By State Rep. Lyle Larson
Texas Insider Report: AUSTIN Texas -- At 5:47 a.m. on the morning of Wednesday April 1st the House passed a $209.8 billion two-year budget known as House Bill 1 with a vote of 141-5. HB 1 is a fiscally conservative budget that
increases spending by less than 2 per year and leaves
$8.4 billion on the table for tax relief.
More than 350 amendments were offered to HB 1 and the debate lasted for 18 hours straight. Folks visiting the Capitol on Wednesday could easily spot House members as we looked like zombies walking through the halls!
It is important to note that the budget does not use any of the Rainy Day Fund.
In HB 1 the House added $2.2 billion of new funding for schools which covers the growth in student enrollment. It increases spending per student from $5040 to $5213 next year and $5218 in 2017.
- Funding for hundreds of new state troopers was included in HB 1 to bolster our border security efforts.
- This budget ends diversions from the State Highway Fund ensuring that all gas tax revenue will be spent on road construction and maintenance.
- HB 1 also addresses the controversy that has arisen in state agency contracting.
Ten House-Senate members known as the conference committee will address differences in the two budgets before both chambers pass the final budget at the end of the session.
Here is a great take on what took place on the longest day of the year for the Texas House.
Tax Relief Proposals: House & Senate Competing for taxpayer support
Last week the Senate passed a tax cut bill that amounts to $4.6 billion. Half of this amount would come in the form of a property tax cut roughly $206 per homeowner while the rest would come from reducing the franchise tax 15. The franchise tax is paid by retailers and wholesalers on gross receipts at a rate of .5.
Over the weekend Ways & Means Committee
Chairman Dennis Bonnen (right) announced that the House Bill will include
a 25 reduction to the franchise tax along with a sales tax reduction that will cost $4.8 billion. Chairman Bonnen and other House leaders believe that this plan will have a larger impact and allow taxpayers to feel the cuts more than the Senates plan.
We want to know what you think. What kind of tax relief if any would you like to see the Legislature pass? Tell us
here in this short survey.
A Proactive Step to Address the School Finance Lawsuit
As you may know last summer State District Judge John Dietz struck down Texas process for funding public schools indicating that the current system is unconstitutional. The lawsuit was brought forward by two thirds of the school districts in the state arguing that the current system does not ensure equity adequacy or efficiency.
While the case is being appealed by the state many legislators have argued that we should wait to find out how the court rules before taking action.
Indicating that we should take the opportunity to fix the problem now rather than later House Public
Education Chairman Jimmie Don Aycock (left) announced a solution to this problem this week during the committee hearing.
We expect the plan to be a complete overhaul of the current system and include an additional $800 million in public education funding.
