Precinct 355 - Austin South Democratic Activists

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posted by M. H. Doyle @ 5:08 AM 0 comments

Perry's Plan Unveiled

The first special session of the 79th Texas Legislature was called to order Tuesday.

Lawmakers have just one goal: pass a funding plan for Texas public school.

"Here's the plan. Pass it. Pass it!" Gov. Rick Perry said. "It addresses the issues this legislature left unfinished."

Perry used the line-item veto to stop funding for Texas schools, leaving some to worry there would not be enough money to start the school year without an education bill. State leaders clarified Tuesday there will be money to start the school year even if the special session fails to produce a finance plan.

The plan would cut the local property tax rate to $1.20 for every $100 appraisal on apiece of property, currently many school districts' rates are $1.50 or higher.
"Increasing the state share of education funding will alleviate the burden on local property tax payers," Perry said.

Perry's plan makes up for lost property tax revenue with increased sales and cigarette taxes: cigarettes would cost an extra $1 and the state sales tax would increase from 6.25 percent to nearly 7 percent.

"It expands that tax to elective cosmetic surgery as well as car maintenance and repairs," Perry said.

While Perry talks taxes, Democratic House leaders say the focus should be elsewhere.

"One of the biggest problems remains and that is that is improving education is not the governor's priority," Rep. Jim Dunnam, D-Waco said.

Perry's proposed sales and business taxes only pay for the property tax cut.

"In fact, it looks like it doesn't make up for the cuts in the last session," Dunnam said.

The governor says he does plan on adding about $5 billion to schools part of that money goes towards an average teacher pay raise of $1,500 though it's unclear how that pay raise would be allocated.

Earlier in the day, Lt. Gov. David Dewhurst expressed concerns about the governor's proposed sales tax hike.

House Speaker Tom Craddick said he's not crazy about the Perry's planned homestead exemption which would give homeowners extra property tax relief.

"The homestead exemption doesn't help across the board. It helps in residential areas only," Craddick said.

Lawmakers have the next 30 days to come up with a school finance solution they can all agree on.

posted by M. H. Doyle @ 3:53 AM 0 comments