By J. Lyn Carl, GalleryWatch.com
Austin, TX – Less than an hour before the Texas House was scheduled to take up the controversial school finance bill, a group of House Democrats offered up an alternative proposal for the distribution side of HB 1.
The distribution proposal, said Rep. Scott Hochberg (D-Houston), would benefit the state's public schools, public school teachers, schoolchildren and property owners.
Hochberg described the proposal as an "alternative in spending" that "levels the playing field a lot more in terms of impact on people of all incomes."
Using the existing school finance formulas, Hochberg said the proposal is "more fair to property owners across the economic spectrum" and provides "real property relief" to all homeowners, regardless of the value of their homes.
The proposal also puts more money in the classrooms, he said, and includes a proposed $1,000 state-funded salary increase for public school teachers, counselors and other support personnel on the teacher pay scale; restoration this year of the $1,000 health insurance stipend for teacher health insurance; and adds state funding that averages an additional $168 per student per school.
The Houston Democrat said the proposal includes more money on a per-student basis than HB 1 and restores cuts to "proven" educational programs such as the Student Success Initiative, After-School Initiative and others.
The proposal also provides property tax relief by including a mandated exemption of $45,000 per household, "basically tripling it" from the current $15,000, said Hochberg. It also will roll the school property tax rate back on all property by approximately 10 cents, from the average $1.47 per $100 valuation to $1.37, which he said is a little lower than Gov. Rick Perry's proposal that sets the rate at $1.40 for industrial property.
Hochberg said the taxes on an average home (valued at $109,000) will be reduced by approximately $505 per year, a reduction of more than 36 percent, or additional tax relief of a minimum of $109.
The proposal is based on the same revenue in HB 1, said Hochberg, but does not use the "very controversial" slot machine revenue. Numerous members of the House and Senate have voiced their opposition to authorizing the use of video lottery terminals (VLTs) as a means of revenue to help fund public education. However, he said if a bill does pass with VLT authorization in it, those revenues could flow additional money to teachers and schools and toward property tax relief. The proposal also does not depend on a one-time ramp-up.
"I believe this takes us back to our real priorities," said Hochberg, which he cited as helping to keep teachers in the classroom, restoring proven education programs that have worked in past years, delivering tax relief for all homeowners in the state regardless of the value of their homes, and delivering tax relief for commercial property. "All in all," he added, "it's a better way to distribute tax dollars."
Other House members at the press conference noted there are at least two other revenue alternatives being drawn up by House Democrats, but the proposal laid out today deals strictly with the distribution side.
"They have 'x' amount of money in the plan," said Hochberg, noting the proposal laid out is a "better way to distribute the money."
Although there is not as much tax relief for businesses in this proposal as there is in HB 1, Hochberg said it does offer more business tax relief than the governor's plan.
Asked if he is ready to accept criticism for not proposing an alternative plan that includes both revenue and distribution, Hochberg responded, "I don't think you criticize someone for not getting everything done. I'm moving the ball forward. I don't have to get the ball across the goal line."
"If you ask people why they are a 'no' on this plan, you assume it's because of the revenue side," said Rep. Garnet Coleman (D-Houston). But he said there actually are more people who are opposed to HB 1 because of the distribution side of the bill. He said his constituents say they don't get anything from all the proposed tax changes in HB 1 - nothing for teachers, schools, schoolchildren - and no real property tax relief.