Dallas Morning News Editorial Concurs with DAI: Texas Needs to Stop Paying for Subsidies
[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]
AMOS Announces Support for Des Moines Local Option Sales Tax, Big Step Forward for Children's Mental Health
During the summer of 2018, AMOS leaders in Des Moines engaged more than 500 families around the question, "What matters enough to you that you would be willing to raise your own taxes to see it happen?" Out of these conversations, AMOS leaders crafted a proposal of six funding priorities to include in the city's upcoming a one-cent sales tax proposal. The now released and approved city spending resolution includes five of our funding priorities, and AMOS leaders have secured a separate commitment from the city to address the sixth.
At a press conference Monday, AMOS announced support for the local option sales tax initiative. AMOS Children's Mental Health Team co-chair Connie McKeen, of Walnut Hills United Methodist, proclaimed it a big step for another AMOS priority: children's mental health services.
Mrs. McKeen announced the formation of a Task Force of elected officials, mental healthcare providers, and community leaders who have committed to work together to implement a Children's Mental Health Mobile Crisis Unit and Crisis Observation. This team will identify the staffing, funding, and location for these crisis services to open by June 30, 2020.
Co-Chairing this Task Force on behalf of AMOS are Dr. Linda Krypel, of First Unitarian of Des Moines and co-chair of the AMOS Children's Mental Health Team, and Teresa Bomhoff of NAMI Greater Des Moines.
Members of the Task Force include, to date, the Mayor of Des Moines, Polk County Supervisor, Des Moines Public School President, CEO of Broadlawns Hospital and other key public and private health executives.
Des Moines Weighs In On March 5 Local Option Sales Tax Vote, WHO TV
One-Cent Tax Increase Could Fund 'Blitz On Blight', KCCI
Local Option Sales Tax Planned for March 5 Vote in Des Moines, Business Record
Des Moines Will Vote on Sales Tax Increase in March, Des Moines Register
Group Pushes Des Moines to Use Sales Tax Money to Extend Library Hours, Des Moines Register
AMOS Seeks Welfare of the City: Extended Library Hours, Park Lighting and Infrastructure in Lower Income Zip Codes
Leaders packed a church hall to engage Des Moines candidates around including AMOS priorities in key investments in lower income areas of the city. Candidates who participated and agreed to support the agenda included: Scott Sanders (Des Moines City Manager), Frank Cownie (Des Moines Mayor), Chris Coleman (Des Moines City Councilmember), Josh Mandelbaum (Des Moines City Councilmember Ward 3), and Linda Westergaard (Des Moines City Councilmember Ward 4).
The City Manager committed to including AMOS priorities in a one-cent local option sales tax increase planned for March 2019. AMOS priorities included: expansion of library hours to at least 6 days per week, lighting in two inner city parks, addressing the growing number of dilapidated/abandoned homes in 50314 and 50316 zip codes, doubling the number of rental housing inspectors, startup funds for a children's mental health crisis unit / observation center, and basic infrastructure improvements (i.e. streets, sidewalks, sewers, and snow removal).
Leaders plan to follow up with public officials who made commitments in early 2019 to ensure their fulfill their pledges.
Group Pushes Des Moines to Use Sales Tax Money to Extend Library Hours, Des Moines Register
Together LA Blocks Tax Exemptions, Wins Sunshine Provision
Eight months after their victory in reforming the state Industrial Tax Exemption Program (ITEP), leaders of Together Louisiana noticed that industrial tax exemptions spiked 441% in its last year (2016), with the majority of tax exemptions granted after the reforms passed. They additionally noticed that the Commerce and Industry Board reversed the wording of the measure to undermine the reform that would have limited exemptions to proposals that had secured the approval of the local municipalities sacrificing the revenue.
Read moreCOPS / Metro Gets Reaction From City on Living Wages, and Keep Pushing
Read more"Councilman Rey Saldaña said that while he supports giving relief to taxpayers, he also would support leaving the rate the same if the funding helps increase wages for the city's lowest-paid civilian employees. Communities Organized for Public Service and the Metro Alliance have been advocating for the increase, which has been backed by some council members."