Senator Rodríguez votes against prioritizing tax breaks for the few over funding for schools

AUSTIN – Today, the Texas Senate passed Senate Joint Resolution 1 and Senate Bills 1, 7 and 8. Taken together, these bills give limited tax breaks for the few while reducing the available funding for public education by $4.6 billion over the next two years.

“I could not in good conscience vote for these bills that prioritize tax cuts for only some Texans while the Legislature hasn’t fully restored funding for our schools to pre-201l levels, despite the fact that we have record-breaking amounts banked in the Rainy Day Fund, ” said Senator José Rodríguez. “We must invest in our future. Adequately funding public and higher education to ensure a strong workforce is the responsible way to maintain a thriving Texas economy for generations to come.”

Information on the bills:

• S.B. 1 increases the homestead exemption for school district taxes from $15,000 to 25 percent of Texas home median market value. While it holds schools harmless, which means the lost revenue will be replaced, it does not add any new revenue to school districts. This means revenue that might have been available for schools now goes to pay for property tax breaks, the largest of which will go to owners of high-value homes. Renters, and those with lower-valued homes, will benefit little, if at all.

• S.B. 7 lowers the franchise tax rate by 15 percent. This tax break will cost the state $1.7 billion over the next two years; this is funding that could have gone to schools.

• S.B. 8 affects which businesses must pay the franchise tax. Currently, businesses with gross receipts of less than $1 million are exempt. S.B. 8 exempts businesses with less than $4 million in gross receipts from paying the franchise tax. This bill will cost the state an estimated $760 million over the next two years.

“Taken together, these bills represent misplaced priorities. We have missed yet another opportunity to show that the Legislature understand and values education by prioritizing funding public education, especially in light of pending school finance lawsuits,” Rodríguez said.

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José Rodríguez represents Texas Senate District 29, which includes the counties of El Paso, Hudspeth, Culberson, Jeff Davis, and Presidio. He represents both urban and rural constituencies, and more than 350 miles of the Texas-Mexico border. Senator Rodríguez currently serves as the Chairman of the Senate Hispanic Caucus, and is a member of the Senate Committees on Education; Health and Human Services; Veteran Affairs and Military Installations; Nominations; and Agriculture, Water, and Rural Affairs. 

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