City, county groups accused of 'drowning out' taxpayers' calls for capping rates


By R.G. RATCLIFFE
Copyright 2005 Houston Chronicle   April 21, 2005, 1:14AM   

AUSTIN - Advocates for lower taxes say it is outrageous that associations representing cities and     
counties are paying lobbyists to fight legislation that would limit how much money local governments can
raise from property taxes.
The four biggest groups in the fight are the Texas Municipal League, the
Texas Association of Counties, the Texas Conference of Urban
Counties and the Texas County Judges and Commissioners
Association.

These groups are spending as much as $1.3 million on lobbying efforts this
session.

So far, they have killed legislation to lower the cap on property appraisals.
And they have strenuously fought against a measure to limit the growth of
local government revenues from property taxes, saying it would cripple
local government operations. That bill is up for House debate today.

"There is a worrisome conclusion that these groups are drowning out a
citizens lobby in these types of firefights," said Harris County Tax
Assessor/Collector Paul Bettencourt, referring to the local government
associations as a "spending lobby."

But association executives say they represent locally elected officials who
are fighting legislation that is bad public policy. They said it would cripple
local governments as they deal with rising health care and fuel costs, rapid
growth in some areas, declining population in other areas and a host of
unfunded state and federal spending mandates.

"It completely takes away local control from a representative democracy," said Elna Christopher, of the Texas
Association of Counties.

The House last week killed a proposed constitutional amendment to lower the cap on annual property-appraisal
growth from 10 percent to 5 percent.

But a bill by state Rep. Carl Isett, R-Lubbock, to limit revenue growth for local governments was sent back to
committee on a technicality. It comes back before the House today.

Currently, a local government's tax rate is subject to a rollback election if it grows by more than 8 percent. Isett's
legislation, House Bill 1006, would lower that to 3 percent.

In his original bill, a local election on the tax rate would be automatic if growth exceeded 3 percent, but the House
added an amendment requiring a petition drive to trigger an election.

Peggy Venable, state director of Americans for Prosperity, said taxpayers should be upset that associations
representing local governments are working against legislation to slow the growth of property taxes.

"I didn't elect TML. I didn't elect TAC. Frankly, most taxpayers don't have a clue what they (the groups are) or
what they do," Venable said.

"When there is legislation that is truly taxpayer-friendly, that gives us the opportunity to put our foot on the brake to
slow down or stop increases in local spending — that is what they are opposing," she said. "That truly is our tax
dollars at work."

Frank Sturzl, executive director of the Texas Municipal League, of which most cities are members, said no tax
dollars are used for lobbying. He said all the money for lobbying comes from fees the league charges vendors at
conferences and from associate member dues.

Associate members, Sturzl said, mostly are private companies that do business with city governments, including law
firms that collect delinquent property taxes. Sturzl said none of the associate members has a say in setting TML
policy.

"She (Venable) may be right. In every one of those (TML) cities there are some citizens for 1006, but I'm not sure
they'd be for it if they knew everything we know about 1006," Sturzl said.

Sturzl said it is hard enough for cities to keep up with inflation, population growth and unfunded mandates. He said
the cost of health insurance for municipal employees can outstrip a capped revenue growth.

Christopher said the Association of Counties also does not use tax dollars to pay for lobbying. She said the money
comes from revenues from insurance pools the association manages for the counties and from associate
memberships such as those at TML. Christopher said associate members do not set association policy.

Don Lee, head of the Texas Conference of Urban Counties, said member fees are used to pay his salary as he
lobbies the Legislature against the bill. Harris County is a member.

Lee said local governments may oppose the low-tax proponents on House Bill 1006, but he said he also is fighting
other legislation that would pass additional unfunded mandates along to local taxpayers.

"Peggy Venable wants us to work to keep property taxes down, which is what we do all the time, bill after bill,"
Lee said. "She wants our county governments to be there keeping those mandates down."

Venable said she does not want local tax dollars to be spent lobbying the Legislature.

"These are entities that are funded at least in part by tax dollars," Venable said.

"They very clearly have a very aggressive lobbying agenda, and whether I agree with it or not, I don't think they
should be using tax dollars to promote that agenda."

r.g.ratcliffe@chron.com

Back to News

Lobby payments by local
government associations.*
Each has spent a portion on
fighting limitations on property-
tax revenue. • Texas Municipal
League: $545,000 to $985,000
• Texas Association of
Counties: $100,000 to
$160,000
• Texas Conference of Urban
Counties: $25,000 to $50,000
• County Judges and
Commissioners Association of
Texas: $100,000 to $150,000

* Payments listed by ranges
only Source: Texas Ethics
Commission
     RESOURCES