THREAD: "The spiraling costs of #Chapter313 — which soon are projected to top $1 billion per year — are just one example of how the program falls short of the benefits touted by supporters." #txlege #txed houstonchronicle.com/news/investiga… via @houstonchron
"The actual value of the property fluctuates over the limitation period. The school district, however, must treat the property now worth nearly $250M as if it is only worth $30M. By the time the cap is lifted in year 11, the property value diminishes." #Chapter313 #txlege #txed
"And in 64% of cases, local school boards let companies hire fewer workers than the law’s already modest minimum standards require." This figure dispels the notion that #Chapter313 is useful for creating high-quality jobs in TX. #txlege #txed
And among the few jobs #Chapter313 created "Dividing the $2.5 billion in tax breaks companies had received as of 2019 by the number of total jobs they had created as of the same year yields a cost of $211,600 per job." #txlege #txed
💥💥💥"But in case after case, the Chronicle found companies had announced projects & even started construction long before applying for #Chapter313 subsidies, suggesting they would have built the projects without the tax break." #txlege #txed
"School officials are important gatekeepers in the program and ultimately decide whether to approve the agreements. But districts also have a powerful incentive to never deny a #Chapter313 deal: They can make money each time they approve one." #txlege #txed
"Fully half of the $95M in supplemental payments companies make to schools this year will go to just 6 school districts in industrial areas." Kids in these 6 districts reap the benefits of these #Chapter313 deals, while ALL families across the state pay for them. #txlege #txed
"Lawmakers and program supporters say state regulators make sure that tax breaks are going only to companies that need the incentive to build in Texas. Records show their claims are incorrect." #Chapter313 #txlege #txed
"#Chapter313’s benefits are fraught with problems. Chief among them: depreciation...records show Texas is missing out on the years when #Chapter313 projects’ appraisals are at their peak." #txlege #txed
"When #Chapter313 was created in 2001, 80% of new jobs had to be high-paying “qualifying” jobs, w/ wages required to >110% of the local avg manufacturing wage. Over the years, lawmakers have chipped away at these requirements." #txlege #txed
"Some companies fail to meet their job-creation promises altogether...The comptroller’s office didn’t issue any penalties, even under new rules lawmakers added with the stated goal of strengthening the program." #Chapter313 #txlege #txed
Huge thanks for the excellent investigative reporting on #Chapter313 by @mmorris011 @John_Tedesco & @stephanierlamm, & @HoustonChron for publishing series. Give it a full read, folks! LOTS of digging into cases, records, & comms to provide evidence & details. #txlege #txed
More in the series: houstonchronicle.com/news/investiga…
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