Legislative Update and Request for Action

Per our 2019 Legislative Agenda, the Round Rock Chamber opposes legislation that lowers the current eight-percent revenue cap to two and a half percent and as you may have seen in the headlines, the 86th Texas Legislature will be considering the proposed rollback legislation on Monday, April 15.

The Texas House of Representatives was supposed is to consider House Bill 2 by Rep. Burrows, et al., last Thursday,  but the bill was postponed until today, Monday, April 15. In the Texas Senate, after continued failed attempts at securing the necessary votes to bring Senate Bill 2 by Senator Bettencourt, et al., to the floor, the Lieutenant Governor has declared he will eliminate traditional procedural rules and pass the measure today.

In addition to lowering the revenue cap from eight percent to two and a half percent, the proposed legislation triggers an automatic election if the tax rate is exceeded. The bottom line is that the proposed legislation impedes a city’s ability to provide increased services in growing, thriving communities like ours.

As reported by Mayor Craig Morgan in his April 4 op-ed, the proposed legislation will have negative consequences for Round Rock. As proposed, the legislation “would create an estimated $9 million deficit in the city’s budget in the next five years when factoring in inflation and built-in cost drivers such as public safety wages. That is not rhetoric—that is reality.”

House Bill 2 will hurt our community. A $9 million deficit, which is equivalent to three times the annual budget of our award-winning public library, would be detrimental to our economically successful city especially when you consider that 48 percent of the city’s general fund goes to fund public safety.

Request for Action: The Round Rock Chamber asks that you contact your state legislators today to thank them for voting “NO” on Senate Bill 2 and House Bill 2. To find your state senator and your state representative, click here.

Recent Articles For Your Information:

Commentary: Bill to cap taxes would cut into public safety, other needs (April 3, 2019)
Round Rock mayor: Property tax cap bills have real life consequences for residents (April 4, 2019)