Lt. Gov. Patrick shoots down Speaker Phelan's property tax proposal, lauds school choice

Lt. Gov. Dan Patrick drew a hard line Thursday against a property tax relief proposal by House Speaker Dade Phelan during a policy summit speech highlighted by red meat issues and warnings to the lower legislative chamber.

Phelan's proposal — which he pitched earlier in the day at the same Texas Public Policy Foundation event where Patrick spoke — focused on relief through lowering the amount homestead appraisals can increase.

Under House Bill 2, filed by Rep. Morgan Meyer, R-Dallas, the 10% limit on how much a property appraisal can increase each year would be cut to 5%, and apply to all properties in Texas, not just homesteads.

“I have constituents who don't even own a home, they pour it all back into their business because they want their children to inherit that business and move up, go to college, be independent,” said Phelan, R-Beaumont. “But when their (business property) values go up 200% and there's nothing they can do about it but go hire an attorney to fight it, it's not right. It's not Texas and the Texas House is going to do something about it this session.”

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With this proposal, the owner of a $350,000 home would save $461 on their tax bill this year and $590 in 2025, Phelan said, “This is real, meaningful relief.”

Patrick, the Houston Republican who presides over the Senate, was quick to throw water on the idea during his speech later in the afternoon.

"If you cut the appraisal cap now and under 5%, within two years, we'll be up to 10% and your tax rates are actually going to go the opposite way," Patrick said. "I think the intentions of the House are good, but that would be a disaster and undo everything we've done that has brought this property tax relief."

On Wednesday, Sen. Paul Bettencourt, R-Houston, introduced Senate Bill 3, a property tax proposal seeking to raise the state's homestead exemption to $70,000, up from $40,000.

Each member of the Texas Senate has signed on to author that bill addressing a top Patrick priority this session.

"We're going to do even more, as the governor said, the speaker said, we're going to do about $15 billion with the tax relief this time," Patrick said. "But the appraisal cap is no longer needed because your appraisal don't impact your tax bill anymore."

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So far, three of Patrick's priority bills have been filed with Senate Bill 1 holding the chamber's $288.7 billion 2024-25 biennium budget proposal.

Senate Bill 2, which advanced Monday through the Senate Committee on State Affairs via an 8-3 party line vote, would restore the penalty for illegally voting to a felony, which was downgraded to a misdemeanor last session.

Meanwhile, Phelan has begun laying out specific legislative priorities including proposals that would extend Medicaid eligibility to new mothers to one year after their child's birth, solidify Texans' privacy rights online and create a new funding model for community colleges.

Outside of the Senate's top three bills, no legislative proposals have yet been filed for the rest of Patrick's 30 priorities list.

Phelan, Patrick trade barbs at TPPF summit

Phelan took clearer aim at the Senate chamber, in which Patrick presides, while emphasizing the need for criminal justice reform, while both cited support from the conservative Texas Public Policy Foundation.

Last session, “We passed all this wonderful bipartisan, TPPF-approved criminal justice reform package, and the Senate just wasn't on board with a lot of it. So, we're going to pass it again,” Phelan said. “I figure if it's good enough for TPPF, if it's good for Donald Trump, it should be good enough for the Texas Senate.”

Phelan went on to emphasize the need to continue investing in border security, dedicate funds for school hardening, address health care reform, and crack down on social media companies and data privacy with respect to minors.

Patrick was unabashed in his response in the afternoon, making clear to the House that his Senate priorities this session should carry the same political weight.

Singling out priority measures promoting school choice, a ban on teaching critical race theory at state colleges and universities, and removing "obscene" books from school libraries, Patrick placed the ball back in Phelan's court.

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"Well, on Senate Bill 8, parental rights, school choice, I can tell you that the Senate likes it, TPPF likes it, Donald Trump likes it, so it should be good enough for the House," Patrick said before discussing a litany of priority issues.

After a brief hiatus from the Capitol over the past week due to a dental issue and a "personal matter," Patrick spoke on the importance for the Legislature to inject $300 million into rural law enforcement funding, addressing the state's electric grid and, again, pushing through a bill that would allow public money to be used for private education.

Determined to pass a "parental empowerment" bill out of the Senate, Patrick pointed to the House speaker again, after Phelan said earlier in the day that, “there are 149 House members and if you ask them what school choice means – 149 House members, you get 149 answers."

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"I don't know what his opinion is, but he's number 150, if he gets on board, the other 149, I think, will follow," Patrick said of Phelan.

"We should not leave here this year until we pass school choice," Patrick said, alluding to a possible special session. "I don't have any plans this summer."

This article originally appeared on Austin American-Statesman: Lt. Gov. Patrick dismisses Phelan property tax proposal, lauds school choice