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June 28, 2005
Democratic Tax Plan Goes Down by ONE Vote
Proposal would have cut taxes, increased teacher pay
By Jason Embry
AMERICAN-STATESMAN STAFF
Tuesday, June 28, 2005
The Texas House turned back a Democratic proposal for a school finance overhaul by one vote today, barely avoiding what would have been a major change in the direction of the special legislative session.
The House defeated the Democrats' proposal with a 75-74 vote, with Speaker Tom Craddick casting the deciding vote after the rest of the House was tied. Speakers generally do not vote, although Craddick has regularly done so on major proposals this year.
The plan drew the support of every Democrat and 12 Republicans.
It would have cut the maximum property tax rate for school maintenance and operations from $1.50 to $1.30. Its supporters also wanted to increase the value of a home that is exempt from school taxes from $15,000 to $45,000, although that language was not included in the proposal offered on the House floor.
Democrats said their plan would provide $3,200 in across-the-board pay increases for teachers. The Republican-backed plan that lawmakers will consider later today would give teachers across-the-board increases of $500, plus require school districts to give additional raises averaging $1,000 per teacher. Republicans also want to spend more money on incentive programs for teachers.
On taxes, the Republican plan would cut the cap on school taxes to $1.10 over the next two years. It does not include a homestead exemption increase.
Rep. Scott Hochberg, D-Houston, said the Democrats' plan would give larger tax cuts to the average homeowner in 144 of the state's 150 House districts. He also said three-fourths of Texas school districts would see more money under his plan than under the GOP plan.
But Republicans described Hochberg's as a costly plan that would require a tax increase.
"It will trap you into voting for a tax in the next few years that you will not be very proud of," said Rep. Warren Chisum, R-Pampa.
The House is expected to debate the school-finance bill all day today. The second major proposal of the special legislative session, one that would raise billions of dollars in state taxes to replace the money lost in property tax cuts, is stuck in committee.
Democrats have not specified how they would replace the property-tax revenue that would be cut under their plan.
All Central Texas Republicans voted against the plan, except Rep. Harvey Hilderbran, R-Kerrville. None of the Republicans who supported the plan spoke on the House floor about their votes.
Posted by Stace Medellin at June 28, 2005 11:27 PM | Permalink
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