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Comptroller

Hispanic Policy Foundation: Abbott 51, Beto 44

One more poll to look at.

There’s an old adage that says the more things change, the more they stay the same. And according to our new poll, that applies to politics in Texas as well, as support for Republicans remains strong across the board heading into the November elections.

“Texas Decides” is a joint effort between the Texas Hispanic Policy Foundation (THPF) and TEGNA Texas stations WFAA, KHOU, KENS and KVUE. It draws on a survey of 1,172 likely Texas voters that was taken between September 6, 2022, and September 15, 2022. It has a confidence interval of +/- 2.9%. The report reviewed the vote intention for the November 2022 Texas elections.

The election will be held November 8. Early voting starts October 24.

Part 1 of this poll, released here, takes a look at the major statewide races across Texas in the coming election. Parts 2 and 3, which will be released later this week, will respectively focus on the Hispanic population’s opinions of the candidates and on culture war issues.

The poll found that Republican incumbent Greg Abbott leads Democrat Beto O’Rourke by seven points (51% to 44%) among likely voters. Among most likely (almost certain) voters, the lead grows to 10 points (53% to 43%). Just 1% of voters in both categories (likely/most likely) says they’ll vote for Libertarian Mark Tippetts and Green Party candidate Delilah Barrios.

“Gov. Abbott’s strength among rural and Anglo voters continues to bolster his intransigent structural support in the 2022 race for Texas Governor,” THPF CEO Jason Villalba says of the poll’s results. “While O’Rourke has shown himself to be a worthy and hard-working adversary, unless there is a marked shift in the composition of the November electorate, Governor Abbott will remain the political and thought leader of Texas politics. Only new voters will be able to shift the tide.”

Perhaps the poll’s most significant finding in the gubernatorial race is the fact that voters seem hardened in their choices, with little room for movement come November. In fact, 95% of all likely voters who say they’ll vote for Abbott tell us they are “certain” about their vote choice. On the other side, 94% of all likely voters who will back O’Rourke say they are “certain” about that choice.

And when you break down support among race, Abbott holds a nearly two-to-one advantage over O’Rourke among white voters, with the incumbent being a 63% choice to his challenger’s 33%. O’Rourke has a strong advantage with Black voters, however, up 79% to Abbott’s 16%. The support margin is closer among Hispanic voters, with 53% intending to vote for O’Rourke and 39% for Abbott.

Poll data is here. In April, this pollster had the race at 50-42 for Abbott. Since I made such a big deal about it the last time I blogged about a poll, this one has a partisan split of 43 GOP, 41 Dem, 14 Indie, 2 “other”. Other results from this poll:

Dan Patrick 48, Mike Collier 42
Ken Paxton 47, Rochelle Garza 42
Dawn Buckingham 46, Jay Kleberg 38
Sid Miller 48, Susan Hays 41
Wayne Christian 44, Luke Warford 37

No love for the Comptroller’s race, I guess. As I have said before, I don’t care for the distinction between “likely” voters and “super duper extra likely” voters, but you do you. This poll shows very little change between April and now, which is to say pre-Dobbs and post-Dobbs, so either not much has changed in the Texas landscape since then, or something has changed but pollsters other than the UT/Texas Politics Project aren’t picking it up. I’m just going to leave it there.

Republican Commissioners skip out again

Cowards.

Harris County’s two Republican commissioners skipped Tuesday’s Commissioners Court meeting, preventing county leaders from passing a property tax rate and proposed budget for the next fiscal year beginning on Oct. 1.

State law requires four members of the court be present to set the tax rate. With only the court’s three Democrats present, the county was forced to adopt what is known as the no new revenue rate, a levy that brings in the same amount of property tax revenue as last year.

[…]

County Judge Lina Hidalgo said the two Republican commissioners “don’t have a plan, they have a campaign ad.”

Hidalgo added that Ramsey and Cagle’s decision to skip the budget vote defunds law enforcement by millions of dollars.

[…]

With the adoption of the no new revenue rate instead of the proposed rate, the Harris County District Attorney’s Office will lose out on $5.3 million in proposed increases. The Sheriff’s Office will lose $16.6 million for patrol and administration, plus another $23.6 million for detention.

In response to that funding difference, Dane Schiller, spokesperson for the Harris County District Attorney’s Office, said in a statement: “It is crucial that our criminal-justice system be properly funded – the right number of deputies, courthouse staff and prosecutors – and it is up to our elected leaders to set funding priorities.”

Overall, the $2.1 billion budget will be $108 million less than the county had proposed.

The loss of the proposed increases for law enforcement comes after efforts by Texas Comptroller Glenn Hegar that briefly blocked the county from considering its $2.2 billion budget proposal.

The court had moved forward last week with the budgeting process after a lawyer for the state acknowledged in a Travis County courtroom that the comptroller had no authority to block the county from approving its budget. Hegar can take action only after the budget is approved and if it violates a new state law that bars local governments from reducing spending on law enforcement.

See here for the background. Yes, the Republican Commissioners have done this before. The Constitution allows for this form of minority rule. That doesn’t mean I have to respect it. The main thing I will say here is that I never want to hear any Republican whine about “defunding the police” again, not after the ridiculous bullshit we’ve had to endure from the Comptroller and now from these two clowns, who will be fully responsible for cutting the Sheriff and District Attorney’s budgets. Move on to something else, this has lost all meaning.

Comptroller caves on phony “defunding” claim

In the end, he folded like a lawn chair.

Harris County is moving through the process of passing a fiscal 2023 budget with a 1 percent dip in the property tax rate, after the specter of the state blocking its approval eased in a Travis County courtroom Tuesday.

Prospects for approval of that $2.2 billion budget and the new tax rate next week remain unknown, however, hinging on whether enough members of Commissioners Court show up.

Texas Comptroller Glenn Hegar, despite recently threatening to block Harris County’s proposed budget over its alleged defunding of law enforcement, has not formally determined that the county violated state law or otherwise taken action to prevent county leaders from adopting a budget for the upcoming fiscal year, a state attorney said in court Tuesday.

The acknowledgment came as part of a county lawsuit challenging Hegar’s claims, including those from a letter last month in which the Republican comptroller told county officials they would need voter approval to pass their budget for the fiscal year starting Oct. 1.

Commissioners Court moved ahead with its budgeting process in the meantime, meeting Tuesday to consider the county’s property tax rate — a procedural step before the court can vote on next year’s budget. Officials first must propose the tax rate, the step taken Tuesday, then hold a public hearing, scheduled for Sept. 13. At that meeting, provided enough commissioners show up, the court can approve the rate and the budget.

On a 3-2 vote, the court on Tuesday proposed the overall tax rate for the county — comprising four rates covering county operations, the Harris Health system, the flood control district and the Port of Houston — at 57.5 cents per $100 of assessed value. That represents about a 1 percent decrease from the current rate of 58.1 cents per $100.

[…]

In an emergency hearing before Travis County state District Judge Lora Livingston, attorney Will Thompson of the Texas Attorney General’s Office — which is representing Hegar and Gov. Greg Abbott in the lawsuit by the county — said the dispute “may be a situation where there’s much ado about nothing and the parties are in more agreement than they realize.”

“The comptroller just has not made a final determination,” Thompson said. “He has not done anything that binds Harris County at this stage. Harris County remains free to adopt a budget, in its normal process, following its normal rules for having public meetings and things like that.”

Instead of ruling on Harris County’s request for a temporary order preventing Hegar from blocking Harris County’s budget, Livingston told attorneys for the county and state to, essentially, put Thompson’s comments in writing in a formal court filing. She gave the two sides until Wednesday afternoon to submit the document.

The statement from Thompson came a week after Harris County Administrator David Berry sent Hegar a letter asking him to clarify whether he had “made or issued a determination that Harris County’s proposed budget violates the law” or prevented the county from adopting a budget.

Hegar responded by encouraging Berry to resolve the issue with the Harris County constables who initially complained about their funding.

“I understand that you want assurances from my office, but only Harris County can resolve this issue and clear the path to adopt its budget,” Hegar wrote.

See here and here for the background. It’s very clear from the state’s response to the lawsuit is that they were bluffing the whole time and they knew it. This is why the lawsuit was the right response, despite the whining from Constables Heap and Herman. You don’t concede when you’re right. Kudos to Judge Hidalgo, Commissioners Ellis and Garcia, and County Attorney Menefee for properly fighting this.

The rest of the story is about whether the two Republican members of the Court will break quorum again in order to prevent the budget and property tax rate from being passed. I don’t feel like deciphering their eleven-dimensional chess strategy this time around, so let’s just wait and see what happens. If we get the election results we want, we won’t have to worry about these shenanigans again.

All interviews and judicial Q&As with nominees so far

Back in February, right before the primary, I posted a list of all of the candidate interviews and judicial Q&As I had done. A couple more Q&A responses came in after that, and I did some further interviews for the primary runoffs, so that post is out of date and also now contains people who will not be on the November ballot. So with that in mind, here’s a full updated list as I prepare to bring you more of these for November. Enjoy!

Interviews

Duncan Klussman, CD38

Jay Kleberg, Land Commissioner
Janet Dudding, Comptroller

Staci Childs, SBOE4

Sen. John Whitmire, SD15

Jolanda Jones, HD147

Lesley Briones, Harris County Commissioners Court Precinct 4
Carla Wyatt, Harris County Treasurer
Marilyn Burgess, Harris County District Clerk (Incumbent)

Judicial Q&As

Cheri Thomas, 14th Court of Appeals, Place 2

Gemayel Haynes, 183rd Criminal District Court
Katherine Thomas, 184th Criminal District Court
Andrea Beall, 185th Criminal District Court
Beverly Armstrong, 208th Criminal District Court
Judge Chris Morton, 230th Criminal District Court
Angela Lancelin, 245th Family District Court
Judge Hilary Unger, 248th Criminal District Court
Judge Dedra Davis, 270th Civil District Court
Dianne Curvey, 280th Family District Court
Teresa Waldrop, 312th Family District Court
Judge Natalia Oakes, 313th Family District Court
Judge Leah Shapiro, 313th Family District Court
Veronica Monique Nelson, 482nd Criminal District Court

Manpreet Monica Singh, County Civil Court At Law #4
Porscha Natasha Brown, County Criminal Court At Law #3
Judge Kelley Andrews, County Criminal Court At Law #6
Judge Andrew Wright, County Criminal Court At Law #7
Erika Ramirez, County Criminal Court At Law #8

Steve Duble, Justice of the Peace, Precinct 1 Place 2
Dolores Lozano, Justice of the Peace, Precinct 2 Place 2
Judge Lucia Bates, Justice of the Peace, Precinct 3 Place 2

As before, you can see a full list of my interviews and a whole lot more info about the Democratic candidates on the Erik Manning spreadsheet. Look for many more to come starting tomorrow.

Harris County approves the option of suing Comptroller over baloney “defunding” claim

Good.

Harris County Commissioners Court on Wednesday authorized a pair of private law firms to sue Texas Comptroller Glenn Hegar, who accused the county of defunding law enforcement last week, forcing a halt to consideration of its $2.2 billion budget.

The move, approved by a 3-1 vote, came a week after Hegar sent a letter to county officials saying the court could not approve its proposed fiscal 2023 budget without approval of voters because of a change in policy that he said would result in the county funding two constable offices at a lower level in violation of a new state law.

The constables — Precinct 4 Constable Mark Herman and Precinct 5 Constable Ted Heap — had complained to Gov. Greg Abbott last year after the county changed its policy to do away with “rollover” budgeting that had allowed departments to keep unspent funds and use them in future budget cycles. Hegar’s letter said the change would result in the county, under its proposed budget, cutting funding to the two constable offices by $3 million.

[…]

In a letter to Hegar on Tuesday, County Administrator David Berry asked the Comptroller’s Office to clarify its investigation and whether it prevents the county from adopting a tax rate and budget.

The comptroller responded Wednesday by modifying his claim, alleging the proposed budget would result in a cut in law enforcement spending for a different reason — by comparing the proposed spending plan to this year’s 2022 short fiscal year budget, when broken down by month.

In addition to eliminating rollover budgeting, the county is changing its fiscal year to begin Oct. 1 rather than March 1. To accomplish that, Commissioners Court planned to pass two budgets this year. The first, a shortened budget, was approved in February and runs through September. The second, beginning Oct. 1, will span a full year.

Berry criticized the comptroller for using “fuzzy math,” saying the short fiscal year budget covered 16 pay periods.

“There’s no other reasonable way to do it,” he said. “When you properly annualize the budget, it’s clearly higher in FY23 (the proposed budget).”

County Judge Lina Hidalgo said Hegar’s second letter suggests the Comptroller’s Office is walking back its original defunding claim.

“They’re beginning to realize that the allegations they made make little sense,” Hidalgo said. “They’re moving away from talking about the rollover. They know that that’s absolutely nonsensical and are trying to take a different tack that also doesn’t make sense.”

Berry also took issue with the comptroller’s assertion the county should work the issue out with the constables.

“We believe we’ve complied with the law,” Berry said. “If the comptroller doesn’t, they have to explain. All we’ve gotten so far is some fuzzy math.”

At Wednesday’s meeting, Commissioners Court hired two law firms to represent the county — Yetter Coleman LLP and Alexander Dubose & Jefferson LLP — in a split vote, with the court’s three Democrats in favor and Republican Precinct 4 Commissioner Jack Cagle opposed. Precinct 3 Commissioner Tom Ramsey was absent.

Hidalgo said she is willing to move forward through legal action or negotiation, but the county needs to be careful in how it responds to allegations of violating the new state law.

“I am pretty opposed to giving in to any kind of extortion,” Hidalgo said. “I don’t know what precedent that would set.”

See here for the background. This new explanation is even dumber and more insulting than the original one. Of course an eight-month budget is going to have less of pretty much everything in it than a 12-month budget. If the Comptroller had been at all serious about this, the matter could have been easily resolved. Instead, they charged ahead with this stupid allegation, which unfortunately comes with the power to prevent the county from passing a budget, a situation which as noted would result in an actual decrease in funding to the Sheriff and Constables. It’s like they looked around to make sure there was a rake in easy stepping distance before they moved forward.

The response from Harris County – minus Commissioner Cagle, of course – and Judge Hidalgo was entirely appropriate. The county cannot take lightly an accusation that it is violating the law. The fact that the accusation itself is completely specious is almost beside the point, but given that it is there are only two acceptable resolutions: The Comptroller retracts its claim and absolves Harris County of any alleged wrongdoing, so that it can pass its budget as planned, or we go to court and let them try to prove their foolish claims. No concessions, because there’s nothing to concede.

Which brings me to this:

Herman and Heap said the court’s action on Wednesday took them by surprise. The two Republican constables said they had met with county officials late last week and Monday and thought they had come up with a solution.

The pair, Herman said, had agreed to write letters saying their concerns had been resolved. Hegar would have to write his own letter rescinding his previous communications with the county.

“Both sides were agreeing,” Herman said. “We agreed to put this thing to rest.”

Then, he said, he learned that Hidalgo had put an item on the agenda for Wednesday’s special meeting to pursue possible legal action against Hegar.

“It’s almost like a slap in the face,” he said. “We’re kind of disappointed. We’ll see what happens.”

Herman said if the county continues forward with a strategy of suing Hegar, he and Heap would request their own legal counsel to represent their interests in the broadening fight.

In a brief text message, Heap confirmed he had met with county officials in recent days and echoed Herman’s frustration.

“We have been in negotiations with the office of budget management for several days and I was very encouraged with the progress,” he texted. “However, the actions of Commissioners court today as well as some of their post on social media platforms disappoint me.”

You dudes started this fight. If you don’t like the way the Court is finishing it, that’s tough. Maybe don’t be such crybabies next time.

Harris County looks to sue over Comptroller’s BS “defunding” claim

Tell it to the judge.

Harris County Commissioners Court this week is expected to hire an outside law firm to take legal action against the state and Comptroller Glenn Hegar, who accused the county of defunding law enforcement in violation of state law.

The accusation by Hegar, delivered in a letter to county Judge Lina Hidalgo last week, blocks Harris County from approving its proposed $2.2 billion budget for the fiscal year that begins Oct. 1.

The court will hold a special meeting Wednesday to consider hiring the law firm of Alexander Dubose & Jefferson LLP to pursue legal action against Hegar and other state officials.

Hegar threw the curveball just before county officials presented their proposed spending plan last tuesday, saying the county should reconsider its budget plan or gain voter approval for it. The letter, however, was sent on Monday, the last day the county could get a measure onto the November ballot.

Senate Bill 23, passed by the Texas Legislature and signed by Gov. Greg Abbott last year, bars counties with a population of more than 1 million from cutting law enforcement spending without the approval of voters.

The defunding accusation was sparked by two Republican Harris County constables — Precinct 4 Constable Mark Herman and Precinct 5 Constable Ted Heap — who had complained to Gov. Greg Abbott after the county changed its policy last year to do away with “rollover” budgeting that had allowed departments to save unspent funds and use them in future budget cycles.

Herman and Heap did not respond to requests for comment.

In his letter, Hegar said doing away with the rollover funds resulted in a loss of $3 million previously dedicated to the constables office in fiscal 2021. However, by preventing the county from adopting its proposed budget, the letter could cost the sheriff, constables and district attorney’s office an additional $100 million in funding included in the new spending plan, county officials said.

On Wednesday, Commissioners Court could vote to authorize two outside law firms to file a lawsuit against the comptroller. If the county does pursue legal action, other state officials could be named, as well.

See here for the background on this completely ridiculous claim. The vote in Commissioners Court is today; I’ll be interested to see if it’s unanimous or not. I also have no idea what to expect from the courts, but I sure hope they get it right, because this is a terrible precedent to set otherwise. Finally, a special shoutout to Constables Herman and Heap for going radio silent after leaving this bag of poop on the Court’s front porch. Mighty courageous of you two there.

The Lege sure thinks a lot of companies need to be coddled

It’s kind of amazing, actually.

Texas banned 10 financial firms from doing business with the state after Comptroller Glenn Hegar said Wednesday that they did not support the oil and gas industry.

Hegar, a Republican running for reelection in November, banned BlackRock Inc., and other banks and investment firms — as well as some investment funds within large banks such as Goldman Sachs and JP Morgan — from entering into most contracts with state and local entities after Hegar’s office said the firms “boycott” the fossil fuel sector.

Hegar sent inquiries to hundreds of financial companies earlier this year requesting information about whether they were avoiding investments in the oil and gas industry in favor of renewable energy companies. The survey was a result of a new Texas law that went into effect in September and prohibits most state agencies, as well as local governments, from contracting with firms that have cut ties with carbon-emitting energy companies.

State pension funds and local governments issuing municipal bonds will have to divest from the companies on the list, though there are some exemptions, Hegar said.

“The environmental, social and corporate governance (ESG) movement has produced an opaque and perverse system in which some financial companies no longer make decisions in the best interest of their shareholders or their clients, but instead use their financial clout to push a social and political agenda shrouded in secrecy,” Hegar said in a written statement on Wednesday.

New York-based BlackRock, which has publicly embraced investing more in renewable energy, criticized Hegar’s decision.

“This is not a fact-based judgment,” a spokesperson for the company said in a written statement. “BlackRock does not boycott fossil fuels — investing over $100 billion in Texas energy companies on behalf of our clients proves that.

“Elected and appointed public officials have a duty to act in the best interests of the people they serve,” the spokesperson added. “Politicizing state pension funds, restricting access to investments, and impacting the financial returns of retirees, is not consistent with that duty.”

The other nine companies banned completely are: BNP Paribas SA, a French international banking group; Swiss-based Credit Suisse Group AG and UBS Group AG; Danske Bank A/S, a Danish multinational banking and financial services corporation; London-based Jupiter Fund Management PLC, a fund management group; Nordea Bank ABP, a European financial services group based in Finland; Schroders PLC, a British multinational asset management company; and Swedish banks Svenska Handelsbanken AB and Swedbank AB.

[…]

Texas energy experts said the intent of the law, and Wednesday’s announcement, was to punish financial firms that don’t want to invest in the backbone of Texas’ economy — oil and gas.

“But at the end of the day, it’s all about a rate of return,” said Ed Hirs, an energy economist at the University of Houston. “Quite honestly, fossil fuel companies, in particular oil and gas companies, have not been great performers in the (stock market) prior to this year.”

The Lone Star Chapter of the environmental group Sierra Club said Hegar’s “climate-denying publicity stunt will be costly for taxpayers.”

​​“Major financial institutions like the ones on this list are beginning to recognize that investments in fossil fuels bring significant risk in the face of an inevitable clean energy transition, and that addressing the financial risks of the climate crisis is essential to good business,” said Sierra Club Fossil-Free Finance Campaign Manager Ben Cushing. “The fact that the Texas Comptroller has arbitrarily picked a handful of companies that, despite their climate commitments, continue to have massive fossil fuel investments, shows that this is nothing more than a political stunt at Texas taxpayers’ expense.”

We’ve already determined that Comptroller Hegar is math-challenged, so this shouldn’t come as a surprise. We’ve also seen the Lege make similar laws to protect gun manufacturers and the country of Israel, about which more in a minute. I suppose one could make a protectionist case for this kind of legislative cherry-picking, and as someone old enough to remember the efforts to divest from South Africa in order to pressure it to abandon apartheid, there is certainly a moral case for this kind of law, if not for these specific ones. But if you’re going to go that route, you need to be clear about what you’re aiming at.

The firms on Hegar’s list are BlackRock, UBS Group, BNP Paribas, Credit Suisse Group, Danske Bank, Jupiter Fund Management, Nordea Bank, Schroders, Svenska Handelsbanken, Swedbank, and UBS Group.

Of the six firms that responded to the Houston Chronicle’s inquiries by press time, four deny that they are “boycotting” the oil and gas industry, even if they admittedly have some investments that reflect the growing influence of — and consumer and investor interest in — the environmental, social and governance (ESG) movement.

“As we noted in our response to the Texas Comptroller, Credit Suisse is not boycotting the energy sector as the bank has ongoing partnerships and strong client relationships in the energy sector,” said a spokesperson for Credit Suisse, based in Zurich. Spokespeople for BlackRock, UBS Group, and Schroders made similar points in disputing the comptroller’s “boycotting” label.

[…]

This is a different approach than the one taken by BlackRock, for example, which had $287 billion in assets invested in energy companies globally as of June, $108 billion of which is invested in Texas energy companies, a spokesperson said.

There are “many similarities” between BlackRock’s approach to investing in the fossil fuel industry and that of other major firms, such as JP Morgan, didn’t make the list, said Andrew Poreda, senior vice president and senior ESG Research Analyst at Sage Advisory Services, an investment firm based in Austin.

A “frequently asked questions” document prepared by Hegar’s office, raises questions itself about the state’s methodology, Poreda said. For example, the comptroller’s initial criteria included whether a firm had made public pledges to the Net Zero Banking Alliance or Net Zero Asset Managers Initiative, which call for net-zero greenhouse gas emissions by 2050, nearly three decades from now.

That’s not exactly radical territory. Oil and gas companies are openly talking about plans for the energy transition — including getting to net-zero emissions.

“Envisioning a different world in three decades hardly classifies as a boycott, and at this point is so far away that it is largely aspirational,” Poreda argues.

It doesn’t have to make sense, it just has to make the base think they’re owning the libs. That’s Republican policy in a nutshell these days.

To bring it back to the Israel example for a minute, that law has been mostly blocked by a federal judge, who ruled that an engineering firm that couldn’t get a contract with the city of Houston had its free speech rights violated by the Texas law. I Am Not A Lawyer, but it sure looks to me like the laws banning “boycotts” of fossil fuels and gun manufacturers are at least in the same neighborhood as the anti-Israel boycott law is. Credit Suisse and Blackrock probably don’t need the state of Texas’ business, but other red states are adopting similar laws, and at some point it does start to cost them real money. When that happens, the lawyers usually get involved. I don’t know what happens from there, but I won’t be surprised if that’s where it goes. The Chron has more.

The Constables’ and Comptroller’s ridiculous complaint

This is transparent bullshit.

Texas Comptroller Glenn Hegar this week accused Harris County commissioners of defunding local constables and threatened to prevent the county from implementing its proposed 2023 budget if the county does not reverse course.

In a letter sent late Monday, Hegar said the county’s move to do away with “rollover” budgeting led to more than $3 million dedicated to the constables last year being returned to the general fund.

“If the county proceeds with the Constable budget as proposed without obtaining voter approval, the county may not adopt an ad valorem tax rate that exceeds the county’s no-new-revenue tax rate,” Hegar wrote.

Harris County Administrator David Berry on Tuesday afternoon said Hegar’s position would prevent the county from adopting a budget that increases funding to Harris County Constables’ and Sheriff’s offices by “millions of dollars.”

“The Comptroller’s position would keep us from making these new investments,” he said, “which is contrary to the intent of SB 23. … I hope the Comptroller’s position does not prevent us from achieving our goal, and we look forward to working with the state to resolve this matter.

Berry said that in the past, county departments could “roll over” their unspent budget from one year to the next “with no questions asked.”

“This practice was unique to Harris County and is not the practice of other local governments,” he said. “Under the current policy, departments, including the Constable’s Offices, can request the use of unspent funds on vehicles, equipment, and other one-time expenses. The County has continued to support these investments.”

Paradoxically, by preventing Harris County from adopting the new tax rate, Hegar’s actions would prevent the county from implementing $96.7 million in increases to the sheriff and constable offices, and a proposed $10 million increase to the District Attorney’s Office.

Precinct 4 Constable Mark Herman — one of the two constables who first raised the issue with Abbott — said he was “thankful” to the governor and to Hegar for looking into the matter.

“We look forward to a resolution one way or another,” he said, explaining that he and other constables had used their rollover funds to purchase new patrol cars and safety equipment, and in some cases, to pay employees’ salaries.

“All that’s been taken away from us,” he said. “What it’s come to is an elected official has no say in his own department, basically, and it’s jeopardized public safety and officer safety.”

[…]

Hegar said his investigation began after Harris County Precinct 4 and Precinct 5 Constables Mark Herman and Ted Heap wrote to the governor complaining about losing their “rollover” funds last year. Prior to County Judge Lina Hidalgo’s election in 2018, county commissioners had allowed county agencies to keep unspent funds, which “rolled over” into the following year’s budget. Constables used the money for a variety of projects and other issues — including paying for some staff.

Eva DeLuna Castro, who oversees budget and fiscal policy analysis for Every Texan, said that within state agencies, rolling over unspent money from one budget cycle to the next was permitted only in a very limited number of circumstances, and generally required the specific approval of the legislature.

After Hidalgo’s election, the county did away with the unusual budgeting technique and adopted more traditional budgeting practices — similar to what the state requires of its own agencies and their funding.

Hegar sent the letter to commissioners late last night — the deadline for when the county would potentially be able to add any voter initiatives to the ballot.

County officials disputed Hegar’s claims, noting that the decision to do away with rollover funds took place before SB23 went into effect. They also disputed Hegar’s numbers.

A review of county records show that the county allocated $205,290,000 to its constables in 2020. This year, its proposed budget includes a 13 percent increase to the constables budget, for a total of $231,491,249.

The two constables who first complained to Gov. Greg Abbott about losing their rollover funds have also seen increases to their budget. In 2020, Precinct 4 received about $57 million in funding; Precinct 5 received $44 million. This year, county commissioners have proposed giving Pct. 4 $65 million, while Pct. 5 is slated to receive more than $48 million.

I mean, come on:

1. Harris County is increasing its spending on public safety across the board.

2. The two Constables in question are each getting more money in this budget than in the previous one. The Constables overall are getting more money.

3. “Rollover budget” means unspent funds from the previous cycle. These two Constables didn’t even spend all the money they had been allocated before!

4. The practice of not rolling over funds is exactly how the state does its own budgeting, including for DPS.

From every angle this is ridiculous, and clearly driven by partisan motives – the two Constables in question are Republicans. I don’t expect to get better arguments about public policy from these clowns, but I am insulted that they can’t come up with a better pretext for their crap than this. Shame on everyone involved. The Trib has more.

July 2022 campaign finance reports: State races

I don’t often follow the campaign finance reports in state races, mostly because they’re usually not that interesting and there’s too many races to look at if I was interested. I didn’t review these in January for the contested primaries, but I decided there are enough races that are worth checking on to have a peek at some July reports. I’ve noted the big Beto numbers, so I’ll skip that here.

Mike Collier, Lt Gov
Rochelle Garza, Attorney General
Janet Dudding, Comptroller
Jay Kleberg, Land Commissioner
Susan Hays, Ag Commissioner
Luke Warford, Railroad Commissioner

Morgan LaMantia, SD27

Daniel Lee, HD26
Luis Echagaray, HD52
Sheena King, HD61
Brittney Verdell, HD65
Jesse Ringness, HD66
Kevin Morris, HD67
Mihaela Plesa, HD70
Suleiman Lalani, HD76
Salman Bhojani, HD92
Elizabeth Ginsberg, HD108
Elva Curl, HD112
Frank Ramirez, HD118
Rebecca Moyer DeFelice, HD121
Angela Aramburu, HD122
Stephanie Morales, HD138


Candidate     Raised      Spent       Loan     On Hand
======================================================
Collier      693,806    226,315    450,500     534,242
Garza        518,054    107,134          0     445,817
Dudding       37,956     52,378     45,884      16,908
Kleberg      586,296    433,030    100,000     439,854
Hays          96,085     94,777          0      53,310
Warford      296,516    271,506     23,561     110,066

LaMantia     183,859    427,090  2,980,000      58,024

Lee            2,580        904      1,000      11,345
Echegaray      9,343      9,123          0       9,081
King          20,999     14,635          0           0
Verdell       16,711      4,252          0      16,669
Ringness       2,635      3,212          0       2,635
Morris        20,124     11,589          0       9,266
Plesa         80,030     45,215     59,000      45,793
Lalani        10,742     26,925    145,000      10,617
Bhojani       84,346     77,688    100,000      24,682
Ginsberg     105,297     22,587          0      83,152
Curl          27,622      7,455     10,000      35,274
Ramirez       43,423     32,299          0       6,962
DeFelice      64,110     40,476      5,000      35,460
Aramburu      38,353      8,289          0       5,063
Morales        6,131      3,252          0       8,583

I’m looking at the non-Beto and non-judicial statewide races, the one open State Senate seat that could be interesting, and a handful of State House races based partly on 2020 election data and my own idiosyncrasies. There were a few State House races that might be intriguing on paper, I couldn’t find a finance report for the candidate in question. If there’s a race that I’ve skipped that offends you, let me know in the comments.

Remember that these reports may cover different time spans, depending on the candidate’s primary status. Candidates who had no primary opponent, such as Luis Echagaray in HD52, have reports that include all activity since January 1. Candidates who won their March primary, such as Daniel Lee in HD26, have reports that include all activity since February 21. And candidates who had to win a primary runoff, such as Suleimon Lalani in HD76, have reports that include all activity since May 16. Check the report itself if you’re not sure for a given candidate – the information is there on the first page.

Mike Collier is one of those who had to endure a runoff, so that $693K is since mid-May. That in itself is not too bad – it’s not particularly eye-catching, but it’s a decent pace and will add up over time. To that extent, here are the totals Collier has posted over other periods since last year:

Feb 20 – May 14 – $487,963
Jan 21 – Feb 19 – $124,329
Jan 01 – Jan 20 – $55,989
Jul 01 – Dec 31 – $826,861
Jan 01 – Jun 30 – $757,109

That’s nearly $3 million raised since the beginning of 2021. It’s not a huge amount – you may not be aware of this, but Texas is a big state with a lot of media markets and it costs a crapton of money to effectively advertise statewide as a result – but it’s not nothing. If Collier can continue at the pace from his last report, he’ll collect a couple million dollars by November. Maybe that’s another reason why Republicans are now attacking him.

Rochelle Garza and Jay Kleberg, who were also in the May runoffs, posted their own $500K-plus totals for the six weeks of their periods. I won’t do the same listing as I did for Collier, but I can tell you that Garza has raised about $1.1 million and Kleberg about $2 million since last November. The same caveats as with Collier apply, but I can’t think of any election since maybe 2002 where multiple statewide Dems posted similar numbers. As I’ve said elsewhere, whatever you’ve budgeted to give to Beto, leave a little room for Collier and Garza and Kleberg and the others.

SD27 is the Senate seat that Eddie Lucio is finally vacating. Morgan LaMantia won the nomination in the runoff, so her totals are from May 15. SD27 was moderately Democratic in 2020 after having been much more Democratic in 2016, so it’s one to watch for signs of either a rebound or further decay. There was a recent Trib story that I don’t feel like looking for with a headline that says Republicans are mulling whether to pour money into this one. I don’t know why they wouldn’t, but I guess even they don’t have infinite resources and have to choose their priorities.

I haven’t paid a lot of attention to most of these State House races, many of which were uncontested in March. I didn’t even recognize a few of the names before I went looking for their reports. HDs 70 (Collin County) and 92 (Tarrant) are new Democratic districts drawn to shore of neighboring Republican districts. HD76 had been a Democratic district in El Paso, and is now a Democratic district in Fort Bend. The rest for the most part are districts Trump won by less than ten points, with HD118 being a slight Biden seat that the Republicans won in a special election last year. Frank Ramirez is back for a second shot at it, and I’d certainly like to see a bigger cash on hand number in that one. Otherwise, not much here to grab your attention, with the possible exceptions of Elizabeth Ginsburg, who hopes to flip one of the last two red districts in Dallas County, and Rebecca Moyer DeFelice, running in HD121, the Bexar County equivalent of HD134 (and HD108, for that matter).

This concludes my tour of the July finance reports. I expect to look at the 30-day reports for Harris County, and maybe the 8-day reports for it as well. As always, let me know if you have any questions.

Runoff results: Around the state

After the primary, I rounded up the Democratic runoffs we’d have in May. I’m going to use that post to round up the results from last night, as best as I can tell as of when I gave up the ghost and went to bed. I started filling this in around 10 PM.

Statewide Dem

Lite Guv – Mike Collier vs Michelle Beckley.
AG – Rochelle Garza vs Joe Jaworski.
Comptroller – Janet Dudding vs Angel Vega.
Land Commissioner – Sandragrace Martinez vs Jay Kleberg.

Garza and Dudding were both up 61-39 as of 9:30 PM, with Garza being declared the winner. Collier (54.8 – 45.2) and Kleberg (52.2 – 47.8) were leading but it was too soon to say with them. Kleberg was up 62-38 in Harris County, and Collier was up 60-40, so that bodes well for them.

Congressional Dem

CD01 – JJ Jefferson vs Victor Dunn.
CD15 – Ruben Ramirez vs Michelle Vallejo.
CD21 – Claudia Zapata vs Ricardo Villarreal.
CD24 – Jan McDowell vs Derrik Gay.
CD28 – Rep. Henry Cuellar vs Jessica Cisneros.
CD30 – Jasmine Crockett vs Jane Hope Hamilton.

Jefferson (75%), Zapata (62%), and Crockett (75%) all had huge leads and were on their way to victory. Henry Cuellar (52.75 – 47.25) had a smaller lead but looked to be in pretty good shape. The other two races were ridiculously close – Ramirez was up by 78 votes, McDowell up by 20 votes. You’ll want to check them again today, and don’t be surprised if they wind up in recount territory.

SBOE Dem

SBOE1 – Melissa Ortega vs Laura Marquez.
SBOE2 – Victor Perez vs Pete Garcia.

Ortega (58%) and Perez (56%) looked to be in good shape.

State Senate Dem

SD27 – Morgan LaMantia vs Sara Stapleton-Barrera. LaMantia was at 57% and appeared to be in good shape.

State House Dems

HD22 – Joseph Trahan vs Christian Hayes.
HD37 – Ruben Cortez vs Luis Villarreal
HD70 – Cassandra Hernandez vs Mihaela Plesa.
HD76 – Suleman Lalani vs Vanesia Johnson.
HD100 – Sandra Crenshaw vs Venton Jones.
HD114 – Alexandra Guio vs John Bryant.

Lalani (64%), Jones (70%), and Bryant (62%) looked to be headed to victory. Lalani would be the first Muslim to serve in the Lege. Jones is openly gay and HIV positive and was the subject of a bizarre homophobic rant by his opponent, so his win is especially sweet. Bryant, who is 75 and served in Congress 30 years ago, wins one for the old white guys.

As of 10 PM, the other races were too close to call, with Hayes (50.86%), Villarreal (52.44%), and Plesa (52.91%) holding the advantage.

Republicans

Ken Paxton easily beat George P. Bush, which launched multiple (likely written in advance) eulogies to the “Bush dynasty” in Texas. Good riddance, if P is what that had fallen to. Dawn Buckingham (Land Commissioner) and Wayne Christian (RR Commissioner) were also cruising to victory.

UPDATE: All of the Dem statewide candidates that were leading when I signed off won. Michelle Vallejo (50.1%) edged ahead in CD15, while Jan McDowell (51.15%) increased her lead. It got super tight towards the end, but yes, Henry Cuellar (50.2%) once again came out ahead. All of the state office candidates that were leading last night were still ahead this morning.

Interview with Janet Dudding

Janet Dudding

When I first made plans to do interviews for the Democratic primary runoffs, I thought I’d interview both candidates in the races I picked, as my mission in doing these interviews is to help voters like myself figure out the best choices. But as I sometimes do in other contexts, I consider it a better use of my time and yours to curate who I interview. That was a deciding factor for the Comptroller runoff, where it was clear to me that Janet Dudding was the stronger candidate, and so I chose to just interview her. Dudding is a CPA who relocated to College Station with her family following Hurricane Katrina. She worked for the city of College Station and for Texas A&M before retiring and getting more involved in politics. She was a candidate for HD14 in 2020 and is currently president of the Texas Democratic Women of the Brazos Valley. Here’s what we talked about:

As before, you can see a full list of my interviews and a whole lot more info about the Democratic candidates on the Erik Manning spreadsheet. It was my intent to do more runoff interviews, but life caught up to me and I just didn’t have the time. I’ll have more for November.

End the “tampon tax”

I approve.

Rep. Donna Howard

A coalition of menstrual health organizations is appealing a decision by the Texas Comptroller’s Office to deny its protest against the state sales tax, which they say unfairly and unconstitutionally does not exempt tampons, pads and other hygienic products.

If the dispute isn’t resolved on the administrative level, Meghan McElvy, partner at the Houston-based international law firm Baker Botts, said she plans to take the case all the way to the Texas Supreme Court if necessary. The law firm is taking up the case pro bono on behalf of the Texas Menstrual Equity Coalition.

“It’s just kind of a no-brainer issue to me,” McElvy said. “(Male) libido enhancers are tax-exempt, but medically necessary products for women are not.”

The group, which includes a large number of youth-led advocacy organizations, has asked for a re-determination hearing from the Comptroller’s Office. It comes after the agency denied their original request for a refund of sales tax on tampons, pads and panty liners bought by a Harris County woman.

This is just the latest effort in a national movement that kicked off in the 2010s aiming to end the so-called “tampon tax.”

As of now, a slim majority, or 26 states, tax menstrual products, while the rest do not, either because they have exempted them or because they’re one of the five states that don’t levy a sales tax, according to Period Law, an advocacy and legal organization.

States with exemptions include Illinois, Maryland, Massachusetts, Minnesota, New Jersey and Pennsylvania.

In Texas, state lawmakers in recent years have attempted to pass bills on the matter without success. Rep. Donna Howard, D-Austin, who chairs the Texas Women’s Health Caucus, has filed a bill every session since 2017. In 2021, House Bill 321 got out of committee but never made it to the House floor — the most progress any such bill has ever made.

Howard credited young women in high school and college, many of whom belong to groups that run donation drives to help low-income people access the products, with moving the needle last year by showing up in Austin to testify on the bill. She said she hopes to to build on their progress in the upcoming legislative session.

“We know there are a large number of Texas girls and women who do not have enough money to afford these products,” she said. “(A sales tax exemption is) not going to go a long way, but it’s a step in right direction.”

Howard said most of the pushback at the Legislature comes from members concerned about the budget. The Comptroller’s Office estimated in 2021 that the bill would have cost the state about $42 million in lost revenue in the next two-year budget cycle.

“In the grand scheme of things, this is a very small fiscal impact,” Howard said. “I keep going back to the discriminatory part of it because at some point, you make decisions because they’re the right decisions to make.”

I say they’re necessary health products, and on those grounds they should be exempted from the sales tax, as many other items are. The amount of revenue it would cost the state is pocket change in context of the budget. Legalizing marijuana, as Oklahoma has recently done, would generate far more than that to make up for it. Don’t even get me started on the various property tax loopholes and exceptions that could be fixed as well. This is a small thing we can do to make life a little easier for a lot of people. As Ms. McElvy says, it’s a no-brainer.

Where are the endorsements?

As you know, early voting has begun for the May 7 election, which includes two Constitutional amendments and the special election for HCC District 2. As of last night when I drafted this, I see no endorsements in any of these elections on the Chron’s opinion page. Are these elections not worth it to them, or have they just not gotten around to them yet? I sure hope it’s the latter, and that they will rectify that quickly. I don’t know what they’re waiting for.

Seventeen days after that election will be the primary runoffs. A quick check of the Erik Manning spreadsheet confirms for me that in all of the Democratic primary runoffs for which the Chron issued a March endorsement, their preferred candidate is still running. In ballot order:

CD38 – Duncan Klussman
Lt. Governor – Mike Collier
Attorney General – Joe Jaworski
Comptroller – Janet Dudding
Land Commissioner – Jay Kleberg
SBOE4 – Staci Childs
HD147 – Danielle Bess
185th Criminal Court – Judge Jason Luong
208th Criminal Court – Kim McTorry
Commissioners Court Precinct 4 – Lesley Briones

You may or may not agree with these, but those are who the Chron picked. They have no races to revisit among them. They do, however, have three more races to consider, which were among those they skipped in Round One:

312th Family Court – Judge Chip Wells vs Teresa Waldrop
County Civil Court at Law #4 – MK Singh vs Treasea Treviño
Justice of the Peace, Precinct 1 Place 2 – Steve Duble vs Sonia Lopez

The links are to my judicial Q&As for those who submitted responses. You can find all the Q&A and interview links from the primary here. More recently I interviewed Staci Childs and Coretta Mallet-Fontenot in SBOE4; I will have an interview with Janet Dudding on Monday. There’s no need to rush if the Chron wants to circle back to these races they ignored originally – they can wait till after the May 7 election, but not too long since early voting there will begin on May 16. It’s only three runoff races (*), plus those two Constitutional amendments and that one HCC race. C’mon, Chron editorial board, you can do this.

(*) There may be some Republican runoffs for them to revisit as well. I didn’t check and am obviously not as interested. I doubt most Republican runoff voters are either, so whatever. The HD147 special election is between the same two candidates as in the primary runoff, so we can assume the endorsement for one carries over to the other.

A roundup of runoffs

I was going to just do a basic recap of all the primary races that will require runoffs, and then this happened, and I had to do some redesign.

Rep. Van Taylor

U.S. Rep. Van Taylor, R-Plano, has decided to end his reelection campaign after he was forced into a primary runoff amid 11th-hour allegations of infidelity.

Taylor made the stunning announcement Wednesday, hours after he finished his five-way primary with 49% of the vote, just missing the cutoff for winning the primary outright. The runner-up was former Collin County Judge Keith Self, who is now likely to become the next congressman for the 3rd District.

“About a year ago, I made a horrible mistake that has caused deep hurt and pain among those I love most in this world,” Taylor wrote in an email to supporters. “I had an affair, it was wrong, and it was the greatest failure of my life. I want to apologize for the pain I have caused with my indiscretion, most of all to my wife Anne and our three daughters.”

The day before the primary, the conservative outlet Breitbart News posted a story that Taylor had had a monthslong affair with a Plano woman, Tania Joya, who he had paid $5,000 to keep quiet. The publication reported that she provided it a phone screen shot purporting to be communications with Taylor and a bank record showing that she deposited $5,000 into her account. The Texas Tribune has not been able to independently verify the report.

[…]

Taylor has until March 16 to remove his name from the runoff ballot, which he plans to do, according to a spokesperson. After he does that, Self is automatically the Republican nominee for the district. There is a Democratic nominee for the seat, Sandeep Srivastava, but they face long odds after the district was redrawn last year to favor Republicans.

Holy shit. There’s a link to that article in the Trib story, which I refuse to include. It’s one of the less important aspects of this story, but the timing is curious. Why not publish this earlier, if that’s what you’re going to do, and not take the chance that he could win without a runoff? It gets a whole lot more complicated for the Republicans if he withdraws after winning the primary, and he came quite close to doing just that. I don’t understand any of this.

Anyway, this is where I was originally going to start this post. Here’s a list of the races that have gone into overtime. You can also read the Decision Desk wrapup for some more details.

Statewide Dem

Lite Guv – Mike Collier vs Michelle Beckley.

AG – Rochelle Garza vs Joe Jaworski. As of Wednesday afternoon Jaworski had less than a 2K vote lead over Lee Merritt. When I first looked at this, it was a 3K lead, with all of the remaining ballots in Harris County, where Jaworski started the day with a 6K vote lead over Merritt. That had shrunk to a bit less than 5K votes by the afternoon, which almost made my logic that Jaworski would easily hold his lead look idiotic, but the gap appears to have been too large for Merritt to overcome. But who knows, there may be a bunch of late-fixed mail ballots out there, so let’s put a pin in this one.

Comptroller – Janet Dudding vs Angel Vega.

Land Commissioner – Sandragrace Martinez vs Jay Kleberg.

Congressional Dem

CD01 – JJ Jefferson vs Victor Dunn.

CD15 – Ruben Ramirez vs Michelle Vallejo, who has a 300-vote lead over John Rigney.

CD21 – Claudia Zapata vs Ricardo Villarreal.

CD24 – Jan McDowell vs Derrik Gay, who rebounded after my initial bout of pessimism to finish in second place.

CD28 – Rep. Henry Cuellar vs Jessica Cisneros. Cisneros had a big early lead that was mostly a function of the order in which the counties reported their results. Cisneros crushed it in Bexar County, then watched as Starr, Webb, and Zapata erased her lead. In the end, if what I’m seeing is the actual final tally, it was Cuellar who missed winning outright by nine (!) votes. This one could change to a Cuellar win as the overseas and provisional votes are tallied, and then of course there may be a recount. Hold onto your hats.

CD30 – Jasmine Crockett vs Jane Hope Hamilton.

CD38 – Diana Martinez Alexander vs. Duncan Klussman. This is the only Congressional runoff in Harris County for Dems.

SBOE Dem

SBOE1 – Melissa Ortega vs Laura Marquez. The third-place finisher had big charter school backing, so this race can go back to being one you don’t need to know about.

SBOE2 – Victor Perez vs Pete Garcia.

SBOE4 – Coretta Mallet-Fontenot vs Staci Childs. This is in Harris County, it’s the seat Lawrence Allen vacated in his unsuccessful run for HD26. I’ll put this one on my to do list for runoff interviews.

SBOE11 – Luis Sifuentes vs James Whitfield. Double-timer DC Caldwell finished third, while also losing in the Republican primary for this same seat to incumbent Pat Hardy. Let us never speak of this again.

State Senate Dem

SD27 – Morgan LaMantia vs Sara Stapleton-Barrera.

State House Dems

HD22 – Joseph Trahan vs Christian Hayes.

HD37 – Ruben Cortez vs Luis Villarreal

HD70 – Cassandra Hernandez vs Mihaela Plesa. This one was an almost even split among three candidates, with third place finisher Lorenzo Sanchez 29 votes behind Plesa and 102 votes behind Hernandez. Another overseas/provisional vote count to watch and another recount possibility.

HD76 – Suleman Lalani vs Vanesia Johnson. This is the new Dem-likely seat in Fort Bend.

HD100 – Sandra Crenshaw vs Venton Jones.

HD114 – Alexandra Guio vs John Bryant. Bryant was a Dem Congressman in the 90’s, in the old CD05. After winning a squeaker against Pete Sessions in 1994, Bryant tried his luck in the primary for Senate in 1996, eventually losing in a runoff to Victor Morales. Bryant just turned 75 (why anyone would want to get back into the Lege at that age boggles my mind, but maybe that’s just me), while Guio is quite a bit younger. Should be an interesting matchup. This was a five-way race with everyone getting between 17 and 25 percent, so endorsements from the ousted candidates may make a difference.

HD147 – Jolanda Jones vs Danielle Bess.

Harris County Dems

185th Criminal District Court – Andrea Beall vs Judge Jason Luong.

208th Criminal District Court – Beverly Armstrong vs Kim McTorry. Judge Greg Glass finished third.

312th Family District Court – Teresa Waldrop vs Judge Chip Wells.

County Civil Court at Law #4 – Manpreet Monica Singh vs Treasea Treviño. David Patronella was in second place after early voting, but fell behind as the Tuesday votes came in.

Commissioners Court, Precinct 4 – Lesley Briones vs Ben Chou.

Justice of the Peace, Precinct 1, Place 2 – Sonia Lopez vs Steve Duble.

Republicans

Not really interested in a complete rundown, but it’s Paxton versus P Bush for AG, Dawn Buckingham versus Tim Westley for Land Commissioner, and Wayne Christian versus Sarah Stogner for Railroad Commissioner. At least that last one will be interesting.

As noted yesterday, it will be Alexandra Mealer versus Vidal Martinez for the nomination for County Judge. I have no feelings about this.

I will put some other primary news and notes in a separate post. Let me know if I missed a race.

2022 primary results: Statewide

That didn’t take long:

Literally one minute after polls would have closed in El Paso. You can’t report any earlier than that. With the first very early batch of results posted on the SOS website, Beto was at 92.82% of the vote, so even though maybe ten percent of the votes had been counted, this seems like a pretty safe call.

Greg Abbott was cruising as well, with just under 70% in very early returns. The Trib says his race was called at the same time; I didn’t see anything on Twitter, but you know how that can go. At least one of his opponents was preparing to concede right out of the gate. Both Huffines and West were in the 10-12% range early on, which makes their attention-to-performance ratio pretty much a “division by zero” error.

Susan Hays was headed for a decisive win for Ag Commissioner on the Dem side, starting out with about 85% of the vote. All of the other Dem statewides look like they’re headed for runoffs. Mike Collier, Rochelle Garza, and Janet Dudding were the clear early leaders for Lite Guv, AG, and Comptroller. The Land Commissioner race was more jumbled, with Sandragrace Martinez and Jay Kleberg the initial frontrunners.

On the Republican side, Dan Patrick and Glenn Hegar easily turned away nominal opposition, while the crook Sid Miller was close to 60% against more substantial opposition. Ken Paxton and Wayne Christian were leading for AG and Railroad Commissioner, but both were in the low-to-mid 40s early on. Dawn Buckingham was at about 45% with three opponents who might be the one to face her in a runoff in the 12-15 percent range. Two Supreme Court incumbents, Evan Young (appointed to replace Eva Guzman) and Scott Walker, were in the mid-to-upper 50s against single opponents.

I found the Trib‘s results page to be faster than the SOS, and it had both Dems and GOP on one page. The only other matter of interest here for now is total turnout. I’m not going to get a handle on that before I go to bed, so let’s put that in the to-be-followed-up file.

Endorsement watch: Definitely in no rush

After a few days of only Republican endorsements, we get three Democratic ones. First up is the most obvious, Harris County Judge Lina Hidalgo.

Judge Lina Hidalgo

Even those who treated 27-year-old Lina Hidalgo like she was born yesterday when she was elected Harris County judge in 2018 must admit that she’s been baptized by fire.

First, quite literally, by a chemical fire. Then a steady stream of other disasters: a global pandemic, an epic winter storm and deadly power grid blackout, and a relentless crime surge.

Many who thought she had no business running against 11-year incumbent Ed Emmett think she has no business keeping the seat. Some — on the right and left — have lined up to oust her.

Three years ago, we admired Hidalgo’s tenacity but weren’t persuaded to endorse an untested newcomer to lead a county of more than 4.5 million people, a budget of $5 billion and a surface area bigger than Rhode Island.

Since then, Hidalgo, who will be 31 by the March 1 primary, has been as tested as any county judge can be.

And we believe she’s passed, from her gutsy urging to close the rodeo days before community spread of COVID-19 was detected, to her bold mask mandate that prompted Republican leaders to cry “tyranny” until they enacted their own mandates, to her prescient warnings for residents to prepare for Winter Storm Uri as they would “a category 5 hurricane.”

She seems to have handled these disasters, and also a daily barrage of personal attacks, insults and condescension, with the poise and steadfastness of a seasoned public official and yet, maintains a wonky earnestness we find refreshing.

They find Erica Davis’ case thin and unconvincing, and note that no one else in the primary is making an effort. You know how I feel about these things. As no-brainers go, this one was one of the no-brainer-est.

Also an easy call, though far lower on anyone’s visibility list, they endorsed Janet Dudding in the primary for Comptroller.

Janet Dudding

Democrats have a choice of a journalist-turned-lawyer, a long-time certified public accountant, and a writer and strategist in the March 1 primary for Texas comptroller of public accounts.

Call us crazy but we believe the best option by far is the accountant, Janet Dudding of Bryan.

Dudding, 62, makes a compelling case for why Democrats should nominate her to challenge two-term incumbent Glenn Hegar in November’s general election.

“I’ve spent my adult life auditing, accounting for, administering and even investigating state and local governments and their grants, taxes, procurement, spending and reporting,” she told us in a screening last month. “I understand how the system works and how we could better utilize it to our advantage.”

[…]

She seems capable of taking the fight to Hegar in the fall, promising to highlight what she describes as his failure to manage the energy efficiency and climate impacts of state-owned buildings, promote the use of alternative fuels in state vehicles and find ways to boost rural broadband access.

Dudding has the most relevant experience and the broadest platform in this race. We urge Democrats to nominate her for comptroller.

Far as I can see, she’s the only serious candidate. Some statewide primary races have very tough choices – Lt. Governor, Attorney General, and Land Commissioner, to be specific – but this one was clear to me from the beginning.

And speaking of that Land Commissioner race, the Chron made their choice and it’s Jay Kleberg.

Jay Kleberg

After a years-long tug-of-war between George P. Bush’s Texas General Land Office and Houston leaders over unallocated Harvey relief funding, we suspect more than a few southeast Texans are eager for a new GLO direction. Democratic voters have high-quality choices in the race for Texas Land Commissioner, all of whom want a land office focused on science and aid, not politics. We recommend Jay Kleberg, an Austin-based conservationist who began working cattle at age 5 on his family’s ranch — the 825,000 acre King Ranch in south Texas.

Kleberg has an MBA from the University of Texas and has done extensive environmental advocacy. In the 2019 film “The River and the Wall,” Kleberg and four others journeyed 1,200 miles along the Texas-Mexico border to explore a wall’s impact on people and wildlife. Tapping into his near-legendary family’s background, and resources, he’s worked to educate Texas children about ranching and expand access to the great outdoors. In recent years, Kleberg has served as the associate director of the Texas Parks and Wildlife Foundation, the nonprofit partner of the Texas Parks and Wildlife Department.

“Texas deserves representation that believes in combating climate change and bringing people together,” Kleberg, 44, told us. “If elected, I will refocus the office to protect our most vulnerable communities on the coast … and ensure that we are passing on a more healthy, accessible environment to the next generation.”

[…]

We also think highly of Jinny Suh, a 44-year-old Austin-based lawyer who founded and leads Immunize Texas, a grassroots network dedicated to supporting pro-vaccine legislation. She has also worked as a science teacher.

Suh argues that her history of advocacy in Austin, along with her science and legal background, make her the best choice for land commissioner. She’s racked up several key endorsements, notably the Texas AFL-CIO and some Democratic state house members, and raised money through many small donations.

Kleberg and Suh are the top choices in this race. My interview with Kleberg is here and with Suh is here. Both would be a billion times better than the pampered dilettante we have now.

Four days out from the start of early voting and there are still a lot of big races to weigh in on. Tick tock, y’all.

Filing update: Not that Rick Perry

I’m going to let this speak for itself.

Not that Rick Perry

Rick Perry is running for governor — but not that Rick Perry.

The Republican Party of Texas updated its list of candidate filings Monday — hours before the deadline for the March primary election — to include a Rick Perry running for governor. The party quickly confirmed that it was not Rick Perry, the former governor and U.S. energy secretary, against Gov. Greg Abbott. Instead it’s Ricky Lynn Perry, a man from Springtown, a town in Parker County northwest of Fort Worth. On the form, the man listed “Rick Perry” as the version of his name that he wants to appear on the ballot.

A LinkedIn profile for a Rick Perry from Springtown lists his current job as a senior desktop technician for Lockheed Martin. Neither Perry could be immediately reached for comment.

Abbott is running for a third term and has drawn at least three primary challengers. While Abbott may not be facing a challenge from his predecessor, having such a widely known name on the primary ballot could complicate his path to renomination.

Rick Perry was the longest-serving governor of Texas, preceding Abbott before the latter took office in 2015.

The candidate Perry’s form was notarized by Tony McDonald, an Austin lawyer who is active in anti-establishment conservative circles and has supported one of Abbott’s primary opponents, Don Huffines. McDonald told the Tribune that Perry is a “good conservative activist from Parker County” whom he knows through a “friend of a friend.” McDonald said he was supporting Perry and serving as his campaign treasurer.

Asked if one of Abbott’s existing primary challengers had convinced Perry to run, McDonald said he was “not aware of that.”

[…]

Abbott’s campaign, meanwhile, scoffed at Perry’s filing. The governor’s top political strategist, Dave Carney, said on Twitter that it was “another stupid pet trick” and that it “will backfire as these stunts always do.”

You know me, I love a good phony candidate story. Most likely this is just a dumb trick that will have no effect on the outcome. But it’s funny, and we could all use a laugh.

As yesterday was the filing deadline, there was a bit of a rush to get the job done, and the SOS Qualified Candidates page is missing a few names here and there. I’ll have another update tomorrow to fill in the remaining blanks, but in the meantime we have some coverage from the Trib.

The Democratic primary for lieutenant governor got a third candidate as Carla Brailey, vice chair of the state party, announced her campaign. Her launch came amid a lingering discussion among Democrats about whether their statewide slate is diverse enough.

Brailey said in an interview that she was running because she “really believe[s] our democracy is at stake, and I think this is gonna be one of the most important elections we have experienced in a very long time in Texas.”

“It’s very important that we have leadership that just reflects Texans — all Texans — and I think I will be able to do that,” said Brailey, who is Black.

She joined a primary field that includes Mike Collier, the last nominee for lieutenant governor who has been running since early this year, and state Rep. Michelle Beckley of Carrollton, who announced last month. Matthew Dowd, the cable-news commentator who once was a strategist for former President George W. Bush, had been running in the primary until last week, when he dropped out and said he wanted to make way for a more diverse field.

Brailey is not the only Democrat who has stepped forward for the statewide ticket as the filing deadline loomed. Janet Dudding, a 2020 candidate for a battleground state House seat in Brazos County, filed to run for comptroller, joining at least two other Democrats vying to take on GOP incumbent Glenn Hegar. Susan Hays, a prominent cannabis lawyer and hemp advocate, announced she was running for agriculture commissioner, giving Democrats their first candidate to challenge Republican incumbent Sid Miller.

“Farming is hard, but ethics should be easy,” Hays said Thursday as she announced her campaign against the scandal-prone Miller.

[…]

Over in the Houston area, where one of Texas’ new congressional seats is located, the longtime Republican frontrunner, Wesley Hunt, got arguably his best-known opponent yet: Mark Ramsey, a former member of the State Republican Executive Committee. The seat was drawn to favor the GOP, so Republicans have been watching how complicated of a path Hunt will have on his quest for a general-election win.

Until Monday, no Democrat was contesting the Houston-area seat — the 38th District — but that changed when Centrell Reed, a Houston life coach, switched to the race after filing for the 7th District. Reed’s decision spares the 7th District incumbent, U.S. Rep. Lizzie Pannill Fletcher, D-Houston, a primary challenge in a district that has been made much bluer by redistricting.

In state House races, there was little late drama involving incumbents. One question mark going into Monday was whether state Rep. Claudia Ordaz Perez would follow through on her plan to run against state Rep. Art Fierro, a fellow El Paso Democrat — and she did, filing with hours to spare. Ordaz Perez had chosen to take on Fierro after redistricting forced her into the district of a fellow El Paso Latina, Democratic state Rep. Lina Ortega.

In another late development in a state House contest, state Rep. Harold Dutton, D-Houston, drew a primary challenger: Candis Houston, president of the Aldine chapter of the American Federation of Teachers. Dutton, chair of the House Public Education Committee, was under fire from fellow Democrats earlier this year over how he handled legislation placing restrictions on transgender student athletes.

That Lite Guv primary is going to be a tough choice, those are three good candidates. Susan Hays picked up an opponent in her race, some dude named Ed Ireson. CD38 went from zero candidates to three – in addition to Centrell Reed (who the SOS still had in CD07 as of last night), Diana Martinez Alexander (candidate for Commissioners Court, Precinct 3 in 2020) and someone named Duncan Klussman filed. Other Harris County highlights:

– Three people, one of whom is the long-awaited Erica Davis, filed for Harris County Judge, making it a six person field.
– Sen. John Whitmire picked up a challenger, Molly Cook, who is one of the leading opponents to the I-45 project; see here for a story about that project that quotes her.
– Dems now have candidates for HDs 129 and 150, though I still don’t see anyone for HD133.
– Moving the lens out a bit, there are a few more primary challenges in the Lege – Erin Zwiener (HD45), Rhetta Bowers (HD113), and Ray Lopez (HD125) now have company – but if anyone was expecting a wave of such contests, you’re still waiting.
– By the way, the means I have to know that there are some filings that are not yet reflected on the SOS page is the photo album on the HCDP Facebook page, which contained most of the late arrivers. Here’s the full album with all the filers in alphabetical order. You think someone got the idea to take a picture of all the hopefuls to ensure there are no more of those mystery candidates? It’s a damn good idea, whether or not that was the motivation behind it.

Like I said, I’ll post another update tomorrow, to clean up anything we missed this time around. The Chron, which focused more on the Republican side, has more.

Filing update: Judge Hidalgo makes it official

She has filed for re-election, in case you had thought there was some other possibility.

Judge Lina Hidalgo

Harris County Judge Lina Hidalgo announced her 2022 re-election campaign Friday afternoon as she filed paperwork at the Harris County Democratic Party headquarters.

Although progress has been made during her tenure, Hidalgo said her desire is for the county to continue its momentum on various social issues.

“This community has given so much to us, but we have to do better to remain competitive,” Hidalgo said. “Over the past few years we have done that on flood control, on early childhood education, on putting politics behind people… there is so much left to do.”

The incumbent Harris County judge will run against Republican candidate and Humble ISD School Board president Martina Lemond Dixon, who announced her candidacy on Sept. 22.

There are other candidates out there. Indeed, if you search the filings, Martina Dixon doesn’t appear yet. To be fair, neither does Judge Hidalgo as of Friday, but that may be updated by the time you read this. In my previous update I mentioned Republicans Vidal Martinez and Alexandra Mealer. On Friday, I heard that perennial candidate AR Hassan has filed as well, in the Democratic primary. Let’s just say I’m not worried about Judge Hidalgo’s chances there. If it makes her start campaigning in earnest earlier, that’s fine by me.

I see a new entrant in the race for County Commissioner in Precinct 4, Alief ISD Board President Ann Williams, whose Twitter account is here and whose personal Facebook page is here. I don’t know anything about her besides what I can tell from those sources. Oh, Williams’ colleague on the board Lily Truong has filed in the Republican primary in HD149 against Rep. Hubert Vo.

I don’t usually pay too much attention to the JP and Constable races, but I couldn’t help but notice that there are three people with filings for Justice of the Peace in Precinct 1, Place 2, which is where I am and where incumbent David Patronella presides. All three – Sonia Lopez, Steve Duble, and Victor Lombrana – are Democrats, which makes me wonder if Judge Patronella is retiring and I missed an announcement. Anyone have any ideas?

In Congress, I still don’t see a Democrat running in CD38. Nor do I see any primary challengers for Reps. Fletcher, Green, Jackson Lee, or Garcia. All of which is fine by me, though given that we’re in a post-redistricting cycle and there’s still a week-plus to go, I would not think that’s the final word. The main news of which I am aware is that Donna Imam, who was the Democratic candidate for CD31 in 2020, has announced that she will run in the new CD37 this spring. That will pit her against Rep. Lloyd Doggett, and with all due respect, she will not win. But no one is entitled to a seat, so go forth and good luck.

We now have a couple of Dems listed on the Svitek spreadsheet for Comptroller. One is Tim Mahoney, who ran in 2018 and lost in the primary to Joi Chevalier. Another is Angel Vega, who is a resident of Fort Bend and works in the non-profit industry. The spreadsheet also lists former HD14 candidate from 2020 Janet Dudding, whose campaign webpage has not been updated if she is indeed running. Dudding is a CPA.

Finally, the other news of interest is that Sen. Larry Taylor will not run for re-election. As with pretty much everything else to do with the state Senate, this is almost certain to make it a worse place than it is today.

Taylor chairs the Senate Education Committee and has served in the Legislature since 2003, first as a member of the House. He is also chair of the Senate Republican Caucus.

His decision comes just under two weeks before the candidate filing deadline for the 2022 primary. Within minutes of Taylor announcing his retirement, state Rep. Mayes Middleton, R-Wallisville, announced he had filed for for the Senate seat.

[…]

After news of Taylor’s retirement broke, he told a reporter with the Galveston Daily News that part of his decision was due to Middleton’s interest in his seat. Taylor told the reporter that he tried to dissuade Middleton, but that he is “ready to go and wanting to spend a lot of money.”

Middleton, an oil-and-gas businessman, is the chairman of the conservative Freedom Caucus in the House, where he has been a member since 2019.

I mean, Larry Taylor is your basic cookie cutter Republican. I have nothing nice to say about him, but he doesn’t make me want to scream. Mayes Middleton is a rich guy who primaried out the Republican that had been in HD23 because he wasn’t sufficiently wingnutty. We all need another guy like that in the Senate like we need another hole in the head, but that’s what we’re gonna get.

The filing deadline is December 13, a week from Monday. I’ll check in again as we go.

UPDATE: I am reliably informed that Judge Patronella is running for the County Court bench that Lesley Briones is vacating to run for Commissioner. Also, there are even more Republicans than the ones I’ve listed here that are running for County Judge.

A brief filing update

Just a few observations as we head out of the holiday season and into what I expect will be the busier part of the filing period. I’m using the Patrick Svitek spreadsheet, the SOS candidate filing resource, and the candidate filing info at the harrisvotes.com site for my notes.

– There’s now a fourth candidate listed for Attorney General on the Dem side, someone named Mike Fields, who along with Joe Jaworski has officially filed as of today. I can’t find anything to clarify this person’s identity – there’s no address listed on the SOS page, and Google mostly returned info about the former County Court judge who is now serving as a retired judge and who last ran for office as a Republican. I seriously doubt this is the Mike Fields who is running for AG as a Dem. I know nothing more than that.

– No Dems yet for Comptroller or Ag Commissioner, though I saw a brief mention somewhere (which I now can’t find) of a prospective Dem for the former. I feel reasonably confident there will be candidates for these offices, though how viable they are remains to be seen.

– Nothing terribly interesting on the Congressional front yet. A couple of Dems have filed for the open and tough-to-hold CD15; I don’t know anything about them. State Rep. Jasmine Crockett, in her first term in the Lege, will run for CD30, the seat being vacated by the retiring Rep. Eddie Bernice Johnson, who has endorsed Crockett for the primary. That race will surely draw a crowd, but having EBJ in her corner will surely help. No incumbents have yet drawn any primary challenges, though Reps. Vicente Gonzalez (now running in CD34) and Lloyd Doggett (now running in CD37) will have company for their new spots. I am not aware of any Dem yet for the new CD38, which should be Republican at least in the short term but which stands as the biggest prize available for Harris County Democrats.

Michelle Palmer has re-upped for SBOE6, which will be a tougher race this time around. I’m working on a post about the electoral trends for the new SBOE map.

– Sara Stapleton-Barrera and Morgan LaMantia have filed for the open SD27 Senate seat; Rep. Alex Dominguez has not yet filed. Nothing else of interest there.

– For the State House, I’m going to focus on area districts:

HD26 – Former SBOE member Lawrence Allen Jr, who ran in the 2020 primary for this seat, has filed.

HD28 – Eliz Markowitz still has an active campaign website and Facebook page, but I don’t see anything on either to indicate that she’s running again. One person who is running though he hasn’t filed yet is Nelvin Adriatico, who ran for Houston City Council District J in 2019.

HD76 – The spreadsheet lists four candidates so far. Two ran in 2020, Sarah DeMerchant (the 2020 nominee) and Suleman Lalani (who lost to DeMerchant in the primary runoff). Two are new, Vanesia Johnson and James Burnett. This new-to-Fort-Bend district went 61-38 for Joe Biden in 2020, so the primary winner will be heavily favored in November.

HD132 – Chase West has filed. He’s not from the traditional candidate mold, which should make for an interesting campaign. This district was made more Republican and is not the top local pickup opportunity, but it’s on the radar.

HD138 – Stephanie Morales has filed. This is the top local pickup opportunity – the Presidential numbers are closer in HD133, which does not yet have a candidate that I’m aware of, but it’s more Republican downballot.

HD142 – Jerry Davis is listed on the Svitek spreadsheet as a challenger to Rep. Harold Dutton. He hasn’t filed yet, and I don’t see any campaign presence on the web yet. That’s all I know.

HD147 – I am aware of a couple of candidates so far to fill the seat left vacant by Rep. Garnet Coleman’s retirement. Nam Subramaniam has filed. HCC Trustee Reagan Flowers sent out a press release over the weekend stating her intention to run. I would expect there to be more contenders for this open seat.

– For Harris County offices, there are already some people campaigning as challengers to incumbents. Carla Wyatt is running for Treasurer, Desiree Broadnax is running for District Clerk. On the Republican side, former District Clerk Chris Daniel has filed for his old office, and someone named Kyle Scott has filed for Treasurer. There are no Democratic challengers that I can see yet for County Clerk or County Judge, though there are a couple of Republicans for County Judge, Vidal Martinez and Alexandra Mealer. Finally, there’s a fourth name out there for County Commissioner in Precinct 4, Jeff Stauber, who last ran for Commissioner in Precinct 2 in 2018 and for Sheriff in 2016, falling short in the primary both times.

So that’s what I know at this time. Feel free to add what you know in the comments. I’ll post more updates as I get them.

Here’s the official budget forecast

“Could be worse” remains the watchword.

Texas lawmakers will enter the legislative session this week with an estimated $112.5 billion available to allocate for general purpose spending in the next two-year state budget, a number that’s down slightly from the current budget but is significantly higher than what was estimated this summer when the coronavirus began to devastate the economy.

Texas Comptroller Glenn Hegar on Monday announced that number in his biennial revenue estimate, which sets the amount lawmakers can commit to spending when they write a new budget this year. But he acknowledged that Texas’ economic future remains “clouded in uncertainty” and that numbers could change in the coming months.

Hegar also announced a nearly $1 billion deficit for the current state budget that lawmakers must make up, a significantly smaller shortfall than Hegar expected over the summer. That number, however, doesn’t account for 5% cuts to state agencies’ budgets that Gov. Greg Abbott, House Speaker Dennis Bonnen and Lt. Gov. Dan Patrick ordered this summer or any supplemental changes to the budget lawmakers will have to make.

Hegar’s estimates portend a difficult budget-writing session for lawmakers. But Hegar acknowledged that things could have been a lot worse. The $112.5 billion available is down from $112.96 billion for the current budget.

See here for the previous update. I continue to hope that Congress will throw a boatload of state and local aid our way in the coming months, which will also help, but at least we’re not in truly dire territory. And bizarrely enough, there may be a silver lining in all this.

But advocates hope the pandemic, combined with the revenue crunch, could lead to an unlikely bipartisan agreement. Before the pandemic hit, Democrats saw a takeover of the Texas House as key for advancing the prospects of Medicaid expansion in the state. But as COVID-19 has ravaged the state economy and thrown even more Texans into the ranks of the uninsured, Democrats are guardedly optimistic this could persuade enough Republicans to put aside their political hangups and support expansion—even as Republican Attorney General Ken Paxton leads a national lawsuit to eliminate the entire Affordable Care Act.

Texas is one of 12 remaining states that have refused the federally subsidized Medicaid expansion, despite having the highest rate and largest population of uninsured residents in the country. Expanding Medicaid would cover 1 million uninsured Texans and bring in as much as $5.4 billion to the state, according to a September report by researchers at Texas A&M University.

State Representative Lyle Larson, a moderate Republican, voiced his support for expanding Medicaid soon after the election, pointing to six GOP-led states that have done so in the past three years. “It is a business decision,” Larson wrote on Twitter, noting that the move would help with the revenue shortfall and COVID-19 response, address rural hospital closures, and expand access to care. Dallas County Representatives Morgan Meyer and Angie Chen Button, both Republicans, pulled out razor-thin victories to keep their House seats after voicing support for some type of Medicaid expansion in their campaigns.

Even conservative state Senator Paul Bettencourt acknowledged that the fiscal crunch will force consideration of Medicaid expansion. “My back-of-the-napkin analysis shows that’s a $1.6 billion item, like that—boom!” he told the Dallas Morning News in September. “I’m pretty sure we don’t have that falling out of trees,” he said. “You can put Medicaid expansion up at the top of the list. There will be a debate.”

But there’s still plenty of staunch opposition. “For those that promote [expansion], I haven’t heard what they’re willing to cut,” state Senator Kelly Hancock, a Republican who chairs the Business and Commerce Committee, said in November. “It’s easy to talk about it until you have to pay for it, especially going into this budget cycle.”

As with casinos and marijuana, the smart money is always to bet against Medicaid expansion happening. But this is a bigger opening than I’ve seen in a long time, and while that’s still not saying much, it’s not nothing.

State budget situation not quite as awful as feared

Still bad, but could be worse.

Despite “historic declines,” state lawmakers will have more money to work with in the upcoming legislative session than Comptroller Glenn Hegar expected over the summer, he said Monday. But Hegar did not outline specifics as state coffers continue to suffer from the economic recession spurred by the coronavirus pandemic.

Sales tax revenues, by far the largest part of the state budget, fell by 4.8% in the second half of the 2020 fiscal year compared with the same stretch last year, Hegar said. It was a much softer hit than he anticipated, thanks to Texans staying home and spending money on “staycations instead of vacations.”

Other revenue streams, such as taxes related to alcohol, hotel occupancy, and oil and gas, were down more than 40% in the same period this year compared with last, Hegar told lawmakers Monday during a Legislative Budget Board meeting at the Capitol.

“Revenues remain down significantly relative to a year ago, and well below what we expected to collect when the Legislature wrapped up work on the budget in 2019,” Hegar said.

Legislative budget writers decide how much money will be allocated for large state expenses like how much school districts get, how well health care programs are funded, which transportation projects get built and what amount state law enforcement gets based on how much the comptroller says will be available during the next two-year budget cycle, which runs from September 2021 through August 2023. Hegar will likely unveil that number as the session nears.

Hegar, whose office is in charge of collecting taxes owed to the state of Texas, last formally updated lawmakers in July, when he wrote a letter to Gov. Greg Abbott and lawmakers projecting the state’s current two-year budget to be roughly $11.5 billion less than originally estimated. That would put the state on track to end the biennium, which runs through August 2021, with a deficit of nearly $4.6 billion, Hegar wrote in July.

A few points:

– Let’s hope Hegar is a better revenue estimator than Susan Combs was. Her epic misfire in 2011 led to far more cuts being made than were needed.

– There are and will be plenty of stories written about how this is now the time that the Lege will consider marijuana legalization or casino gambling, because those things generate revenue that could be used to help stave off the deficit. The bit about gambling has been trotted out reliably every cycle since at least 2003, and it has never been true, in large part because the people who oppose expanded gambling still oppose it in deficit situations, and they remain with sufficient power to block it. I expect the same to be true for pot – it will happen when and if there is sufficient political support for it, and the budget situation will not be a factor.

– Also, too, people like Greg Abbott and especially Dan Patrick don’t want new revenue sources. They are perfectly happy to cut things out of the budget. Deficit situations are great opportunities for them.

– We could avoid all this if there is a federal COVID relief package targeted at cities and states. That’s only going to have a chance of happening if Dems win the two Georgia Senate runoffs, and even then it may be dicey. But it is a thing that Abbott et al could advocate for if they chose.

– Oh, yeah, the Rainy Day Fund. We didn’t use it in 2011 because Rick Perry decided that the fund, which was explicitly set up for the purpose of blunting the effect of economic downturns – hence the actual name “Economic Stabilization Fund” – was actually for natural disasters instead. I feel pretty confident that Greg Abbott will declare that COVID is no reason to tap the fund, and in the absence of a legislative majority to dip into it, it ain’t happening. (It’s possible some small amount may be used, if budget writers feel sufficiently desperate, and the nihilist caucus can be tamed or bought off. Don’t bet on it, that’s my advice.)

We’ll know more in January. Hope for the best. The Chron has more.

The cities still need COVID relief

Just a reminder, in case you’d forgotten.

Mayor Sylvester Turner

As Congress resumes work on a new coronavirus financial relief package, nearly 100 Texas mayors are pressing the state’s congressional delegation for more funding to address revenue losses incurred due to the economic downturn brought by COVID-19.

Texas received $11 billion in funds from the Coronavirus Aid, Relief and Economic Security Act, which were distributed among the state, counties and cities. Some Texas mayors said these have to be spent before the end of the year and for expenditures related to the pandemic response — and don’t address government entities’ losses in anticipated revenues related to decreased economic activity. Others said there’s been conflicting information about how the money can be spent.

Since March, the economic slowdown has directly hit cities’ revenues. According to the state comptroller, local sales tax allocations for cities in June dropped by 11.1% compared with the same month last year.

“The budget calamity looming over local governments is real and it requires extraordinary measures,” said a letter signed by 97 Texas mayors and directed to members of Congress. “We therefore fear that state and local revenue is going to take time to rebound. We also fear that if we do not stabilize our economy, we could see a drop in property tax revenue next year.”

In the letter, which included signatures of leaders from urban, suburban and rural areas, the mayors asked for “direct and flexible fiscal assistance to all cities.”

“What we’re asking [is] for direct assistance for state and local governments. Not for things like pension measures, none of that, but as a result of lost revenue as a result of coronavirus itself,” Houston Mayor Sylvester Turner said at a press conference Monday. “We are the infrastructure that supports the public and private sector, and at this point in time, we are needing direct assistance.”

We’ve known this for awhile, and the need is still there even if the city of Houston was able to kick the can down the road with this year’s budget and existing CARES funds. The simple fact is that cities – and counties, and the state, and to a lesser extend school districts – didn’t do anything to cause the problems they’re facing now. The analogy that some have made to a natural disaster is apt, and the effect will long outlive the original cause of the problem if it isn’t addressed. The US House passed a large bill a couple of months ago that would address these needs, but of course it has to get through the Senate, and you know what that means. If we had a functional state government, it would be advocating on behalf of the cities as well, because the loss of many thousands of municipal jobs will not do anything to help the state’s economic recovery. Our state leaders don’t see it that way, unfortunately, so the cities are on their own. It doesn’t have to be this way.

On a tangential note, the Slate podcast “What Next: TBD” did a segment on this very topic last Friday, and spoke to City Controller Chris Brown as part of their reporting. Check it out.

How low can sales tax collections go?

If we’re lucky, no lower than this.

Texas collected about $2.6 billion in state sales tax revenue in May, leading to the steepest year-over-year decline in over a decade, Comptroller Glenn Hegar announced Monday.

The amount is 13.2% less than the roughly $3 billion the state collected in the same month last year.

A majority of the revenue collected last month was from purchases made in April and reflect the state’s first full-month look at how the novel coronavirus impacted businesses. That is when Texans lived under a statewide stay-at-home order and Gov. Greg Abbott, like leaders across the globe, ordered businesses across several sectors to close to combat the spread of the virus.

“Significant declines in sales tax receipts were evident in all major economic sectors, with the exception of telecommunications services,” Hegar said in a news release. “The steepest decline was in collections from oil and gas mining, as energy companies cut well drilling and completion spending following the crash in oil prices.”

[…]

Monday’s numbers are also reflective of the lag in data as revenues are collected and then reported by the state. Last month, for example, Hegar announced that the sales tax revenue collections for purchases in March dropped roughly 9% — which at the time was the steepest decline since January 2010.

Other major tax collections were also down in May, Hegar said Monday. Motor fuel taxes, for example, were down 30% from May 2019, marking the steepest drop since 1989. And the hotel occupancy tax was down 86% from May 2019, marking the steepest drop on record in data since 1982.

See here for the background. The presentation here is a little confusing, so let me clarify by quoting from the Chron:

Though the revenue totals are for May, they mostly represent transactions in April, when a statewide lockdown was in place to slow the spread of the virus. March sales were down 9.3 percent, state records show.

OK, so basically retail and other activity that leads to sales tax collection was down 13.4% in April after being down 9.3% in March. March was when the shutdowns began, though people had already slowed their activity before the official orders started happening later in the month. Pretty much all of April was in lockdown, while May is when things have begun to reopen. The hope would be that while May will be down compared to last year, it will be a lesser drop from 2019 than April and March were. That’s the hope, anyway. Maybe motor fuel taxes will inch up somewhat, but I wouldn’t hold my breath on hotel occupancy taxes. Check back in a month and we’ll see.

Down go the sales tax receipts

It’s bad. Expected, but bad.

Texas collected $2.58 billion in state sales tax revenue in April — a roughly 9% drop from what the state collected the same month last year, Comptroller Glenn Hegar announced Friday. That drop, from $2.8 to $2.58 billion, marked the steepest decline since January 2010, Hegar said.

April’s revenue, which the state collected from purchases made in March, is among the first official glimpses at the dramatic blows state and local budgets will take from widespread social distancing measures first taken last month to stop the spread of the new coronavirus. And Hegar warned that the state’s largest single source of funding will continue to “show steeper declines” in the coming months compared with a year ago as the economy continues what will likely be a slow crawl out of a weekslong virtual shutdown due to the pandemic.

“The steepest declines in tax remittances were from businesses most quickly and dramatically affected by social distancing,” Hegar said in a statement. “However, those losses were, to a degree, offset by increases from big-box retailers, grocery stores and online vendors. Remittances from oil and gas-related sectors also fell significantly as oil and gas exploration and production companies slashed capital spending in response to the crash in oil price.”

Hegar’s been sounding the alarm for awhile, it was just a matter of what the exact number was. If we’re lucky, April will be no worse. Whether things get better in May and beyond, which is the intent of the reopening scheme, won’t be known for a couple of months. How the population as a whole acts, and whether or not the virus comes roaring back, will be the keys to that.

Coronavirus and the state budget

Ain’t gonna be great. How bad, we don’t yet know.

Comptroller Glenn Hegar briefed Texas House members on the state’s economy and budget Sunday night, saying that while it was too soon for specific forecasts, both are expected to take potentially massive hits in the wake of the new coronavirus pandemic, according to multiple people who were on the conference call.

The members-only call, led by House Speaker Dennis Bonnen, R-Angleton, was one of state lawmakers’ first glimpses of the impact the virus is expected to have on multiple industries, state finances and Texas’ largely oil-fed savings account, known as the Economic Stabilization Fund or the rainy day fund.

Hegar, who referred to the state of the economy as “the current recession,” according to multiple people on the roughly hourlong call, predicted both the general revenue for the state budget and the savings account balance will be drastically lower — possibly by billions of dollars — when he makes a revised fiscal forecast. He said that update could happen in July.

Later Sunday, the comptroller’s office said that unless the Legislature spent money out of the savings account before July, the balance for the fund would be revised down, but not by more than $1 billion.

In October 2019, Hegar estimated that the state budget would have a nearly $3 billion balance for the fiscal 2020-21 biennium. The balance of the Economic Stabilization Fund, Hegar announced at the time, would be around $9.3 billion by the end of the 2021 fiscal year in August of that year.

[…]

Abbott, for his part, noted last week that he and the Legislature can tap into the state’s disaster relief fund immediately to help respond to the virus. He also said that the Economic Stabilization Fund could be used “at the appropriate time,” which he said would happen when state leaders “know the full extent of the challenge we’re dealing with.”

Before the stabilization fund could be used, Abbott would need to summon state lawmakers back to Austin for a special session before the Legislature reconvenes in January 2021. When asked at a town hall about the possibility for calling such a session, Abbott said “every option remains on the table,” while noting that there would not be any need for such an action if every Texan followed guidance to help curb the virus.

Obviously, the crash in oil prices doesn’t help the state’s financial picture, either. It’s sales tax collection that will really suffer, and that pain will be spread to the cities and counties as well. As always, the big picture here is “how long will this take” and “how many businesses and jobs will be lost in the interim”, and right now we don’t know.

I will say, situations like this are among the reasons why balanced budget requirements are such a bad idea. Let the state – and the cities – run a deficit for a year or two, rather than cut a bunch of programs and lay off a bunch of employees, both of which will exacerbate the effect of the overall downturn. I assure you, society will not crumble around us if we do that. We will see plenty of shenanigans pulled by legislators to worm their way around the balanced budget requirement, as we have always done. So why not be honest about it and just admit that the whole thing is a sham and we should just not worry about it, at least for this cycle? We can always get back to it next time. Much easier said than done of course – constitutions and charters can’t be so easily cast aside, which again goes to my point about why these things are stupid – but in a world where everything has been thrown into chaos, this just makes sense. Same for revenue caps as well – if the revenue for the state, or the city of Houston, falls ten percent this year, it will take three years under the existing 3.5% revenue cap just to get revenue back to existing levels, while forcing needless cuts in the meantime. It’s all a sham, we should seize the moment to recognize it for the sham that it is, and free ourselves once and for all from its ridiculous shackles. Won’t happen happen, but I’ll never stop pointing it out.

Worrying about the restaurants

Alison Cook laments the potential fate for her favorite part of Houston.

Depending on local or state strictures, to help stem the spread of Covid-19 restaurants in most major markets would be able to provide takeout, drive-thru or delivery rations only. Dine-in was done, for the present and — according to some epidemiologists and public health experts — very possibly in rolling closures for the next 18 months. That’s the time it will take for a vaccine to be tested, manufactured and made available.

If we’re lucky.

Even though I’ve suspected this was coming since the calamitous February business drop experienced by restaurants in Bellaire Boulevard’s Asiatown — a preview of what lay ahead for the whole market as Covid-19 spread, I feared — the reality of the closures has hit me hard.

I gasped when I saw an Open Table graph that showed restaurant bookings, already down 45 to 65% last week, plunging off the cliff to zero on Tuesday in Boston, L.A., New York, San Francisco, Seattle, Toronto and Washington, D.C. It looked like the highway to hell.

I’m in mourning daily as I read the anguished tweets from Houston chefs and restaurant owners I admire. I’m sick with worry for the servers and bartenders and bussers and line cooks whose livelihoods are in peril.

[…]

My greatest sorrow is that I see a great winnowing ahead. On the other side of this public health crisis, it seems likely that Houston’s dining landscape will be substantially altered. Restaurant profit margins are slim in the best of times, and without serious public investment at the state or federal level, we are likely to see many bankruptcies.

It’s not the big chain restaurants I’m worried about — it’s the mom-and-pops and the small independent operators who help to define the city. Those are a cultural legacy well worth saving.

Ian Froeb, the restaurant critic at the St. Louis Post-Dispatch, told a radio interviewer the following: “I have a top 100 restaurant list and somebody that’s in the industry said, ‘You could be looking at 80 of the 100 might not come back.’ I didn’t push back. That seems like a real possibility.”

I’m not quite that pessimistic, yet, but the fallout is going to be bad.

Obviously, we can all do more ordering takeout in the interim, in the hope that these places we love can weather the storm, which we also hope will be measured in weeks and not months. But let’s be clear, the state of Texas could also help.

Up against a Friday deadline, the broad base of workers in the Texas restaurant industry have asked Gov. Greg Abbott and other officials to waive monthly sales taxes due by the end of the day.

Bobby Heugel, owner of several popular bars and restaurants in Houston, said many businesses could ride out the new coronavirus’ social slowdown for months if the state waived, delayed or deferred the monthly taxes.

“We have been crushing the governor’s office for requests of deferrals,” Heugel said Thursday. “Their voicemail actually stopped working late last night.”

Comptroller Glenn Hegar said the state won’t push back Friday’s deadline, though it has done so after hurricanes and other disasters. Hegar and aides cited a couple of reasons: Hurricanes and similar disasters, unlike pandemics, can knock out the infrastructure used to calculate and pay taxes. More importantly, the state and local governments that depend on those taxes to keep hospitals and emergency services going need the money as they prepare for the number of Texans testing positive for the new coronavirus to skyrocket within weeks.

“It would be irresponsible, but more popular, to delay collections,” said Karey Barton, associate deputy comptroller for tax. “The people who paid those taxes need that money to be available to keep operating hospitals and other services.”

I understand the concern, but the state has a rainy day fund it can tap into to bridge the gap in the interim. Maybe Greg Abbott needs to use his emergency powers to make that happen, maybe he needs to call a special session to enable it, or maybe he just needs to order it and let someone file a lawsuit to stop him, I don’t know. But the effect of losing a significant portion of the hospitality industry will last a lot longer than this crisis. We need to think outside the box here, and take action as needed before it’s too late.

We’re not going to get an independent redistricting commission

Nice to think about, but the set of circumstances that might lead to it are exceedingly narrow.

Most of the seven states that have independent commissions adopted them by a citizens’ initiative. Since Texas doesn’t have that option, the only way it would happen would be if lawmakers voluntarily gave up their redistricting power.

Kathay Feng, national redistricting director of the progressive government watchdog group Common Cause, said that’s unlikely to happen in Texas, but not impossible.

“The reality is that when a legislature is looking at potentially split control or the changeover of control from one party to another, they’re the most likely to entertain the possibility of redistricting reform,” Feng said.

Rice University political science professor Mark Jones said it would take a unique set of circumstances.

“It would take us reaching a tipping point where Republicans are pessimistic about their prospects for retaining a majority, but Democrats are also pessimistic about their prospects for taking a majority as well,” Jones said.

I think Jones’ assessment is basically accurate, but it’s important to understand what Republican pessimism about retaining a majority means. We’re talking about them being afraid that they might face unified Democratic government in 2031, the next time redistricting will come around. And not only must they fear this thing that might happen ten years and three statewide elections from now, they must conclude that their best option now would be to curb that future theoretical Democratic hegemony via the creation of an independent redistricting commission. All this happens following a Democratic takeover of the State House, because otherwise Republicans can do what they’ve done before, which is draw whatever districts they want without fear. You see what I mean by exceedingly narrow?

Let’s keep one other thing in mind here. If we do get a Democratic State House, Republicans can still push for whatever maps they want for the SBOE, the State Senate, and the State House. That’s because if the two chambers can’t agree on maps for those three entities, the job gets thrown to the Legislative Redistricting Board, which is the Lite Governor, the Speaker, the AG, the Comptroller, and the Land Commissioner. In other words, a Board on which Republicans would have a 4-1 majority, and thus no trouble passing those Republican maps. The one map that would still be up in the air would be the Congressional map. If there is no map passed legislatively, it gets thrown to a federal court, over which neither side would have any control.

There is room in this scenario for some compromise. Republicans would prefer not to let a court do this work. Democrats would of course like to have some influence in the mapmaking process. You can imagine an agreement to draw maps for all four entities – Congress, SBOE, Senate, House – that leans towards incumbent protection rather than greatly advantaging or disadvantaging one party over the other. If that happens, you could also imagine them including an independent commission as a bonus Grand Bargain, but that seems a bridge too far. But compromise maps that mostly don’t make any incumbents’ lives too difficult, that I can see maybe getting done.

Maybe. The situation I’ve just described here is like what happened in 2001, which was the last time Dems controlled the House. The LRB drew the state maps, which led to the massive GOP takeover in the 2002 election, and a court drew the Congressional map. And then, once Republicans had control of the House, they went back and redid the Congressional map. That was the original, stated motivation when Tom DeLay pushed for re-redistricting in 2003: The Congressional map should be drawn by the legislators, not by a court. Obviously, they wanted a map that was much more favorable to Republicans, but that was the original reason they gave. It seems to me that this is a very plausible outcome in 2021 as well – the Republicans decide to let a court draw the map, which in all likelihood would be quite deferential to incumbents anyway, then take their chances on retaking the House in 2022 and doing a new Congressional map again. Hey, it worked once before, and now they have a more favorable Supreme Court to back them up.

Honestly, this may be the single most likely scenario – the LRB draws the state maps, a court draws the Congressional map, and everything hinges on the 2022 election. Maybe Dems keep the State House. Maybe we manage to elect a Democratic Governor, who could then veto any new Congressional map. Maybe Republicans win and do their thing. Heck, even in the Great Map Compromise scenario, who’s to say that Republicans wouldn’t tear it all up and start over in the event they retake the House and retain the Governor’s Mansion? I’d put money on that before I placed a bet on a redistricting commission. 2031 is a long, long way away. It’s not at all irrational to prioritize the now over what maybe could possibly happen if everything goes wrong.

Texas versus AirBnB update

From last week:

The Texas Comptroller’s office said Tuesday it’s reviewing the inclusion of Airbnb on a list of companies that boycott Israel and are banned from doing business with the state after the company announced a change to its policy for listings in the West Bank.

The home-sharing company said in a statement that it’s reversing a plan announced this November to remove about 200 rental listings from the territory, whose ownership is disputed by Palestinians. The company said it will donate the profits to humanitarian aid groups.

“Airbnb has never boycotted Israel, Israeli businesses, or the more than 20,000 Israeli hosts who are active on the Airbnb platform,” the company said in the statement. “We have always sought to bring people together and will continue to work with our community to achieve this goal.”

The company’s decision to delist the properties had prompted the state last month to blacklist it in keeping with a 2017 law that bans state agencies from contracting with or investing in companies that boycott Israel. The law was touted by Republicans, including Gov. Greg Abbott, as a way to show solidarity with Israel.

See here for the background. As I’ve said before, governments base policy decisions on who they do and don’t want to do business with all the time, so this policy is in and of itself not remarkable. It’s dumb and misguided, but not unusual. It’s also led to some other consequences.

Texas state agencies are beginning to divest nearly $72 million worth of stock in a company said to be boycotting Israel — the first financial move after a year-old law that bars Texas agencies from investing in such companies.

Two major state pension funds — the Employees Retirement System of Texas and Texas Permanent School Fund —own $68 million and about $4 million, respectively, worth of stock in DNB ASA, a Norwegian financial services company, officials said, though the company has denied it boycotts Israel.

[…]

The Comptroller’s office, upon the advice of two contracted consulting groups, identified four companies as having boycotted Israel, though all of them deny that they engage in any punitive ban.

Employees Retirement System spokeswoman Mary Jane Wardlow said the fund began divesting March 1, 2018, when it had about $68 million invested in DNB, and as of early April had divested about half that amount. Divestment should be complete by June, Wardlow said.

The Texas Permanent School Fund did not respond to a request for information on its divestment.

The state has no direct holdings in any of the other three companies on its divestment list, according to notifications to the state obtained by Hearst Newspapers.

Two of the six state agencies affected by the law —Texas County and District Retirement System and Texas Municipal Retirement System — had indirect investments in DNB, records show.

And three of the six state agencies affected by the law — the Employees Retirement System of Texas, Texas Municipal Retirement System and Teacher Retirement System of Texas — had indirect investments in Airbnb. (The only agency to disclose how much, ERS, had about $460,000-worth.)

But the law doesn’t require state governmental entities to divest from indirect holdings. It only requires them to send letters to the managers of the investment fund in question and request that they remove blacklisted companies from the fund or create a similar fund without those companies.

If the manager can’t come up with a fund with “substantially the same management fees and same level of investment risk and anticipated return,” the law requires no further action.

I mean, I don’t think this was a good idea, but if you do, then this is what you signed up for.

House approves budget, and other news

Always a major milestone.

In Dennis Bonnen’s first major test as speaker of the Texas House, the chamber he oversees resoundingly passed a $251 billion budget Wednesday after a long but largely civil debate — a departure from the dramatics that have typically defined such an affair.

Though lawmakers proposed more than 300 amendments to the spending plan, Bonnen, an Angleton Republican, and his chief budget writer, state Rep. John Zerwas, R-Richmond, finished the night with their budget plan largely intact. After 11 hours of relatively cordial discussion, lawmakers agreed to withdraw the vast majority of their amendments or move them to a wish list portion of the budget, where they are highly unlikely to become law.

The budget passed unanimously on the final vote. The legislation, House Bill 1, now heads to the Senate, whose Finance Committee was set to discuss its budget plan Thursday.

“I’m proud of where we are in the bill that we are sending to the Senate,” Zerwas said at the end of the marathon debate. “Each and every one of you should be incredibly proud of the work that you’ve put in here.”

The two-year spending plan’s highlight — a $9 billion boost in state funding for the public education portion of the budget — remained unchanged. Of that, $6 billion would go to school districts, and the remaining $3 billion would pay for property tax relief, contingent on lawmakers passing a school finance reform package.

The budget plan would spend $2 billion from the state’s savings account, commonly known as the rainy day fund, which holds more than $11 billion.

“I’m not here to compare it to previous sessions,” Bonnen told reporters after the House budget vote. “But I’m here to tell you we had a great tone and tenor tonight, and I’m very proud of the business that we did.”

[…]

So while Bonnen’s first budget night as speaker was hardly free of controversy — an argument over the effectiveness of the state’s “Alternatives to Abortion” program, for example, derailed movement on amendments for nearly an hour — the occasional spats paled in comparison with those of years past. There were no discussions at the back microphone of lawmakers’ sexual histories, as happened in 2015, and no one had to physically restrain House members to prevent a fistfight over the fate of a feral hog abatement program, as happened in 2017.

Still, state Rep. Jonathan Stickland, R-Bedford, continued his long-running campaign against the feral hog program. And though the exchange ranked among the evening’s rowdiest, it was more than tame by last session’s standards.

State Rep. Drew Springer, R-Muenster, again opposed Stickland’s amendment to defund the program, which reimburses local initiatives to eradicate wild hogs. Stickland responded, “Members, although I respect the thoughtful words of Rep. Springer … let’s end this program right here, right now.”

Stickland’s amendment failed, with just four votes in favor.

See here for more on last session’s House budget debate. One should never miss an opportunity to illustrate Jonathan Stickland’s failures. The House also approved a supplementary budget for the previous biennium, to cover expenditures that were not previously appropriated, such as the traditional underestimating of Medicaid’s costs and all of the Harvey recovery funding.

Speaking of revenues:

House Republicans muscled a heavily altered version of their property tax reform bill through a committee early Thursday, notching a single Democratic vote and swiftly shooting down attempts to further modify the draft.

A top priority for state leaders, House Bill 2 would require cities, counties and other taxing units to receive voter approval before levying 2.5 percent more property tax revenue than the previous year. A vote was expected to come Wednesday morning on a new draft of the legislation, which contains changes likely to appease small and special taxing units but leave big municipal leaders staunchly opposed.

But the hearing on the new version was postponed until past midnight. The 16-hour delay gave an unusual cluster of critics time to trumpet their concerns with the measure — and then for top House leaders to respond in an informal late-night news conference.

“Sometimes when everyone’s a little bit upset with you, maybe you have a good balance — that’s probably a good sign,” said House Ways and Means Committee Chair Dustin Burrows, the author of the legislation and a Lubbock Republican. “We worked really hard; we talked to a lot of different constituencies” and a lot of members. “I think you’ll see in the committee substitute, the work product and a lot of collaboration.”

As amended, HB 2 now exempts community colleges, emergency service districts and hospital districts from abiding by the 2.5 percent election trigger. Another provision lets certain districts, including cities and counties, bank unused revenue growth, so long as they average below 2.5 percent over five years. And new “revenue enrichment” language could cushion some taxing units by letting them raise $250,000 in new property taxes a year, even if it exceeded the growth rate. The threshold, set at $250,000 for 2020, would be adjusted by the state comptroller annually, based on inflation.

[…]

Currently, voters can petition for an election if property tax revenue growth exceeds 8 percent, a rate set during a period of high inflation in the 1980s. State leaders have touted the lower chamber’s proposal and a Senate companion as an overdue correction and as a needed check on spiraling property tax bills. But critics say the reform efforts would not reduce tax bills, just slow the rate at which they grow — and, in the process, hamper local officials’ ability to provide public services for growing populations.

As you know, I oppose revenue caps, no matter how well intentioned. The reason the Lege ties itself into knots every two years in a vain attempt to limit property tax growth is that a taxing system that so heavily relies on property taxes fundamentally relies on a system that is divorced from people’s ability to afford their taxes. As I muse every two years, if only there were some system of taxation that was proportional to how much money people made in a given year, that would solve so many of these problems. Too bad no such system exists anywhere in the world.

Of course, another way to limit property tax growth for homeowners would be to ensure that everyone is paying their fair share of property taxes.

As state leaders promote their property tax reform package as needed relief for everyday Texans, some Democrats and county appraisers suggest a provision in the tax code has stacked the system in favor of corporations that can appeal their valuations with a combativeness most homeowners can’t muster.

At issue: a 1997 amendment, drafted by a prominent tax attorney, that critics say has allowed business and industry to lower their property tax burden at the expense of other taxpayers. The provision offers all Texans a way to fight their appraisals by arguing they were treated unfairly compared to other properties. But critics say large property owners have capitalized on it to drive down their costs, while residences and small businesses can’t afford to do the same.

“If you have a whole category of property that is nonresidential systematically paying less, well who do you think is paying more?” said Bexar County chief appraiser Michael Amezquita.

Amezquita is one of several officials who say their districts have been inundated by appeals and lawsuits from commercial owners trying to lower their appraisals, which determine what taxes are owed on a property. Supporters of the “equity” provision say it’s a critical tool for all property owners, and that commercial properties aren’t afforded the tax exemptions many home and agricultural land owners receive. Critics counter only well-funded property owners can afford to sue — and when they do, there’s often little an appraisal district can do to fight back.

“The deck is stacked against us,” said Amezquita, who has been sued by a J.W. Marriott resort seeking to have its taxable value reduced. A spokeswoman for the hotel declined comment.

I’ve written about this before. This issue of equity appeals was a cornerstone of Mike Collier’s campaign for Lt. Governor. We’d be having a much broader conversation about fairness and equity in taxation if he had won that race, but he didn’t and so we aren’t. Better luck next time, I guess.

Anyway. The Senate still has to approve its budget, and school finance reform remains a work in progress. There’s a decent amount of harmony now, but plenty of opportunities for tension, drama, and good old fashioned nastiness remain. Which is as it should be.

Texas versus AirBnB

This is one to watch.

Texas is adding short-term-rental site Airbnb to a list of companies that cannot receive state investments because it disallows Israeli-owned rentals in the disputed West Bank.

Airbnb is the only American-based company on Texas’ anti-Israel boycott list, which includes a Norwegian financial services group, a British wholesale co-op and a Norwegian insurance company.

Texas is making it “very clear that our state stands with Israel and its people against those wishing to undermine Israel’s economy and the wellbeing of its people,” said a statement from state Comptroller Glenn Hegar’s office.

In November, Airbnb said it would remove about 200 listings in Israeli settlements in the West Bank. It cited a variety of factors for its decision, including whether listings inside an occupied territory had a direct connection to a larger regional dispute.

“We unequivocally reject and oppose the BDS movement and are disappointed by the decision,” Airbnb said in a statement. “There are over 20,000 Airbnb hosts in Israel who open their doors and showcase the best of Israeli hospitality to guests from around the world.”

In addition to the West Bank, Airbnb also said it has removed listings in the disputed territories of South Ossetia and Abkhazia.

Airbnb has about 20,000 Israeli hosts who’ve welcomed more than 1 million visitors, including 4,700 Texans in 2018, the company said.

Texas’ move was praised by Christians United For Israel, the public policy arm of the nation’s largest pro-Israel organization. It likened the so-called Boycott, Divestment and Sanctions movement, which seeks to “end international support for Israel’s suppression of Palestinians,” to “terrorists” and “hostile nations.”

[…]

Democratic critics of laws cracking down on the Boycott, Divestment and Sanctions movement are increasingly skeptical of Israel’s policies and see such laws as an infringement on free speech. In January, Florida added Airbnb to a list of companies that it defines as boycotting Israel. The same month, a bill to crack down on the BDS movement was blocked by Democrats in the Senate.

The backlash against Airbnb comes as the company is reportedly preparing for an IPO sometime in 2019.

I don’t want to get too deep into the weeds here, so let me sum up: The Lege passed a law in 2017 that created this policy and led to AirBnB’s blacklisting. The push for this has largely come from the Christian far-right fringe, with radical clerics like John Hagee in San Antonio as the main cheerleaders. The author of that bill, Rep. Phil King, has filed another bill that intends to clarify that the law applies to companies and not individuals. One possible reason for that is that there has already been a lawsuit filed, by a speech pathologist in Pflugerville who lost her job with Pflugerville ISD over her support for BDS. The current law is broad enough that it may well be vulnerable to litigation on free speech grounds. AirBnB has 90 days to respond to the Comptroller’s actions, so if a lawsuit is to come of this, it’ll happen after that. Got it? Good.

Our pretty decent revenue estimate

We’ve seen much worse.

At a time when legislators are vowing to spend more money on public schools and slow the growth of Texans’ property tax bills, the state should have enough money at its disposal to do just that.

That is, if its newest predictions hold true.

Texas Comptroller Glenn Hegar on Monday offered a cautiously optimistic outlook for the Texas economy, telling lawmakers they will have about 8.1 percent more state funds available to budget for public programs — primarily schools, highways and health care — in 2020 and 2021. Hegar projected there would be about $119.1 billion in state funds available for the next two-year budget, up from $110.2 in the last two-year budget.

But falling oil prices in the last month, along with heightened uncertainty in the U.S. economy and international financial markets, led Hegar to deliver a “cloudy” forecast with some trepidation.

“We remain cautiously optimistic but recognize we’re unlikely to see continued revenue growth at the unusually strong rates we’ve seen in recent months,” he said.

[…]

Meanwhile, the state’s savings account, known as the rainy day fund, is projected to reach a record high balance of $15 billion. Lawmakers will debate whether to dip into that Economic Stabilization Fund to pay for bills coming due from the last two-year budget period, including Hurricane Harvey recovery, and in the upcoming two-year budget.

Advocates for greater investment in public schools reacted positively to the revenue estimate, saying lawmakers now have no excuse not to increase spending, given a growing budget and unprecedentedly large savings account balance.

“This is good news,” said Eva DeLuna Castro, a state budget analyst at the left-leaning Center for Public Policy Priorities. “This is enough to not cut state services.”

It is good news, but as always it comes with a warning label.

[T]he Republican-controlled Legislature has excelled at finding new ways to squander available funds on everything from inefficient property tax relief, piecemeal school finance fixes and heaps of corporate subsidies and tax cuts. Dan Patrick and the tea party faction are also intent on keeping the overflowing Rainy Day Fund under lock and key, despite the continued urgency of Hurricane Harvey relief. That could be a big wild card — given that Governor Greg Abbott never called a special session after Harvey, the Legislature has yet to allocate any state relief money. Leaders in the affected Gulf Coast region, from Rockport to Port Arthur, are sure to call on legislators to step up.

Of course, the devil will be in the details — GOP lawmakers are experienced at promising to tackle weighty, complicated issues like property tax relief and school finance reform while pushing policy that doesn’t really fix anything, or makes things worse. Abbott is intent on settling the property tax dilemma by handcuffing local governments’ ability to levy property tax increases, all while ignoring the larger problem at hand: the state needs to dedicate a lot more money for schools.

The state school finance system is in desperate need of an overhaul. Texas’ spending per student is around $10,000 a year, about $2,300 below the national average. Funding has remained relatively stagnant over the past decade and the state has plummeted to 36th in the nation in terms of per pupil spending. Meanwhile, as the state’s population has grown rapidly, the Legislature has forced local governments to pick up a larger share of the education tab through property tax revenues (thus fueling the current property tax crisis). In 2008, the state and local funding shares were split evenly, but the state’s contribution has since fallen to its current rate of 38 percent, according to the Center for Public Policy Priorities. Without a fix, that number is projected to fall even further. This has created a perpetual underfunding of the school system and has worsened the inequities between rich and poor districts.

But Hegar’s estimate is a heartening sign for advocates hoping for a substantial injection of state funding for public education — as much as $5 billion, which is what [outgoing Speaker Joe] Straus has said the state can afford. Perhaps an emboldened caucus of House and Senate Democrats, in tandem with Republicans who saw the writing on the wall in November, will be able to succeed in pushing for a more comprehensive solution.

The need is great, but the temptation to splurge on wasteful tax cuts that they call “school finance reform” is greater still. Even if there’s a zombie bathroom bill, that’s going to be the fight of the session. Texas Monthly has more.

Precinct analysis: The two types of statewide candidates

When we look at the precinct data in Harris County, we can separate the statewide candidates into two groups. Here’s the first group:


Dist   Abbott   Valdez   Tipp  Abbott% Valdez%  Trump% Clinton%
===============================================================
CD02  146,399  112,272  4,345   55.66%  43.40%  52.38%   43.05%
CD07  127,414  111,248  4,285   52.45%  46.61%  47.11%   48.47%
CD08   18,751    9,906    390   64.55%  34.57%		
CD09   27,929   90,968  1,450   23.21%  76.51%  17.56%   79.70%
CD10   75,353   37,952  1,530   65.62%  33.50%  63.61%   32.36%
CD18   46,703  135,085  2,924   25.28%  74.31%  19.95%   76.46%
CD22   16,713   14,587    450   52.64%  46.60%		
CD29   35,234   81,191  1,209   29.95%  69.74%  25.46%   71.09%
CD36   64,462   34,237  1,486   64.34%  34.69%		
							
SBOE6 311,568  259,847  9,961   53.59%  45.47%  48.92%   46.59%
							
HD126  31,307   23,705    756   56.14%  43.09%  52.96%   42.99%
HD127  44,013   23,782    918   64.05%  35.08%  61.23%   34.90%
HD128  36,496   15,196    657   69.72%  29.40%  68.17%   28.75%
HD129  38,653   25,449  1,079   59.30%  39.70%  55.33%   40.06%
HD130  53,877   21,741  1,037   70.29%  28.75%  68.08%   27.94%
HD131   7,736   33,845    479   18.39%  81.39%  13.33%   84.31%
HD132  35,033   30,977    924   52.34%  46.93%  50.04%   45.68%
HD133  44,317   26,343  1,278   61.60%  37.28%  54.54%   41.11%
HD134  42,650   45,268  1,967   47.45%  51.49%  39.58%   55.12%
HD135  28,819   26,636    853   51.18%  48.03%  48.91%   46.80%
HD137   8,239   15,723    398   33.82%  65.62%  28.95%   66.96%
HD138  25,204   22,706    839   51.70%  47.39%  47.80%   47.83%
HD139  12,409   34,289    665   26.20%  73.43%  20.60%   76.12%
HD140   6,188   17,271    207   26.15%  73.62%  21.89%   75.07%
HD141   5,126   26,059    327   16.27%  83.56%  12.58%   85.20%
HD142  10,236   29,142    476   25.68%  74.01%  20.97%   76.20%
HD143   8,772   19,764    263   30.46%  69.26%  26.02%   71.03%
HD144   9,806   13,427    255   41.75%  57.79%  38.41%   57.72%
HD145  10,959   21,631    495   33.12%  66.37%  28.73%   66.91%
HD146   9,927   33,073    645   22.74%  76.91%  17.31%   79.44%
HD147  12,239   42,282  1,017   22.04%  77.55%  16.76%   79.00%
HD148  17,912   29,255  1,070   37.13%  62.02%  30.49%   63.83%
HD149  15,348   23,283    513   39.21%  60.27%  32.51%   64.25%
HD150  43,692   26,599    951   61.33%  37.84%  59.18%   36.62%
							
CC1    73,833  212,930  4,401   25.36%  74.25%  19.74%   76.83%
CC2   115,327  111,134  3,044   50.25%  49.07%  46.79%   49.48%
CC3   178,630  151,009  5,301   53.33%  45.81%  48.22%   47.63%
CC4   191,168  152,373  5,323   54.80%  44.35%  51.22%   44.42%


Dist    Hegar   Cheval Sander   Hegar% Cheval%  Trump% Clinton%
===============================================================
CD02  141,744  111,763  7,347   54.34%  42.85%  52.38%   43.05%
CD07  124,558  109,747  6,674   51.69%  45.54%  47.11%   48.47%
CD08   18,139    9,973    744   62.86%  34.56%	
CD09   24,211   92,612  3,102   20.19%  77.22%  17.56%   79.70%
CD10   73,125   38,247  2,784   64.06%  33.50%  63.61%   32.36%
CD18   41,793  136,421  5,291   22.77%  74.34%  19.95%   76.46%
CD22   15,699   14,868    917   49.86%  47.22%		
CD29   31,025   82,379  3,547   26.53%  70.44%  25.46%   71.09%
CD36   61,944   34,609  2,847   62.32%  34.82%		
							
SBOE6 303,287  257,168 16,226   52.59%  44.59%  48.92%   46.59%
		
HD126  30,142   23,892  1,398   54.38%  43.10%  52.96%   42.99%
HD127  42,379   24,118  1,729   62.12%  35.35%  61.23%   34.90%
HD128  35,212   15,517  1,260   67.73%  29.85%  68.17%   28.75%
HD129  36,953   25,598  2,034   57.22%  39.63%  55.33%   40.06%
HD130  52,413   21,902  1,867   68.80%  28.75%  68.08%   27.94%
HD131   6,299   34,617  1,050   15.01%  82.49%  13.33%   84.31%
HD132  33,520   31,387  1,765   50.28%  47.08%  50.04%   45.68%
HD133  43,710   25,739  1,843   61.31%  36.10%  54.54%   41.11%
HD134  43,113   43,043  2,548   48.60%  48.52%  39.58%   55.12%
HD135  27,400   26,976  1,576   48.97%  48.21%  48.91%   46.80%
HD137   7,616   15,855    774   31.41%  65.39%  28.95%   66.96%
HD138  24,206   22,771  1,438   50.00%  47.03%  47.80%   47.83%
HD139  11,085   34,800  1,223   23.53%  73.87%  20.60%   76.12%
HD140   5,335   17,585    638   22.65%  74.65%  21.89%   75.07%
HD141   4,010   26,763    682   12.75%  85.08%  12.58%   85.20%
HD142   8,720   30,011    976   21.96%  75.58%  20.97%   76.20%
HD143   7,578   20,159    879   26.48%  70.45%  26.02%   71.03%
HD144   9,069   13,595    738   38.75%  58.09%  38.41%   57.72%
HD145  10,071   21,588  1,157   30.69%  65.78%  28.73%   66.91%
HD146   8,749   33,458  1,166   20.17%  77.14%  17.31%   79.44%
HD147  11,030   42,308  1,741   20.03%  76.81%  16.76%   79.00%
HD148  17,117   28,580  1,885   35.97%  60.06%  30.49%   63.83%
HD149  14,471   23,550	1,002   37.08%  60.35%  32.51%   64.25%
HD150  42,040   26,807	1,884	59.44%  37.90%  59.18%   36.62%
							
CC1    66,298  215,259  7,805   22.91%  74.39%  19.74%   76.83%
CC2   108,715  112,237  6,847   47.72%  49.27%  46.79%   49.48%
CC3   173,303  150,515  8,863   52.09%  45.24%  48.22%   47.63%
CC4   183,922  152,608  9,738   53.12%  44.07%  51.22%   44.42%

Dist     Bush    Suazo   Pina    Bush%  Suazo%  Trump% Clinton%
==============================================================
CD02  139,352  114,931  7,003   53.33%  43.99%  52.38%   43.05%
CD07  121,500  114,267  5,747   50.31%  47.31%  47.11%   48.47%
CD08   17,965   10,096    794   62.26%  34.99%		
CD09   24,634   93,291  1,961   20.55%  77.82%  17.56%   79.70%
CD10   72,059   39,108  3,029   63.10%  34.25%  63.61%   32.36%
CD18   42,340  137,629  3,572   23.07%  74.99%  19.95%   76.46%
CD22   15,614   15,120    804   49.51%  47.94%		
CD29   32,067   83,045  1,983   27.39%  70.92%  25.46%   71.09%
CD36   61,471   35,448  2,621   61.76%  35.61%		
							
SBOE6 297,321  265,718 14,551   51.48%  46.00%  48.92%   46.59%
							
HD126  29,781   24,312  1,386   53.68%  43.82%  52.96%   42.99%
HD127  41,767   24,635  1,922   61.13%  36.06%  61.23%   34.90%
HD128  35,019   15,710  1,327   67.27%  30.18%  68.17%   28.75%
HD129  36,480   26,417  1,800   56.39%  40.83%  55.33%   40.06%
HD130  51,579   22,543  2,081   67.69%  29.58%  68.08%   27.94%
HD131   6,567   34,764    600   15.66%  82.91%  13.33%   84.31%
HD132  33,218   31,761  1,697   49.82%  47.63%  50.04%   45.68%
HD133  42,447   27,278  1,761   59.38%  38.16%  54.54%   41.11%
HD134  41,172   45,935  1,991   46.21%  51.56%  39.58%   55.12%
HD135  27,294   27,394  1,327   48.73%  48.90%  48.91%   46.80%
HD137   7,570   16,080    586   31.23%  66.35%  28.95%   66.96%
HD138  23,878   23,298  1,236   49.32%  48.12%  47.80%   47.83%
HD139  11,284   35,000    805   23.96%  74.33%  20.60%   76.12%
HD140   5,582   17,665    333   23.67%  74.92%  21.89%   75.07%
HD141   4,200   26,800    425   13.37%  85.28%  12.58%   85.20%
HD142   9,075   29,961    663   22.86%  75.47%  20.97%   76.20%
HD143   7,907   20,265    472   27.60%  70.75%  26.02%   71.03%
HD144   9,202   13,759    454   39.30%  58.76%  38.41%   57.72%
HD145  10,172   21,989    737   30.92%  66.84%  28.73%   66.91%
HD146   8,700   33,902    789   20.05%  78.13%  17.31%   79.44%
HD147  11,071   42,903  1,162   20.08%  77.81%  16.76%   79.00%
HD148  16,967   29,451  1,362   35.51%  61.64%  30.49%   63.83%
HD149  14,405   23,854    753   36.92%  61.15%  32.51%   64.25%
HD150  41,665   27,259  1,845   58.87%  38.52%  59.18%   36.62%
							
CC1    66,399  217,832  5,280   22.93%  75.24%  19.74%   76.83%
CC2   108,715  114,022  5,408   47.65%  49.98%  46.79%   49.48%
CC3   170,023  155,106  7,985   51.04%  46.56%  48.22%   47.63%
CC4   181,865  155,975  8,841   52.46%  44.99%  51.22%   44.42%

Dist    Cradd  McAllen Wright   Cradd% McAlln%  Trump% Clinton%
===============================================================
CD02  142,254  112,407  5,821   54.61%	43.15%  52.38%   43.05%
CD07  124,873  110,377  5,224   51.93%	45.90%  47.11%   48.47%
CD08   18,184   10,028    604   63.10%	34.80%		
CD09   24,262   93,623  1,880   20.26%	78.17%  17.56%   79.70%
CD10   72,996   38,698  2,336   64.01%	33.94%	63.61%   32.36%
CD18   42,236  137,094  3,852   23.06%	74.84%  19.95%   76.46%
CD22   15,798   14,978    685   50.21%	47.61%		
CD29   31,169   83,638  2,009   26.68%	71.60%  25.46%   71.09%
CD36   62,167   35,017  2,135   62.59%	35.26%		
							
SBOE6 304,098  258,654 12,833   52.83%  44.94%  48.92%   46.59%
							
HD126  30,251   24,086  1,030   54.64%  43.50%  52.96%   42.99%
HD127  42,508   24,260  1,399   62.36%  35.59%  61.23%   34.90%
HD128  35,341   15,690    935   68.01%  30.19%  68.17%   28.75%
HD129  37,121   25,810  1,593   57.53%  40.00%  55.33%   40.06%
HD130  52,323   22,196  1,573   68.76%  29.17%  68.08%   27.94%
HD131   6,309   34,963    620   15.06%  83.46%  13.33%   84.31%
HD132  33,485   31,713  1,390   50.29%  47.63%  50.04%   45.68%
HD133  43,854   25,773  1,499   61.66%  36.24%  54.54%   41.11%
HD134  43,326   42,975  2,125   49.00%  48.60%  39.58%   55.12%
HD135  27,450   27,296  1,167   49.09%  48.82%  48.91%   46.80%
HD137   7,649   16,001    542   31.62%  66.14%  28.95%   66.96%
HD138  24,239   22,956  1,126   50.16%  47.51%  47.80%   47.83%
HD139  11,169   35,002    865   23.75%  74.42%  20.60%   76.12%
HD140   5,367   17,822    347   22.80%  75.72%  21.89%   75.07%
HD141   4,009   27,021    417   12.75%  85.93%  12.58%   85.20%
HD142   8,785   30,256    626   22.15%  76.27%  20.97%   76.20%
HD143   7,582   20,499    483   26.54%  71.77%  26.02%   71.03%
HD144   9,100   13,835    444   38.92%  59.18%  38.41%   57.72%
HD145  10,152   21,880    733   30.98%  66.78%  28.73%   66.91%
HD146   8,760   33,730    801   20.24%  77.91%  17.31%   79.44%
HD147  11,235   42,469  1,283   20.43%  77.23%  16.76%   79.00%
HD148  17,266   28,762  1,437   36.38%  60.60%  30.49%   63.83%
HD149  14,470   23,827    675   37.13%  61.14%  32.51%   64.25%
HD150  42,188   27,038  1,436   59.70%  38.26%  59.18%   36.62%
							
CC1    66,771  216,622  5,478   23.11%  74.99%  19.74%   76.83%
CC2   109,186  113,684  4,717   47.98%  49.95%  46.79%   49.48%
CC3   173,478  151,759  6,871   52.24%  45.70%  48.22%   47.63%
CC4   184,504  153,795  7,480   53.36%  44.48%  51.22%   44.42%

These candidates, all of whom won by at least ten points statewide, carried CD07 and SBOE6, carried or narrowly lost HDs 132, 135, and 138, and did as well as Trump or better pretty much everywhere. Unlike Ted Cruz, these candidates held the base Republican vote and won back the Gary Johnson and Evan McMullen Republicans. These were the Republicans who had the least amount of controversy dogging them, the ones who for the most part could claim to be about doing their jobs and not licking Donald Trump’s boots. Yes, George P. Bush had Alamo issues, and Harvey recovery money issues (as did Greg Abbott to a lesser extent), but they weren’t enough to dent him. The most notable result in here is Abbott losing HD134. I’m guessing Sarah Davis will not be fearing another primary challenge in 2020.

And then there’s the other group:


Dist  Patrick  Collier McKenn Patrick%   Coll%  Trump% Clinton%
===============================================================
CD02  134,530  123,364  4,744   51.22%  47.84%  52.38%   43.05%
CD07  113,520  124,555  4,659   46.77%  52.32%  47.11%   48.47%
CD08   17,737   10,768    482   61.19%  37.78%		
CD09   24,176   94,548  1,535   20.10%  79.64%  17.56%   79.70%
CD10   70,715   42,023  1,959   61.65%  37.27%  63.61%   32.36%
CD18   39,805  141,631  3,053   21.58%  78.06%  19.95%   76.46%
CD22   15,438   15,694    554   48.72%  50.41%		
CD29   31,998   83,846  1,559   27.25%  72.38%  25.46%   71.09%
CD36   60,359   37,854  1,812   60.34%  38.54%		
							
SBOE6 282,567  287,230 10,933   48.66%  50.41%  48.92%   46.59%
							
HD126  29,104   25,673    917   52.26%  46.87%  52.96%   42.99%
HD127  41,357   26,160  1,106   60.27%  38.75%  61.23%   34.90%
HD128  34,655   16,787    832   66.29%  32.63%  68.17%   28.75%
HD129  35,547   28,216  1,308   54.63%  44.25%  55.33%   40.06%
HD130  50,658   24,612  1,309   66.15%  32.70%  68.08%   27.94%
HD131   6,413   35,123    485   15.26%  84.56%  13.33%   84.31%
HD132  32,599   33,062  1,174   48.78%  50.35%  50.04%   45.68%
HD133  39,252   31,191  1,400   54.64%  44.28%  54.54%   41.11%
HD134  36,006   52,016  1,881   40.05%  59.09%  39.58%   55.12%
HD135  26,706   28,541    976   47.50%  51.66%  48.91%   46.80%
HD137   7,279   16,593    460   29.92%  69.51%  28.95%   66.96%
HD138  23,146   24,601    914   47.57%  51.52%  47.80%   47.83%
HD139  10,774   35,909    643   22.77%  76.92%  20.60%   76.12%
HD140   5,635   17,734    267   23.84%  75.89%  21.89%   75.07%
HD141   4,259   26,894    339   13.52%  86.33%  12.58%   85.20%
HD142   8,914   30,427    475   22.39%  77.34%  20.97%   76.20%
HD143   7,979   20,410    356   27.76%  71.89%  26.02%   71.03%
HD144   9,204   13,892    340   39.27%  60.15%  38.41%   57.72%
HD145   9,874   22,500    624   29.92%  69.50%  28.73%   66.91%
HD146   8,240   34,720    661   18.89%  80.82%  17.31%   79.44%
HD147  10,055   44,357  1,005   18.14%  81.52%  16.76%   79.00%
HD148  15,427   31,591  1,139   32.03%  67.19%  30.49%   63.83%
HD149  14,187   24,362    560   36.28%  63.20%  32.51%   64.25%
HD150  41,008   28,912  1,186   57.67%  41.35%  59.18%   36.62%
							
CC1    62,356  224,149  4,325   21.44%  78.24%  19.74%   76.83%
CC2   107,321  117,954  3,820   46.85%  52.36%  46.79%   49.48%
CC3   162,085  166,470  6,044   48.44%  50.67%  48.22%   47.63%
CC4   176,516  165,710  6,168   50.67%  48.42%  51.22%   44.42%


Dist   Paxton   Nelson Harris  Paxton% Nelson%  Trump% Clinton%
===============================================================
CD02  131,374  125,193  5,584   50.11%  47.76%  52.38%   43.05%
CD07  110,526  126,567  5,145   45.63%  52.25%  47.11%   48.47%
CD08   17,461   10,905    580   60.32%  37.67%		
CD09   22,756   95,621  1,776   18.94%  79.58%  17.56%   79.70%
CD10   69,879   42,292  2,315   61.04%  36.94%  63.61%   32.36%
CD18   37,644  143,124  3,522   20.43%  77.66%  19.95%   76.46%
CD22   14,945   16,014    661   47.26%  50.65%		
CD29   30,107   85,124  2,006   25.68%  72.61%  25.46%   71.09%
CD36   59,422   38,390  2,064   59.50%  38.44%		
							
SBOE6 276,028  291,144 12,389   47.63%  50.24%  48.92%   46.59%
							
HD126  28,595   25,962  1,059   51.42%  46.68%  52.96%   42.99%
HD127  40,368   26,724  1,388   58.95%  39.02%  61.23%   34.90%
HD128  34,331   16,926    953   65.76%  32.42%  68.17%   28.75%
HD129  34,659   28,775  1,503   53.37%  44.31%  55.33%   40.06%
HD130  50,144   24,667  1,597   65.63%  32.28%  68.08%   27.94%
HD131   5,962   35,453    594   14.19%  84.39%  13.33%   84.31%
HD132  31,919   33,536  1,333   47.79%  50.21%  50.04%   45.68%
HD133  38,500   31,627  1,519   53.74%  44.14%  54.54%   41.11%
HD134  34,670   53,010  1,988   38.66%  59.12%  39.58%   55.12%
HD135  26,040   28,961  1,137   46.39%  51.59%  48.91%   46.80%
HD137   6,947   16,823    508   28.61%  69.29%  28.95%   66.96%
HD138  22,512   24,996  1,056   46.36%  51.47%  47.80%   47.83%
HD139  10,181   36,255    806   21.55%  76.74%  20.60%   76.12%
HD140   5,278   17,999    326   22.36%  76.26%  21.89%   75.07%
HD141   3,945   27,091    461   12.53%  86.01%  12.58%   85.20%
HD142   8,433   30,706    636   21.20%  77.20%  20.97%   76.20%
HD143   7,497   20,734    470   26.12%  72.24%  26.02%   71.03%
HD144   8,863   14,133    440   37.82%  60.30%  38.41%   57.72%
HD145   9,363   22,898    704   28.40%  69.46%  28.73%   66.91%
HD146   7,745   35,131    702   17.77%  80.62%  17.31%   79.44%
HD147   9,489   44,762  1,125   17.14%  80.83%  16.76%   79.00%
HD148  14,665   32,054  1,298   30.54%  66.76%  30.49%   63.83%
HD149  13,639   24,788    628   34.92%  63.47%  32.51%   64.25%
HD150  40,369   29,219  1,422   56.85%  41.15%  59.18%   36.62%
							
CC1    59,111  226,367  5,082   20.34%  77.91%  19.74%   76.83%
CC2   104,324  119,859  4,573   45.60%  52.40%  46.79%   49.48%
CC3   158,349  168,865  6,731   47.42%  50.57%  48.22%   47.63%
CC4   172,330  168,139  7,267   49.56%  48.35%  51.22%   44.42%


Dist   Miller    Olson   Carp  Miller%  Olson%  Trump% Clinton%
===============================================================
CD02  133,022  122,897  4,709   51.04%  47.15%  52.38%   43.05%
CD07  112,853  123,473  4,148   46.93%  51.35%  47.11%   48.47%
CD08   17,596   10,756    460   61.07%  37.33%		
CD09   22,400   95,979  1,478   18.69%  80.08%  17.56%   79.70%
CD10   70,489   41,589  1,954   61.82%  36.47%  63.61%   32.36%
CD18   37,934  142,586  2,937   20.68%  77.72%  19.95%   76.46%
CD22   14,922   16,056    539   47.35%  50.94%		
CD29   29,391   85,809  1,720   25.14%  73.39%  25.46%   71.09%
CD36   59,684   38,022  1,678   60.05%  38.26%		
							
SBOE6 280,395  285,147 10,318   48.69%  49.52%  48.92%   46.59%
							
HD126  28,820   25,649    901   52.05%  46.32%  52.96%   42.99%
HD127  40,782   26,205  1,164   59.84%  38.45%  61.23%   34.90%
HD128  34,432   16,815    751   66.22%  32.34%  68.17%   28.75%
HD129  34,853   28,512  1,234   53.95%  44.14%  55.33%   40.06%
HD130  50,592   24,186  1,322   66.48%  31.78%  68.08%   27.94%
HD131   5,817   35,639    466   13.88%  85.01%  13.33%   84.31%
HD132  32,187   33,275  1,119   48.34%  49.98%  50.04%   45.68%
HD133  39,476   30,381  1,235   55.53%  42.73%  54.54%   41.11%
HD134  36,062   50,855  1,612   40.73%  57.44%  39.58%	 55.12%
HD135  26,173   28,770    954   46.82%  51.47%  48.91%   46.80%
HD137   7,027   16,723    444   29.04%  69.12%  28.95%   66.96%
HD138  22,745   24,700    896   47.05%  51.10%  47.80%   47.83%
HD139  10,210   36,245    632   21.68%  76.97%  20.60%   76.12%
HD140   5,137   18,147    295   21.79%  76.96%  21.89%   75.07%
HD141   3,844   27,252    347   12.23%  86.67%  12.58%   85.20%
HD142   8,357   30,855    466   21.06%  77.76%  20.97%   76.20%
HD143   7,196   20,967    432   25.17%  73.32%  26.02%   71.03%
HD144   8,757   14,258    391   37.41%  60.92%  38.41%   57.72%
HD145   9,296   22,924    597   28.33%  69.85%  28.73%   66.91%
HD146   7,705   35,073    583   17.77%  80.89%  17.31%   79.44%
HD147   9,614   44,494    987   17.45%  80.76%  16.76%   79.00%
HD148  14,974   31,507  1,108   31.47%  66.21%  30.49%   63.83%
HD149  13,659   24,763    558   35.04%  63.53%  32.51%   64.25%
HD150  40,576   28,972  1,129   57.41%  40.99%  59.18%   36.62%
							
CC1    59,268  225,889  4,130   20.49%  78.08%  19.74%   76.83%
CC2   104,218  119,731  3,843   45.75%  52.56%  46.79%   49.48%
CC3   160,755  165,766  5,607   48.40%  49.91%  48.22%   47.63%
CC4   174,050  165,781  6,043   50.32%  47.93%  51.22%   44.42%

Basically, these three are the exact opposite of the first group: Controversy, Trump-humping, ineffectiveness at what they’re supposed to be doing for the state, and underperformance relative to 2016. Not only did they all lose CD07, they lost SBOE6 and all three competitive State Rep districts. I mean, Justin Nelson won HD134 by over 20 points; Mike Collier just missed that mark. Except in the strongest Democratic districts, they all failed to achieve Trump’s numbers. (This suggests the possibility that Dem performance in 2018, as good as it was, could have been even better, and that there remains room to grow in 2020.) This is the degradation of the Republican brand in a nutshell. This isn’t just strong Democratic performance. It’s people who used to vote Republican not voting for these Republicans. Seems to me there’s a lesson to be learned here. What do you think are the odds it will be heeded?

New frontiers in strip club tax collections

A new-ish development in a decade-long battle.

Glenn Hegar

Dozens of “bikini bars” from Houston to San Antonio are suing the state after the Texas Comptroller accused them of skirting the so-called pole tax on nude entertainment and slapped them with seven-figure fees, according to the lawsuits.

The fight focuses on the state definition of nude, which includes any part of the buttocks or a woman’s breast below the top of the areola.

And in federal court, the clubs are questioning why they are taxed for bikini-clad performers, but not concert halls or sports venues that host cheerleaders and musicians wearing thongs or cleavage-baring tops.

“If they aren’t doing it to them, they shouldn’t be able to do it to a topless club or a bikini bar,” said attorney Casey Wallace, who is representing the Texas Entertainment Association, which brought the federal lawsuit in 2017.

The Comptroller’s office said it follows the law and determines which clubs should be taxed by looking at their social media posts and marketing. The office also sends inspectors inside to see what dancers are wearing.

“The agency is just trying to apply this in a common sense way,” said Ray Langenberg, Special Counsel for Tax Litigation for the Texas Comptroller of Public Accounts. “If they are called topless clubs, the claim they are not wears a little thin.”

The fees are being contested in a state appeals process by 34 clubs across Texas, including a dozen in the Houston area. At least 27 more clubs have filed lawsuits, including 14 clubs based in Houston, according to the Comptroller’s Office.

The lawsuits referenced in this story were filed last year; I’m not really sure why this is a story now, though perhaps there’s a court date about to happen. Be that as it may, it was back in 2014 that the State Supreme Court upheld the $5-per-customer fee, for which the original bill was passed in 2007. I’m not qualified to parse the legalities of what constitutes “nudity” in this context, but I do think that trying to apply it retroactively for a decade’s worth of collections is excessive. I mean, when the state reached a deal with Amazon in 2012 to start collecting sales taxes, part of the deal was that the state would quit trying to collect back taxes. Why does Amazon deserve a better deal than bikini bars? Assuming that the Comptroller is properly interpreting the law in the first place, which is not a sure thing, surely there would be room for a compromise.

SCOTUS and sales taxes

This ruling will be good for Texas.

Texas stands to gain hundreds of millions of dollars in tax revenue after the U.S. Supreme Court on Thursday ruled that states may force online retailers to collect sales tax even when they have no physical presence in the state.

Every year, Texas loses $1.1 billion in uncollected sales tax, according to the Texas comptroller’s office — well over the $800 million the state will spend securing its southern border this year and next. That’s the result of the high court’s 1992 decision, now reversed, that retailers are responsible for collecting sales tax only in states where they had “nexus.” That decision — which predated the astronomical rise of the internet and the subsequent boom in online shopping — was outdated, argued lawyers for the state of South Dakota, who won the case this week.

That lost tax revenue is particularly meaningful in Texas, one of just a handful of states without a personal income tax. This May, for example, the state’s sales tax revenue totaled $2.76 billion.

[…]

Customers themselves owe sales tax on their purchases, but it’s sellers who are required to collect that money and send it to the government. States have little mechanism — and little incentive — to chase down sales tax on small-ticket purchases from average consumers when the retailers don’t do it themselves. Some of Texas’ largest online retailers — Amazon, for example — already remit sales tax to the state. Amazon has almost a dozen distribution centers in the state.

Texas is highly unlikely to gain back all of the $1.1 billion it’s currently losing, experts said, and any money the state gets back won’t come overnight. While the Texas comptroller has a great deal of taxing authority, some changes to the state’s tax structure might have to be carried out by the Legislature when it reconvenes in 2019, said Dale Craymer, the president of the Texas Taxpayers and Research Association. The Comptroller’s office is looking into that, a spokesman said.

“We welcome the court’s ruling in this case and are currently assessing any potential revenue impacts,” said Kevin Lyons, a spokesman for the agency.

I have long believed that the sales tax exemption for online purchases outlived its purpose years ago. This is not just for states like Texas but also for local governments that rely on sales tax revenue, and for traditional retailers who are no longer at an automatic disadvantage. Sales tax rates vary by locality, and not all items are subject to sales taxes, so this will be a challenge to set up, but that’s not our problem. Online retailers will figure it out, and life will go on. This was the right decision.