CTI, Texas IAF Underscore Lasting Consequences of Chapter 313 Subsidies
[Excerpt]
"In December, legislators killed a controversial tax abatement program known as Chapter 313, but its effects will last decades....
“There’s no accountability at the statewide level; nobody administers it,” said Bob Fleming, an organizer with [T]he Metropolitan Organization of Houston who campaigned against Chapter 313 reauthorization back in 2021. “A bunch of local school districts make singular decisions based on what they think is in their interest. Nobody is looking out for the statewide interest. Local school districts are overmatched when the $2,000 suits walk into the room.” ....
“It’s a perverse incentive,” said Doug Greco, lead organizer at Central Texas Interfaith, one of the organizations that helped shut down reauthorization of Chapter 313 in the 2021 legislative session.
“We approach it on a school funding basis,” said Greco, who is already gearing up to fight any Chapter 313 renewal efforts in 2023. “It’s corporate welfare and the people who pay over time are Texas school districts.” ....
“The district my granddaughter goes to is losing $4 million to $5 million every year,” said Rosalie Tristan, referring to Edinburg Consolidated Independent School District. Tristan is an organizer with the community organization Valley Interfaith who lives north of McAllen in the Rio Grande Valley.
“They could be using that money to get more teachers for these students,” she said. “For a parent, or for a grandparent raising her granddaughter, it’s a hit in the gut.”
[Photo Credit: Pu Ying Huang, The Texas Tribune]
Critics Say State Tax Break Helps Petrochemical Companies and Hurts Public Schools, The Texas Tribune [pdf]
Central Texas Interfaith Ramps Up Pressure on Austin ISD Board as Chapter 313 Deadline Looms
As the December 31st expiration date for final certification of Chapter 313 tax break applications approaches, Central Texas Interfaith calls on the state comptroller's office to not rush into certifying the nearly 200 potential project applications still in the pipeline, including Samsung and NXP. The looming deadline does not give nearly enough time for school boards and community members to properly evaluate any more deals. It is time to turn the page.
[Excerpts from Austin Business Journal and Austin America Statesman]
"A vote has been delayed on whether to grant NXP Semiconductors NV property tax abatements that could aid its expansion of manufacturing facilities in Austin, edging the request very close to an end-of-year deadline...
The looming loss of the program has been lamented by many members of the business community, but because it limits public school property taxes, Chapter 313 has been opposed by some community organizations, including [Central Texas Interfaith, formerly known as] Austin Interfaith. 'While we want economic development and good jobs in Central Texas, Chapter 313 prohibits school boards from requiring high living wage and worker safety standards as part of these agreements, unlike city and county incentives in which good job standards can be negotiated,' Central Texas Interfaith and other progressive groups said in a Nov. 17 statement calling for AISD trustees to vote against the deal."
***
"With the expiration of Chapter 313 fast approaching, representatives of Central Texas Interfaith, an organization that has opposed the program because of its impact on statewide school funding, said the comptroller's office shouldn't be rushed into certifying the applications in the remaining backlog, 'given the billions of taxpayer dollars that are at stake.'
In addition, 'any application certified at this point (almost at Thanksgiving) does not give local taxpayers and school boards nearly enough time to properly deliberate and make decisions on these decades long obligations,' said the Rev. Miles Brandon, clergy leader with Central Texas Interfaith. 'It's time to turn the page on this failed program.'
Central Texas Interfaith and other critics of Chapter 313 have said the program has slipshod oversight and guidelines, calling it a mechanism for taxpayer-funded giveaways to corporations at the expense of statewide funding for education."
[Photo Credit: Arnold Wells, Austin Business Journal]
Decision on NXP's Chapter 313 incentives in Austin Coming Down to the Wire, Austin Business Journal [pdf]
As End of Texas Tax Break Looms, Fate Unclear for Billions in Potential Projects, Austin American Statesman [pdf]
As Deadline Approaches, CTI Leaders Persist in Push Against NXP Tax Break
[Excerpts]
“While we want economic development and good jobs in Central Texas, these agreements prohibit school boards from enacting high living wage and worker safety standards as part of these agreements, unlike city and county incentives, in which good job standards can be negotiated,” said Carlota Garcia of the Central Texas Interfaith organization.
Garcia said these agreements are “Texas’ largest corporate welfare program, which costs taxpayers over $1 billion annually—money that could be going to public schools and other public needs. The state must replace the revenue that the corporations get out of paying in property taxes for 10 years by collecting more taxes from all Texans.”
-Community Impact
“We’re not anti-economic development,” said the Rev. Miles Brandon of St. Julian of Norwich Episcopal Church and member of Central Texas Interfaith. “We believe that all of the dollars we can possibly put together in this state should go to educate our children.”
-Austin Business Journal
“We are a part of the AISD community,” Brandon said. “We implore you to choose your advocates and partners over corporations. It makes certain there will be $100 million less to fight for. It is in our children’s best interest now and in the future.”
-Austin American Statesman
[Photo Credit: Community Impact]
Possible Chapter 313 Agreement Between Austin ISD, NXP Draws Criticism, Community Impact [pdf]
Austin ISD to Vote on NXP Semiconductor's $100M Tax Break, Austin Business Journal [pdf]
Time Ticking for Austin School Board to Vote on Proposed Tax Breaks for NXP Semiconductors, Austin American Statesman [pdf]
CTI/Texas IAF Fight Against Chapter 313 Featured in The Problem With Jon Stewart
Reverend Minerva Camarena Skeith of St. John's Episcopal Church explains to Jon Stewart how Central Texas Interfaith/Texas IAF organizations fight corporate incentives that negatively impact public budgets, including schools.
“What’s happening right here, right now, very powerful.” -- Jon Stewart
In a Behind the Scenes Cut, Rev. Minerva Camarena-Skeith describes how communities can organize.
Full episode and panel discussion streaming on Apple TV+.