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.
The majority of community members who provided testimony on May 19 asked the board to vote against the Chapter 313 agreement with NXP. Many 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.”
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]
Statement on Austin ISD and Round Rock ISD Chapter 313 Votes, Central Texas Interfaith
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]
For Immediate Release
Contact: Father Miles Brandon – 512-484-0590
May 18, 2022
Central Texas Interfaith Statement Opposing NXP Chapter 313 Application to AISD
It is shameful to take money from schoolchildren to line the pockets of multinational corporations. Central Texas Interfaith unequivocally opposes NXP’s request for 10-year tax abatement from AISD under the failed Chapter 313 program. During the 2021 Texas legislative session, Central Texas Interfaith and its Texas IAF sister organizations, with bi-partisan legislative support, stopped the reauthorization of Chapter 313, the state’s largest corporate welfare program which drains over $1Billion/year in potential money for public schools and lines the pockets of oil, gas, and manufacturing companies.
Hardworking taxpayers don’t get this type of giveaway, nor do small businesses or responsible corporations. We want our tax money to go to public schools, but not to pay the bill for corporations shirking their responsibility to public education. Without a Chapter 313 tax giveaway, NXP would have to pay its full share of school taxes, which would directly benefit Texas schoolchildren.
NXP’s Chapter 313 application was posted less than 24 hours before AISD Trustees are set to vote on it today. As a citizens’ organization, we are at a loss as to how we even have a public debate about accepting an application whose terms were made public just hours before a board meeting. We want good jobs, we want companies to expand in Austin, but we want NXP to pay their fair share of taxes to Texas schoolchildren like the rest of us.
• See our “Myths versus Realities” document on NXP’s request for a Chapter 313 giveaway.
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]
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.”
[Photo Credit: Mark Mulligan, San Antonio Express News]
Texas Comptroller Proposes Covering Up Corporate Welfare Program, The Houston Chronicle [pdf]
Taylor: The Chapter 313 Monster — the Mother of All Corporate Welfare — Revives?, San Antonio Express News [pdf]
At Urging of CTI, Travis County & City of Austin Invest $200+ Million into Homelessness Prevention & Support
After years of working to protect the dignity of people experiencing homelessness and preventing low-income families from displacement, Central Texas Interfaith leaders celebrated the investment of $220+ Million in federal funding into homelessness prevention and support. Over 100 CTI leaders were joined by City of Austin Mayor and Travis County Judge Andy Brown who expressed appreciation for the organization's partnership and doggedness in addressing key regional challenges. Leaders relayed how this effort was connected to a multi-year effort that resulted in passage of an affordable housing bond in 2018, $40 Million in rental assistance during the first year of the pandemic, and now over $217 million in federal dollars into homelessness prevention and support.
Elected officials further committed to identifying sources for additional rental assistance as eviction moratoriums lift.
Homeless Housing Plans, Spectrum News
Interfaith Group Calls for Immediate Action on Homelessness, Austin Monitor [pdf]
Press Conference Footage, Central Texas Interfaith
[Excerpt from Austin Monitor]
Members of Central Texas Interfaith are asking the city to spend the funds City Council set aside a few weeks ago to alleviate homelessness in Austin – now. At a virtual news conference Tuesday, members of the group also urged Travis County to come up with $100 million to match what the city might provide.
Austin intends to spend at least $84 million on solving homelessness, mostly from its federal American Rescue Plan Act funds, to help with the effort. However, the city’s commitment is conditional on major investments from the county and private foundations. County staffers have recommended spending only $325,000 on homelessness in next year’s budget. Speaking for the group, Rev. Michael Floyd said,
“We’re tired of waiting and we believe that most Austin citizens are too. Austin citizens of every political persuasion share our desire for the city of Austin to act immediately to implement a comprehensive plan to end homelessness. That’s what we’re advocating today because the city’s efforts to assist those without housing have again been put on hold.”
[Photo Credit: John Anderson, Austin Chronicle]
Interfaith Group Calls for Immediate Action on Homelessness, Austin Monitor
Headlines / Quote of the Week, Austin Chronicle
Press Conference Footage, Central Texas Interfaith
....Leaders with Central Texas Interfaith – a non-partisan coalition of religious congregations – are also pushing the city council to act.
Jonathan McManus-Dail, the assistant priest at St. Julian of Norwich Episcopal Church, said the city should use available federal funds to make an immediate impact.
“I think many people, myself included, want more urgency around this issue because we see people suffering,” McManus-Dail told KXAN.
Austin has been criticized for not prioritizing permanent supportive housing efforts in the past. Homelessness advocates say the need for urgency has only intensified since the passage of Proposition B.
[Photo Credit: KXAN News]
Statement on City Funding to Address Rental Assistance and Homelessness, Central Texas Interfaith [6/7/21]
Statement on Use of Federal Stimulus Dollars, Central Texas Interfaith [6/10/21]
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.”
....As legislators met in a closed session to hammer out the bill, Greco heard from a colleague. “One of my organizers said there’s 20 oil and gas lobbyist standing outside this committee room,” he recalled.
Former Gov. Rick Perry, an Energy Transfer board member, tweeted his support for reauthorization. But as last week of the session ticked by, the bill didn’t come up. “It became clear that the reputation of the program had been damaged,” Greco said.
In 19 months, Texas’s subsidy program will expire, but that doesn’t mean the fight is over.
“We know there’s going to be a big conversation over the interim — we are under no illusions that this is not going to be a long-term battle.”
Organizers, though, recognize that the subsidy’s defeat marks a shift: “The table has been reset.”
The Unlikely Demise of Texas’ Biggest Corporate Tax Break, Texas Observer [pdf]
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