Economy At Wheel Of Money-Driven Legislative Session

One bill proposes to let counties and municipalities set a minimum wage above the state’s current rate while another suggests a constitutional amendment to be decided by voters.

by, Kristin Gordon

The day before the Texas Legislature convened for 140 days of deliberating over multiple bills, Texas Comptroller Glenn Hegar released the state’s Biennial Revenue Estimate on Monday with a projection of $104.9 billion. The revenue for the 2018-19 biennium is 2.7 percent less than the general-purpose spending that was available in the 2016-17 biennium.

The downturn of Texas’ economic forecast comes from low oil prices and $5 billion that was previously dedicated to the State Highway Fund starting in the 2018-19 biennium. Hegar commented on his projected figures saying, “Despite energy-related headwinds, Texas has gained 210,000 jobs in the last year. We have also seen signs of possible improvement in recent months, with some modest acceleration in job growth and oil prices and rig counts rising. And December brought the best monthly sales tax revenue collections since May 2015.”

As 181 lawmakers decide how to craft the next two-year budget with this spending cap, they are also making decisions on bills that could affect the outcome of Texas’ economy. Sen. Paul Bettencourt introduced Senate Bill 2 in hopes to set the current property tax revenue cap, which is currently at an 8 percent rollback rate, to 4 percent. If officials want to increase property taxes by more than 4 percent, voters would have to approve it.

The Texas comptroller does not collect property tax or set tax rates. Those decisions are made by local taxing units, which use tax revenue to provide local services including schools, streets and roads, police and fire protection and several others. The debate over SB 2, is that it will either allow the tax-paying public to consent to a higher tax rate or it will restrict funding for city services.

While taxes on property are mulled over, lawmakers are sifting through bills that could put extra money in the hands of minimum wage workers. The current wage in Texas is set at the federal minimum of $7.25 per hour.

Figures presented in several bills range from increasing the wage to $10.10 to as much as $15. One bill proposes to let counties and municipalities set a minimum wage above the state’s current rate while another suggests a constitutional amendment to be decided by voters.

The debate over minimum wage is that it either is providing healthy raises and helping the economy or will cause a reduction in employees and hurt businesses.

As the House and Senate discuss which way to drive the minimum wage, another bill is trying to drive ride-sharing businesses, like Uber and Lyft, back into Texas cities that chose to require fingerprint checks, mandatory drugs tests and physicals on drivers.

Texas is one of about a dozen states without uniform ride-hailing standards. That could change after the legislative session concludes.

As state legislatures discuss the rights of ride-hailing drivers, others are focusing on whether cities have the right to provide refuge for undocumented immigrants or if someone who identifies their sexual orientation as transgender may choose a gender specific restroom that fits their needs.

Two years ago, Texas lawmakers tried and failed to pass a bill to restrict cities and institutions from being “sanctuaries” for undocumented immigrants. With the support of Lt. Gov. Dan Patrick, Sen. Charles Perry filed Senate Bill 4 Tuesday that proposed a ban on sanctuary cities- a term used broadly to describe cities that refuse to enforce federal immigration laws.

On the same day, Texas House Republicans sent a $2.8 billion resolution to the federal government asking for a reimbursement for time and money the state has spent on border security efforts.

For cities that have chosen to provide “sanctuary” for immigrants, another bill was proposed regarding home-rule. The Texas Municipal League provides a definition of what that means: “Home rule is the right of citizens at the grassroots level to manage their own affairs with minimum interference from the state. Home rule assumes that governmental problems should be solved at the lowest possible level, closest to the people.”

Now lawmakers want to change some of those local control powers. They also want to keep public restrooms separate between men and women. Patrick is the driving force behind the bill.

North Carolina passed a bill similar to Texas that led to companies canceling expansion plans in the state, the NCAA moving championship games elsewhere and the NBA moving the All-Star Game out of Charlotte.

Most decisions on these and several other bills will ultimately come back to what is affordable and best for the economy of Texas.

The last time the state legislature was in session, it collectively proposed more than 6,200 bills that would either revise or create new laws impacting the lives of Texans. What decisions will be made at the Capitol between now and Memorial Day will happen when the final gavel drops. 

This article originally published by Strategic Partnerships Inc.