Public Information Office
210 S. McDonald St. Suite 636
McKinney, TX 75069
FOR IMMEDIATE RELEASE
| CONTACT: | Leigh Hornsby, Public Information Officer 972-548-4772 lhornsby@co.collin.tx.us |
April 22, 2005
Collin County Commissioners Court to reschedule court date; focus efforts on state legislature
(McKinney, TX) – The Collin County Commissioners Court is moving its regularly scheduled court meeting from 9 a.m. on April 26th to 2 p.m. on that same day so they may visit with lawmakers in Austin regarding possible legislation that could cripple some local governments’ ability to provide public services.
A Texas House of Representatives vote on HB 1006 was postponed until Tuesday after the bill was argued and amended this week. The bill states that if local governments increase the tax revenue by five-percent or more, then a rollback election may be called if 10-percent of the voters in the last gubernatorial election sign a petition.
Members of the Collin County Commissioners Court plan to continue there fight against this type of legislation through at least Tuesday morning.
“Unexpected service demands may increase beyond five-percent,” says Collin County Judge Ron Harris. “Does the state legislature expect our volunteer fire departments to not respond to a burning building because we didn’t budget for the fire? Do our lawmakers expect us to reschedule a capital murder trial because we didn’t anticipate a crime? These are the issues we will have to face if our state lawmakers pass this type of legislation.”
After imposing its own revenue cap plan in 2004, the City of Houston saw its bond rating significantly reduced by a rating agency that specifically cited the revenue cap as a major reason for the drop.
“This type of legislation would force us to be more dependent on bonds,” says Collin County Commissioner Jack Hatchell. “But, this isn’t the worst part. If we start to pay for basic capital improvements with bond money, then we could possibly receive a lower bond rating, which would force us to pay a higher interest rate. This is bad government.”
“I’m concerned about the effect this would have on future tax abatements,” says Collin County Commissioner Jerry Hoagland.
Over the past 20 years, local abatements have been primary drivers of government-induced economic development. In Collin County, the return on abatements have generated more than 10,000 jobs, more than $180 billion in home sales and more than $1 million in sales tax generation to local municipalities -- all for approximately $650,000 a year in abated taxes by the county.
“With revenue caps in place, abatements would be jeopardized,” says Commissioner Hoagland.
“We would not be able to fulfill unfunded and under-funded mandates from the state with this type of legislation,” says Collin County Commissioner Phyllis Cole. “Counties are mandated to provide office space, facilities and support for probation officers. If our revenues are capped and the programs are expanded, how will we fund them?”
Cities could see reduced paramedic services, fire and police response times, street construction and maintenance, library hours and more.
“State Representative Brian McCall was the only lawmaker from Collin County who took a stand for local government and the citizens’ right to elect individuals to ensure the services for a safe and high quality of life,” says Judge Harris. “Additionally, city and county leaders throughout North Texas have been working cooperatively alongside House Local Government Ways and Means Chairman Fred Hill, to protect representative government from possible legislative attacks.”
The Collin County Commissioners Court is also monitoring a similar bill in the state senate, SB 18.
“The Texas state budget may increase by approximately 20-percent this year," says Collin County Commissioner Joe Jaynes. “If the legislature is so interested in revenue caps, let them try it for a while. If it works for them, we’ll take a look at it.”
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