Special Session No. 2

The Legislature’s second called Special Session gaveled in on August 15th. Five days later, the House passed the Congressional redistricting maps at the center of the political upheaval during the first called session. Since then, a handful of bills related to 

disaster preparedness and easing permit requirements for dams addressing erosion, floodwaters, and sediment control have passed both chambers. About a dozen other bills have passed one chamber and are moving through the process.  

Bills Target Local Government Budgets 

The Second Called Session of the Legislature has passed SB 10, a bill further reducing how much new revenue local governments can raise through property taxes without voter approval. This is the same provision requiring the City of Austin to seek voter approval for its proposed tax increase.

The Senate’s version capped annual revenue growth at 2.5 percent, but on August 25 the House adopted an amendment lowering the limit to 1 percent. Both chambers have appointed a conference committee to negotiate the differences.

While SB 10 is in negotiations, other bills targeting local revenues and budgets are also advancing. The Senate will consider HB 17, which would require local taxing entities to mail information about tax increases to all affected homeowners.

HB 46, filed by Rep. Carl Tepper (R–Lubbock), was heard in House committee and left pending on August 22. The bill would limit local spending to the greater of the prior fiscal year’s total or that amount adjusted by population plus inflation. Voters could approve a higher amount by a two-thirds vote in a public election.

County Budget Process

The City of Austin, and other cities in the region have completed their budget adoption processes. Counties are now in the middle of their process and holding public hearings on proposed budgets.

Travis County will continue hearings on its proposed 

$2.2 billion budget next week with a final vote expected then or the following week. You can view their budget documents here. Community Impact has also provided some additional information on the budget.   

Williamson County will hold a public hearing on its $391.5 million proposed budget at 1:00 PM on September 3rd. You can view their budget documents here.  

Hays County has a recommended budget of $127 million and will continue holding public hearings in September, with a vote expected on the 16th.

Bastrop County adopted its budget on August 25th and will hold a public hearing on the proposed tax rate on September 8th. The adopted budget raised taxes by $5 million, an 8% increase over last year.  

Caldwell County’s proposed budget decreases property taxes by $2.12 million, an 8% decrease.  

Airport Lease Agreement Vote 

On Thursday, August 28th, the Austin City Council will consider Item 7 on its agenda, authorizing the airport to renegotiate and enter into Use and Lease Agreements with airlines. Opportunity Austin will attend the council meeting to speak in support of the agenda item and the airport.  

Completion of these long-term lease agreements will help fund the ongoing airport expansion projects. The airport is a vital asset for advancing economic growth, especially  internationally, and the expansion  ensures it can meet both  current and future demand.  

Opportunity Austin Panel Discussion on Electricity

OA’s monthly Policy Council meeting featured a panel discussion on the electric grid and important legislation from the Regular Session earlier this year.

Mark Bruce, founder of Cratylus Advisors, moderated the discussion with PUC Chairman Thomas Gleeson;

Katie Coleman, managing partner of O’Melveney’s Austin office; and Mark Bell, President and CEO of the Association of Electric Companies of Texas.  

A key takeaway was that stakeholders from all segments of the industry believe grid reliability is––and will continue to be––strong. Past concerns were tied more to significant weather anomalies than to systemic issues which have been largely addressed through improvements in weatherization and operational efficiency. A lot of work remains to prepare the grid for the expected growth.

News

Gameday Traffic Ahead: With football season kicking off, now’s the time to review the city’s plans for gameday street closures. The first home game is September 6, and traffic patterns will look different this year due to I-35 construction.

Vote For TSTC Funding Campaign: A

A major change to how TSTC is funded will be on the ballot this November. Visit this website to learn how the proposal works and why it’s worth your support. Please share it with your network.

Limits on Water Exporting: Water funding united lawmakers in the Regular Session, but divisions remain. In the first called session, hearings focused on water exports from East Texas. In the second, the House passed a bill restricting certain water extraction to allow more study of the aquifer.

OA Policy and Advocacy Resources 

Were you forwarded this newsletter by a colleague? Subscribe to all OA updates.