Staff Report    By Karen Norris, Executive Director, Texas Association of Counties

Local Control Helps Cushion Texas Economy

Karen NorrisI spent a few days last month visiting Panhandle counties. Thanks to those great folks for the hospitality, kind words and valuable insight into the issues counties face in that part of the state.

Several of our TAC staff and officials from counties that are members of the National Association of Counties vistedvisit Kansas City in early July for the NACo Annual Conference. (We’re proud that Texas’ membership in NACo is at an historic high.) We’re excited that Tarrant County Judge Glen Whitley won his election for NACo Second Vice President, a position that places him on the NACo Executive Committee and has him serving as NACo president in several years.

Our own TAC Annual Conference is on the horizon: Aug. 27-29 at the Renaissance Hotel in Austin. We are honored that U.S. Senator Kay Bailey Hutchison will speak on Thursday, Aug. 28, and that our opening keynote address will be presented by Texas Monthly magazine Editor Evan Smith, who will share his unique perspective on our great state. Johnathan Waters, a contributing writer with Governing magazine, will also join us. Earlier this year, Governing devoted an entire issue to the current disconnect between federal, state and local governments and the need to re-establish traditional partnerships. More information on the TAC conference is found here on pages 10 and 40.

In the last few years, state leaders have gone to great efforts to relieve the local tax burden for public education. They revised the state business tax system to increase state funding for schools and cut school property taxes by up to 33 percent. But even after the passage last session of more than 20 measures to help local property taxpayers, the perception of voter frustration continues to drive caps the agenda of those who would place added restrictions on local government’s ability to fund services.

Testimony thus far given to the House and Senate interim committees reviewing appraisal and property tax reform issues has been productively focused on the appraisal process. But county leaders remain concerned that legislation aiming to lower the current revenue and appraisal caps for counties will be introduced when the Legislature convenes in January, even though the average Texas county provides its essential basic services for less than 16 percent of the overall property tax burden.

Many feel that further restrictions on the ability of local governments to raise revenue to meet local needs will eventually result in a shift to increased dependence on the state to fund local services. Having significant portions of local budgets come from intergovernmental transfers is a common approach elsewhere in the country. But that’s not the way we do things in Texas. Our local governments have a long and independent history. If limitations increase without unfunded mandate protection or additional reliable sources of revenue, a shift from local to state control could be inevitable.

Shifting decision-making and funding from the local to state level may sound like a simple enough proposition. But keep in mind what that really means. Our state’s policy direction is determined by part-time legislators who are paid only $600 a month and whose formal work schedule lasts five months every two years. Our legislators are not given the time to take on more the responsibility overseeing county and city actions. State control means relying on state agencies to implement state policies, led by part-time commission appointees, which recommend policy decisions often with little input from back home. I believe most Texans prefer having local control of the services they get at the courthouse and city hall.

Nationally, economic woes make the news every night. Fortunately, Texas is faring well compared to other states. According the State Comptroller Susan Combs, employment continues to expand. Texas gained over 230,000 jobs in the last year, more than the next seven top-job-growth states combined. And sales tax revenue for the state so far this year is up 5.8 percent.

Much effort at the state level has gone into creating an attractive business climate. But robust local infrastructures and services are also key elements in this continued success. Good choices by both state and local officials are cushioning Texas from upheaval. Particularly in times of economic stress, we all need to focus on what’s working well and avoid initiatives that would limit government’s ability to respond to citizen needs.

By Karen Ann Norris, Executive Director, Texas Association of Counties