• What is the purpose of a pension stabilization account?  it will work like a reserve account to shield a pension from low city contribution years
• How does a reserve account like a pension stabilization work? The city will create a fund equal to 8% of the average of the last 3 years of city contributions to the pension
• Where is this happening? San Diego
• What did the city’s independent budget analyst think? the reserve account is fiscally prudent

Fox 5 | City to consider pension stabilization measures

Nebraska’s LB 862 gives a blanket exemption from gaming prohibitions to fantasy sports. 

Pretty clean and tidy. There’s a definition of fantasy sports too, also very brief with 3 key points:

• cash prizes are ok
• the amounts of prizes have to be known
• a winning outcome is based on a players knowledge and some statistics but definitely not an actual score of an actual game.

Lincoln Journal Star | Fantasy sports: Gambling or not? Nebraska legislature could weigh in

Utah is considering repealing its film tax credit economic development program. The author of the legislation wants to replace the tax credits with multi-million dollar incentive fund which will have greater taxpayer control.

Utah House Bill 162

Fox 13 Salt lake | Bill would scrap movie-making tax credits in Utah

• California is looking at switching the gas tax to a tax on mileage
• Indiana is looking to hike the gas tax and cigarette taxes for roads
• Michigan Republicans see road funding in an increase in sales tax
• Virginia is looking at a tax on mortgage filings and  property lien filings to fund roads

Americans for Tax Reform | Meanwhile, in the States…

California’s Initiative &  Referndum to tighten pensions won’t be on the ballot. 3 Reasons why:

• fundraising problems
• union opposition
• a pending US Supreme Court ruling will strengthen the position of pension reformers.

It’s a 2 year reprieve. Supporters will push for the November 2018 ballot.

Sacramento Bee | Measure to curb California public pensions is pulled – for now

Previously on July 8, 2015 InformedIntel:

• Attorney General found fantasy sports illegal in Maryland
• Maryland Legislature isn’t touching the issue
• Maryland Senate President said “somone needs to take action” but it’s not him.
• co-chairman of the General Assembly’s gaming-oversight committee said:
  • no move to shut down fantasy sports and no action to clarify that it is legal
  • he’d like to see consumer protections either regulatory or legislative
• Maryland Comptroller has regulatory authority & is studying whether the comptroller can tax fantasy sports

Washington Post | Md. legislature quiet on fantasy sports after attorney general’s call for action

• Simpson opposes economic development funds & those funds should go directly to school funding
• Simpson believes in the protection of dedicated funds. He opposes un-dedicating funds
• Lee supports property tax reductions offset by increases in sales tax or implementing a consumption tax
• Simpson supports tax dollars following the tax payer
  • If a tax payer bought goods in Dallas and lives in Marshall, the tax revenue should go back to Marshall

Longview News Journal | Texas Senate District 1 forum focuses on taxes, refugees

The Tax Foundation declares that Texas is #46 in State and Local tax burden. Here’s why:

• Texas state and local tax burden is 7.6% of state income
• Texas per capita state and local tax burden amounts to $3,340
• Most of the least state and local tax burden states forgo a major tax
• New York is #1 at 12.7% state and local tax burden as a percentage of state income
• California is #6 at 11% state and local tax burden as a percentage of state income

Where is this happening? Florida Legislature is trying to affect the Jacksonville, Florida municipal pension program.

What caused the Legislature to act? Jacksonville’s municipal pension program, including police and fire, has “massive debt” of $2.7 billion in 30 year actuarial costs

What does the Legislature want to do to the local pension? 

• The Legislature is considering allowing the city to implement a 1/2 cent sales tax increase to handle the pension liabilities
• With that sales tax increase authority, the Legislature may mandate requirements on the pension program such as:
  • pension restrictions for new employees such as:
    • mandatory 401Ks
    • moving the city employees into the state employee retirement system
  • start a new pension system for new hires

The Florida Times Union | Legislature could try to reshape Jacksonville’s retirement programs in push to approve half-cent tax

Add Texas to the list calling for divestment in Iran.

San Antonio Express News | Abbott pledges to expand ban on Texas investments in Iran

Valley Central | Gov. Greg Abbott: Texas should pass laws to block public investment in Iran

Previously on informedintel from September 22, 2015:

What is the Economic Incentive Oversight Board? 

• HB 26 created it
• Reviews the effectiveness and efficiency of state incentive programs and funds administered by the offices of the Governor, the Comptroller and the Department of Agriculture.
• Makes recommendations to the Legislature 

The Governor Appointees:

Adriana Cruz

• president of the Greater San Marcos Partnership
• treasurer of the Foreign Trade Zone of Central Texas
• UT-Austin

Trevor Pearlman

• Founder, Tregan Partners
• National Association of Royalty Owners
• UT-Austin & J.D. from SMU

Massey Villarreal

• president of Precision Task Group, Inc
• Texas A&M Corpus Christ
• Active in Mexican American & Hispanic Chambers of Commerce

Governor Abbott | Appoints Three To Economic Incentive Oversight Board

On Tuesday, 1.19.16, Attorney General issues opinion KP-0057 finding fantasy sports illegal gaming in Texas because it violates both the constitution and state statutes by:

• Involving betting. Fantasy sports includes a bet, the fee fantasy sports participants pay
• Being a game of chance. Those wagering have no control over how players perform.
• There is a previous AG Opinion that Guides. LO-94-051 requires that to fall into the statutory exception to be a legal bet, there must be direct participation in the betting activity.
• Your office pool is ok. As long as the house doesn’t retain funds, you’re A-OK.

The Houston Chronicle Editorial calls on firegihter pension reform. 

What’s happening? New GASB rules require pension liabilities to be noted on city financials.  That puts Houston’s unfunded liability at $5 billion, up from the previous $3.2 billion estimate.

Should we be surprised? No, InformedIntel had you covered back in January 2015 with New Debt Target for State andLocal Debt: Health Care Benefits

Any hurdles for this call for reform? Yes, a March 2015 argeement for a cease fire between the City of Houston and the Firefighters. Houston Firefighters and City of Houston Reach 3 Year Pension Deal

What reforms does the Houston Chronicle editorial propose?

• static number or fewer fire fighters
  • there are fewer fires
  • fire fighters spend their time on other things like EMT services which account for 85% of their calls
• stop sending fire trucks to medical emergencies
• cut fire stations and add paramedics

Houston Chronicle editorial: Out with the old

Republican House Members in Indiana have a plan, a transportation funding plan to:

• Raise fuel taxes by 4 cents a gallon to 22 cents
• Raise cigarette taxes by $1
• Raise sales tax on fuel by 4 cents a gallon (Roughly $24 per year per motorist)
• Charge electric car owners a $100 yearly registration fee
• Allow cities to charge a “wheel tax,” which is a charge of up to $25 on car registrations to help fund local projects.
• Study turning freeways into tollways

Republican leaders say:

• this plan will end transportation funding diversions
• and increase funding to other programs, like to pay for Medicaid and health programs
• “Hoosiers want investment in roads and infrastructure.”

Opponents say now is not the time to put a burden on hardowrking Hoosiers.

Supporters include Tobacco Free Indiana.

Republican House Leadership Plan counters the Governor’s plan which calls for:

• Earmark $1 billion toward road funds from:
  • a combination of state reserves
  • new bond money
  • financial commitment from the legislature for additional spending.
  •  no additional taxes
  • fund needed highway repairs for four years

IndyStar | House Republicans outline tax plan for additional road funding

Northwest Indiana Times | House Republicans’ transport bill hits the road

Who’s hiring consultants and lobbyists? DraftKings Inc. and FanDuel Inc. are beefing up their presence in the California Capitol

Remind me, what’s the Golden State doing with fantasy sports? the Legislature, in session, is moving a bill that would:

• Allow daily fantasy sports sites to operate after paying a fee and obtaining a license
• Unlike New York and Massachusettes the California Attorney General has not taken a position.

The Recorder | Fantasy Sports Sites Add Lobbying Muscle in Sacramento

Massachusettes Attorney General is pushing reforms for fantasy sports including:

• 21 years of age requirement
• defining fantasy sports as gaming
• truthful advertising
• self reporting by fantasy sports
• limit losses to $1,000 per month
• single account per individiual
• no use of scripts
• prohibit fantasy sports employees from participating in the fantasy sports

Read the AG’s rules: http://www.mass.gov/ago/docs/regulations/proposed/940-cmr-34-draft.pdf 

Which groups are opposed? Draft Kings and the Fantasy Sports Trade Association

What’s the opposition from Fantasy Sports?

• the 21 yers of age is arbitrary and pulled from gaming
• any comparison of fantasy sports to gaming

Daily Beast | Can Massachusetts Kill DraftKings?

Previously on InformedIntel: Lege Trend: Passing Bill to Daily Regulate Fantasy Sports. 4 States Act with 3 Different Approaches.

Which Plains State is looking at property tax reform? Nebraska

What had Nebraska done for property relief last cycle? 

• Cut spending growth from 6.55 to 3.5% 
• This cut added increased the Property Tax Credit Relief Fund by more than 45%

What proeprty tax reforms are in Governor Ricketts pocket?

• limit of 3%growth on aggregate agricultural land valuations across the state

Governing | Property Tax Relief Tops Nebraska Governor’s 2016 Priorities

What’s going on in California to change Prop 13 tax caps? close the loophole that allows businesses to avoid reassessment of  commercial properties by creatively structuring changes in ownership

What’s the legislation look like? SB 259 triggers review when more than 90% of ownership interests are sold or transferred to related parties over the course of three years.

Is this a familiar plan? yes, it mirrors, some of a 2014 compromise with business interests that fell apart when liberal groups backed out

Who is opposed to SB 259? Liberal groups and tax reformers that say this creates new loopholes

Sacramento Bee | AM Alert: Change to Prop. 13 property tax limits back on the table

What city has been at odds with its firefighter pension system? New Orleans.

How long has this tension existed? More than 5 years, and 14 months of mediation, and a 1990 lawsuit over $75 million in backpay for firefighters

Which leaders led the brokered deal? New Orleans Mayor Mitch Landrieu stood with Nick Felton, president of the firefighters union

What was the solution?

• Created a “pension task force made up of business and community members who worked with consultants to find a unanimous plan for saving the failing pension”
  • New Orleans is the 3rd city to use a task force.
  • The other 2 cities are: Chattanooga, Tenn., and Lexington, Ky.
• recommended a small property tax increase
• brokered this deal between the parties:
  • 12-year payment plan for the $75 million in backpay
  • $21 million upfront in backpay
  • Triples the city’s contribution to the pension plan to about $32 million
  • Guarantees pension payments will stabilize 
  • Eliminates retirees’ cost-of-living increases until the pension is nearly fully funded
  • Gives the city oversight of the fund’s investments and governance.

Governing | Mediation Ends Longstanding Firefighter Pension Dispute in New Orleans

• In Septmeber Alaska Department of Administration told cities they want cities to share in liabities for its TRS and its ERS.
• In 2008, AK switched from defined benefit to defined contribution & fixed the unfunded liabilities for cities
• In August of 2015, the state Attorney General issued an opinion that the state isn’t liable for some of the pension liabilities, the cities are

Newsminer | Public pension fight heating up: State, municipalities spar over liabilities

TEXPERS | Lessons from Alaska: The switch to defined contribution plans continues the acrimony and financial pain

Previously on Informed Intel: AK Pension Reforms. Agency Rebuffs Legislature. 10.1.15:

What’s the governmental infighting in Alaska?  The Legislature passed a series of pension reforms that the retirement system agency won’t follow.

What pension reforms were passed to cause the brouhaha?  Use of real market values each year and not averages (AKA asset smoothing is bad)

Where is the governor in this?  His staff says the agency is acting pridently and suggested the Legislature didn’t know what they were doing.

Alaska Dispatch News | Alaska retirement board challenges Legislature on pension payments

Tyler Morning Telegraph editorial calls for the abolish of the Film Commission based on 3 reasons:

• The state of Texas doesn’t owe the filmmaker anything more than a place to make his or her films
• End Hollywood handouts because Hollywood is hostile to America’s founding principles according to Representative Shaheen
• Not the right use of tax dollars as is supported by Comptroller analysis which says any economic benefit from making films is short lived.

Previously on informedintel: Legal Trend: Texas Can Deny Film Credits for Distasteful Films (12.30.15)

Why is a court looking at Texas Film Credits? Because Texas denied film credits for Machete due to “perceived political nature.” as Texas says statute permits if the film shows Texas in a negative light.

What did the courts do? The lower court and the  Fifth U.S. Circuit Court of Appeals agreed that Texas may deny film credits based on its opinion of a film.

WallStreet Journal Law Blog | Texas Can Deny Tax Breaks to Films it Doesn’t Like, Appeals Court Rules

Texas Legislative Council was kind enought o comb through 2015 legislation to tell us all about other interim studies buried deep in bills & resolutions.

We’re talking about these bills:

• Study by the Aerospace and Aviation Office of the Texas Economic Development and Tourism Office 
• What the report will answer: what else can be done to support aerospace and aviation
• When the report is due: December 1, 2016 
• What bill triggered this: SB 458, Section 1

• ​Joint Interim Committee on the Cruise Industry 
• What the committee will answer: economic development of a cruise industry on the Texas coast between Calhoun and Cameron Counties 
• When the report is due: no report required
• What bill triggered this: HCR 108

TLC | Interim Studies Established by Enrolled Bills and Resolutions 84th Legislature

• Comptroller Hegar revised revenue collection estimates down by $3 billion
• The revision is for revenue collections to equal $110 Billion 
• The revised revenue collection remains above the Legislature’s $106 Billion Budgeted Need

WOAI | Oil Slump Will Cost Texas $3 Billion in Revenue

Fantasy Sports. 4 Large States, 3 approaches.

• New York & Illinois. Daily Fantasy Sports targeted by Attorney General. Facing prosecution.
• California Legislature moves a bill to daily regulate fantasy sports.
• Texas Radio Ads and requests that Attorney General Paxton not get involved.

What does this California bill do? Arm yourself with information before this comes to Texas.

• State regulation and licensing through the California Department of Justice
• State fee for operating in California
• Preemption of local regulation of fantasy sports
• Require that fantasy sports operations verify the age of players

 California Assembly Bill 1437

Sacramento Bee | Daily fantasy sports regulation bill passes California committee

Houston Chronicle | On fantasy sports, a familiar argument aimed at Paxton

The Tax Foundation ranks Texas as #29 in recieving federal funding. Federal unds in Texas account for 32.6% of state general revenue.

How much federal funds are other states taking in percentage of their budget? On the low end are North Dakota (19.0 percent), Hawaii (21.5 percent), Alaska (22.4 percent), Virginia (22.9 percent), and Connecticut (23.4 percent).

What do these low federal fund states have in common? High tax collections.
 

Why does it matter that Texas is #29? In HD 7 campaign the taking of federal funds is painted as a no-no by candidate Watts. 

HD 7 is a Republican Primary battle royal to replace Simpson. In 1 corner, there is Watts and in the other corner, there is former Longview Mayor Dean.

Longview News Journal | Philosophies clash in debate between Dean, Watts

House District 7. David Simpson. Longview. Republican match up between David Watts of East Mountain and former Longview Mayor Jay Dean.

Now that we’re up to speed on where these candidates are coming from,  let’s see what they said about taxes:

• Watts: Eliminate the Property tax. Adopt a consumption tax. (sales tax)
• Dean: That puts the sales tax rate over 11 percent.

Longview News Journal | Philosophies clash in debate between Dean, Watts

Where is this happening? Midland TX was considering $22 million in new debt

What was the vote:  It failed 5 to 2

What were the arguments agsindt new debt?

• Midland is facing economic downturn
• The new bonds did not require voter approval
• pay as you go is a better route

Empower Texas | Midland City Council Pumps Brakes on Debt Proposal

What state is still struggling with passing a budget? Pennsylvania

What triggered the pension reforms  in PA? A group of Senators want to reform pension systems because their version of ERS and TRS are huge budget cost drivers

Sound Familiar? Remember 2015’s Texas Senate Liberty Caucus & Ted Cruz’s Freedom Caucus

Governing | After Pension Overhaul Collapses Budget Talks, Pennsylvania Lawmakers Regroup

“Toyota, Liberty Mutual Insurance, Charles Schwab and State Farm Insurance, North Texas is the economic development envy of the country.”

What’s the biggest result from this economic development boom? More commercial development follows the economic development awards.

Dallas Morning News | 2015 real estate boom is the biggest D-FW has seen in decades

Why is a court looking at Texas Film Credits? Because Texas denied film credits for Machete due to “perceived political nature.” as Texas says statute permits if the film shows Texas in a negative light.

What did the courts do? The lower court and the  Fifth U.S. Circuit Court of Appeals agreed that Texas may deny film credits based on its opinion of a film.

WallStreet Journal Law Blog | Texas Can Deny Tax Breaks to Films it Doesn’t Like, Appeals Court Rules

Ditto for state court: 3rd Court of Appeals in Machete Chop Shop

Watchdog points to then Comptroller Susan Combs 2012 report on the proliferation of special districts.

Lest not forget the House Special Purpose District Interim Charge to reform districts, make them more transparent, for the eliminationor improvement  thereof, and/or streamline districts.

The far right uses the issue to:

• Call for the elimination of Travis County Health District
• Point out the lucrative nature of special districts for special interests

For those who buy their champage, cava, proseco, or sparkling wine by the gallon, here’s the per gallon tax rates across the U.S.:

#1 Florida $3.50 per gallon

#2 Alaksa $2.50 per gallon

#3 Hawaii $2.12

#4 Oklahoma $2.05

#5 South Dakota $2.07

#6 Minnesota $1.82

#7 Connecticut $1.80

#8 Iowa $1.75

#9 Alabama $1.70

#10 Louisiana $1.59

#29 TEXAS $ 0.52

#38 California $0.30

Most states tax champagne like their tax a chardonnay or a delightful red bordeaux. But, 15 states, including Texas use a separate tax rate for the bubbly. 

Tax Foundation Champagne Taxes 

What special session? the 29th Special Session of the Nevada State Legislature

What’s the issue before the Legislature? Faraday Future wants to builda  $1 Billion manufacturing facility for electric cars north of Las Vegas.

• NV legislators will consider $ 215 million dollars in tax breaks to the company over 15 years
•  Amend laws to allow local government agencies to waive licenses or permits
• Amend laws  to allow financing for water, rail and natural gas improvements
• Revise and fund a special workforce training program for Faraday’s expected 4500 workers.

Remind me is the Governor an R or a D? Governor Sandoval is a R

Is this the 1st time Nevada changed laws for economic development purposes in special session? No, last year it did the same for Tesla. 

• Tesla received $1.3 billion in incentives to build a $5 billion gigafactory east of Reno

News4 Reno | Nev. legislature special session underway for Faraday Future deal

Boston College Center for Retirement Research released a report this week that showed higher returns on investments for pensions than 401Ks.

Two highlights:

• “defined benefit plans outperformed 401(k)s by an average of 0.7 percent per year, even after controlling for plan size and asset allocation”
• Most 401Ks rolled into IRAs which have even lower returns on investment

Governing | Tradition Wins in Retirement

What happens when local voters approve a 1/2 cent sales tax increase for East Montgomery County Emergency Service District #7 & the Comptroller Voids the tax increase?

The District appeals for an opinion to the Attorney General to ask whether the Comptroller has the authority to void the tax increase.

What’s the Comptroller reasoning for voiding the tax increase? The vote count included areas that should ahve been excluded. Specifically, the voting area included a small economic development zone that should ahev been excluded.

So what if more voting area was included, why should that matter? The overlapping rea now has a sales tax rate that exceeds the permitted 2 percent.

East Montgomery County The Observer | East County fire department’s tax hike in limbo

Trying to avoid another scenario like NY, large fantasy sports companies are coming to a Legislature near you to propose self-regulation.

What regulation do fantasy leagues want? online gaming authority and regulation

What buzz words are fantasy leagues using to support their online gambling push?

• common-sense legislation
• ensure that fantasy contests are legal
• safe for consumers
• provide the same great entertainment value
• welcome taxation
• support restricting access for underage players
• support providing resources for problem gambling.

Sacramento Bee | DraftKings, FanDuel ask California to regulate daily fantasy sports

• The father of 401Ks says that they were ““never intended to cover everyone’s retirement.”
• The weakness of 401Ks grew in the Great Recession
• 401Ks eat away at retirement security with high fees and poor investment options
• Replacing a Pension with a 401K is risky

After naming Dallas the highest debt incurring city in Texas, Empower Texas also says the reason for high debt is pension systems. 

Empower Texas calls on future pension liabilities to be included on Dallas’ balance sheet.

It also calls pensions:

• costly for taxpayers
• risky for government workers
• links pension systems to local government bankruptcy

Empower Texas | Dallas Leads Texas Cities in “Hidden” Debt

The winner is Dallas.

Empower Texas says:

• Dallas hides billions in debt.
• Billions in debt is not disclosed on financial statements due to out dated accoutnign methods
• 3rd highest taxpayer burden for cities in the U.S.
• Each Dallas citizen burden of this debt is $17,900
• The reason the problem isn’t fixed: tax payer funded lobbyists hired by cities

Empower Texas | Dallas Leads Texas Cities in “Hidden” Debt

Michigan had allowed for temporary return to work provisions for teachers. This allowed teachers to retire, collect a pension, and return to work without jeopardizing their pension.

This return to work provision sunsetted, and the Michigan legislature continued the return to work program to meet 2 goals:

• a shortage of substitute teachers
• a shortage of full time teachers in certain subjects

What requirements exist to allow for return to work while collecting teacher retirement benefits?

• The subject area of the teacher has to meet defined shortage subject areas
• Return to work teachers may only do so for 3 year terms.
• Substitute teachers, who return to work,  receive full benefits as long as they make no more than 1/3 of their final average compensation in a year.

WILX | MI Legislature OKs Letting Retired Teachers Return with Pension

Congress is set to pass a permanent ban on internet sales tax. That’s the tax paid on access to the internet and collected by states and local governments.

What you need to know:

• Texas is 1 of 7 states that collect an inernet sales tax (Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas & Wisconsin)
• Advocates supporting the ban on internet sales tax say now is not the time to risk new taxes on the growing digital economy

The Hill | Seven states to lose millions from Internet tax ban

This week the state told the Texas Supreme Court that the lower courts got it wrong. That the 2013 tax levied on small tobacco is not unconstitutional.

Bonjour 2017 legislation to fix this mess.

Law 360 | Texas Asks State Justices To Revive ‘Small Tobacco’ Tax

• 27 of 46 states, with Rainy Day Funds,  have no clear directive for saving
• Texas Rainy Day Fund is the Second Largest in terms of dollars
• Minnesota sets the level of budget risk it wishes to offset with Rainy Day Funds
• 5 States (Connecticut, Minnesota, Nebraska, Oregon, Utah) review their Funds to determine a sufficient maximum or targeted balance for Funds

3 Recommendations from PEW Charitable Trust Review 

• States need to set an explicit purpose for the Fund savings and narrowly define it in law
• States need to study economic volatility to align savings and spending
• States need to determine the degree of risk sought to be offset

California had no idea how much CALPERS had paid out in management fees.

This triggered other states to make pension management fees more transparent. 

5 Things to Know:

• Over 25 years, California paid pension equity managers $3.4 Billion
• Performance fees, a fee attributed to alternative investments, are poorly reported by pension plans.
• CALPERS is leading the charge to adopt proposed industry-wide disclosure standards
  • Standards will require managers “to make clear the performance fees they are taking off the top of investment returns”
  • Written by Institutional Limited Partners Association (ILPA)
  • Final disclosure standards will be out in January 2016
• South Caronlina is calling for transparency
• Washington state is calling for transparency

Governing | Public Pensions Challenge Private Equity Fees

$627,000 per year, or $22 Million over the 30 year term with inflation, is the estimated loss to the City of Laredo if it approves a TIRZ to facilitate the building of a new subdivision. 

LMT Online | Firm: TIRZ would be costly

Houston City Council this week approved a new TIRZ for Montrose. 

The goal of creating the new Tax Increment Reinvestment Zone is to:

• repair and enhance infrastructure
  • new sidewalks
  • drainage system repairs
• enhance transportation & parking options

Houston Public Media | Houston City Council Unanimously Approves Establishing A TIRZ For Montrose

Houston Business Journal | New inner-Loop TIRZ approved

• Total Texas Enterprise Fund Allocations $577,357,696  
• State Auditor Pointed out 11 projecs that received $222.3 million with no TEF application
• TEF has created 77,269 jobs
• 92% of TEF cost benefit analysis were erroneous according to the State Auditor
• Article 1, Strategy C.1.4
• 3 largest TEF awards account for 39,810 new jobs
• 3 largest TEF awards account for a direct investment return of $3.2357 billion
• 49% of TEF awards did not have documentation that the award included consistent review of all required components of application according to the State Auditor.

​

TPPF also highlights these specific awards; see if your client is on the list:

• Texas A&M University System and Lexicon Pharmaceuticals 
• Sematech
• Texas Instruments
• Tyson Foods
• Hilmar Cheese Corp.
• Samsung Austin Semiconductor

TPPF| Spotlight Texas Enterprise Fund

Which local government wants to use a TIRZ to build a rodeo facility? Stephenville is considering it.

Would it be limited to rodeo use? No, the annual tractor pull or a farmer’s market are also events considered for the venue as Stephenville has no large facilities that can accommodate large gatherings.

What’s the local government goal? 20 year goal to enhance the airport & surrounding area to attract investment & development.

Stephenville Empire-Tribune | City council hears report on multi-purpose facility study

What state is returning excess revenue?  Wisconsin is returning excess revenue it thought it  needed to do work on Lambeau Field. 

How was the revenue collected?  A local sales tax surcharge with revenue required to go to Brown County stadium district to build a reserve fund for maintenance and operating costs of the iconic Green Bay stadium

The lucky recipients of the excess sales tax revenue are… Local government agencies in Brown County.

How was the funding returned to local governments? A bill signed by Gov. Scott Walker

How much excess sales tax revenue was collected?  $17.6 million.

How is the excess funding being divvied up?

• 25% to Brown County ( $4.4 million)
• 24 municipalities in Brown County will get the rest based on population.

What can the local governments do with the excess revenue? 

•  property tax relief
•  tax levy-supported debt relief 
• economic development.

Governing | Wisconsin Will Return Excess Stadium Money to Local Governments

Attorney General Opinion Request 0081- KP seeks clarification on education vendors.

Who is requesting the Attorney General Opinion? Senator Nelson

Why the Attorney General Opinion? 2015 contracting reforms and the Education Code conflict as to conflicts of interest with education vendors.

What question does Chairman Nelson want the Attorney General to answer? Whether 2015’s SB 20 Government Code provisions conflict with existing Education Code Section 51.923.

What’s the difference in these 2 code sections? SB 20 sets up a Government Code prohibits an agency’s govenrment board from entering into a contract with a vendor if a member of that government board has a financial interest. Whereas, the Education Code does the opposite. The Education Code permits institutions of higher education to enter into contracts with vendors in which members of the higher education institution;’s governing board have a financial interest. 

Moody’s is warning that its ratings analysis will include cybersecurity.

Moody’s looking to big picutre cybsersecurity:

• cyber defense
• cyber detection
• cyber prevention and response

Moody’s specific analysis will include:

• Nature of the affected assets or businesses 
• Duration of service disruption and expected time to restore
• Scope of the affected assets or businesses 

Why does this matter to Texas? Every state entity and local governmental entity that issues bonds will be impacted.

Think Advisor | Threat of Cyberattacks Could Now Affect Moody’s Ratings

Legl Tech News | Threat of Cyberattacks Could Now Affect Moody’s Ratings

Who is behind the push for local referendums on a soda tax? “Health Advocates” part of an international strategy backed by billionaires in New York and Texas, including former New York City Mayor Michael Bloomberg
 

What’s the 2016 push? Targeting up to 12 cities nationwide including Austin, TX

Politico writier calls the soda tax push  “a gift for Republicans” that could turn a “a super-sized Slurpee could be turned into a symbol of freedom”

Ted Cruz is on the case. In 2013 he offered a budget amendment that would have “prohibited federal regulations on the size or quantity of food and drinks.”

 Laura and John Arnold​ Foundation also on the case. The Arnolds’ Action Now Initiative is allegedly working with Anthony Holm
Politico | War over soda taxes coming to a polling place near you

Grist | Soft drink tax war to bubble up in cities across the U.S.

From 1982-2014, cigarette taxes in Texas increased 812%.

Sin Taxes in Texas account for:

• $3.8 billion in 2015
•  7.3% of all tax collections
• 3.5% of total state revenue

The Top 3 Sin Taxes are:

• Cigarette & tobacco taxes account for $1.5 billion (2.9% of total Texas revenue)
• Gambling accounted for $1.2 billion ( 2.19% of total Texas revenue)
• $1.1 billion from alcoholic beverages (2.16% of total Texas revenue)

Where does Texas fall compared to other states?  In 2014, Texas sin taxes accounted for 4.6% of its total revenue, that is slightly above the national average of 3.8%. Rhode Island leads the nation 15.9% of its revenues rely on sin taxes. 

Texas Comptroller | How Texas Taxes “Sin”

How did TIRZ money get to a redevelopment project?  Midland City Council approved funds from a dissolved TIRZ & the dissolved Downtown Midland Management District.

Did all the funds in the disolved TIRZ and MMD go to redevelopment? No, the economic development recipient had sought $2.9 M and recevied $900,000.

What’s the redevelopment project? Asbestos abtement and redevelopment of Midland’s Vaughn Building by Houston-based Innova Development company

Keep it in your pocket for the interim charges forcused on either economic development or MMDs.

Midland Reporter Telegram | Vaughn Building asbestos removal back in motion

Awaiting re-hearing from the 3rd Court of Appeals is a franchise tax lawsuit involving American Multi-Cinema Inc. The Comptroller maintains that if the Cineman’s Appellate win stands, Texas would lose a total of $7.1 Billion:

• $1.1 billion  in franchise tax revenue loss per year
• 4 years’ worth of refunds totaling another $6 billion

Bonjour Ways & Means Interim Charge #3

San Antonio Express News | Comptroller sees potential ‘enormous’ revenue hit from tax case

Previously on Information Intelligence:

Which city cut its pensions for police and fire? Chattanooga

What cuts did Chattanooga make?

• Reduced cost of living adjustments by amending the guaranteed annual 3% cost of living rate to an average of 1.5%, depending on the level of benefits
• Increased the employee conributions while reducing the city contributions.

How was Chattanooga able to do this? 

• The mayor first formed a 18-member task force
• The task force recommended the cuts
• The cuts reduce the city’s $150 million unfunded pension liability
• The cuts also reducde the ” increasingly unsustainable city contribution to the pension fund”
• Increased employees’ pension contributions by nearly 40%
• Saving Chattanooga  more than $227 million over the next 24 years

Did pension recipients sue? Yes, but a federal district judge this week ruled in favor of Chattanooga by finding:

• the cost of living adjustment was not a vested right nor was it a contractual obligation
• the cost of living adjustments were separate and apart from vested rights listed in city ordinance.

Chattanooga Tiems Free Press | Chattanooga wins pension lawsuit filed by retired police officers, firefighters

Governing | Pension Cuts Win Federal Court Support in Chattanooga

Leave it to the number crunchers to up the transperancy quotient.

What’s triggering the new disclosure rules for economic development deals? A change in GASB ( Governmental Accounting Standards Board) rules.

What’s the new GASB rule require?  As of 2017, governments will have to begin “tracking, tallying up and reporting the tax incentives awarded on their annual financial statements as lost tax revenue”

But, there’s a catch, one thing that need not be disclosed: The identity of the company receiving an incentive. The GASB rules only require voluntary disclosure of the identity of the economic development incentives.

3 Reasons critics think the name of companies receiving incentives should be disclosed:

•  economic development deals don’t help small business 
• don’t require details on how tax rebates are spent (think about the debate around how film tax credits are spent)
• reporting the incentive as lost revenue will negatively impact government’s finances

Governing | 3 Things the New Tax Incentive Disclosures Rule Won’t Reveal

• Pension systems have failed to disclose, or ask, how much private equity firms keep in performance fees
• When performance fees paid by pensions is revealed, the rulemaking/agency protocol/legislative solutions are 3 fold:
  • tougher scrutiny of private-equity investments
  • cut back a pension’s private equity holdings
  • negotiate lower fees
• Examples of performance fees paid around the country by state pension systems:
  • CALPERS Billions over 17 years above what was disclosed
  • New Mexico $6.3 million in performance fees
  • South Carolina $35.3million in performance fees
  • Kentucky $34.1 million
  • New Jersey $91.3 Million in performance fees
• Pension funds avoid disclosing performance fees because:
  • accounting rules didn’t require public reporting
  • returns were high enough to mitigate any cost concerns
• The issue of performance fees paid came to light nationwide after an activist blog publicly asked a CALPERS official for the amount the pension system paid to private equity firms
  • When CALPERS investigated, it was determined that the private equity firms did not know th e answer.

Bonjour, House Pension Committee Interim Charge #5

Wall Street Journal | Pensions’ Private-Equity Mystery: The Full Cost

New York Times | Calpers Paid $3.4 Billion to Private Equity Firms

• Texas wireless phone tax rate is 11.53% making it the 16th highest
• Texas combined wireless phone taxes, fees & charges total 17.99% making Texas #21
• The Top 10 states have wireless bills with fees & taxes that account for 20% of a wireless bill

Tax Foundation | Record High Taxes and Fees on Wireless Consumers in 2015

What’s the new high speed rail project? High Speed Rail from Los Angeles to Las Vegas

Which economic development office is involved and why: Nevada Governor’s Office of Economic Development because the Rail Authority signed an exclusive arrangement with a Las Vegas Company. (And Nevada relies on gaming tax revenues)

8 Facts to Know about the Project:

• It has an exclusive relationship with XpressWest ( a Las Vegas based company)
• no state dollars
• zero-emissions train
• half the time of the travel to 80 minutes
• cost less than $100 round-trip
• will ultimately connect with the California High Speed Rail Project
• Estimated to cut road traffic by 25%
• Partnership with a Chinese firm that has pledged $100 million for the $8 billion project

Sacramento Bee | Project to link Vegas and California with train gets boost

 Who is backing a cigarette tax increase? Tom Steyer

How much is he putting into it? $1 million

What’s the tobacco tax increase proposal look like?

• $2 per pack increase
• Applies to e-cigs too
• reduce smoking rates and to better fund Medi-Cal (California low income health care program)
• offer higher reimbursement rates for doctors who see Medi-Cal patients

​Who else is backing the tobacco tax increase?

• California State Council of Service Employees put in $2 million
• alliance of public health, labor and healthcare group 

An Urban Land Institute luncheon in Houston revealed the following differences with the city’s TIRZ districts:

• Budgets.  Vary from $500,000 to $10,000,000
• Redevelopment Partners Necessary. For a TIRZ to work, there needs to be a redevelopment plan that works with a corresponding Muncipal Management District
• Economic Disparity. In poorer areas the TIRZ will fix sidewalks, improving street lighting, projects the city cannot tackle. While in property wealthy areas, critics say TIRZs are a “cash cow for wealthy districts to undertake projects without oversight or voter input“

Refreshing Our Recollection: Interim Charge #1 House Committee on Special Purpose Districts. 

Houston Business Journal | Not all TIRZs created equal

Both the Beaumont Enterprise and the Midland Reporter-Telegram ran editorials supporting raising the gas tax. 

• 2015 Prop 7 is not enough for transportation funding
• The state still needs $5 billion per year for transportation funding
• “The only realistic answer is increasing the gasoline tax, which hasn’t changed since 1991”

Midland Reporter-Telegram | Texas highways need more funding, higher gasoline tax

 Base pension contributions on more realistic investment assumptions.

Charles Chieppo, research fellow at the Harvard Kennedy School’s Ash Center,  3 point rational is:

• A libertarian paper published by Reason
• Recommends Phasing in the more stringent financial standards
• Suggests a rate of 5-6%, not the current 8%

Governing | A Simple (But Hard) Way for Governments to Stay Out of Pension Trouble

Reason Policy Brief | Best Practices for Setting Public Sector Pension Fund Discount Rates 

Mandatory Sales Price Disclosure is no longer part of the goal of the City of Austin property appraisal litigation.

Austin Business Journal | Sale price disclosure off table in Austin property appraisal lawsuit

** REVISION **
SENATE

NOTICE OF PUBLIC HEARING

COMMITTEE:    Intergovernmental Relations  

TIME & DATE:  9:30 AM, Wednesday, December 02, 2015  

PLACE:        E1.012 (Hearing Room)  
CHAIR:        Senator Eddie Lucio, Jr.  

The Senate Committee on Intergovernmental Relations will hold an organizational hearing and will have a preliminary overview of the following charges:

Charge 2: Examine the processes used by home rule municipalities to adopt ordinances, rules, and regulations, including those initiated by petition and voter referendum. Determine if additional statutory safeguards are necessary to ensure that ballot language accurately describes proposed initiatives. Identify ways to improve transparency and make recommendations, if needed, to ensure that local propositions and the means by which they are put forth to voters, conform with existing state law.

Charge 3:  Review natural disaster preparedness planning and coordination in the wake of a growing range of threats. Evaluate whether existing processes maximize regional cooperation to rebuild housing and infrastructure, and allow for the timely dissemination of funds to units of local governments for reconstruction following a federal declaration. Develop recommendations, if necessary, to improve the efficiency of disaster recovery efforts, incorporating best practices identified from other states, as well as lessons-learned from past reconstruction efforts in Texas.

Charge 6: Examine ways to improve government accountability in elections regarding the issuance of public debt. Include a review of the information that is currently provided to individuals in the voting booth and provide statutory recommendations, if necessary, to improve transparency.

The hearing will include invited testimony only.

** See Committee Coordinator for previous versions of the schedule **
 

Revenue

TAXES | THE INTERIM CHARGES

• Agriculture & Livestock: property tax and rollback rates
• Appropriations: revenue sources, reliance on oil & gas; Strategic Fiscal Reviews; Rainy Day Fund Projections & Accountability
• Economic & Small Business Development + Energy Resources: reliance on oil & gas revenue
• Higher Education: community college taxing districts
• Special Purpose Districts: tax assessments by municipal management districts
• State Affairs: preparing for state revenue disaster
• Ways & Means: rising property tax levies & taxpayer dissatisfaction; repeal of franchise tax; ongoing tax litigation impact on revenue stability; monitor homestead exemption increase

TAXES | YOUR INFORMED INTEL

• Rollback Rate for City Property Tax Tops Ship Channel Agenda
• Big City Mayors: Support Local Control Over Property Tax Revenue
• TPPF: Slow Economy = Property Tax Reform. 5 Points
• A TIRZ? A MMD? No,It is an Innovation District coming to a TX City near you
• TIRZ Reform & Houston Mayoral Race. 3 Things to Know Now
• Lege Trend: State Reigning in Local Governments
• Eco Devo Trend: Eco Devo 101. TIRZ Begets a University Facility
• 4 Reasons not Taxing Municipal Bonds is Good. Good for Stadiums and Hospitals
• Comparison Charts on State and Local Spending. Stadiums or Roads get more tax revenue?
• Trend: Tax the Cloud. 5 Examples from across the country
• 3 More Commercial Property Appraisals Lawsuits Come to Light
• Key Point from Lt. Gov. on Property Appraisals in Corpus Christi
• Pro/Con: 3 Points from Mayor Adler / 3 Points from Sen. Bettencourt. Austin Commercial Property Tax Valuation Lawsuit
• Commercial Appraisal Lawsuit Status Check: 1 new lawsuit. 6 Homeowners. 1 State Senator Bettencourt weighs in with Interim Charge
• Denton County on Full Alert to City of Austin Commercial Property Tax Suit
• Lege Trend: Business Tax Credits for GEDs
• AL Special Session to fill Budget Shortfall. 7 Republican Supported Revenue Sources
• Rep. Wray on the Franchise Tax/Margins Tax 2015 Reforms
• Kolkhorst Goal for Business Taxes
• Margin Tax: TXSupreme Court & the $1.5 Billion Question
• Franchise Tax Loss for Out of State Companies
• Lege on the Horizon: Pass Through Payments & the Franchise Tax
• Legal Trend Forecasting: Margins Tax Woes
• #1. 11th Year in a Row. TX is #1 for Business
• Economic Benefit of Margin Tax Reform Courtesy of TPPF
• City Council Moves Forward with Spaceport to Benefit Airport

ECONOMIC DEVELOPMENT | THE INTERIM CHARGES

• Business & Industry: business tax credits for employing those receiving government benefits or consistently having faced significant barriers to employment
• Culture, Recreation & Tourism: economic development via heritage, cultural, recreational, historical, nature, and preservation practices
• Defense & Veteran Affairs: economic development around military bases
• Economic & Small Business Development: attract more businesses; Texas’ competitiveness; incentives for growth & expansion of small business; best practices for economic development incentives
• Environmental Regulation: incentives for consumers & retailers to promote hazardous waste disposal
• Investments & Financial Services: investment climate and resources bringing new businesses & jobs?
• Natural Resources: coastal economies
• Public Education + Economic & Small Business Development: incentives for business to invest in training and equipment for schools
• Urban Affairs: low income tax credit in light of U.S. Supreme Court ruling in TDHCA v. Inclusive Communities
• Ways & Means: SAO Review of Chapter 313; Marine Goods taxation competitiveness

ECONOMIC DEVELOPMENT | YOUR INFORMED INTEL

• West Texas TIRZ incentives for Hotel. Who. What. How much.
• Eco Devo In Bandera: Where Economy Meets Ecology
• A TIRZ? A MMD? No,It is an Innovation District coming to a TX City near you.
• Eco Devo Trend: Eco Devo 101. TIRZ Begets a University Facility.
• ECO DEVO: $9 Million in economic incentives for Panhandle Solar Project
• New Economic Development Office at the Port
• Poll Results: 4 Things that Matter to Small Business. Economic Development Programs to Choosing Texas.
• Lege Trend: State Audit Powers on Corporations that Get Eco Devo Dollars
• Eco Devo Deal. Geographically Limited Jobs. $750Million.
• Eco Devo: US Senator Opposition to Ex-Im Kicks TX out of Running for New Corporate Offices
• Tax Incentives on the Chopping Block in the South via a Constitutional Amendment
• 5 Reasons Tracye McDaniel of TEDC Says Texas Dominates Economic Development
• Data Center Tax Incentives State by State
• SAO: Auditing the 313 Agreements. 6 Fixes for 313s

PENSIONS | THE INTERIM CHARGES

• Appropriations: pension funding & actuarial soundness
• Insurance: 2013’s HB 2929 impact on ERS and TRS
• Pensions: impact of global market; GASb compliance; unfunded liabilities in LECOS & ERS; structural reforms for actuarial soundness; investment performance benchmarks
• Select Committee on State & Federal Power & Responsibility: pension divestment in foreign nations

PENSIONS | YOUR INFORMED INTEL

• Pension Liabilities Downgrade Dallas Debt Rating. 4 Reasons Why. 2 Things That Would Up the Rating
• Trend from the East Coast: Pension. Police. Fire. No City Control. No Legislative Action to Help City
• Trend: Pension Liabilities Threaten Municipal Bonds. Bondholders v. Retirees
• Lege Trend: Pension Divested from Coal to the tune of $340 Million
• AK Pension Reforms. Agency Rebuffs Legislature
• 30 State Pensions Ban Investment in Iran
• Campaign Trend: Pension Divestment
• Lege Trend: Pension Forfeiture Reform
• TexPERS Counters TPPF on Pension Reform
• TPPF: 4 Reasons Texas has a $57 BILLION Pension Problem
• Initiative & Referendum: Pension Reform in 3 steps
• Moodys Downgrades Houston Debt Rating
• Local Pension Funding. One City Mayor Calling for Funding Shift to the State
• Legal Trend: Sue For Pension Data. Lawsuits Bandied About in Houston

STATE CONTRACTING | THE INTERIM CHARGES

• Appropriations: study state contracting trends, monitor transparency & judiciousness
• General Investigating & Ethics: contracting practices at major agencies. more reforms? is there public confidence and trust?
• State Affairs: Contract monitoring, management, performance evaluation and notifications; best value recommendations; prevention of conflict of interest

STATE CONTRACTING | YOUR INFORMED INTEL

• AG Opinion: Local Contracting Opportunities. Calling All Parking Enforcement Aficionados.
• Contract Reform Update. LBB State Contract Database. New Info at your Fingertips for State Contracting.
• State Contracting. TXSCT says certain parts of state contracts are private.
• Procurement Contracts: Data Security Clauses
• SAO Report. Top 4 Reasons the GLO Contracting Process is Not Great.
• Contract Reform: Link Time. SAO, Strike Force Report. All in One Place.
• State Auditor: More Procurement Contracting Issues that Can Kill Your Contract

SHARING ECONOMY | THE INTERIM CHARGES

• Business & Industry: how to make Texas a sharing economy hotspot
• Economic & Small Business Development: how to support & grow the sharing economy in Texas

SHARING ECONOMY | YOUR INFORMED INTEL

• Legal Trend: Sharing Economy Leads to More Lawsuits. Leads to More Legislation.
• Private Property Rights. Sharing Economy. Local Ordinance Hoopla.
• Campaign Trend: Private Property Rights. Short Term rentals. The $3.6 Million + Local Election Issue
• Are ride share regulations a taking of cab property?
• Sharing Economy: Ride Share Fee to Offset Cab Costs.
• Legal & Lege Trend: Air Share Regulation
• NY Governor Says State Should Regulate Ride Share. Not Local Governments. 3 Reasons Why.
• Local Gov. Trend: Deregulate Ride Share to Level the Field
• Regulatory Trend: Update to Ride Share Rules from the Silver Mine State
• Ride Share. Sharing Economy. Regulatory trend: Employees or Independent Contractors

DEBT | THE INTERIM CHARGES

• Elections: improve transparency in bond elections
• Public Education: facility bond debt
• Special Purpose Districts: Municipal Management District debt

DEBT | YOUR INFORMED INTEL

• TX #11 on State & Local Debt Per Capita
• Pension Liabilities Downgrade Dallas Debt Rating. 4 Reasons Why. 2 Things That Would Up the Rating
• Moodys Downgrades Houston Debt Rating.
• 107 local bond elections. November. 2015. 13 Category Breakdown of Bond Projects.
• 3 Points from Empower Texans on Tarrant County JPS Debt
• May 9th Bond Election Results. Odds of losing 1 in 5ish.
• 4,700 Signatures Opposing Montgomery County Bond Proposition
• The Next Appropriation Challenge: State Debt from the mouths of elected officials

• The Top 10 States:
  • 1. Wyoming
  • 2. South Dakota
  • 3. Alaska
  • 4. Florida
  • 5. Nevada
  • 6. Montana
  • 7. New Hampshire
  • 8. Indiana
  • 9. Utah
  • 10. Texas 
• The break down for all of Texas businesses tax rankings for 2016
  • #41 corporate tax rank
  • #6 individual income tax rank
  • #37 sales tax rank
  • #15 unemployment insurance tax rank
  • #34 property tax rank
• Why is Texas #6 on individual income tax rank? Because Texas applies the gross receipts taxes to limited liability corporations (LLCs) and S corporations 

Tax Foundation | 2016 State Business Tax Climate Index 

Which Court Ruled What? Colorado’s highest court ruled that lawsuit lending entities must comply with pay day lending rules. 

What’s the background of applying pay day lending laws to lawsuit lending?  The State Consumer Credit Commission ruled that lawsuit lenders should be held to the same disclosure and licensing requirements.

Once the issue ended up in court, the state attorney general countersued the companies alleging unlicensed lending and charging “exorbitant” interest rates to plaintiffs.​

“Forbes notes how the case was an example of the Chamber of Commerce pushing for more, not less, regulation.”

WallStreet Journal | Payday Lending Rules Apply to Litigation Funding, Colorado Court Rules

Members:

Sen. Brian Birdwell (Chair)

Sen. Kevin Eltife

Sen. Jose Menendez

Sen. Larry Taylor

Sen. Kirk Watson

The committee is tasked with:

• Study potential ways to ensure the state is able to identify, track, and maintain real proeprty information
• Specifically look to the location, condition, and replacement value of all real property owned by the state
• Report to the legislature by January 13, 2017.

Lt. Governor Patrick Press Release 

Chair /Presiding Officer: Sanjiv Yajnik

• Dallas
• President of Financial Services at Capital One Financial Corporation
• Chairman & founding member of the Collin County Business Alliance
• Treasurer & board member of the National Academy Foundation
• Executive board member of the Dallas Symphony Association
• Founding member of the Indian American Professionals Network.
• MBA from the University of Western Ontario & is a graduate of the Stanford Executive Management Program.

Nancy Windham

• Nacogdoches
• President & CEO of the Nacogdoches Economic Development Corporation
• Former vice president of the Frisco Economic Development Corporation.
• Board member & an honorary life member of the Texas Economic Development Council
• Member of the Industrial Assets Management Council, TexasOne, Texas Forest Country Partnership Board of Directors, International Economic Development Council, and the International Council of Shopping Centers.
• Stephen F. Austin State University & is a graduate of the Economic Development Institute at the University of Oklahoma.

Mike Rollins 

• Austin
•  President & CEOGreater Austin Chamber of Commerce
• Certified Chamber Executive
• Former president & CEO of the Nashville Area Chamber of Commerce and the Asheville Chamber of Commerce, and general manager of the Columbia Chamber of Commerce.
• Board member of the TX Association of Chamber of Commerce
• Chairman of the Metro 8 Chamber of Commerce.
• B.A. from the University of South Carolina.

Alejandro “Alex” Meade

• Mission
• CEO of the Mission Economic Development Corporation
• Board member of the Texas Economic Development Council, Border Trade Alliance, I-69 Alliance, Rio Grande Valley Partnership, and RGV Lead
• Chairman of LeadTexas
• Member of the Texas State Affordable Housing Corporation
• Certified as an Economic Development Finance Professional (EDFP) by the National Development Council
• Certified Public Manager (CPM) by the National Certified Public Manager Consortium
• Bachelor of Business Administration in Economics from St. Edward’s University, MBA from The University of Texas at Brownsville, and MPA from The University of Texas Pan American

Mark Griffin 

• Lubbock
• President & eneral counsel for Rip Griffin Truck Service Center, L.P.
• President of Pro Petroleum, Inc.
• Member of the State Bar of Texas and the Lubbock County Bar Association
• Director of the Lubbock Economic Development Alliance and Plains Capital Bank. 
• Former board member of Covenant Health System, the Texas Guaranteed Student Loan Corporation, and the Lubbock Independent School District Foundation.
•  Bachelor of Business Administration from The University of Texas at Austin and a Juris Doctor from Texas Tech University School of Law.

Steve Head 

• The Woodlands
• Chancellor of the Lone Star College System
• Board member of the American Association of Community Colleges, Cypress Fairbanks Medical Center Governing Board, and the Greenspoint Management District 
• Member of the Greater Houston Partnership, The Woodlands Economic Development Partnership, Community Colleges for International Development Executive Committee, and the Sam Houston State University Educational Leadership Program Advisory Council
•  Bachelor of Arts and Master of Arts from Lamar University and a Doctor of Philosophy from Texas Tech University

Governor Abbott Press Release 

Select Committee on Property Tax Reform and Relief

Sen. Paul Bettencourt – Chair
Sen. Brandon Creighton
Sen. Kelly Hancock
Sen. Eduardo A. “Eddie” Lucio, Jr.
Sen. Charles Perry
Sen. Van Taylor
Sen. Carlos Uresti

The Committee will travel the state holding public hearings to:

• Look  for ways to improve the property tax process
• Look for ways to reduce the burden on property owners

Lt. Governor Patrick Press Release

Oklahoma collected $92 million in unpaid state taxes within 2 months by waiving all surcharges, interest and fees. The idea was the brain child of the Oklahoma House Appropriations Chairman 7 has exceeded projections. 

Note to self: Oklahoma has a population less than Harris County. Extrapolate to Texas and it could be $500 Million revenue within 2 months. 

NewsOK | Oklahoma Tax Commission collects more than $92.8 million in past-due taxes

Which state is reigning in business tax decuductions? LOL- Land of Lincoln

Which deduction is on the chopping block? A business tax cut that allowed a deduction for the cost of creating new jobs even when the same company cut the same number of jobs somewhere else in the state. 

The deduction allowed a business that overall cut jobs to get a tax deduction? yes. The Illinois Tax Code allowed every location, division or subsidiary to be treated for tax purposes as an independent operation.

Governing | Illinois Governor Ends Controversial Business Tax Loophole

Which state wants to split its pension system? Connecticut

Why split the pension?  A generous accounting system has left the pension 50% of the assets to meet liabilitiies.

Who thought of the split the pension idea? Center for Retirement Research

How would they split the pension? One pension for workers who started before 1984 & one pension for workers who started after 1984.

           The post-84 workers are the cheaper lot for a pension.

What are the pros/cons?

• The pre-1984 hires would be paid for directly out of the state’s annual budget. 
• The unfunded liabilities would be removed from the pension plan’s overall liabilities.
• CT State Treasurer thinks the idea is unconstitutional

Governing | The Week in Public Finance: Splitting Pensions, Going Hyperlocal and Charter Schools’ Impact on Credit Ratings

Oregon is the only state to be testing, pay as you drive, taxing structure for its citizens.

How does it work? A green box is attached to a car’s steering column, and reports speed, braking, and distance to a 3rd party contractor. 

The fee for pay as you drive in Oregon? 1.5 cents per mile.

Unlike the gas tax a Prius and F-150 would pay equal amounts.

It changes driving habits. One Prius driver reported breaking less.

A non-GPS device option will be available for statewide use, to quell concerns of privacy advocates of a state tracking its residents.

California will begina  similar pilot program in 2017.

Governing | A Real Way to Replace the Gas Tax

• Economically responsible compromises to bring back the film tax credit
• Delay enactment of the film tax credits until the 2016 budget is enacted. 
  • Use the film tax credit as leverage since Chicago is the heart of 3 primetime tv shows
• Offer an up to 30% tax credit

Deadline Hollywood | The Land Of Lincoln And ‘Empire’ Brings Back Film Tax Credits – Kind Of

• The $300 million Circuit of the Americas will built on a “deal” for $250 million over 10 years from the State of Texas
• The Major Events Trust Fund moved in 2015 from the Office of the Comptroller to the Office of the Governor
• A new calculation method at the Office of the Governor reduces the funds going to the Circuit of the Americas from $25 million to $19.5 million
• The Track says the deal was built around the calculations that arrived at $25 million, and the Texas is changing the terms
• The State says the Major Events Trust Fund is a tax reimbursmeent based on out of state generated tax revenues due to the event, and the numbers provided don’t add up
• This week a competing F1 Circuit opened in the Americas in Mexico City.

Road and Track | Budget Problems Could Kill F1 at Circuit of the Americas [Update]

Statesman | Why the future of Austin’s F1 race is in doubt

Motor Sport | US GP future under threat as Texas cuts state subsidy

States want to peek into corporate books? Yes. 

Why? An audit and investigative journalism revealed that tax credits for films in Massachusettes were sold more often than they were utilized by the recipient.

What’s the legislative fix? To allow the state to audit the books of entities that receive economic development funds for the sole purpose of determining the use of economic development funds by the recipient.

Governing : A Reel Bad Deal on Tax Giveaways

The Greater Green Bay Chamber supports raising the gas tax with these 3 pitches:

• Transportation funding is a Return on Investment:
  • it is an enhanced tax base
  • promotes new development
  • provides a safe, efficient and reliable mode of transporting raw materials, finished products and people
• Delays in transportation cost people and businesses money
• Fuel efficeint cars are good for the environment and our pocketbooks but bad for transportation funding, and we can fix that

Green Bay Press Gazette | Invest in transportation infrastructure

“Dallas is drowning in debt”

TPPF | TPPF Statement on Dallas’ Downgraded Debt Rating

Related: Moody’s Statement on Moody’s downgrades Dallas, TX’s GOLT bonds to Aa2 from Aa1; outlook stable

Moody’s downgraded Dallas debt rating to Aa2.

Why the downgrade?

• Dallas has $1.4 billion in outstanding debt
• + very large and growing unfunded pension liabilities
• + a high fixed cost burden
• +  basic infrastructure needs which we expect to keep the direct debt burden elevated

Dallas’ rating could increase with:

• Material improvement to annual pension funding thereby reducing Moody’s calculatino of adjusted net pension liability

• Significant increase to Dallas’ operation reserves and liquidity (More Local Revenue)

Moody’s downgrades Dallas, TX’s GOLT bonds to Aa2 from Aa1; outlook stable

• Oil producing counties are a state revenue source. Eagle Ford Shale counties alone contribute $323 million of severance tax receipts a year.
• Unfair revenue exchange with oil counties. In the same year that DeWitt county contributed $57.5 Million in severence taxes, it received $112,000 from the comptroller for money generated from gasoline tax remittances and overweight axle fees
  • Now the oil producing counties are left with dangerous roads. This was the catalyst for a county transportation infrastructure fund grant program 
• Time for the state to stop getting a “free ride.” Oil counties want the legislature to:
  • Establish requirements and timelines on how repairs should be made
  • Establish requirements for how the money is distributed — including the loose wording that only requires a county have increased energy production
  • Must be an ongoing program for transportation funding
  • Must have greater trickle down to the oil producing counties

Victoria Advocate | Texas counties call for oil, gas tax distribution reform

• 45 school projects
• 9 jails & public safety
• 1 golf course
• 16 roads
• 2 aquatic centers
• 11 parks and recreation
• 7 water drainage
• 7 municipal and county buildings
• 3 libraries
• 3 animal control
• 1 fairgrounds
• 1 health center
• 1 airport improvement

Texas Transparency | Upcoming Bond Election Roundup

Jess Fields, running for Texas House District 14, signed Americans for Prosperity’s Taxpayer  Protection Pledge. 

Americans for Prosperity | Jess Fields Signs Taxpayer Protection Pledge

Why does this matter to Texas? It echoes sentiments bandied about around local pensions for police and fire in Texas.

Where is this happening too? Florida

What’s the deal in Florida? Local governments say they need legislative help to gain control over rising cost sin police and fire pension systems.

What’s the legislative history in Florida? 25 years ago, local police and fire pension systems were permitted to operate like “independent agencies”

What sparked the legislator outcry to act? a forensic investigationlambasted the police and fire pension system. In 2014, Governor Rick Scott was asked by legislators to investigate the pensions, and his office declined. 

Jacksonville| Jacksonville councilman: State Legislature can put Pension Fund ‘monster’ back in cage

Which state is offering this economic development deal? New York

How much?  Up to $750 Million has been pledged by Governor Cuomo

What project is getting the $750 Million? A 1.2 million-square-foot SolarCity factory. Scheduled to open in early 2016, will create 5,000 jobs, with 3,000 of them in western New York.

Why the geographic limitation on added jobs? Because Western New York job market was hurt when steel declined.

Governing | New York Governor Takes a Big Bet on Solar Power

NYTimes | Despite Risks, Cuomo Bets on Solar Power to Lift Buffalo

Which state is also getting sued over its school finance system? Arizona

What’s the deal with the settlement offer from the state? The state wants to offer school funding from state trust land proceeds.

What did the State Comptroller, AKA Treasurer, say about it? Irresponsible. Illegal.

Why? What economic impact would the settlement have on school funding?

• Taking state trust land proceeds would reduce future school finance funding
• The Rainy Day Fund is flush and would be more fiscally prudent

What’s the Arizona Legislature Say? The Lege may vote this week to approve a fiscal settlement.

Arizona Capital Times | State treasurer says school finance deal is irresponsible, likely illegal

Fire District property tax increases in California have failed at the rate of nearly 2/3 since 2012.

Why are these fire protection tax increases failing?

• The tax increases for special districts, like a fire district, requires 2/3 to pass
• more than 1/2 of the failed measures received more than majority support

Sacramento Bee | Fire districts losing tax votes point finger at state fee

Why is the Tax Foundation on the topic of a soda tax? The Tax Foundation is responding to an October 13th New York Times piece touting the success of Mexico’s soda tax.

2 Retorts from the Tax Foundation:

• Taxing Soda Probably Doesn’t Translate to the Health Results You Want. Citing a 2010 health study they say kids will switch to a higher calorie beverage, milk, and a 2012 study says adults will switch to another higher calorie beverage, beer. 
• Tax Code Changes are not Predictable. It is far too early to find results in Mexico’s soda tax.

Tax Foundation | A Letter to the New York Times on Soda Taxes

The Texas Supreme Court will hear oral arguments on 12/8/15 concerning the Texas Small Tobacco Coalition suit against House Bill 3536 (2013) is constitutional. 

Who is getting involved?

• Comptroller
• Small Tobacco Coalition
• McLane Compny (a distributor)
• TMA
• TTARA
• The State of Indiana

What are they arguing about?

Whether HB3536 is a tax or a fee + some procedural issues raised by the state.

Why does this matter? 2 reasons

• tax policy consquences
• the courts have different review standards for fees & for taxes
  • a fee must meet the standards of due process and equal protection
  • a tax must meet the standard of equal and uniform

What happened to get us to this point?

• District Court ruled for the Small Tobacco Coalition fudning HB3536 unconstitutional tax
• The 3rd Court of Appeals agreed with the district court.
• This keeps the state from collecting the revenue that would be generated by HB 3536

Case 14-0747

• Texas needs the right policy in place for economic success
• Texas has an onerous property tax system that is tough on property owners and businesses
• Tax Foundation says Texas has the 14th worst property tax system that costs each Texan $1600 per year
• A 2012 Texas Comptroller Report says Texas property Tax outpaced population growth at a rate of 5:1
• Texas needs to do 3 things:
  • immediate relief
  • provide long lasting reform
  • property tax system should be replaced with an expanded sales tax

TribTalk | TPPF | Slowing Texas Economy Underscores Need for Property Tax Reform

• “significant weaknesses in its processes for the expenditure of state asset forfeiture funds”
• 10% of expenditures did not comply with state requirements for use of asset forfeiture property
• 18% of asset forefeiture expenditures did not have adequate documents
• Dallas County District Attorney Office should clarify its budgeting process to reflect permitted uses of asset forefeiture property
• During the SAO investigation the State Auditor received a “complaint regarding potential fraud relating to revenue deposits at the District Attorney’s Office.”
  • The SAO is investigation.

State Auditor | An Audit Report on the Expenditure of State Asset Forfeiture Funds at the Dallas County District Attorney’s Office

California Public Utilities Commission is considering rules about incentives for roof top solar ability to sell electricty back to the grid under net metering rules.

Why the new regulatory framework for rooftop solar? The grid operators say the cost of operating the grid is high and want to pay less for the electricity generated from rooftop solar.

What’s the policy goal in California? Generate 50% of its electricity from renewable sources by 2030.

Why would it matter if grid operators paid less for rooftop solar? It would increase cost to the customer and disincentivize the addition of more rooftop solar.

The Atlanta Business Journal says that opposition to the renewal of the Export-Import Bank by Texas’ U.S. Senators directly harms Texas ability to lure new corporate offices for GE.

An independent corporate selection consultation service labels Texas as out of the process for the General Electric headquarters because “politics do matter.”

The other items that matter:

• tax policy
• airports
• tech presence

Atlanta Business Chronicle | Atlanta, Triangle or N.Y.? Consultant weighs in on GE’s HQ relocation

Louisiana voters are considering a constitutional amendment that would allow legislators to rein in corporate tax incentives.

Why change the constitution on tax incentives? Louisiana takes up budget issues in a separate session from the general session which would consider tax incentives. The constitutional amendment would allow tax incentives to be considered in the budget legislative session.

Why does Louisiana want to cut back on tax incentives? Two words- budget shortfall.

Governing | Why Tax Incentives Could Change Louisiana’s Constitution

Georgia raised its gas tax before gas prices fell. Which turned into a win-win:

• gas prices went down
• revenue went up
• Transportation got an extra $74.3 million in September.

Georgia Governor Deal | September tax revenues up 4.6 percent

Texas takes in $1,970 in taxes per capita. That’s 42nd.

The highs and lows:

• #1 in state tax collection per capita: North Dakota at $7,438
• NY is #8 at $3,746
• California #11 at $3,490
• Florida is # 48 at $1,820
• Ohio #33 at $2,380

Tax Foundation | How Much Does Your State Collect in Taxes Per Capita? 

Comptroller’s revised revenue forecast for the 85th Legislature is $110.4 Billion.

Why the decrease? 2.3% decline in general revenue, reflecting a decline in oil and gas and the energy sector. 

What’s the impact to Rainy Day Fund (Economic Stabilization Fund)? The fund balance should be $10.7 Billion by the end of fiscal year 2017 on August 31, 2016. 

Coverage:

• AP via Click2Houston | Texas lowers projected tax revenue by $4.7B amid oil prices
• Ft. Worth Star Telegram | Comptroller revises revenue estimate due to lower oil prices
• Dallas Morning News | Texas comptroller Hegar concedes budget forecast was too rosy
• High Plains Public Radio | As Energy Sector Struggles, Texas Sales Tax Revenues Slump