EDITORIAL: Tax breaks fair — Local officials know best tax abatements to offer incoming industries to help our area

Thursday May 12, 2011
 
 

Legislation that would transfer tax abatement authority from local school districts to the state comptroller’s office is unwelcome — especially at a time when voters have made clear they want less government control, not more.

The bills would allow the state comptroller to oversee the authorizing of school property tax breaks to businesses to attract large-scale investments, like manufacturing plants. Currently, school districts may extend school property tax relief for a limited period as incentive to help attract businesses or increase industrial expansions in their areas.

State Rep. Lois Kolkhorst, R-Brenham, says her proposals would make full resources of the state comptroller’s office available to investigate and ensure that businesses are living up to their promises in terms of economic development and added jobs. That’s a noble idea but we question whether the bureaucrats in Austin know what’s best for Waco and Central Texas. Can they truly champion our interests? And if we start chipping away even more at local authority, where will it end?

Talking opposition

During an April 26 hearing before the Texas House Ways and Means Committee, several superintendents testified against the measures. Barbers Hill Independent School District Superintendent Greg Pool testified that tax abatement agreements have brought multiple industries and businesses to his district that have beefed up the tax base and increased job opportunities. He added that the districts that attract the industry should reap the economic rewards.

Kolkhorst’s proposal would transfer authority for these agreements from the school districts to the comptroller’s office.

Midway Independent School District Superintendent Brad Lancaster told us he is “opposed to anything that takes additional authority from local school boards and school communities.” We second that.

Those backing the measures say school districts still would have a say in tax abatements because school districts could override comptroller decisions by a two-thirds vote of the school board. Dick Lavine, senior fiscal analyst for the nonpartisan Center for Public Policy Priorities, told us that as the state struggles to pay for education and other costs, this would ensure state funds are wisely spent and that industries fulfill their economic promises. Nevertheless, this is unnecessary government control and we reject the long arm of Austin from meddling further in local affairs.

In reality, several checks and balances already exist regarding the negotiating of tax breaks and whether businesses live up to their ends of such bargains. City officials and savvy business and economic development groups, such as the Greater Waco Chamber of Commerce, heavily advise school districts and then run herd to ensure equity in agreements. Rarely do school districts alone offer tax breaks; cities and counties are usually involved, which means plenty of oversight in such matters.

The state already oversees too much in the education realm — from the number of required school days to mandatory state exams. It appears to us that lawmakers are making an issue of something that is not a problem. They should instead be finding a way to adequately finance public education.

 

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