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]
....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
CTI, with Texas IAF, Bishops & Faithful Call on Lt. Governor and Senate to Reject 'Permitless Carry' Legislation
Bishops, rabbis, clergy and faithful from across Texas convened to express vocal opposition to the passage of proposed legislation HB1927 which would allow "permitless carry" in the state of Texas.
Catholic Bishop Mark Seitz referenced the massacre in El Paso which resulted in dozens of residents dead and seriously injured. Baptist Rev. Darryl Crooms from San Antonio testified to the "unnaturalness" of adults burying children. Lutheran Rev. Jessica Cain testified to the impact of last weekend's shooting in North Austin on local worshippers. Rabbi David Lyon recalled last year's deadly shooting in Santa Fe High School.
Together -- with Lutheran Bishop Erik Gronberg, Episcopal Bishop Suffragan Kathryn Ryan, Methodist Director of Missional Outreach Andy Lewis, Dallas Catholic Bishop Gregory Kelly and several lay leaders -- all expressed concern that passage of HB1927 would increase gun violence. States that have passed similar laws, removing the required license and training needed to carry a handgun, experienced spikes in homicides and gun violence. From Central Texas Interfaith, Reverend Paul Skeith of SoCo Episcopal chaired the press conference and Jessica Cain, of Living Word Lutheran in Buda, testified to the fear that worshippers faced following the weekend shooting in Austin.
“Our faith tradition teaches us to protect life,” said Bishop Suffragan Kathryn M. Ryan of the Episcopal Diocese of Texas. “You cannot protect life if people carrying deadly weapons aren’t properly trained and licensed.
"You’ll find no scripture that will support this kind of legislation,” said Pastor John Ogletree, First Metropolitan Church of Houston.
“It makes our church much less safe,” said El Paso Bishop Mark Seitz.
Texas Faith Leaders Come Out Against 'Permitless Carry', CBS Austin [pdf]
The virtual press conference was organized by the Network of Texas IAF Organizations — a nonpartisan coalition of 10 primarily faith-based organizations across the state that represents more than 1 million people — and The Metropolitan Organization, a Houston-based civic group, to keep public attention on the aftermath of the widespread power outages that occurred earlier this year....
Texas IAF has thrown support behind Senate Bill 3, which would mandate weatherization under federal energy regulation guidelines. The bill passed on March 29 and now moves to the House. It would also impose penalties for noncompliance, increase coordination among state energy regulating bodies and create an emergency alert system.
"Our families have already suffered enough," said the Rev. Minerva Camarena-Skeith of St. John's Episcopal Church [and Central Texas Interfaith] in Austin. "They have paid more than their fair share of the cost for the mistakes of the energy industry and the unwillingness of the legislature to regulate the energy industry."
As legislation trudges through the legislature, the struggles continue across the state, members of The Metropolitan Organization said during the press conference. The budget strain of paying for repairs, they said, is especially felt by people living in apartments, whose landlords may not cover costs, as well as mobile home park residents and the elderly.
Pipes also burst at the home of Sorina Serrano, who is still waiting for repairs. A leader with The Metropolitan Organization Houston and member of St. Leo the Great Catholic Church, Serrano said her home insurance coverage expired in March and other insurers have told her they won't cover the house until the repairs are made.
[Photo Credit: Isabelle Baldwin/CNS Photo]
After Texas' Winter Storm Disaster, Faith Leaders Press for Legislation to Ensure 'Never Again', Earthbeat- National Catholic Reporter
Central Texas Interfaith & Texas IAF Declare State Power Failure an 'Act of Sheer Negligence' and Demand Accountability from Elected Officials
While state officials announced later in the day that power had stabilized and forced shutoffs were no longer needed, more than 300,000 households remained without power....Texas was especially hard hit because most of its power grid is isolated from the interconnected networks serving the eastern and western parts of the U.S. That made it difficult to import energy from other states when frozen pipes shut down generating station.
The failure of Texas' electric grid led faith leaders across the state on Thursday to call out Gov. Greg Abbott for a lack of leadership and preparation. They urged him to request assistance from the Federal Emergency Management Administration and dip into the state's $10 billion "rainy-day" fund to help Texans cover expensive home repairs and energy bills.
They also called on state leaders to act on a 2012 plan to modernize and weatherize the electric grid....
"We are calling for Gov. Abbott to first take responsibility for this gross negligence and stop finger-pointing. This is a gross act of negligence that has caused harm to the whole state of Texas, and it's time to put people over profits," the Rev. John Ogletree of the First Metropolitan Church of Houston said at a virtual press conference Thursday. The event was organized by the Network of Texas IAF Organizations, a nonpartisan coalition of 10 mostly faith-based organizations statewide that represents more than 1 million people....
"The storm may have been an act of nature, but the devastation of the electrical grid shutdown is an act of sheer negligence," Auxiliary Bishop Greg Kelly of the Dallas Diocese added in a statement.
Kelly and other faith leaders who spoke during the press conference and with EarthBeat described the struggles facing their state's people because of the freeze: Temperatures in homes hovering at 30 degrees. Elderly people unable to use dialysis machines. A 76-year-old woman sleeping in her car for warmth. Churches that would typically offer shelter could not because they too lacked power and water...
Texas Faith Leaders Call Out 'Sheer Negligence' Behind Power Outages, National Catholic Reporter
Press Conference Footage, Facebook Live
Central Texas Interfaith & Allies Call on State and Local Governments to Beat December Deadline for Coronavirus Rental Relief
Before the pandemic, Maria Ramirez (in photo above) and her husband made more than enough money to afford their two-bedroom apartment in Dallas. Now, they owe $4,000+ in back rent and late fees. When they applied for local aid, they were denied.
"For four months, millions of these funds have wafted around the corridors of City Hall while each day vulnerable families are threatened with evictions," said Jon Lee, a retired pastor of King of Glory Lutheran Church and leader with Dallas Area Interfaith.
Texas IAF leaders across the state are working with local elected officials to spend down millions in assistance dollars that they leveraged earlier this year. Onerous online application processes and excessive documentation requirements hampered access to available assistance for the most vulnerable. Warned Rev. Michael Floyd of Central Texas Interfaith, "Families who lost employment are racking up months of unpaid rent and as eviction moratoriums end, they will be forced out of their homes."
Texas IAF leaders and allies are also calling on the Governor to draw down available funding for rental assistance for smaller cities. If not spent by the end of the year, unspent dollars will have to be returned to the US Treasury.
Says Rev. Jaqueline Hailey, of TMO, “The CDC order create[d] a welcomed pause in evictions in this area, but it is only a half-measure because all rents and late fees will continue to pile up and be due when the moratorium expires on December 31.”
[Photo Credit: Vernon Bryant/Dallas Morning News]
Thousands Evicted in Houston Area Before Eviction Moratorium, Rental Assistance, Texas Catholic Herald [pdf]
TMO Call[s] on Leaders to Halt Evictions, Congress to Pass Next Stimulus Bill, Houston Chronicle [pdf]
Central Texas Interfaith & Austin Apartment Association Call for $100 Billion in Emergency Rental Relief
After distributing $1.2 million in May, the City of Austin’s Neighborhood Housing and Community Development Department announced Tuesday $17.75 million will be available to help renters in the second round of the Relief of Emergency Needs for Tenants (RENT) Program.
The city will use a lottery system to pick funding recipients, so for people like Carlota Garcia with Central Texas Interfaith, the worry is about those who won’t get picked.
“No longer are we able to borrow from friends or borrow from family, savings accounts have been pillaged, there is no cushion left for people,” she said. “This moment has the potential to become disastrous.”
She said the state and the federal government should create a plan that gets those in need help beyond the next six months.
“In order for us to be able to prevent families from falling into starvation, or worse, we really need to have the federal government step up, as well as the statewide government..."
[Photo: Footage by KXAN]
Joint Statment on Emergency Rental Relief, Central Texas Interfaith & Austin Apartment Association