At Urging of CTI, AISD Board Rejects Chapter 313 Tax Break for NXP
"The Austin ISD school board has voted against a multi-million dollar tax break for NXP, a semiconductor company...
"It is not fair that those who have the greatest ability to pay are the ones who don't want to pay a dime," Rev. Minerva Camarena Skeith of Central Texas Interfaith said.
The tax break called the appraised value limitation, or 313 agreement, lets potential businesses build property and create jobs in exchange for a 10-year limit on the taxable property value for school district maintenance and operation.
"We want more dollars for AISD and for every school district in this state. We want every child to have every opportunity they need," Rev. Miles Brandon with Central Texas Interfaith said."
Austin ISD School Board Rejects Tax Break for Semiconductor Company, Fox 7 Austin
Austin ISD School Board Denies Tax Break for Semiconductor Company NXP with Narrow Vote, KVUE ABC
Austin ISD Board Considers Chapter 313 Tax Break for Semiconductor Company NXP, KVUE ABC
NXP Fails to Gain School District Tax Incentives for Possible Factory Expansion, Austin Business Journal
With Weeks to Spare, Austin ISD to Vote on NXP Incentives, Austin Business Journal
AISD Board to Vote on Contested Tax Breaks for Billion-Dollar Semiconductor Company, KXAN
Central Texas Interfaith Commends AISD Board for Rejecting Chapter 313 Deal with NXP, Central Texas Interfaith [pdf]
CTI, Texas IAF Underscore Lasting Consequences of Chapter 313 Subsidies
"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]
Faith, Labor & Policy Orgs Call on AISD to End Consideration of NXP's Application
We, the undersigned, call on all AISD Trustees and Trustees-Elect to end consideration of NXP’s $100Million Chapter 313 property tax break application to the Board. 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. Chapter 313 is a failed corporate giveaway program that was killed in the last legislative session by Central Texas Interfaith/Texas IAF, the Texas AFL-CIO, and other union and advocacy groups. Central Texas Interfaith calls on all AISD trustees to vote against NXP’s Chapter 313 application to the Board.
Chapter 313 is Texas’ largest corporate welfare program which costs taxpayers over $1 Billion annually, money which could be going to public schools and other public needs. Not only do corporations get out of paying most of their property taxes (for 10 years) they would otherwise owe for our schools, but the state must replace that revenue with taxes collected from all Texans. The current legislation ends in December of 2022, which has led to a “gold rush” of over 450 applications, which could cost taxpayers as much as $10 Billion/year. Not only do state taxpayers foot the bill for this with state taxes; over time, local taxpayers and businesses will also be paying more. With the support of Central Texas Interfaith and its sister organization Valley Interfaith, school boards in Elgin ISD and Port Isabel ISD school have rejected Chapter 313 applications, as well as several other districts. We urge AISD to do the same....
Full Statement from Faith, Labor and Policy Organizations
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+.
CTI Leaders Testify Against Ch 313 in Texas Ways & Means Committee
The Chapter 313 program, authorized in 2001, allows Texas school districts to cap the taxable value of a property for some new projects, saving companies tens of millions of dollars in taxes, or more. It is set to expire at the end of December, after a bipartisan coalition in 2021 stopped efforts to reauthorize the program.
Critics of Chapter 313 call it corporate welfare that deprives Texas public schools of funding....
The Rev. Miles Brandon of St. Julian of Norwich Episcopal Church in Round Rock spoke in support of ending the program for good. He appeared on behalf of the Texas Industrial Areas Foundation and Austin Interfaith, both community... groups.
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]
Central Texas Interfaith Opposes NXP $2.6 Billion Expansion
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]
CTI and Texas IAF Leaders Impede Plans to Conceal Chapter 313 Data
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]
After Backlash, Texas Comptroller Abandons Plan to Hide Details of Controversial Tax Break Program, Houston Chronicle [pdf]
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]
Network of Texas IAF Organizations, along with Public Officials, Hold Press Conference to Call on Comptroller Hegar to Abandon Attempt to Gut Chapter 313 Transparency and Accountability, Texas IAF
Taylor: The Chapter 313 Monster — the Mother of All Corporate Welfare — Revives?, San Antonio Express News [pdf]
CTI Calls for Expansion of Rental Assistance & Investment of Stimulus in Homelessness Reduction
....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]
Several Austin City Council Members Concerned About Spending on Homelessness Services, 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]
CTI, with Texas IAF, Blocks $10 Billion Dollar Corporate Tax Giveaway to Big Oil
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
A Texas Law Offers Tax Breaks to Companies, but It's Renewal Isn't a Done Deal, Texas Tribune [pdf]
A Controversial Tax Program Promised High Paying Jobs. Instead, Its Costs Spiraled Out of Control, Houston Chronicle [pdf]
Losers and Winners from Chapter 313, Central Texas Interfaith