No images? Click here January 28, 2024 NEWS DIGEST by Brandon Waltens Good morning, Citizens are celebrating as a court sided with taxpayers on a constitutional amendment proposed in 2021 that would allow counties to issue more taxpayer-backed debt. In its ruling, the Court set a rule ensuring voters are entitled to more information when proposals will impact taxpayers. Proposition 2, which passed with 63 percent of the vote, would authorize counties to issue bonds (taxpayer-backed debt) to fund infrastructure and transportation projects in underdeveloped, unproductive, or blighted areas and to use increases in property taxes from those areas to pay off the debt. This is known as “tax increment financing” and is a tool currently reserved for cities. Grassroots groups filed a lawsuit alleging the Proposition 2 ballot language that was put before voters failed to comply with common law requirements and was substantially misleading because it neglected to inform voters the proposal involved debt and property taxes. Courts have previously ruled that ballot propositions must be described with “such definiteness and certainty that the voters are not misled.” But the proposition 2 language only said it would allow counties to “finance development” and neglected to mention debt or taxes. In 2011, voters defeated an identical proposition when the state used proper ballot language that discussed the impact the proposal would have on taxpayers. The lawsuit was brought by Texans Uniting for Reform and Freedom, Grassroots America – We The People, the True Texas Project, and the leaders of the three groups. While a lower court sided with those organizations, the state appealed the decision—leading to a hearing in the Seventh District Court of Appeals in Amarillo earlier this month. The state argued that voters could never challenge language proposed by the legislature, citing the Texas Constitution’s separation of powers provision. While a decision wasn’t expected for months, on Thursday evening the Court of Appeals issued an opinion siding with taxpayers against the amendment. The Proposition 2 ballot language approved by voters stated: “A constitutional amendment authorizing a county to finance the development or redevelopment of transportation or infrastructure in unproductive, underdeveloped, or blighted areas in the county.” In its opinion, the Court noted that the language was facially misleading. “As can be seen, nothing was said about how the ‘development or redevelopment of transportation or infrastructure’ would be financed or who would fund it. Hidden from view was the ultimate responsibility for payment and its positioning over the voter’s head like the sword of Damocles,” the opinion states. The opinion went on to quote songs by The Beatles and Johnny Cash: Whether it be “Taxation without representation” or “Should five percent appear too small, be thankful I don’t take it all” or “There goes the shirt off my back” or “I’m payin’ taxes but what am I buyin’?” each exemplifies the perennial interest of the citizenry in protecting the fruits of their labor from expropriation by the government. No doubt, a component of a constitutional amendment enabling the government to further appropriate money from one’s pocket would be a chief feature of the proposal. It matters not whether the appropriation is certain or a likelihood. The risk of additional loss made possible by adoption of the amendment remains, and it is a risk of historical and prime interest to the voting public. With the Court of Appeals siding with the lower court, the Attorney General’s office must now decide whether they will once again appeal the
case to the Texas Supreme Court. FeaturedThe White House announced Friday that the Biden administration is putting a “temporary pause on pending decisions of Liquified Natural Gas exports.” The move, said to be made in deference to “the impacts of LNG exports on energy costs, America’s energy security, and our environment,” immediately drew criticism from Texas officials. Noting that Texas is the third largest exporter of LNG in the world, Texas Land Commissioner Dawn Buckingham posted, “This reckless move is nothing more than retaliation against Texas — for standing up to this administration over the border crisis.” StateDrew Darby Touts Fake Endorsement from Greg Abbott |