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Sales Tax Revenues Drop

What to Know: The Comptroller’s office is reporting a steep drop in sales tax revenues, which fund most state expenditures. And next month, the decline could be worse.

The TPPF Take: The temptation will be great on lawmakers to raise taxes and fees to recoup that revenue.

“But that would put additional pressure on Texans who are already struggling,” says TPPF’s Talmadge Heflin. “The time to start bracing for the blow is yesterday. I learned that in 2003, when as chairman of the House Appropriations Committee, I helped our Legislature navigate a $10 billion budget shortfall. It wasn’t easy, but we dealt with the shortfall through targeted budget cuts, and avoided raising taxes on already hard-pressed Texas families.”

Government Schools Ask for a Bailout

What to Know: Dozens of the nation’s public school districts—including Dallas, Fort Worth, and Arlington ISDs—sent a letter to Congress asking “for $175 billion in relief related to COVID-19.” The letter suggests that: “Sustaining and increasing educational spending now not only saves jobs in the short-term; it ensures economic strength and stability in the long-run.”

The TPPF Take: Rather than ask taxpayers for a bailout, public school districts should reexamine every expense, reevaluate every program, and reduce spending everywhere possible.

“American taxpayers are not in a position to bailout the bureaucracy. Instead, public schools need to use every tool available—like zero-based budgeting, Lean Six Sigma, and efficiency audits—to get control of their budgets and spending,” says TPPF’s James Quintero. “Controlling the growth of government—including government schools—is critical to bringing back economic prosperity.

Hit Harder

What to Know: Historically black colleges and universities (HCBUs) are being hit harder by the economic impact of the COVID-19 pandemic.

The TPPF Take: The Trump administration is working to ensure that HBCUs stay open.

“Private historically black colleges and universities (HBCUs), staples in the American fabric of society, are too often overlooked and underappreciated,” says TPPF’s Richard Johnson. “They, just as Harvard, trace their humble beginnings to the clergy and religious organizations. Thanks to the Trump administration, there is reason for optimism that our valued HBCU’s will continue to have the resources they need to support the invaluable national service they provide.”