[Excerpt]

With little more than five weeks left in the legislative session, the House is contemplating passing something worse — House Bill 5, a less transparent and potentially far more costly tax incentive program than Chapter 313, which forfeited tens of billions of dollars in school property taxes in order to lure new businesses to local school districts....

[Excerpt]

Texas economic development evangelists speak of this program – once known as Chapter 313 but now House Bill 5 – with almost biblical reverence. It may not turn water into wine, but they argue it will at least turn our school property tax dollars into new jobs for years to come.

Dracula from Transylvania (played by Everett Lunning of Central Texas Interfaith) testifies that he loves HB 5 because it has risen from the grave to suck the lifeblood out of the Texas public and economy.     

[Excerpt]

In the attached audio interview, Rosalie Tristan and Joe Hinojosa, both organizers with Valley Interfaith, Joe Higgs from IAF, and Bob Fleming, an organizer with The Metropolitan Organization of Houston, say tax breaks for large corporations should not be paid for with monies that would otherwise go to public education. 

[Photos: Rosalie Tristan (left), Joe Hinojosa (holding sign in center) and Bob Fleming (right)]

Valley Interfaith: Don't Suck Money Out of Public Education to Help Large Corporations, Rio Grande Guardian [audio] 

[Excerpt]

The Network of Texas IAF Organizations, a labor and faith coalition that has staunchly opposed using school property tax breaks for incentives... railed against the Texas Jobs and Security Act.

"It looks like it was written on the back of a napkin,"

stated Jose Guerrero, a leader with Central Texas Interfaith from Saint Ignatius Catholic Church.

The organization believes the proposed bill would have even less regulation than Chapter 313, including the exclusion of minimum job requirements as a key factor in a project's eligibility for approval. "It is hard to imagine that they would propose a program with even less accountability, fewer specifics (like no job requirements), and more leeway for companies to take taxpayer dollars from school children to line their pockets," Guerrero stated.

[Excerpt]

"A massive corporate tax-break program in Texas expired in 2022, but before Dec. 31, state officials said an “extraordinary number” of companies tried to apply. Now, it could be up to the state legislature to deal with the stack of pending applications.

Over the years, critics argued certain requirements were whittled away and some companies were bringing few or low-paying jobs with little benefits. Some, including a coalition of interfaith leaders with The Metropolitan Organization, Central Texas Interfaith and Texas Industrial Areas Foundation Organizations, have called out the program as “corporate welfare” and for leaving the rest of the Texas taxpayers to essentially “make up the difference.”

“We pay our taxes. Parents, teachers, grandparents, alumni pay taxes towards our school districts and towards the state. So, we feel that that is something that every body is responsible for,” said Reverend Minerva Camarena-Skeith of St. John’s Episcopal Church."

[Photo Credit: KXAN]

A Corporate Tax Break Program Just Expired in Texas. Will Lawmakers Replace it in 2023?, KXAN [pdf]

Last summer, Texas IAF leaders and nonprofit allies shut down Chapter 313 (a state tax exemption program giving away close to a billion dollars per year to major industrial and petrochemical companies).  Since then, over 400 corporate applications have flooded the system ahead of the program's expiration date at the end of this year -- more than twice as many as before. 

Reverend Minerva Camarena Skeith of Central Texas Interfaith/Texas IAF explains to Jon Stewart the impact of state legislation that allows major corporations to siphon off state funding that could otherwise go to public schools. 

The Problem with Jon Stewart will air this episode on Friday, October 21st.  

--- --- ---

Additional background on Texas IAF effort: 

Texas' Largest Corporate Welfare Program Is Leaving Companies Flush and School Districts Broke, Texas Observer

Huge Corporations are Saving $10 Billion on Texas Taxes, and You're Paying For It, Houston Chronicle 

Sapped by Subsidies: 313 Deals Hurt Texas Cities, Dallas Morning News [pdf]

No More Hogs at the Trough-Containing Corporate Subsidies in Texas, Nonprofit Quarterly

The Unlikely Demise of Texas' Biggest Corporate Tax Break, Texas Observer

[Excerpt]

State Lawmakers Discuss Bringing Back Tax Incentive Program for School Districts, KVUE [pdf]

Clock is Ticking on Texas' Chapter 313 Incentives -- and Major Projects May Miss Out, Austin Business Journal [pdf]

In meetings with Hays County Commissioners, Corridor Interfaith leaders in Central Texas emphasized the importance of workforce development in one of the fastest growing counties in the county.  The Commissioners Court responded, increasing its public investment in long-term job training by 10% to $55,0000 in the upcoming fiscal year.  

Capital IDEA graduate Mary Helen testified, saying: "After working as a paramedic... I went back to college and earned my RN degree. I currently work as an ICU nurse at Ascension Seton Network and provided care to the first COVID patients in our region."

[Excerpt]

A section of the Texas tax code that is used by local governments as lucre to attract corporate relocations but that often ends up pitting city against city and school district against school district is set to expire.

Based on hearings last week, there will likely be calls to reinstate it in the next Legislature. That would be a mistake....

In 2015, Gov. Greg Abbott complained that each job created by this program cost taxpayers $341,000. Using Abbott’s calculation, the Houston Chronicle updated the numbers last year: now every job created by a 313 incentive costs $1.1 million, the paper reported.

What’s more, a 2018 study by the W.E. Upjohn Institute for Employment Research found that 313 incentives were the deciding factor in fewer than 25% of relocations, meaning three quarters of the time, the relocation would have happened anyway. Taxing districts are leaving money on the table and cities are fighting cities in a game that actually hurts their residents and students....

in many cases, the choice is not between attracting a company to Texas or failing to do so. The choice is between attracting a company to Taylor or Round Rock; Sherman or Plano.

That highlights another problem: 313 favors districts where it’s easiest to acquire land and build facilities. In an analysis by Dallas Area Interfaith, the losers under 313 are large, urban school districts like Dallas ISD.

[Graphic: Dallas Morning News]

Sapped by Subsidies: 313 Deals Hurt Texas Cities, Dallas Morning News [pdf]