Latest news with #TexasA&MSystem
Yahoo
14-04-2025
- Business
- Yahoo
Texas plans to spend $51 billion on property tax cuts. It may not be sustainable
Property tax cuts aren't free. In fact, they're costing Texas a fortune. The Texas House is considering a budget that would shell out $51 billion — 15% of the state's total two-year spending plan — to maintain and provide new property tax cuts. That number, more than the state allocates to transportation or higher education, is making even some Republicans nervous about the state's ability to afford the tax relief if there's an economic downturn. If it were its own agency, Texas' property tax budget would be the third costliest agency in the state, more than double what the state spends on public safety and criminal justice. The allocation exceeds the operating budget to run Texas A&M System's 11 university campuses for two years. And it's more than enough money to cover the estimated cost of a high-speed rail line from Dallas to Houston. Texans pay among the highest property taxes in the country. The state doesn't have an income tax and relies heavily on property taxes to pay for public services, especially public schools. For the last several years, lawmakers have sought to rein in those bills by sending billions of dollars to school districts to reduce how much in property taxes they collect from homeowners and businesses — a strategy they're keen on duplicating this year. 'It's something that we can afford to do now,' said Rahul Sreenivasan, director of government performance and fiscal policy at Texas 2036, a nonprofit public policy group. 'I don't know if it's something that we can afford to do on this scale every session.' Lawmakers have drawn on massive state budget surpluses in recent years to pay for property tax cuts. A $33 billion surplus helped cover the $18 billion tax-cut package legislators greenlit two years ago. This time, lawmakers have eyed a $24 billion surplus to help pay for new cuts and maintain existing ones. Budget analysts have warned that those surpluses were out of the ordinary — and will soon be a thing of the past. The injection of tens of billions of federal dollars into state coffers during the COVID-19 pandemic and higher-than-usual growth in sales taxes, driven by inflation, formed those surpluses, they said. Today, those COVID relief dollars are gone or spoken for. Sales tax collections, which make up more than half of the state budget, have slowed as higher housing costs and grocery bills — costs that don't generate sales tax revenue — have bitten into Texas households' budgets. 'Because of very specific, very unusual circumstances, we had a lot of money that we didn't expect to have,' said Shannon Halbrook, a fiscal policy expert at the left-leaning think tank Every Texan. 'My fear is we're assuming that that money is permanent, or that we're going to have that kind of money going forward to keep paying for these recurring tax cuts every budget, every session. And that's just simply not the case.' The state's economy already had been projected to slow this year, and President Donald Trump's tariffs have introduced a fresh round of economic uncertainty. And on Thursday, the U.S. Energy Information Administration said it expects demand for oil to shrink and gasoline prices to fall through 2026 — both of which would affect the state's tax revenue collections from oil and gas production. Meanwhile, it's unclear just how deeply the Trump administration's efforts to cut federal spending will hit the state budget going forward. Federal funds account for roughly 30% of Texas' upcoming two-year budget. Of the $51 billion in the budget set aside for tax cuts, some $44.5 billion will go toward maintaining property tax cuts lawmakers have enacted since 2019. That includes billions of dollars sent to school districts to replace funds districts would have otherwise collected in property taxes, thus lowering tax rates — a tax-cut method known as 'compression.' It also includes billions of dollars lawmakers greenlit to raise the state's homestead exemption for public schools — or the amount of a home's value that can't be taxed to pay for public schools. Voters decided to raise that exemption to $100,000 in 2023. Lawmakers plan to put another $3 billion toward compression. State law requires Texas to put more money toward compressing school districts' tax rates every two years as long as property values grow, so the $51 billion tax-cut tab is expected to grow in the future. Legislators also have $3.5 billion set aside to pay for new cuts — expected in the form of another bump in the homestead exemption, more compression and tax cuts for businesses. Lt. Gov. Dan Patrick said he favors further boosting the state's homestead exemption because it would be harder for lawmakers to claw back those cuts versus other methods, like compression. Senators passed a proposal earlier this year to raise the homestead exemption from $100,000 to $140,000, and to $150,000 for older Texans. Patrick said he and House Speaker Dustin Burrows have discussed raising the exemption even further for Texans age 65 and above, to $200,000. 'One of the many reasons I favor the homestead exemption over increasing compression is that the homestead exemption is codified in the Texas Constitution by voters so future legislatures can never take property tax cuts away from Texas homeowners,' Patrick said in a statement, alluding to the two-thirds vote required in both chambers to repeal a constitutional amendment. In contrast, Patrick said, 'Future legislatures can decrease, or entirely eliminate, the amount of compression at any time,' as they are not baked into the constitution and could be rolled back with only a majority vote. Cutting property taxes has been a major priority among Texas Republican lawmakers. But even some Republicans are sounding the alarm about how much tax cuts cost. Senate lawmakers passed their proposal to raise the homestead exemption in February, with a unanimous vote and little fanfare. Still, some senators sounded a note of caution about the state's ability to continue paying for tax relief into perpetuity. 'We're building a large obligation, and it's going to detract from things we absolutely can't afford not to do, if we're not careful,' said Sen. Charles Perry, R-Lubbock. The tax cuts have provided some relief for homeowners: a Texas Tribune analysis of more than 50 property tax bills from 2023 found that those homeowners saw their bills fall nearly 28% from the year before. When adjusted for inflation, most homeowners' tax bills were lower in 2023 than in 2018, the year before GOP legislators passed the first major round of relief. But growth in property values in 2024 has eaten into those gains, with some areas seeing the typical homeowner's bill increase by more than it fell the year before. After falling by more than 10% in 2023, schools' property tax collections grew by more than 6% last year, according to estimates from the Texas Comptroller's office. As they were taking up their main tax-cut measures earlier this year, Senate lawmakers griped that, even after billions of dollars in relief, many of their constituents feel as though they are not getting tangible relief as local tax increases and rising insurance costs bite into progress made by the Legislature. At the same time, lawmakers have effectively boxed themselves in. Voters would have to sign off on reducing the state's homestead exemption, which would require a constitutional amendment. State lawmakers could theoretically reduce how much they spend on compression, but doing so would prove difficult if not impossible to sell politically. That means lawmakers would have to make cuts elsewhere in the budget to sustain tax cuts should the economy hit a rough patch. For Halbrook, the fear is those cuts would come out of programs that serve low-income families. 'The sad fact of the matter is there's not a lot of money spent on programs like that,' Halbrook said. This article originally appeared in The Texas Tribune at The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at This article originally appeared on Wichita Falls Times Record News: Texas plans to spend $51 billion on property tax cuts
Yahoo
29-03-2025
- Business
- Yahoo
Hegar named Chancellor of Texas A&M University System
Mar. 28—BRYAN-COLLEGE STATION Texas Comptroller Glenn Hegar '93 was confirmed Friday as the next chancellor of The Texas A&M University System by a unanimous vote of the Board of Regents. "I am grateful and honored that the Board of Regents have entrusted me with the responsibility of leading one of the greatest university systems in the nation," Hegar said in a news release. "Our core values unite us and set the Texas A&M System apart from the others, and I remain steadfastly committed to upholding and preserving those values." Hegar is set to take over one of the nation's largest university systems, with 11 universities and eight state agencies and a budget of more than $7.3 billion. Hegar brings a long history of leadership, innovation and responsible management that has helped guide the Texas economy from the 12th to the 8th largest in the world. He anticipates continued growth for both the state and the Texas A&M System, noting he will work to expand and improve student experiences, create new and dynamic economic opportunities, and serve and protect Texans in every corner of the state. Hegar will begin leading the System upon retirement of Chancellor John Sharp, the longest serving chancellor in A&M System history. Sharp has announced he is stepping down as chancellor on June 30 after almost 14 years. Hegar, the state's chief financial officer, is a 1993 graduate of Texas A&M University. He and his wife, Dara '95 have three children: Claire, Julia and Jonah. "The Board of Regents is confident that Glenn Hegar will be an outstanding Chancellor," Chairman Bill Mahomes said. "He will advance System excellence in its core missions: offering high-quality, affordable education; serving Texans throughout our great state; and conducting world-class research to improve people's lives." Sharp agreed that Hegar will be an effective chancellor. "Glenn Hegar understands the power and the potential of the Texas A&M System. I have no doubt he will lead it with integrity and vision," Sharp said. "I wish him and his family the best." Hegar earned a law degree from St. Mary's University and a master's degree in law from the University of Arkansas. He served in the Texas House of Representatives and Texas Senate before being elected comptroller in 2014. He won re-election in 2018 and 2022. Hegar grew up in Hockley. As a sixth-generation Texan, he farms land that has been in his family since the mid-1800s. Hegar was named the sole finalist for the chancellor's job March 7. Under state law, there is a 21-day waiting period before the Board can finalize its selection.
Yahoo
28-03-2025
- Business
- Yahoo
Glenn Hegar named Chancellor Of Texas A&M University System
COLLEGE STATION, Texas (FOX 44) – Texas Comptroller Glenn Hegar has been confirmed as the next chancellor of The Texas A&M University System by a unanimous vote of the Board of Regents. Hegar is set to take over one of the nation's largest university systems, with eleven universities, eight state agencies and a budget of more than $7.3 billion. The university says Hegar brings a long history of leadership, innovation and responsible management which has helped guide the Texas economy from the 12th to the 8th largest in the world. Hegar anticipates continued growth for both the state and the Texas A&M System, noting he will work to expand and improve student experiences, create new and dynamic economic opportunities, and serve and protect Texans in every corner of the state. The university says Hegar will begin leading the System upon retirement of Chancellor John Sharp, the longest-serving chancellor in A&M System history. Sharp has announced he is stepping down as chancellor on June 30 after almost 14 years. Hegar is the state's chief financial officer, and a 1993 graduate of Texas A&M University. He and his wife Dara have three children: Claire, Julia and Jonah. Sharp agreed that Hegar will be an effective chancellor. 'Glenn Hegar understands the power and the potential of the Texas A&M System. I have no doubt he will lead it with integrity and vision. I wish him and his family the best.' Texas A&M says Hegar earned a law degree from St. Mary's University and a master's degree in law from the University of Arkansas. He served in the Texas House of Representatives and Texas Senate before being elected comptroller in 2014. He won re-election in 2018 and grew up in Hockley. As a sixth-generation Texan, he farms land that has been in his family since the mid-1800s. Hegar was named the sole finalist for the chancellor's job March 7. Under state law, there is a 21-day waiting period before the Board can finalize its selection. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
18-03-2025
- Politics
- Yahoo
University of Texas System bans drag shows in campus facilities
The University of Texas System announced Tuesday its universities are banned from sponsoring drag shows or hosting them in their facilities, a few weeks after the Texas A&M System's board of regents approved a similar ban. 'If the board of regents needs to take further action to make this clear, we will do so,' UT System Board of Regents Chair Kevin Eltife said in a statement on Tuesday, adding that this is a measure 'to comply with all applicable federal, state and local laws and executive orders, including any restriction on the use of public funds.' Eltife declined to say what specific laws they were seeking to comply with, but the move appears to be in response to recent executive orders issued by President Donald J. Trump and Texas Gov. Greg Abbott. In January, Trump signed an executive order directing federal agencies to take all necessary steps to ensure funds are not used to promote gender ideology. A few days later, Abbott directed state agencies to reject efforts 'to distort commonsense notions of biological sex.' Texas A&M University System Board of Regents cited these executive orders when it passed its own drag show ban last month. The system was sued by the Queer Empowerment Council, a student group at the College Station flagship that organizes Draggieland, an annual drag show that was slated to take place at the Rudder Theatre on March 27. 'Texas A&M can't banish student-funded, student-organized drag performances from campus simply because they offend administrators. If drag offends you, don't buy a ticket,' said Adam Steinbaugh, an attorney with the Foundation for Individual Rights and Expression, a national free speech group representing the students in this case. Judge Lee H. Rosenthal heard arguments Tuesday morning in federal court in Houston on whether to block the ban temporarily. It's unclear when he'll make a decision. Texas A&M has argued in court documents that drag is not expressive speech protected under the First Amendment. The system has also suggested it might lose funding if it disregards federal and state guidance and allows Draggieland to proceed in the campus theater. It said this fiscal year, federal appropriations made up 12% of its budget; federal contracts and grants 16%; and tuition and fees, some of which come from federally-backed student loans, 25%. Texas A&M, which is being defended by the Texas Attorney General's Office, also took issue with the characterization that the system has banned on-campus drag shows. It described the Rudder Theatre as a limited public forum and pointed out that students were allowed to dress in drag to protest the board's decision on campus a few days later. The UT System's drag show ban comes a few days after Tarrant County Judge Tim O'Hare urged the board of regents to follow in A&M's footsteps. O'Hare, who graduated from the University of Texas at Austin with a bachelor of business administration in finance in 1991, pointed out that UT-Arlington recently hosted an event that featured a drag performer. KERA reported that the event O'Hare was likely referring to was not funded by the university, but a student group. That is also the case with Draggieland at Texas A&M University in College Station. The UT System consists of 14 institutions that educate more than 256,000 students. The UT System Board of Regents' next meeting is scheduled for May 7-8, but it can call a special meeting before that time. The Texas Tribune partners with Open Campus on higher education coverage. Disclosure: Texas A&M University, Texas A&M University System, University of Texas at Austin and University of Texas System have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here. We can't wait to welcome you to the 15th annual Texas Tribune Festival, Texas' breakout ideas and politics event happening Nov. 13–15 in downtown Austin. Step inside the conversations shaping the future of education, the economy, health care, energy, technology, public safety, culture, the arts and so much more. Hear from our CEO, Sonal Shah, on TribFest 2025. TribFest 2025 is presented by JPMorganChase.
Yahoo
01-03-2025
- Politics
- Yahoo
Texas A&M System bans drag shows at its 11 institutions, citing Trump, Abbott directives
Texas A&M System regents on Friday passed a resolution banning drag shows at the 11 universities they oversee, claiming that the performances would violate President Donald Trump's and Gov. Greg Abbott's orders for public agencies to recognize only two sexes. The resolution states that drag shows will not be permitted on campuses because they do not align with system's values and "may be considered promotion of gender ideology." More: 'We are not going away': Queer joy persists at UT, St. Edward's after Texas DEI ban "The Board finds that it is inconsistent with the System's mission and core values of its Universities, including the value of respect for others, to allow Special Event Venues of the Universities to be used for drag shows that involve biological males dressing in women's clothing," the resolution states. The regents' decision comes at a time when LGBTQ students are still reeling from a 2023 anti-diversity, equity and inclusion law that banned DEI and LGBTQ offices, programs and supports at institutions of higher education, and amid a state legislative session in which queer Texans are bracing for up to 148 LGBTQ-related bills that have been filed, according to the latest count by Equality Texas, an LGBTQ rights advocacy group. Texas lawmakers passed a law banning drag shows in 2023, but a federal judge ruled it was unconstitutional because of its restriction on speech. In the resolution approved during a special meeting Friday, Texas A&M System regents accuse drag performances — or artistic presentations of exaggerated gender expression that originated in the queer community — of creating a "hostile environment for women." LGBTQ and civil rights advocates have denied such accusation and say it echoes GOP arguments being used to implement anti-transgender legislation nationwide. More: 'In crisis mode': Rights groups petition UN to intervene for LGBTQ+ people in Texas The Texas A&M System regents instructed the flagship university to cancel Draggieland, an annual drag show organized by the student Queer Empowerment Council, the student newspaper the Battalion reported. In the resolution, regents said they have the power to limit the use of university venues to events that serve the institution's mission. A Texas A&M System spokesperson declined to answer questions about free speech concerns or the reasons behind the special Friday meeting. "Drag is protected expression. Full stop," JT Morris, a Foundation for Individual Rights and Expression attorney, said in a news release. "Whether drag or Bible study, public universities cannot ban or punish students' protected expression. Banning speech because it might offend someone else is viewpoint discrimination, the third rail of the First Amendment." More: Texas 'most extreme' in anti-LGBTQ bills, advocates say. How supporters plan to fight back In 2023, West Texas A&M President Walter Wendler canceled a student drag charity show because he found it offensive to women, resulting in a vote of no confidence from faculty members and a free speech lawsuit by the student group putting on the performance. The students are being represented by the Foundation for Individual Rights and Expression, a national university campus free speech advocacy group. This article originally appeared on Austin American-Statesman: Texas A&M System OKs resolution to ban drag shows at its 11 campuses
