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Tue, Dec 02 2008 

Published May 11, 2006 08:55 am -

Clock ticking as lawmakers struggle with tax overhaul


Associated Press

AUSTIN (AP) — With just six days left in the special session, lawmakers approved a piece of legislation Wednesday that is key to their attempt to revamp the state’s public school finance system.

The measure uses state surplus money to buy down property taxes and also includes some key education reform measures, such as a $2,000 teacher pay raise.

Senators struggled for much of the day, with debate centering on how much property tax money wealthy school districts will have to share in a new system. It’s a touchy issue that Gov. Rick Perry had hoped to avoid as the Legislature tries to answer the Texas Supreme Court ruling that declared the current funding system unconstitutional. Lawmakers have until June 1 to devise a new plan, but the current 30-day special session ends Tuesday.

The House has already approved a version of the measure, but must still agree to the Senate changes before it can become law with the governor’s signature.

The Senate spent most of Wednesday stumped on part of a measure that would use some of the state’s surplus to replace school property taxes.

After a series of closed-door meetings, senators met publicly late Wednesday afternoon and began to consider a compromise on the wealth-sharing disagreement. The compromise raises the amount of money poor districts are guaranteed from the state and lets wealthy districts keep more of their property tax money.

Senators approved the measure unanimously.

The compromise caps a contentious debate that peaked last week when six senators walked out of a hearing in protest, and the bill’s sponsor, Sen. Florence Shapiro, vowed to block the legislation from being considered.

“This has not been the easiest task we’ve ever accomplished, but we accomplished it,” Shapiro said Wednesday as she brought the compromise to the chamber for consideration.

Lt. Gov. David Dewhurst, who presides over the Senate, said the chamber had to pass the bill on Wednesday to leave enough time for a conference committee to work out the differences between the versions approved by each chamber.

The legislation includes several school reform measures, such as the $2,000 teacher pay raise and a new $275 allotment specifically for high school students. The money would be intended to decrease dropout rates and prepare students for college.

The Senate also approved a $1-per-pack increase in the cigarette tax. The increase will be phased in over the next two years and 5 percent of the revenue would go to smoking prevention programs.

And the House sent to a conference committee a bill that would dedicate most of the revenue generated from a new tax system to property tax cuts. The committee to work out differences between its version and one passed by the Senate.

Perry’s re-election bid this year could rest on the outcome of this special session, though he could call another one. He has spent months working to round up support for a new business tax proposal.

“I think it looks great,” House Speaker Tom Craddick said late Wednesday after the Senate’s action.



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