(AUSTIN, TX - November 10, 2011) In reflecting upon the mixed results of yesterday's Constitutional Amendment election, grassroots groups We Texans, Independent Texans, and Texans Uniting for Reform and Freedom (TURF) are celebrating victory over the defeat of Prop 4 and gearing up to take the opposition to the mat to defeat any attempt at a Trans Texas Water heist by the Texas Water Development Board (TWDB) through its newfound revolving bond authority.
"Rather than providing solutions to the water needs facing Texas, the additional debt imposed on Texans by Prop 2 compounds the problem," warned Debra Medina, Founder, We Texans. "InfrastructureTexas.org put out information playing on voters' fears about the drought and wildfires. Many Texans believed this money was going to fund needed water projects with no cost to them. H204Texas PAC put out an email saying Prop 2 would cost the taxpayers NOTHING. But we know better and we'll be watching TWDB's every move to ensure taxpayers and Texans' water rights are protected."
Politifact.com concluded H2O4Texas' claim was a half truth.
It states: "The group's claim sidesteps the fact that taxpayers of jurisdictions benefiting from the bonds will face bond-related costs. And while the additional bond authority sought in the proposition would not cost state taxpayers--up front--state lawmakers could still exploit their standing authority, as before, to spend state revenue on related debt."
"We're encouraged by the near defeat of Prop 2 -- a big giveaway to Rick Perry's water boys on the Texas Water Development Board. Citizens are wising up to the fix between large-scale developer friends of the Governor, and Republican and Democratic politicians who are in on these deals," notes Linda Curtis, Founder of Independent Texans. "Democratic State Senator Kirk Watson got a taste of what is to come last week, when he faced suspicions of otherwise supportive citizens in Bastrop when he was pushing Prop 2 at a water forum. When politicians on both sides come together, so must we citizens. The Texas water war -- a transpartisan phenomenon like the fight to stop the TTC -- is now officially on."
Texas voters said a resounding 'NO' to expanding Tax Increment Financing (TIF) and Transportation Reinvestment Zone (or TRZ) authority to counties by defeating Prop 4 November 8. The Constitutional Amendment HJR 63 authored by Rep. Joe Pickett (D - El Paso) would have allowed counties to use property taxes and sales taxes collected in a TRZ to build toll roads. So the defeat of Prop 4 is also a defeat of Rick Perry and the Texas Legislature's plan to slap tolls on virtually all new lanes to Texas roads.
"Using gas taxes to build toll roads is bad enough, but trying to nab property taxes to build toll roads is beyond the pale," says Terri Hall, TURF Founder. "It's refreshing to see the voters reject this anti-taxpayer and anti-property rights amendment. Let's see if lawmakers in Austin listen -- Texans don't want their tax money used to build roads and then have to pay again, through tolls, to drive on them."
The defeat of Prop 4 also signals a rejection of government abuse of property rights for Kelo-style economic development. Prop 4 would have given the government more power to decide whose private property it wishes to "redevelop." The ballot wording was vague and misleading. It failed to even mention tax increment financing, transportation reinvestment zone, or even the word 'transportation.' TURF launched a statewide campaign to educate voters about the amendment. We Texans, Texans for Fiscal Responsibility, and Independent Texans also opposed the measure.
Cities already have TIF and TRZ authority. TRZs are as much about "economic development" as it is financing transportation projects, and means those who live in a zone will have their property taxes go up due to higher property values from the government-encouraged development. Property taxes aren't going to go down once a county sells bonds dependent on ever increasing property tax appraisals.
The amendment was also linked to HB 563, authored by Pickett, which would have granted counties broad new authority, even to grant tax breaks to special interests in the zone and to use surpluses as a slush fund for virtually anything.
STATE OUTSOURCING TAX INCREASES
TRZs are a way for STATE legislators to punt on their responsibility to build and maintain STATE highways and their responsibility to end diversions of the gas tax to non-road uses. It allows them to outsource tax increases for roads by passing it down to the LOCAL level. By using appraisal increases to pay for transportation projects, it takes that revenue away from what cities and counties usually use that money to fund. So it would likely necessitate further property tax increases in order to make up for the shortfall in city and county services that will be diverted to transportation.