The AISD board is scheduled to vote on a $100 Million Chapter 313 school property tax break to NXP corporation at its Thursday, Nov 17th meeting, with a board information session scheduled for Thursday Nov. 10th.  While we want economic development and good jobs in central Texas, Chapter 313 prohibits 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. 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 $1Billion annually, money which could be going to public schools and other public needs.  Not only do corporations get out of paying the 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 if passed could cost taxpayers as much as $10 Billion/year.

WEAK/NONEXISTENT JOB AND WORKER SAFETY REQUIREMENTS IN CHAPTER 313

• Chapter 313 has NO wage, job creation, or worker safety requirements for construction and building trade jobs.
• For permanent jobs, Chapter 313 has extremely weak job creation and wage requirements, and no workers safety requirements.
  • Companies are only required to create between 10-25 permanent jobs regardless of the size of the tax break.
  • These jobs are only required to meet 110% of the median manufacturing wage.
  • There are no worker safety requirements required by Chapter 313.
• The Comptroller routinely grants waivers even to these weak requirements.
• School boards are prohibited by law from enacting stronger wage, job creation, and worker safety requirements.

NXP APPLICATION TO AISD FOR CHAPTER 313 AGRREMENT

• NXP (formerly Motorola/Freescale) is Dutch multinational Chip Manufacturer with nearly $11 Billion in annual profits is asking for over $100 Million in school property tax breaks over the next 10 years to expand its operation in Austin.  Ordinary taxpayers, small businesses, and most other corporations do not get these tax breaks.
• In its initial applications to the AISD board, NXP promised only 50 jobs in exchange for its tax break, at a cost to taxpayers of $2,000,000/job. After being called out by CTI, the company changed the jobs promised to 500 on the night of the initial board meeting, but still short of the 800 it had promised in the media. 
• Central Texas taxpayers will be investing in 3 major bonds (AISD, ACC, City of Austin) and are facing rising Austin Energy rates and other inflation costs. Now is not the time to grant tax breaks to billion-dollar corporations. 
• NXP is free to approach the city and county for tax incentives, entities which have much higher job creation and worker safety requirements. They also have the newly passed federal CHIPS Act available for them to pursue public funding.  Unlike Chapter 313, these programs do not take potential funding from schoolchildren.