[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]

[Excerpts]

“While we want economic development and good jobs in Central Texas, these agreements prohibit school boards from enacting high living wage and worker safety standards as part of these agreements, unlike city and county incentives, in which good job standards can be negotiated,” said Carlota Garcia of the Central Texas Interfaith organization. 

Garcia said these agreements are “Texas’ largest corporate welfare program, which costs taxpayers over $1 billion annually—money that could be going to public schools and other public needs. The state must replace the revenue that the corporations get out of paying in property taxes for 10 years by collecting more taxes from all Texans.” 

-Community Impact

“We’re not anti-economic development,” said the Rev. Miles Brandon of St. Julian of Norwich Episcopal Church and member of Central Texas Interfaith. “We believe that all of the dollars we can possibly put together in this state should go to educate our children.”

-Austin Business Journal

“We are a part of the AISD community,” Brandon said. “We implore you to choose your advocates and partners over corporations.  It makes certain there will be $100 million less to fight for. It is in our children’s best interest now and in the future.”

-Austin American Statesman

[Photo Credit: Community Impact]

Possible Chapter 313 Agreement Between Austin ISD, NXP Draws Criticism, Community Impact [pdf]

Austin ISD to Vote on NXP Semiconductor's $100M Tax Break, Austin Business Journal [pdf]

Time Ticking for Austin School Board to Vote on Proposed Tax Breaks for NXP Semiconductors, Austin American Statesman [pdf]

Bastrop Interfaith and Friends of the Land, a farmland preservation coalition, worked with local Elgin residents and landowners to defeat a 10-year Chapter 313 corporate tax abatement at the Elgin ISD School Board last night by a unanimous vote. Solar Proponents, a startup owned by an oil and gas hedge fund, would have clear-cut over 2,100 acres of trees bisected by Little Sandy Creek to build an industrial solar farm. While the community had been testifying monthly since May at the school board meetings against the project, last night was the first time the public got to hear from Solar Proponent about the project. Speakers argued the project endangered Greenbriar Community School and neighboring homes with water runoff in an area already prone to flooding with an already diminishing refuge for wildlife.

“In these past six months, we haven’t heard a single person speak in favor of this project. Compare that to more than 1100 signers of our petition to stop this project and all the comments here you have so patiently listened to since then,” said Skip Connett, a leader with Bastrop Interfaith and founder of Friends of the Land at last night’s school board meeting.

“We spoke for our communities and our trees. Our school board listened,” Connett said after the vote.

This past May, Bastrop Interfaith and Friends of the Land, one of its member institutions, opposed the initial Chapter 313 application which would have given the company a 10-year school property tax abatement from Elgin ISD. Chapter 313, Texas’s largest corporate welfare program, costs taxpayer $1Billion/year to fund these tax breaks, money which could be going to public schools.  Chapter 313’s reauthorization was killed last legislative session by Bastrop Interfaith and the Texas IAF along with allies. However, the program doesn’t expire until this December, and there has been a rush of nearly 500 applications by companies looking to get tax breaks before the deadline.

Bastrop Interfaith Commends Elgin ISD Board for Rejecting Chapter 313 Deal

Friend of the Land, Bastrop Interfaith Oppose Dogwood Creek Solar 313 Application to Elgin, Elgin Courier

Reverend Minerva Camarena Skeith of St. John's Episcopal Church explains to Jon Stewart how Central Texas Interfaith/Texas IAF organizations fight corporate incentives that negatively impact public budgets, including schools.

“What’s happening right here, right now, very powerful.” -- Jon Stewart

In a Behind the Scenes Cut, Rev. Minerva Camarena-Skeith describes how communities can organize.  

Full episode and panel discussion streaming on Apple TV+.  

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]

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]

[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]

After hundreds of conversations among workers, labor allies and elected officials, City of Austin voted on a budget that raised the living wage floor for their workers to $20/hr including contracted workers and those employed by corporations benefiting from City tax subsidies.  At the urging of Central Texas Interfaith, the City of Austin furthermore expanded emergency assistance for struggling renters and sustained spending on essential human development initiatives including long-term workforce development and after-school programs that the organization had pioneered.

Specifically, the Council approved: 

• $20/hour base pay for all City of Austin staff, contract employees and employees of corporations receiving City tax subsidies 
• $8 Million in emergency rental assistance
• $3.1 Million for long term workforce development
• Increased funding for AISD programs including Parent Support Specialists and Primetime After School programs

Central Texas Interfaith commended the Mayor and the City Council for investing in these important initiatives before turning their attention to the County budget.

Austin Councilmembers Approve Budget Amendment to Include $20 Minimum Wage, KVUE

[Excerpt]

Come December 31, 2022, the law that had allowed [major corporations] to keep more than $10 billion in school property tax revenue off the ledgers over two decades will be no more. But companies wasted little time grieving. There was still plenty of life to live after the session ended sine die. 

Since then, companies have applied for close to 500 tax break deals for projects all over the state—for everything from wind and solar farms, oil and gas processing, carbon capture, and biodiesel production. By comparison, the Texas comptroller received an average of 90 applications annually in the past decade. 

“It’s like hogs at the trough,” said Bishop John Ogletree, a leader with the Houston chapter of the [Texas] Industrial Areas Foundation, a faith-based coalition that helped bring down Chapter 313. “Multi-billion-dollar oil, gas, and tech corporations asking for school districts and taxpayer dollars to bolster their profits. If these applications get approved, it will blow a hole in our state and school district budgets for a generation to come.”

Unsure whether the state will revive or replace the program in the 2023 session, companies have grown increasingly aggressive in trying to lock in future tax breaks for speculative projects that may—or may not—come to fruition many years out. 

Money for Nothing and Your Chips Are Free, Texas Observer [pdf]

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

The Sun is Setting on Chapter 313 Incentives, Austin Business Journal

Companies Lining Up for Future Tax Breaks as Texas Incentive Program Nears End, Dallas Morning News [pdf]

What Could Epic Samsung Expansion Mean for Texas?, Austin Business Journal

Point Isabel School District Rejects Texas LNG Tax Abatement, Brownsville Herald [pdf]

'Smoke and Mirrors' or Long-Range Planning? Possible Samsung Tax Breaks Stir Debate, Austin American Statesman [pdf]

Report: Samsung Adding Land to $17B Semi-conductor Campus in Taylor, Considering 11 New Facilities, KVUE [pdf]

State Sees Rush of Tax Break Applications as Program Soft Deadline Approaches, KVUE [pdf]

Friends of the Land, Bastrop Interfaith, Oppose Dogwood Creek Solar 313 Application to Elgin ISD, Elgin Courier [pdf]

Austin ISD Moves Forward With Semi-Conductors Agreement, Faces Community Opposition, Community Impact [pdf]

Austin ISD Considering Proposal That Would Help Lower Recapture Payments, Faces Opposition, CBS Austin [pdf]

NXP Seeking Up To $140 Million in Tax Breaks for School Districts, Austin-American Statesman [pdf]

Chapter 313 Incentives: What They Are and Why They're Suddenly the Talk of the Town, Austin Business Journal [pdf]

Oped: Don't Ask Texas Schoolchildren to Fund Your Corporate Expansion, Austin Chronicle [pdf]

Statement on Austin ISD and Round Rock ISD Chapter 313 Votes, Central Texas Interfaith

Samsung Ask Texas Taxpayers To Foot $4.8 Billion Bill For Future School Taxes. Governor Abbott Endorses Biggest Corporate Welfare Deal in Texas History, Central Texas Interfaith

When NXP sprung a request for a Chapter 313 tax subsidy before the Austin Independent School District, Central Texas Interfaith leaders decided to descend upon a meeting of the Board of Trustees to ask them to reject the request.  Chapter 313 tax subsidies are 10 year tax breaks to major gas, oil and manufacturing corporations that drain $1 Billion from state coffers on an annual basis.  In response to a barrage of 20 CTI leaders testifying over the phone and in person against the tax giveaway,  NXP (the company requesting the subsidy) changed the number of promised jobs on their application during the meeting from the statutory minimum of 25 to 500 overall. 

[Excerpt]

The majority of community members who provided testimony on May 19 asked the board to vote against the Chapter 313 agreement with NXP.  [Twenty] speakers were members of Central Texas Interfaith, a nonpartisan coalition of congregations, schools and unions that opposes Chapter 313.

“Hardworking taxpayers don’t get this kind of giveaway. Nor do small businesses, or responsible corporations,” said Central Texas Interfaith leader Trenton Henderson. “We want our money to go to public schools, but not to pay the bills for corporations shirking their responsibility to public education. Without a Chapter 313 agreement, NXP would have to pay their full share of school taxes.”

Austin ISD Moves Forward With Semi-Conductors Agreement, Faces Community Opposition, Community Impact [pdf]

Austin ISD Considering Proposal That Would Help Lower Recapture Payments, Faces Opposition, CBS Austin [pdf]

NXP Seeking Up To $140 Million in Tax Breaks for School Districts, Austin American Statesman [pdf] 

Chapter 313 Incentives: What They Are and Why They're Suddenly the Talk of the Town, Austin Business Journal [pdf]

Oped: Don't Ask Texas Schoolchildren to Fund Your Corporate Expansion, Austin Chronicle [pdf] 

AISD Board Meeting Broadcast, Austin Independent School District [calls begin at -2:33:30, in person testimony at -1:52:30]