Okay for Texas Economic Development Act
May 27, 2009
The Texas Senate just approved extending the Texas Economic Development Act which allows school districts to enter into tax-subsidy agreements with businesses.
Written by Mike Ward, The Austin American Statesman
The Texas Senate just approved extending the Texas Economic Development Act which allows school districts to enter into tax-subsidy agreements with businesses.
The sometimes-controversial program would be extended to 2015, at a cost of $2.4 billion to school districts.
Sen. Kel Seliger, R-Amarillo, the Senate sponsor of House Bill 3676, said the program is voluntary and has been highly successful in attracting new business to Texas. “This program has been in place since 2001 and is essential if Texas is to remain competitive in economic development,” he said.
Even so, Sen. Eliot Shapleigh, D-El Paso, called the program “a major bailout” and questioned why school districts should continue to subsidize businesses at the expense of students.
“This program has cost $376,000 for every job it has created,” he said.
After two attempts to bring the vote to a vote — both delayed by vigorous debate over the tax breaks — Seliger quickly brought the measure to a vote, and won approval 25-6.
The no votes: Sens. Juan Hinojosa, D-McAllen; Steve Ogden, R-Bryan; Dan Patrick, R-Houston; Carlos Uresti, D-San Antonio; Leticia Van de Putte, D-San Antonio, and Shapleigh.
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a "fair use" of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond "fair use", you must obtain permission from the copyright owner.