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Texas Agriculture Archive

May 7, 2004

Texas House steps up to school finance table...

The special session in Austin is gaining momentum.

The members of the House Select Committee on School Finance are off to the races, literally. Proposals include an expansion of the sales tax rate and base, increasing the tax on cigarettes, the addition of video lottery terminals at racetracks and a tax on business payroll.

All of the proposed are options aimed at eliminating the state's current method of financing education, commonly referred to as Robin Hood. Budget estimators expect some $6-8 billion to be generated if all of the aforementioned pass. The estimate is certainly smaller if a mixture of these proposals pass.

While the Senate has held hearings on the school finance issue, tax bills must originate in the House. It was expected that the House could take action the week of April 26, with the Senate beginning its consideration the first week of May. At this point, there is little consensus between the two legislative bodies, much less between the legislature and the Governor.

Currently, there has been little discussion about the tax treatments that agriculture receives.

Most proposals would impact agriculture in the same manner that any small business might be effected. Be assured however, that our tax treatments continue to be a priority item of concern.

In all likelihood, any legislation passed in this special session will be developed in the conference committee. That compromise may or may not look at all like the bills that passed the House and Senate.

It should be an interesting next several weeks.