"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]
Last year Texas IAF organizations led the charge to end Chapter 313, a program that had given away $10 billion in windfall tax breaks for corporations. However, hundreds of Chapter 313 applications are being filed in the rush to get in before the end of the program, including some with projects slated for decades from now.
“It’s like hogs at the trough,” said Bishop John Ogletree, an official with the faith-based Texas Industrial Areas Foundation, which has opposed the arrangements.
Meanwhile, lawmakers and interest groups have begun discussing how to craft a replacement during next year’s legislative session to keep the tax breaks flowing.
The Chapter 313 deals — named for their location in the state tax code — let companies slash 10 years worth of school property tax bills they otherwise would owe on newly constructed factories and energy projects.
Over the past decade the state comptroller’s office has received an average of about 90 applications annually from companies seeking the subsidy.
Since the Legislature adjourned at the end of May 2021, by comparison, records show companies have filed requests for more than 460 new tax breaks — about 400 in the past five months alone.
Typically, companies sought Chapter 313 tax breaks for projects two to four years in the future, with the occasional oil and gas facility taking six or seven years to complete. Since last May, however, companies have applied for 120 of the subsidies for facilities not scheduled to open until at least 2028. At least 10 won’t be online for a decade or more.
Despite the program’s demise, applicants “have figured out how to extend it,” said Rev. Minerva Camarena-Skeith, of Central Texas Interfaith.
Their strategy seems to be, “Just in case, let’s get 10 years of requests in in one year,” added Bob Fleming, of The Metropolitan Organization, the Houston branch of the Texas Industrial Areas Foundation. “I don’t know anybody who can forecast their needs 30 years out.”
....by slow-walking the end of a program they said was giving away too much money to corporations at the expense of Texas taxpayers, legislators have now put the state on the hook for billions of additional tax breaks that Texans will be paying off well into the middle of the century.
[Photo Credit: Mark Mulligan, Houston Chronicle]
Executive Director Michelle Paul explains how Capital IDEA Houston transforms lives. Capital IDEA Houston is a long-term job training program established by TMO.
Organized by The Metropolitan Organization of Houston (TMO), 123 participants were joined by Bishop Italo Dell'Oro of the Archdiocese of Galveston-Houston for a two-day 'Recognizing the Stranger' training. Ministry leaders from 21 parishes of the Archdiocese of Galveston-Houston participated, as did leaders from the Diocese of Beaumont.
Recognizing the Stranger training equips immigrant parish leaders with the skills needed to make connections within immigrant communities and with non-immigrant allies, applying the tools of organizing to address issues facing their congregations and communities.
Training sponsors include the Catholic Campaign for Human Development, Mission & Ministry Impact, Gulf Coast Leadership Council and the Organizers Institute.
In photo at right, Bishop Italo Dell-Oro recognizes TMO for teaching ministry leaders listening skills through house meetings, particularly with people on the periphery.
Following an opposition campaign by Texas IAF organizations, Comptroller Glenn Hegar is backing away from his proposal to gut Chapter 313 reporting and accountability requirements in the program’s final year of existence. Hegar signaled the change Friday after significant pushback by Chapter 313 critics, including a press conference held by Texas IAF organizations in December, and a barrage of public comments submitted to his office against the proposal, with the largest portion coming from Texas IAF leaders.
During the 2021 Legislative Session, the Texas IAF, along with allies, stopped the reauthorization of Chapter 313, the State’s largest corporate tax subsidy program. Though the current program, which costs taxpayers $1-2 Billion per year, is set to expire in December of 2022, Comptroller Hegar had proposed in November to reduce the reporting requirements on jobs, wages, and overall costs to taxpayers.
“Comptroller Hegar has recognized the voices of voters from across the political spectrum, including our organizations, and now says the data we are concerned will continue to be available,” said Bob Fleming, a leader with The Metropolitan Organization, the IAF affiliate in Houston. “However, we remain vigilant because he says the rules will still be revised and made ‘more efficient’. Given the history of this failed and discontinued program, we need even more transparency and accountability, not less.”
[Photo Credit: Mark Mulligan, Houston Chronicle]
Network of Texas IAF Organizations, Press Release
Texas IAF Calls On State Comptroller to Abandon Plan to Gut Chapter 313 Subsidy Accountability Requirements
"Lawmakers have ordered Comptroller Glenn Hegar to wrap up Texas’s biggest corporate tax break program, but he wants to give companies one last gift: an end to public accountability.
Activists, corporate relocation specialists and lawmakers are scrambling to comment on Hegar’s proposal that companies no longer report key data about their progress toward meeting the terms of their property tax abatement agreements.
Interfaith groups that fought the corporate giveaway that hurts Texas children demanded Hegar roll back his plan on Wednesday.
“What is the benefit of less accountability and less transparency?” San Antonio state Senator José Menéndez asked at a Texas Industrial Areas Foundation press conference. “The taxpayer should know how their money is going to be used and what they are getting in exchange.”"
Texas Comptroller Proposes Covering Up Corporate Welfare Program, The Houston Chronicle [pdf]
The one-on-one approach to persuasion isn’t necessarily the most efficient, but it may be the most effective for the vaccine holdouts who have resisted every other large-scale push....
We know it can work because it already has.
One group out there doing the intensive, small-scale work to raise vaccination rates is the Southeast Texas Faith & Community Leaders Coalition, [an expansion project of TMO] based in Beaumont. Six team members told the editorial board last week that their community, like so many, is awash in vaccine conspiracies. Coordinator Mary Scott said the group has been going directly to apartment complexes with accurate vaccine information, and got approval from some Beaumont businesses to engage with customers about their vaccination drives. The grassroots team got 88 people vaccinated two weekends ago through churches and other centers....
Lamar University student [and TMO organizer] Ricky Mendoza said conversations with Hispanic community members revealed concerns about fertility and the vaccine, which numerous health experts have debunked. (And the American College of Obstetricians and Gynecologists issued a strong recommendation recently that pregnant women should get vaccinated.)
Mendoza said he’s finding that one-on-one conversations with people, in English and in Spanish, are slowly changing minds.
[Photo Credit: Southeast Texas Faith & Community Leaders]
Coalition Brings Vaccines to Beaumont Residents in At-Risk Areas, Beaumont Enterprise [pdf]
Putting Our Faith & Commitment to Democracy in Action, Southeast Texas Faith & Community Leaders
In collaboration the Harris County Pubic Health Department and leaders from St. Leo the Great and Our Lady of Grace Catholic Churches, TMO brought over 790 vaccines to overlooked neighborhoods in unincorporated and low-income areas of Harris County.
In Aldine, within the county borders, this collaboration was particularly important for parishioners and neighbors of St. Leo the Great Catholic parish, where over 690 people received their first vaccine dose over the course of two events in August.
In South Houston, leaders from Our Lady of Grace Catholic Church encouraged parishioners to get vaccinated through a combination of pulpit announcements, flyers and after-mass signups. Said Sylvia Soria, church secretary of Our Lady of Grace:
Our parish membership is 99% Latino. Many of our families are working families that can not take time off during the week to get the vaccine across the other side of town. We’re glad to work with TMO, GCLC, and Harris County Health Department to bring the COVID-19 vaccine on a Saturday to our community.
Jornada de Vacunación en Ciudad con Gran Población Hispana, Telemundo [en español]
Churches in Brazoria County, with its county seat being in Angleton, are helping residents still hurting from the pandemic’s financial fallout to apply for rental assistance through a recent $11.3 million federal grant, community leaders say.
The monies became available June 14 after Church and community leaders met with Brazoria County Judge Matt Sebesta earlier in the spring. They specifically asked him how they could help distribute the funds so it wouldn’t be sent back to the federal government as had been considered.
A contingency of three Catholic priests, The Metropolitan Organization (TMO) nonprofit and other church groups, including Grace Episcopal, met with the county judge back in March.
“We let the county judge know that we have volunteers to help with the paperwork and we have those in dire need of assistance,” said Sister Maureen O’Connell, director of the Secretariat for Social Concerns.
“Poor and vulnerable people trust the Church more. So this collaboration between government and Church groups is a wonderful opportunity to help them,” she said.
[Photo Credit: Catholic News Service]
$11.3 Million Approved for Brazoria County Residents Struggling With Rent in Pandemic, Texas Catholic Herald
In Advance of Hurricane Season, TMO & Texas IAF Fight for Energy Grid Weatherization and Help with Repairs
….[t]he Network of Texas IAF Organizations – a nonpartisan coalition of mostly faith-based organizations that represents more than one million people — and The Metropolitan Organization of Houston, held a virtual press conference April 12 to support approval of State Senate Bill 3, mandating weatherization under federal energy regulation guidelines.
They are calling for the costs to be covered by power producers and energy generators as well as through the state’s $10 billion “rainy day” fund. The bill passed in the Senate on March 29 and now moves to the House that heard testimony but has not taken a vote. It would also impose penalties for non-compliance, increase coordination among state energy regulating bodies and create an emergency alert system.
Faith organizations also called for establishing a $2 billion fund to help families pay for home and apartment repairs and for consumer advocates to be appointed to all state energy and utility boards.
Sister Maureen O’Connell, OP, Archdiocese of Galveston-Houston director of the Secretariat for Social Concerns, said, “Never again – the damage that this past storm inflicted on families should never happen again because of lack of preparation by the state.”
“People are still suffering and can’t make repairs on their own homes. It’s criminal not to help. The community, including the State Legislature, needs to support one another,” she said.
....Since many lost wages or jobs because of the pandemic, they remain living with mold in their homes from busted pipes and filling bathtubs with water, DeLeon described. The ministry, with limited funds, can help each family only once every six months, she said. “This is only a temporary fix. The community’s problems are much bigger.”
With Hurricane Season Looming, Families Still Suffer from Winter Storm, The Arch-Diocese of Galveston [pdf]