Many pundits are still trying to figure out what happened to the Republicans in Harris County in 2016. But 2017 creates opportunities for Republicans to grow the party and build for 2018 and beyond. I will focus on opportunities unique to Harris County in a series of articles, but for now let’s take a look at Mayor Turner’s promised efforts to repeal Houston’s Revenue Cap.
It is no secret that Mayor Turner would like to undo the revenue cap, but to do so he must first get approval from Houston’s voters. In his first State of the City Address Mayor Turner spoke plainly about his intention to repeal it.
“The revenue cap works against creating one Houston with opportunity for all and the ability to address pressing needs like flooding; transportation and mobility; parks and added green space; affordable, workforce housing; and homelessness,”
Mayor Turner is, and has been for a long time, one of our area’s more savvy politicians. He will do his best to parse this issue at the most favorable time and in the most favorable terms.
His statement could hold a few clues in how he might try to sway Houston’s voters to trust the City with more of your money. We’ve heard this all before when elected officials want to raise your taxes. They make promises to “fix the flooding” and our streets, they offer better and more “public transportation,” and of course there’s the never-ending promise for more improvements to city parks.
But this gives Republicans a chance to mimic the Mayor’s claim that all these problems are going to be fixed with more revenue. We should be asking a few questions, frequently, publicly and with lots of volume. Wasn’t the so called “drainage fee” supposed to fix the flooding? What is Metro doing with half of the City’s sales tax revenue? Is Metro not providing quality transportation? Do we need more empty double busses running all hours of the day? Aren’t we already using $100 million of TIRZ revenues, that had had their revenue cap lifted years ago, to “fix” Memorial Park?
And are we going to pay enough taxes to fix problems with “affordable, workforce housing” and the “homeless”. Building “affordable” housing in Tanglewood at $250,000 per unit isn’t “affordable”, it’s crazy. And by-the-way, we have an ordinance that prohibits me from feeding the homeless. Why don’t we lift that rule instead? (But that’s another issue/article altogether.)
As for the timing of his efforts, Mayor Turner is highly motivated to have the Revenue Cap repeal voted on early in 2017 for several reasons.
- He has to set the 2017-2018 budget by June 30th. It helps Turner’s budget and spending agenda if there is, at least in theory, more money to spend in fiscal year 2017-2018 and beyond.
- The “Term Limits” lawsuit hangs like a dark cloud over all City Hall incumbents. He will not want to have the Revenue Cap issue on the same ballot as a potential general election. And,
- The Rain Tax lawsuit, which the City has already lost in the courtroom, might be returned to the voters. Mayor Turner cannot afford to ask the voters to approve lifting the Revenue Cap AND re-vote on the very unpopular Rain Tax at the same time.
For these reasons Mayor Turner will most likely put the Revenue Cap repeal on the ballot this May.
Turnout of conservative voters would likely be lower in May than in a November election when State Constitutional issues, such as the statewide limitation on increases in property taxes, are likely to be voted on. Those opposed to repeal of the Revenue Cap will have less time to organize if a vote were held in May. And a vote in May could take advantage of the positive press the Mayor is likely to get if his Pension Reform package passes.
The Mayor does have powerful and influential friends in Austin and they will be highly motivated to help the Houston Mayor solve this pressing issue. One big supporter of Turner’s efforts, Senator John Whitmire, was shown on a Dallas TV newscast telling Dallas police and fire officials that “…most Texas legislators don’t know three things about pensions.”
If we assume that Turner is successful with his pension proposal we need to be prepared for a May revenue cap election. And even if it does not happen ‘til November you can never be prepared too soon.
When the revenue cap repeal is placed on the ballot we should expect the Mayor to promise:
- An increase in the homestead exemption for all homeowners and for those 65 and older. This will decrease their property taxes or offset increases from the higher rates necessary to raise more revenue.
- Higher property taxes will be aimed mostly at commercial property owners and the wealthy.
Increases in city property taxes will be aimed at “greedy corporations and large businesses,” not private citizens and homeowners. The homeowners that will be affected are rich and live in places like River Oaks, The Heights, Garden Oaks, Tanglewood, or the Museum Dist. They won’t mention that multifamily properties and small to medium sized commercial properties will be most affected.
But everyone knows that commercial and apartment property owners don’t pay property taxes. Their tenants do.
Most of us know that “taxes” are simply a cost of doing business that is either passed along to the consumer/renter. Or, as in the case with companies like ExxonMobil, business elect to relocate outside of the City and pay lower taxes to a government entity that is significantly more efficient than the City of Houston.
Opportunity #1 for Harris County Republicans
Republicans can get out in front of this issue NOW. We don’t have to wait until the Mayor decides when this issue will go on the ballot, we can start organizing to send the message NOW.
Send the message to all voters that increases in property taxes hurt all small family businesses. Tell them that medium sized businesses will cut payrolls or new jobs to pay the new taxes. Tell anyone who is living in an apartment or a rent house not covered by a homestead exemption to expect to pay higher rent when the landlord passes the full amount of property tax increases to the tenant.
If we make this argument early and often we can help defeat the Mayor’s Revenue Cap repeal efforts and we can also begin to build a relationship with voters who have a “built in” and very high interest opposing repeal of the Revenue Cap.
By taking advantage of early communication we can further expose Democrats as working against the voting base they often take for granted. We can show the residents of neighborhoods in places like Acres Homes and Sunnyside that the Mayor’s proposal will hurt renters and small businesses, as well as jobs.
We can remind all residents of the promised “lockbox” for drainage fee revenues. This ploy was used to ensure voters that rain tax revenues would be used exclusively to rebuild streets and improve drainage. We can ask “Who has the key to that lockbox, and where did all that money go?”
This is one opportunity for Republicans to show all voters that we’re all on the same side of this issue.
Opportunity #2 for Harris County Republicans
Many of the homeowners and renters in these fast-growing parts of town are not established voters. They are often independents and have very little background on City of Houston political issues. I do not believe that this group of voters has been a traditional target for support by HCRP. These parts of town have increasingly voted for conservative candidates in most cases. District C is another area that will be weary of lifting the Revenue Cap. Frazer won District C in 2013 and 2015 and King won in 2015. This is a part of town that agrees with us, we need to let them know we are behind them on limiting property taxes.
Opportunity #3 for Harris County Republicans
Small business owners will be the first hurt and the ones hurt the most by more increases in city property taxes. They will not need to be convinced our efforts are worthwhile. Over-regulation, taxes, rising fees have already done a lot of damage to this group. These small business owners will be happy to have an advocate for their concerns. And it just so happens that many of these small businesses are minority owned. This is another chance to demonstrate that true conservative groups can and will work hard to promote responsible limited government to help small businesses.
Regardless of whether the Revenue Cap appears on a May ballot or the City’s struggle with Pensions and the Legislature push it to November it’s a good bet that it will appear somewhere on a ballot near you in 2017 and the best way to take advantage of an opportunity is to be prepared for it.
Visit the Keep the Cap – Houston Facebook page and spread the word!
I live in the City of Houston, always have. I worked for the cap last time, but when I don’t see the same efforts made to have similar caps on the County and State, I feel that it has more to do with pushing for the bare necessities from one entity when not requiring it from other based on whether Ds or Rs control the government.
I am witnessing the Republicans in Washington push a budget that will add about 600 billion dollars to the debt this year, that is assuming they stay on budget. Thus far I don’t see an outcry from the fiscal conservatives.
The County keeps building toll roads, I still remember the first one built which I voted against the promise was once it was paid for it would become free.
I live in the City of Houston, I pay taxes there have done so over nearly 50 years. I don’t get anything from Harris County but have to pay their property taxes which are about 66{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} of what the City tax rate is .
I suggest that the County lower their taxes so that Houston can raise more money for the services that they provide.
Those toll roads add thousands of dollars to many small businesses that rely on delivery of products.
“I live in the City of Houston, I pay taxes there have done so over nearly 50 years. I don’t get anything from Harris County but have to pay their property taxes which are about 66{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} of what the City tax rate is .” Not so, the city of Houston uses the bulk of the courts and jail, MHMRA services, and election services to name a few area services you’re paying for.
So the criminals are what the taxes I am paying for, you can keep those for the county. When I have an emergency no need to call the county, they won’t respond. I need a pot hole filled, the county won’t come and fill it, when I put out my trash can the county does not come out and pick it up, when I place my heavy trash out the county does not come out to pick it up.
I know about the courts and the county, I don’t consider it a service that helps me much, if any.
Election services, are you suggesting that when there are city elections the city does not pay anything for city elections?
Non-city Harris country residents get all those benefits that you mentioned plus other amenities that the city residents don’t receive.
Like I stated, when will Republicans push their own party to live up to what they want Democrats to adhere to.
Term limits, I worked to pass term limits, how is the county and state doing with that, they are controlled by Republicans. I voted for Kay Bailey, she promised that she would only serve two terms, how did that promise work out?
I don’t mind caps, I don’t vote for bonds, I don’t vote myself a tax increase, but I don’t get much from the county and would rather they lower their tax base by any amount that the City raises their tax base.
I love my adopted City.
By the way where is the concern about the 600 billion dollars deficit that the Republican Congress is pushing? Either one is a fiscal conservative or one is not.
On January 21, what ever health care plan is in effect or no plan is effect it will be the Republican and Trumpcare plan. If it is the same as what is there now it is still their plan, the promise was day one. I never voted for Obama and one of the things that bothered me the most was the health plan as it hurt small businesses and non-insured healthy persons. Right now I don’t see it being changed on day one of Trump’s day in office and certainly the Republicans have nothing in the works right now. They have had over 6 years to plan for this.
I just see a Republican party that is full of hypocrites.
You chose to live in a full service city so that is what you pay for but you are also in the county which has statutory responsibilities and costs. The county does not provide trash service to anyone, nor does it provide more services to other county residents except by agreement with other governing bodies. You should be thankful the county runs a lean operation given your desire to live in a full service city, those in the unincorporated limits have to purchase what services we want or volunteer ourselves to cover them. You already benefit from sharing taxes with local MUDs that are outside the city limits, providing no services in return, and since most of the criminals come from Houston, you should have to pay for their housing that county residents subsidize.
Great Article Phil!
We are just scratching the surface on how repealing revenue cap would be a huge blow the the advancement of our great city. Instead of focusing on trying to find more money, how about we focus on how we can reduce spending in the 800+ page city budget? It is clear that our spending is out of hand and in the wrong places.
We have already seen that as the taxes are raised, we lose corporations because they choose to move outside the city limits. If we continue this trend, downtown will look the way it once was on a typical weekend: A Ghost Town.
I hope, in future articles, you focus more on the untapped conservative voters that the HCRP should be focusing on in areas they typically would not spend time and effort on. As the city landscape is changing, so are the voters in these areas and the HCRP has the most to gain.
Good Article Phil
I don’t live in the city so how they waste their money is of no concern to me. There is a danger that spending a lot of resources trying to influence city spending will backfire though, the talk of political opportunities overlooking that. I’d rather see true revenue caps and term limits applied to the rest of the county and state before meddling in what big city types do but chasing after someone else’s problems has long been the focus on Harris County politics.
“This is one opportunity for Republicans to show all voters that we’re all on the same side of this issue.” Are we really on the same side? As you point out, most of the directly impacted are going to be businesses and commercial property holders. The argument that the rest of the populace will pay more in rent or see jobs leave is nothing new and will not likely persuade those it hasn’t in the past.
“Many of the homeowners and renters in these fast-growing parts of town are not established voters. They are often independents and have very little background on City of Houston political issues. I do not believe that this group of voters has been a traditional target for support by HCRP. These parts of town have increasingly voted for conservative candidates in most cases. District C is another area that will be weary of lifting the Revenue Cap. Frazer won District C in 2013 and 2015 and King won in 2015. This is a part of town that agrees with us, we need to let them know we are behind them on limiting property taxes.” Conservatives vote more consistently than liberals, which is why we see the surges of democrats in presidential years as being a growing factor. As such, isn’t it risky to engage those that are not established voters who have little knowledge of city political issues? Liberal democrats are more likely to have additional money spent on them than to pay in more and you risk increasing their votes since they might not vote based on a single issue once registered.
“Small business owners will be the first hurt and the ones hurt the most by more increases in city property taxes. They will not need to be convinced our efforts are worthwhile. Over-regulation, taxes, rising fees have already done a lot of damage to this group. These small business owners will be happy to have an advocate for their concerns. And it just so happens that many of these small businesses are minority owned. This is another chance to demonstrate that true conservative groups can and will work hard to promote responsible limited government to help small businesses.” If more of the conservative candidates were convincing about caring about minority and women’s issues, you are correct that this could be a selling point. Until local candidates start acting like they care, it won’t.
Neither here nor there: The reason you haven’t seen an effort to cap Harris County or State taxes is because there is no procedure available to do so by petition. That is why Senator Bettencourt is trying to accomplish a 4{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} tax increase limit for all property taxes at the State Legislature. The State which does not have a property tax, but already has a total revenue cap that is not enforced.
The City of Houston’s property tax limit cap must be maintained or the City will never fix its excessive pension plan problem.
As always Don is dead on and understands what must come first. Rev-Cap and Pensions are inseparable .
Nonsense, those are not connected, why not worry about the 20 trillion federal budget and the next 10 additional trillion dollars deficits that will be added to the books in the next few years?
Why not care how the state takes property taxes from us and puts in their account and then blames local governments for rising taxes?
Don they are called elections, Republicans keep electing the same people in county, state, and federal so don’t tell me that it can’t be done unless it is by referendum.
Did you vote for Kay Bailey when she ran for third term? I didn’t I believe in term limits but term limits for everyone, obviously Republicans don’t are they would use their votes for term limits. How long has your friend Steve Radack been a commissioner?
Very well considered and written. Your understanding of the issue makes it possible for others to begin to grasp the problem.
Some additional information from Bob Lemur who knows a little something about the issue, Thank you Bob.
https://drive.google.com/open?id=0B8p0diH7Uh5DMzRLUnJyVmZ4eXc
Bob Lemer has been consistent starting when Bob Lanier implemented the Drop Program. But he is one of the few if not the only one that has been addressing that issue.
No one likes to raise taxes, including Democrats. So they find all sort of creative ways, of course they are helped by the people that control the State. The TIRZ is a heavy burden on small businesses and we can thank our local officials and the state for allowing that. Everyone talks about how great we are in controlling taxes but then do nothing about it. When it has come to push Bonds I have not noticed too many Fiscal conservatives jumping on the band wagon to oppose them. Hotze, Wilson, and others are much more consistent. Don Sumners normally opposes most bonds, that is a tax on ourselves.
Who created that special financing that allows government to create private-public investment? HCC is now looking into doing that in Katy. Private builds a campus, HCC promises to lease it until they are paid. Oh, it was those fiscal conservative that run the state.
For all of you that say that the pension can be fixed by tightening be specific, the City budget is posted online, item by item what is to be cut and what are the saving.
For those of you that want the City to declare itself bankrupt, do you agree that Social Security and Medicare and all other entitlement programs should be eliminated. If people starve let them stare the churches will take care of them, right?
Police Officers and Firefighters have no social security, you don’t care what happens to them. Would you want that for yourself or your family?
“The TIRZ is a heavy burden on small businesses…” All a TIRZ does is keep the incremental taxes inside the area of the zone. It doesn’t set a higher rate unless the values increase in the zone.
“For all of you that say that the pension can be fixed by tightening be specific, the City budget is posted online, item by item what is to be cut and what are the saving.” Many have made suggestions regarding specific cuts on this website, check the archives.
“For those of you that want the City to declare itself bankrupt, do you agree that Social Security and Medicare and all other entitlement programs should be eliminated. If people starve let them stare the churches will take care of them, right?” Yes, let future generations invest the monies they would have directed toward these programs and we will all have a more secure future. Freedom to succeed also means freedom to fail.
“Police Officers and Firefighters have no social security, you don’t care what happens to them. Would you want that for yourself or your family?” They aren’t being cut off completely, only getting needed cuts to improve the quality of life of the rest of us. All of them have a better pension than social security provides for the rest of us.
Ms. Parson so if there were no TIRZ the amount of taxes that a small business paid would be the same as the TIRZ? Management Districts are also another creation to tax businesses.
If a Tax does not go to the City it is not counted toward the cap, isn’t that correct.
Police and Fire, all have a better pension that we do so let us bring them down? The all is not correct, some do and some don’t. But Bankruptcy could effect all, what are your proposing. In fact you sound like a socialist, why not just taxes the heck out of multi-billionaires and millionaires?
Ms. Parson, I would suggest that you read a little of our county’s history and find out how the seniors managed before Social Security and Medicare. Millionaire and Billionaires are like some people that post here who have awesome 401s and other perks, it would be nice that they would get keep more of their money. Even millionaires if hit with high medical costs could lose everything. Why do you think that Congress/Senators are not on Obamacare? Why do they have pensions. Do you have any idea how much pension a retired State Rep would get? Probably not, I will save you the trouble by posting a link here, but as to the history part if you don’t like to read books go online to Wiki I am sure that you may find something there. In fact I would not be surprised that where ever you work or maybe your spouse that you have great retirement benefits.
Here is the link, but just in case you don’t like to read the article, https://www.texastribune.org/2012/04/13/lousy-pay-great-benefits/
Every case has particulars — adjustments and deductions for this and that — but it’s easy to figure a lawmaker’s base benefit just by knowing the years in office. For instance, former Speaker Tom Craddick — the longest-serving state legislator in office and the second-longest in state history — took office in 1969 and will have 44 years of service at the end of his current term. The Midland Republican is running, unopposed, for re-election. But if he were to retire at the end of this term, his annual pension benefit would be $126,500.
That was in 2012, Judges salaries have gone up.
Ms. Parson, why not look into what kind of insurance our elected state officials have and pay. If we want to remove the net from those not as fortunate as others why not start with those that we vote for?
Did I mention that health payments that you make are subsidized by the taxpayer? Did I mention that the 401 is not counted toward pay, wages so the taxpayer subsidizes. Those mortgage deductions are also subsidized. The Republican Congress may do at least one good thing they are thinking of raising the threshold to one million dollars before it is convenient to deduct mortgage interests. If we want fairness then no deductions should be allowed to anyone, companies included. If companies can claim bankruptcy then we should allow individuals to do likewise. It used to be like that. Fair is Fair.
“…if there were no TIRZ the amount of taxes that a small business paid would be the same as the TIRZ?” Yes
“The all is not correct, some do and some don’t.” It is well known that social security provides scant benefits while city pensions for cops and firemen are quite superior, even with the proposed changes. If you believe otherwise, please provide a cite that can be verified independently.
“Do you have any idea how much pension a retired State Rep would get?” Yes and they get the better retirement in exchange for taking $7200 a year. I’m sure the mayor would offer such gold plated pensions if his employees lowered their pay accordingly for their entire careers.
“If we want to remove the net from those not as fortunate as others why not start with those that we vote for?” My suggestion was for employees to be able to redirect money thrown into social security into their own retirement accounts. That is not the same as removing the safety net.
“Did I mention that health payments that you make are subsidized by the taxpayer? Did I mention that the 401 is not counted toward pay, wages so the taxpayer subsidizes. Those mortgage deductions are also subsidized.” City workers health payments are 100{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} subsidized by the taxpayer, not just a small portion. The money they make comes from the tax payer so even their share is so subsidized along with the other 80{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} paid directly by the city. City workers contributing to tax deferred savings accounts are also subsidized just as their pension contributions and mortgage deductions are so subsidized.
My apologies to Bob Lemer , autocorrect strikes again
No other US city has a revenue cap. Gee, golly i wonder why.
4 republican states have voted it down in voter referendums.
Only colorado and houston are this dumb.
What???? You mean Chicago doesn’t have a revenue cap? Detroit? Baltimore? New York? LA? Wow, well look how silly we’ve been – we could have had a city like Detroit if only we’d been that smart. . . .
State legislatures create the tax loophole problems that cities have to deal with.
This isn’t rocket science, it’s pretty basic stuff.
It is very basic, don’t spend all the money, if you do you bankrupt yourself.
But everyone knows that commercial and apartment property owners don’t pay property taxes. Their tenants do.
Sorry, but this is a incorrect statement. I have to pay taxes if units are rented or vacate. There are no exemptions and HCAD has and will increase values by 100{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986}.
Ummm. . . . well yes, but. . . .
If you’re any kind of a decent businessman, your objective is to generate a profit from your rental property. So, you base your rental rates on factors such as temporarily empty units, taxes increases, etc. Yes, you are the one that writes the checks for the taxes, but please don’t try to tell me that your rental rates stay the same if your taxes double.