At its core, SB 2 continues state leaders’ war against local governments. For years local governments have had to make up for the state’s underfunding of public education. But the state’s top elected officials, Gov. Greg Abbott and Lt. Gov. Dan Patrick, didn’t want the public to understand that those state budget decisions were the main reason property taxes were going up. So they criticized city and county policies.
In its final form, SB 2 limits revenue growth from property taxes for cities and counties to 3.5 percent annually. School districts are limited to 2.5 percent, although implementation for school districts is delayed for two years so that for now, the state won’t have to pay an even higher share.
The bill fails to recognize that Texas counties differ widely, so an arbitrary, one-size-fits-all approach is bad policy for a county such as Harris, where almost 2 million people live in the unincorporated part of the county and so rely on county government to provide roads, flood control, parks and other infrastructure — as well as law enforcement.
To make matters worse, the state has saddled counties with unfunded mandates, particularly in criminal justice and courts. The bond rating agencies have already issued warnings that the legislation might cause Texas local governments’ credit ratings to be downgraded, which will increase the amount of interest that taxpayers pay.
So when county services or infrastructure lag behind growth, don’t blame county government. Blame the state officials who supported SB 2.
Beyond the impact on local governments, SB 2 is actually bad for homeowners because it keeps in place a complicated, convoluted property tax system. The big winners from the so-called property tax reform are property tax consultants and their clients.
It is not a coincidence that the author of SB 2, Sen. Paul Bettencourt, makes his living as a property tax consultant. Bettencourt even had the audacity to advertise his services on the radio during the legislative session while SB 2 was being considered.
Sick burn, y’all. There sure is a certain freedom in not having to run for re-election. Emmett is of course correct about the main purpose of SB2, but let’s not overlook the side benefit.