When organizers set out to overturn Texas’s giveaway program for the oil and gas industry, they had a long game in mind. Over 20 years, the tax exemption program known as Chapter 313 had delivered $10 billion in tax cuts to corporations operating in Texas — with petrochemical firms being the biggest winners. This year, for the first time in a decade, the program was up for reauthorization. Organizers decided to challenge it for the first time.
At the beginning of last week, as Texas’s biennial legislative session approached its end, the aims of organizers remained modest. “We thought it would be a victory if the two-year reauthorization passed so we could organize in interim,” said Doug Greco, the lead organizer for Central Texas Interfaith, one of the organizations fighting to end the subsidy program.
At 4 a.m. last Thursday, it became clear that something unexpected was happening: The deadline for reauthorization passed. “The bill never came up,” Greco told The Intercept. Organizers stayed vigilant until the legislative session officially closed on Monday at midnight, but the reauthorization did not materialize....
“No one had really questioned this program,” said Greco, of Central Texas Interfaith.
The reauthorization was a once-in-a-decade chance to challenge it. “We knew in our guts that the program was just a blank check, but we also are very sober about the realities of the Texas legislature.” ....an unlikely coalition...emerged from across the political spectrum — including the right-wing Texas Public Policy Foundation, the progressive Every Texan, and [Texas IAF], which does nonpartisan political work among religious groups.
The Texas Chapter 313 defeat is the second recent win against multibillion-dollar oil and gas industry subsidies in fossil fuel states. Last fall, organizers in Louisiana beat back a ballot initiative designed to counteract dramatic reforms to the state’s industry giveaway program. In a state that leans heavily Republican, people voted down the constitutional amendment by a landslide.
Broderick Bagert, who helped organize the Louisiana effort, sees what happened in Texas as part of a turning of the tides in a region where industry has long ruled. “In a lot of cases, it’s not that these battles have been lost — they just haven’t been fought,” he said. “What you’re seeing for the first time is the battles being fought.”
....Bagert noted that Louisiana and Texas are two of a handful of states whose industries will decide what our climate future will look like. “The question of these subsidies is being tied more and more with the question of whether these changes in energy production that we need to save the planet are going to be made in time to save the planet,” he said. “It all boils down to the price of energy. Once industries have to bear the full cost of their production, including emissions and taxes and all the other things that have been subsidized, then it’s no longer advantageous, and that’s when things start happening.”
In Blow to Big Oil, Corporate Subsidy Quietly Dies in Texas, The Intercept [pdf]
Texas Legislature Dooms Chapter 331, Which Gives Tax Breaks to Big Businesses, Business Journal [pdf]
Missed Deadline Could Doom Controversial $10B Tax-Break Program, Houston Chronicle
Losers and Winners from Chapter 313, Central Texas Interfaith
The Unlikely Demise of Texas’ Biggest Corporate Tax Break, Texas Observer [pdf]
Back in 1992, she was an organizer for COPS/Metro Alliance when the powerful community organization designed and persuaded the City to financially back Project Quest, which early on and to this day has been recognized as one of the most successful job training programs in the country. In 2011, when Project Quest was plagued with controversy from failings due not to corruption but to incompetence, Sister Pearl was brought in to turn it around. She did and ran the organization for six years.
Now the City of San Antonio is embarking on SA: Ready to Work, a program approved by the voters last November that will spend $154 million over five or six years in an effort to train the city’s working poor for good-paying jobs that the city is now generating.
[Photo Credit: Nick Wagner/San Antonio Report]
On Tuesday, voters rejected the idea in a landslide. All 64 parishes, including GOP and Democratic strongholds, voted against it. Almost as many Louisiana voters rejected the proposed Constitutional Amendment 5, as it was known, 1.22 million, as voted for President Donald Trump, 1.25 million.
“You’re talking about liberal, conservative, Black, White, Democrat, Republican, Independent, it failed by a landslide,” said Edgar Cage, an organizer with Together Louisiana, which rallied against the amendment. “This should be a clear message to the Legislature that the taxpayers, the people of Louisiana are tired of these corporate tax exemptions and giveaways.”
On Tuesday morning, Khalid Hudson, a Together Louisiana organizer, hopped in a white Chevy Silverado at City Park in Baton Rouge as a volunteer riding shotgun used a PA system to get several dozen supporters lined up behind them. A caravan took shape, as a line of cars and bicycles adorned with signs that said “No on 5” and “Stop corporate welfare” followed Hudson on a route that took them past a host of precincts in predominantly Black areas of Baton Rouge that saw low turnout in the early voting period. A crop of volunteers followed on foot for the journey across Old South and north Baton Rouge.
With the presidential election sucking up most of the oxygen, Hudson said Together Louisiana wanted to get out their message on Amendment 5, which was placed far down the lengthy ballot and asked voters, “Do you support an amendment to authorize local governments to enter into cooperative endeavor ad valorem tax exemption agreements with new or expanding manufacturing establishments for payments in lieu of taxes?”
Edgar Cage, a leader of Together Louisiana, a statewide network of congregations and civic organizations, and an opponent of the Amendment, called it “corporate welfare” and another tax loophole that allows corporations to avoid paying their fair share.
Sixty-three percent of Louisiana voters, or a total of 1,221,197, voted against the amendment.
Amendment 5 Opponents Say Louisiana Lawmakers Should Take the Amendment’s Defeat to Heart, Louisiana Illuminator [pdf]
After hearing stories from Iowans facing the stress of unemployment amidst a shifting economic environment, AMOS (A Mid-Iowa Organizing Strategy) began researching how to help workers get back to work in living wage jobs.
"Losing a job is a trauma for workers and their families," said AMOS leader Rev. Dr. Benjamin Bell Jr. "We know that workers need not only training to be able to access higher-wage work, but also support for that trauma, childcare access and assistance to help them complete a training program and be ready to re-enter the workforce."
Since May, AMOS leaders had been meeting with business, government, and community stakeholders to formulate a job training proposal to address the coronavirus crisis. In July, 100 AMOS leaders convened a Workforce Summit calling on Governor Reynolds to invest in intensively supported job training which was built on a model pioneered by the West / Southwest IAF. This initiative will ensure workers have the training and support they need to get back to work, strengthening their families and better able to support the communities they live in.
COPS/Metro Among Heavy Hitters Called By Mayor to Win Voter Approval of Coronavirus Economic Recovery Plan
Less than two months before early voting begins, Mayor Ron Nirenberg has called in several heavy hitters to steer his campaign to use a sales tax to help residents get back to work after they lost their jobs to the coronavirus.
The campaign, known as “Build SA,” faces the daunting task of figuring out how to break through a noisy November election to convince San Antonio voters to put more than $150 million toward a still loosely defined proposal that city officials estimate would help 40,000 residents get higher-paying jobs....
The mayor has assembled a trio of co-chairs to lead the effort: Blakely Fernandez, a partner at law firm Bracewell and former Alamo Colleges trustee; Linda Chavez-Thompson, former executive vice president of the national AFL-CIO and a former VIA Metropolitan Transit board member; and Sonia Rodriguez, a leader of the local grassroots organization COPS/Metro.
[Photo Credit: KENS5]
...Members of the community are asking why a major New Orleans employer is asking for a tax exemption on years-old additions made to their facilities. The watchdog group Together New Orleans says Folgers Coffee Company, with two locations in New Orleans East, should owe the city millions in taxes on additions at their plants dating back to 2017.
It has people like Shawn Anglim, who helped create Morris Jeff Community School, concerned for the entities that could be receiving much-needed tax money during a pandemic.
“We are not really asking for much, we’re asking for Folgers to follow the law,” Anglim said.
The law Anglim mentioned, requires businesses like Folgers to pay taxes on personal property, machinery, equipment and merchandise.
Voters will be asked to approve a 1/8-cent sales tax to fund job training and college degrees for San Antonians who lost their jobs because of the COVID-19 pandemic. The money also would help participants pay rent and other living expenses while they complete those programs.
The sales tax revenue would be dedicated to those purposes for four years....
“Today, San Antonians need this investment more than ever,” Virginia Mata, a leader of the grassroots coalition COPS/Metro told council members Thursday. “It is not only the right thing to do but also the right investment. The seeds that you plant today will have a lasting effect and will help San Antonians rise from the shadows to the light.”
[Photo Credit: Billy Calzada, San Antonio Express-News]
'We Need Action Now': Sales Tax Proposal for San Antonio Economic Recovery Now in Voters' Hands, San Antonio Express-News [pdf]
COPS/Metro Calls for Sustained Investment in Workforce Development as Path to Post-Covid Economic Improvement
Since the onset of the pandemic, COPS/Metro with our allies, Project QUEST and the Alamo Colleges, have led the way to ensure San Antonians whose lives have been shattered by the economic free fall can re-enter the workforce equipped with new skills and good salaries. This month, the workforce development program supported by CARES and the city of San Antonio began accepting applicants whose jobs went on hiatus or completely disappeared. These applicants are supported with critical wraparound services that include a stipend, child care, transportation, tutoring and counseling, like the highly successful services provided by Project QUEST, which is recognized nationally for its high graduation and job placement rates. The Alamo Colleges will play a vital role in this program, using Project QUEST’s model along with partnerships that will strengthen and expand its capacity to serve displaced workers.
To be successful, the new Education and Workforce Program will need to adhere to a set of standards like the CARES recovery program, whose primary focus is meeting the needs of the participants. Addressing those needs must be the focal point of decision-making, not business as usual. This means providing quality wraparound services, including a 1-to-100 ratio of counselors to participants, ensuring job placement upon program completion and connecting graduates with jobs that pay a living wage with benefits. And the overall policy direction and management of the program must reside within city government, along with participants, educators and community members who can offer insight into program implementation.
Approximately 160,000 workers have been displaced due to the pandemic. The lion’s share of the funding should be directed toward them. While the majority of tax dollars will be dedicated to workforce development, funds could also go to participants with some college credits who want to complete their degrees. If the higher education institutions adequately address their needs, it is possible a fair number of college graduates could result from a small investment into this pathway. However, using public dollars to offer the same programs and services that previously failed these same students will not do. This is not a scholarship program; it is a jobs program.
[Photo Credit: Billy Calzada/San Antonio Express-News]
Improving Economy of City, Lives Of its Residents in Grasp, San Antonio Express-News [pdf]
While labor rights activists support Tesla’s stated commitment to a minimum wage of $15 an hour, substantially above Austin’s $7.25, the agreement sheds no light on which workers this standard applies to. The average hourly rate for manufacturing jobs in the U.S. is $22.
“The fear is that a company like Tesla keeps its high-level creative jobs in places like the Bay Area and begins to see Austin like a low-wage, high-tech town,”
said Doug Greco, lead organizer of Central Texas Interfaith, representing a coalition of nonprofit groups in Austin.
[Photo Credit: Cyber Truck: Tesla; Map: Lasagnaforone / Getty]
Study Claims Austin is Worst US City for Low-Wage Workers. Central Texas Interfaith Affirms Living Wage Strategies Still Needed.
According to Austin Interfaith, an alliance representing faith-based organizations, schools, nonprofits, and labor organizations, says a living wage is a wage that’s sufficient for a worker to support themselves and their family. For years, the group has pushed for establishment of a living wage in Austin. The alliance says the local living wage for a single parent who has two children and no savings is $21 an hour....
[Photo Credit: The Trail Foundation/Facebook]