For Immediate Release - 05/25/99:

"Half Full or Half Empty?"

Studies show that the American public distrusts politicians because too often they bend, twist and distort the truth. A sad fact in American politics today is politicians making promises they don't fulfill. They make claims for political gain when the truth is otherwise. A case in point, for us "older" citizens, is the famous Kennedy campaign on the supposed "missile gap" with Russia. We all know now that there was no gap. In fact, the United States had a clear superiority in throw weight and number of warheads. A top secret fact the incumbents couldn't reveal. Or more recently, the famous "Read my lips" statement, and now we have that paragon of virtue who "didn't inhale" and wants to redefine "is."

In the last session of the Texas Legislature much hot air was expelled over the $1 billion tax cut to the citizens of Texas. There certainly was an opportunity for a tax cut, with the increase in the mandatory homestead exemption to $15,000, however, we have repeatedly heard testimony from citizens that school districts all over the state raised their tax rate plus their valuations went up, and there was no billion dollar tax cut after all. The real test of tax reduction is . . . take your old property tax bill and compare it to your current bill. Is your tax lower?

We all know the story of the "Emperor's New Clothes." Sometimes it takes an honest observer to cry out the obvious. Well, here it goes . . . "For 248 school districts, including those in District 108, there is no meaningful tax relief!" Goodness knows that virtually every elected official campaigned on this issue. We all came here in January breathing the fire of property tax relief. But in the last few weeks, the tax relief bills have been rolling in and I am having a hard time finding the reality of the big tax cuts that were promised. This Sunday, after eight hours of continuous debate, until 10:00 p.m., the Public School Finance bill (SB 4) was passed and now they are breathlessly beating their chests about the property tax relief for the citizens of Texas. Unfortunately for us, there are no gifts under the tree! Let me give you a quick rundown of the tax bills that have passed the House this session, and explain why we may find it hard to realize any of the cuts:

The following items are currently passed tax reductions:

Unless we have a major storm, a new baby or need a lot of drugs, we won't see much sales tax relief. Surely, you ask, we will see some property tax relief?!? There is no property tax relief granted through the public education bill for HPISD or RISD and DISD gets a paltry $.02/$100 valuation. While the proponents of this bill are shouting from the rooftops that they have given a tax cut, in reality, I must say that all this bill gives most Texans is an opportunity for a tax cut.

The school finance formula in Texas is very complex. Some very poor or the most highly taxed districts will see a tax reduction. Districts like Mesquite (highly taxed at $1.81/$100 valuation) and Wilmer-Hutchins (very poor and taxed at $1.69/$100 valuation) will see $.21 savings. Compare this to Richardson ISD ($1.60/$100) and Highland Park ISD ($1.46/$100) who will see no savings and Dallas ISD ($1.55/$100) who will only see a $.02 reduction. The state average is $.06. The current law allows every school district the right to raise taxes $.08/$100 without voter approval. If most Texans hope to see real tax relief, they must hope their school districts don't do like last time and raise them above the reduction granted by the Legislature. We tried to pass an amendment to SB4 to prevent the raising of property taxes without voter approval but it was voted down. Don't believe the political rhetoric, just look at your tax bill next year. We have an opportunity for tax relief, but no guarantee.

Now, all is not doom and gloom, the glass is still half full. We did win some significant victories that prevented a real catastrophe from befalling our school systems. The property wealthy school districts have made some significant headway this session. For example, the hold harmless provision was attacked and we prevailed again for another two years. Not only that, but we got the hold harmless increased significantly. We also defeated a proposal to deny our teachers the $3,000 pay raise. It was argued that it should only go to the property poor district's teachers! Finally, SB 4 has partially incorporated my bill (HB 612), which would reimburse local school districts one-half of the amount of the local option homestead exemption that it may grant. This benefit will be available in the next biennium, and will trigger when property values increase by greater than 8%. Ultimately, I think that we have made significant improvements on the current system. Now, 90% of all school children and 98% of all revenue are under the equalized wealth system. Our school teachers, librarians, counselors and nurses will receive a much deserved $3,000 pay raise, new money will be provided for Pre-Kindergarten and Kindergarten and the wrong of social promotion has been addressed. But, we have a very long road ahead of us to achieve a system which is equitable and fair for all school districts, both property poor and property wealthy.

This will be my last letter during the session. We will do a session wrap-up sometime in June. I have enjoyed my tenure and have gotten "up close and personal" with the legislative process. I hope these letters have been helpful in understanding the conflicting pressure we work under.

Thank you for your support.

As always, I encourage you to contact to my office with your thoughts. Please contact my office at P.O. Box 2910, Austin, Texas, 78768-2910, or E-mail me at kenn.george@house.state.tx.us.