Wednesday, May 8, 2024

Conference committee releases proposed budget; hinges on property tax relief, education funding | Texas



(The Center Square) – Nearly a month ago, legislative budget conferees from both chambers first convened vowing to participate in “an amicable process that will lead to a strong state budget.” Republican leaders in the Texas House and Senate haven’t been able to agree on major budget issues when the state has a record $33 billion surplus.

They remain in a stalemate, which is indicated in the Legislative Budget Board’s Issue Docket Decisions for the 2024-2025 General Appropriations Bill, published on May 15. LBB staff support the legislative appropriations process.

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Regarding property taxes, differences among legislative leaders continue over imposing an appraisal cap, increasing the homestead exemption, reducing recapture payments for some school districts, and by how much. Differences also exist related to funding teacher raises, increasing cost of living and retirement benefits and Teachers Retirement Fund contributions.

SB 8, which includes a Parental Bill of Rights, a Teacher’s Bill of Rights, and a new school choice and Education Savings Account proposal, has been a point of contention among Republicans, not all of whom support school choice. The conference committee notably stripped a rider supported by 24 House Republicans in the House’s proposed budget that would have blocked state funding for ESAs or other school choice programs, paving the way for such programs to be funded.

Gov. Greg Abbott said if similar provisions to those included in SB 8 weren’t passed by the legislature, he would call multiple special legislative sessions until they were.

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He also said, as the regular session progressed, “the number of House members supporting school choice has continued to grow. The realization that the STAAR test will be eliminated if school choice is enacted is attracting even more legislators. No doubt other modifications can be made to the original House version of the Senate bill to attract even more legislators, as well as to bridge the divide with the Senate. Parents and their children deserve the time and effort this will take.”

The dockets are broken up by category: General Government, Health & Human Services, Education, Judiciary, Public Safety & Criminal Justice, Natural Resources, Business & Economic Development, Regulatory, General Provisions, and the Legislature.

In the 24-page Public Education category, an additional $849.8 million is appropriated to the Foundation School Program, which funds public school education, “to fully fund the current law estimate based on updated budget drivers including property values and enrollment growth.”

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It notes there’s a $3 billion difference between Senate and House bills for “property tax compression above current law contingent upon passage of SB 3, SB 4, SB 5, and SJR 3, or similar legislation.”

The report also explains that the House appropriated $12 billion for property tax relief “contingent on the enactment of HB 2 and HJR 1, or similar legislation,” whereas the Senate appropriated $9.8 billion “contingent on SB 3, SB 4, SB 5, and SJR 3, or similar legislation.”

With the regular session soon coming to a close, the governor is expected to call a special legislative session, which lasts for 30 days. Depending on which bills don’t make it through, he could also call subsequent 30-day-special sessions.

This article First appeared in the center square

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