Friday, December 15, 2006

Tax-limit gimmicks

Waco Tribune-Herald | Editorial:
“The Texas Legislature seems ever-intent on shoving unfunded mandates down local governments' throats. At the same time, Gov. Rick Perry seems ever-intent on putting the clamps on the revenue they need to do what the state orders.”
Ed Cognoski responds:

This editorial is too long to quote in its entirety, but there's much in it worthy of repeating.

It gives credit to the so-called Task Force on Appraisal Reform (TFAR) for avoiding the most odious suggestions that have been discussed, such as appraisal caps. And the task force apparently will call on state government to help fund mandates.

It correctly points out that taxpayers already have means to rollback excessive property tax rates, either through rollback petitions or by simply voting big spenders out of office.

It highlights the risk of saddling local governments with unfunded mandates while simultaneously capping revenues. It points to Colorado's troubles with that state's so-called Taxpayer Bill of Rights (TABOR) law, which was strangling cities, counties and school districts.

Finally, it puts its finger on what Texas really needs — a means of telling meddlers in Austin to back away and figure out ways to pay for what they demand.

"Unfunded mandates by the state government are driving up the cost of local government," said Rep. Fred Hill, chairman of the Texas House's Local Government Ways and Means Committee, as reported by the Austin American-Statesman. The Texas legislature can better address growth in property tax bills by controlling itself and curtailing unfunded mandates than by lowering the amount by which the taxable value of a home can grow or the amount by which local government tax revenues can grow.

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