[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] 

[Excerpt]

NXP Semiconductors, which is based in the Netherlands and has two fabrication plants in Austin, is seeking tax breaks from the Austin Independent School District under the state's Chapter 313 incentive program for proposed expansion. An initial presentation to the district's board Tuesday night didn't specify the amount, but previous incentives agreements from Texas school districts for similar Chapter 313 deals have been for tens of millions of dollars.

The Chapter 313 incentives program — which is named after a portion of the tax code — has been controversial. It's set to expire at the end of this year because state lawmakers declined to renew it during last year's legislative session, although deals struck before then won't be affected....

Under the Chapter 313 program, school districts are reimbursed by the state for the corporate tax breaks they agree to provide. That attribute has made Chapter 313 controversial among critics who say school districts have no reason not to grant them, and that the program siphons money from taxpayers statewide as handouts to corporations.

“There's no such thing as free money," said Doug Greco, lead organizer with Central Texas Interfaith, a group that opposes all Chapter 313 deals and has worked to help end the program.

“It's money that is being drained out of the state budget that could be going to schools," Greco said. "When you add these (deals) up, it's just a drain on the system that we can't sustain. Let's stop the gold rush here."

[Photo Credit: Mark Matson, Austin American Statesman]

Chipmaker NXP Considers Austin for $2.6 Billion Expansion, Up to 800 New Jobs, Austin American Statesman [pdf]

[Excerpts]

The El Paso Interreligious Sponsoring Organization (EPISO) and Border Interfaith held its first in-person candidate accountability session Sunday since the pandemic.

The six El Paso County Commissioners Court candidates remaining in the May 24 primary runoff election for Precincts 2 and 4 were invited to the session where they were asked to state their position on policies such as colonias, education and economic development programs....

The incumbent for Precinct 2, David Stout, and Judy Gutiérrez, a candidate for Precinct 2, both attended the meeting.

Sergio Coronado and David Adams, are both candidates for Precinct 4, and they were in attendance.

"I thought it was a great meeting. I wish more organizations, people would take the time to inform themselves, of what their candidates are willing and wanting to do for the people... how you’re [candidates] aligning to my needs," Coronado said.

[Photo Credit: KFOX 14/CBS4]

Precinct 2 & 4 Candidates Feeling Confident After Attending Community Meeting, FOX News 14 [pdf]

Executive Director Michelle Paul explains how Capital IDEA Houston transforms lives.  Capital IDEA Houston is a long-term job training program established by TMO.  

Arizona Interfaith Network (AIN) leveraged a $5 million investment from the state of Arizona to help hundreds of families step into economic security with the expansion of long-term workforce development initiatives JobPath in Pima County and Arizona Career Pathways in Maricopa County.

AIN leaders worked with state legislators to direct $5 million from Arizona’s federal Coronavirus relief funding to expand the program in the wake of the pandemic.  This investment will ensure that low-income families can access high-quality education and training for lower earning families.

The completion rate for Arizona Career Pathways is 90%, the job placement rate is 85%, and the average starting wage is $24.50 per hour.

JobPath is an initiative of Pima County Interfaith and Arizona Career Pathways is a Valley Interfaith Project initiative.

[Excerpt]

Project ARRIBA has been quietly working with El Paso leaders to help hundreds of mostly Hispanic students from poor families through nursing school and drastically changing their lives since 1998. They’ve been at it so quietly they barely get noticed publicly anymore. But they have been busy.

The Hunt Institute of Global Competitiveness at the University of Texas at El Paso released a study last month that found for every dollar invested in Project ARRIBA, $28 is returned to the region. ARRIBA has added $893 million to El Paso’s economy in earnings by the program’s graduates since 1995, the report says.

The nonprofit recently received a $250,000 Bank of America grant for regional workforce development to address “a shortage of healthcare workers at a critical time.”  The El Paso region has long suffered an acute shortage of nurses, but since the novel coronavirus made its debut, the shortage has worsened. And hospitals in El Paso, like many others across America, are short on registered nurses by the hundreds.

....

El Paso businessman Woody Hunt endorsed the organization in the announcement, saying,

“Project ARRIBA has become a crucial community partner that is helping build the next generation of healthcare workers who come from and understand the unique needs of our region...."

ARRIBA sprang from a social justice organization that El Paso’s Catholic Diocese formed in 1985 known as the El Paso Interreligious Sponsoring Organization, or EPISO. It’s now called EPISO-Border Interfaith because churches of other denominations have joined.

[In photo: Roman Ortiz, Executive Director of ARRIBA.  Photo Credit: David Crowder, El Paso Inc.]

Report: ARRIBA Program That Helps Low-Income Students Through Nursing School Has $893 Million Impact, El Paso Inc. [pdf]