Counties and appraisal experts, an immediate benefit to counties with oil-producing properties is expected if this bill is adopted. For counties with gas-producing properties, a benefit is expected when the market recovers from its present depressed condition.
Under the 2007 change in the Tax Code, the Comptroller produced a “forecast” of the estimated price of oil and gas for the coming year. That estimate is required to be used by the appraisal district in determining the value of oil and gas properties.
During the past three years, the Comptroller has produced an estimated forecast that has averaged approximately 35 percent below the actual market price. This has resulted in the undervaluation of those properties and forced counties to either shift this tax burden to other taxpayers by increasing the tax rate or reduce the budget and services.
Both CSHB 889 and CSSB 1505 repeal the Comptroller’s revenue estimating forecast, use market-based data to determine oil and gas prices and cap the escalation of the price after six years.
While CSHB 889 and CSSB 1505 do not meet all of the counties’ concerns, the legislation is a definite improvement over the present statute. TAC staff will continue to work to get CSSB 1505 set on the Senate Intent calendar for further consideration by the full Senate and will do the same for CSHB 889 in the House.
For more information on this article, please contact Aurora Flores at aurorafo@county.org.
By Paul Emerson
TAC State Financial Analyst
On Thursday, April 21, the Senate Finance Committee voted in favor of SB 1. Out of 15 committee members, only four voted against the bill. The state budget, now known as the committee substitute (CSSB 1), will most likely reach the Senate floor next Wednesday, which is the earliest the Senate can debate the bill.
CSSB 1 totals $176.5 billion for all funds, which is $12 billion more than the House version. More information on CSSB 1 will be provided at a later date. The information below represents recommendations the Senate Finance members adopted during the past three weeks.
Most of the funding restored large cuts in health and human services and education.
Recommendations Adopted in SB 1
Senate Finance restored other priority cuts that are significant to counties. These proposed recommendations include:
These are only a few of the recommendations that were adopted by the Senate Finance Committee during its deliberation. The bill's next step will be the Senate floor. Floor amendments typically are not offered on the Senate version of the state budget.
No New Taxes
With no new taxes being offered, the obvious question now becomes: where will the money come from? A group of key senators are looking at non-tax revenue and the possibility of using additional money from the Rainy Day Fund. Another suggestion that recently surfaced was to use an extra $2 billion from the state’s public school trust fund, which would be used directly on education.
For more information on this article, contact Paul Emerson, TAC state financial analyst, at (800) 456-5974 or Paule@county.org.
On Wednesday, April 27, the Texas House of Representatives will consider HB 150 by Rep. Burt Solomons (R-Carrollton), which relates to the composition of the districts for the election of members of the Texas House of Representatives, View Solomons' proposed map. After opening the link, first click on Select Plans, then Base Plan, then PLANH153.