Two Years of Texas IAF Opposition Leads to Reforms to Limit Giving School Money for Corporate Tax Breaks 

The Texas Senate and House passed a compromised version of HB5 that still fundamentally represents misguided economic development to the benefit of out of state corporations that would come here for other factors anyway.  This perpetuates a corporate welfare state which Chambers of Commerce and industry groups could never prove otherwise.

However, a 2-year campaign by Texas IAF and allies led to some major reforms in HB5 compared to the now defunct and failed Chapter 313 program.  When these tax abatement deals are proposed at local school districts, there will now be a fair fight for taxpayers and public school supporters concerned about corporate welfare.  HB 5 Reforms to Chapter 313 include:

[Excerpt]

“As a result of this policy, taxpayers are on the hook for an estimated $31 billion, according to the comptroller.  In a demonstration analysis of “winners and losers,” the Texas IAF took the $1billion a year that taxpayers spend on Chapter 313 agreements, and instead ran it through the per student funding formulas for each district in the state. We found that 95% of students in Texas are in districts that lose potential funding because corporations are not paying their fair share of taxes due to Chapter 313 agreements.”  - Eloiso Davila, EPISO/Border Interfaith leader - El Paso Matters

Opinion: Texas Shouldn’t Bring Back this Corporate Welfare Vampire, El Paso Matters [pdf]