Stout V. Blanco...& Stout is Right

This is a long post, but its with the read.

For those of you that aren't sitting on the edge of your seat watching the state legislative session, there is at least one really important bill that is making its way through the legislature. 

Its a bill in with the Republicans are allegedly going to fix public education in Texas by capping local entities ability to raise taxes in exchange for some education funding. 

If that sounds like its robbing Peter to pay Paul, that is because it is. 

If the sentence I wrote earlier that said Republicans were going to fix public education also sounded funny to you, it should.

Republicans are a joke on public education.

But some Democratic Reps not only went along with it, but are actually bragging about it.

Now for background, the state has been shirking off their responsibilities to counties for a long time now. And they have passed on those responsibilities to local taxing entities to try to figure out how to meet the new obligations opposed on them by the legislature.

As if that plan wasn't bad enough, local entities are now stuck with the bill.

Now make no mistake, this bill is a straight-up Republican bill. And its an easy bill for legislators from property-rich districts that have communities where the business sector pays most of the taxes and residents pay only a small amount to support.

But El Paso is not in that situation at all.

And here's the funny thing about tax payers - they all say they want someone to cut their taxes, but if you cut services in order to cut taxes, they all lose their minds.

You know the deal, there's no free lunch people.

Now I will be the first to acknowledge that I have been pretty rough on Ambassador Stout. I mean, well the vato does travel a lot and is rarely in America.

And he did look a little foolish when he was whining about the stupid housing debate (which I was sitting the bench for, but not anymore) and said that the court needed to slow down on the issue because some of the commissioners weren't up to speed on the topic, until Commissioner Perez called him out for being in Peru, or Pakistan, or Panama, or Paris, or where it was the Ambassador was that week.

That being said, Ambassador Stout is 100% about this issue and he rightfully called out my State Representative. And it all played out on Facebook.

Here is the post that Cesar Blanco posted on his official page the other day.

And here is the response from Ambassador Stout:

First of all, the name of the bill you supported this week is SB 2, and these are talking points straight out of the Republican playbook, and are very misleading.

It is unfortunate that you and the other members of El Paso's delegation who voted in favor of this, either don't understand, or are turning a blind eye to what this really is: an all out attack on local control by the Republican party. It is even more troublesome that you are trying to use this to your advantage to score political points by leading people to believe their lives are going to change for the better because of your vote.

Transparency is great. The easier we make it for voters to understand their taxes, the better. That part of the bill works.

Transparency is also important when explaining what implications this bill, and your approval of it, will have on El Pasoans.

When it comes to empowering and engaging voters, that already occurs. They vote to elect people like me and if they don't like how we do things, they can vote us out. They also have the right to petition for an election if we exceed the current 8 percent cap. However, pretending that capping El Paso County at a 3.5 percent rate is somehow going to benefit taxpayers in this community is laughable.

At El Paso County, there are no "skyrocketing" taxes, Rep. Blanco, and I, quite frankly, resent the fact that you would mislead the public by stating there are. Since I have been in office we have not raised taxes and last year they were lowered. However, we have been advised by our budget team that this will not be sustainable going forward.

Unlike other communities in Texas, El Paso does not have high rates of population growth, so we don't have the same rapidly growing tax base. We only bring in $4 million per penny of assessed ad valorem tax where other counties can leverage upwards of $20 million with one cent. This means that even with a meager increase in revenue, we would get to the 3.5% cap you support much more quickly. Right now, with the tax rate at 44 cents, we would hit that 3.5% cap if we were to raise the rate by about a penny and a half, which would only generate $6 million.

Remember, at least 65% of our County budget spending is mandated by the state. And, though population growth is not heavy, growth and development in the unincorporated areas are. Many people that live outside the city limits expect the same level of services. This creates a huge burden on our budget because we have to spend more and more money on new infrastructure like roads, access to water and sewage and lighting. People also expect the same level of emergency and police services. That growth is unfettered because you all at the state legislature limit counties' ability to regulate it.

So, you force us to provide services for which you provide no funding, you keep us from regulating growth, and now you want to keep us from being able to pay for the increased need for those services, which is caused by the limits you set upon us? How does that make sense?

We have a number of big expenses coming, including investments in our workforce (especially the sheriff's department due to collective bargaining), public transit, parks, roads, storm water mitigation and economic development. There is NO way those needs can be met if we are capped at 3.5%. We are facing a deficit of $20 to $30 million within the next 5 years if we don't increase revenue or cut expenses. With your vote, and if this bill passes, the former option will be gone.

Make no mistake, this bill will negatively impact this community. Services will diminish. Roads will go unpaved, public transit options will decrease, public safety and emergency services will suffer and all of our efforts to increase economic development and finally take the majority of the tax burden off residents' backs will be stymied. Why? Because you and everyone else who supported this terrible bill chose to try and score a few political points.

Real tax relief won't come until public school finance is reformed (I am not talking about just throwing an additional 5k at teachers and librarians. I am talking about changing the funding formulas.) because that is where the lion's share of property taxes go. Anything else is just smoke and mirrors used by folks so they can tell their constituencies they "lowered taxes" in order to get re-elected. But, you knew that.

Stout gave an in-depth look at the realities that the bill's passage would mean for local entities. 

Everyone loves that empty promise of "tax relief" until you realize that you won't have the services that communities want and need. 

And guess who that bill is going to affect first and most?

The poorest of this community. 

If you live outside the city limits, guess what - you just got screwed a madre!

Now, here was the response from State Rep Cesar Blanco...and be forewarned, you're going to hear a Democrat that sounds like a Republican....

Commissioner Stout, thank you for your opinion but I have also heard from many constituents that want us to rein in property tax growth.

Commissioner we agree on many things, but obviously we have a difference of opinion on whether taxpayers need relief.

Last year the average El Paso homeowner was asked to pay an additional $20 in County property taxes while you were the only Commissioner who voted (1) to give yourself a 4% pay raise for a third straight year in a row (giving yourself a $31,000 pay raise over three years) and (2) voted against decreasing taxes for El Pasoans. (SOURCE: KVIA https://www.kvia.com/.../commissioners-approve.../787052285) (SOURCE: El Paso Times https://www.elpasotimes.com/.../el-paso.../1084385002/)

This bill I voted for is aimed at slowing property tax growth and empowering taxpayers, which I believe is a good thing. And to be clear the 3.5% is not a cap, it's a trigger. Current rollback election requirements put an unnecessary burden on taxpayers by requiring them to gather enough signatures to petition for an election. This bill empowers voters because it automatically triggers an election to ratify a property tax rate if it's raised above the trigger.

If and when you decide to raise taxes on El Pasoans above 3.5%, El Pasoans should have a say on how their taxes are being raised and spent. If local governments are being responsive to taxpayer needs and need to go above 3.5%, voter approval through an election shouldn't be an issue. For example, voters approved City Council's pay raises last year. (SOURCE: El Paso Timeshttps://www.elpasotimes.com/story/news/politics/elections/2018/11/06/voters-approving-el-paso-city-council-pay-increase-early-voting/1892434002/)

This bill is just about transparency and empowering voters. A more open process is supposed to be beneficial to EVERYONE.

And I agree, the best property tax relief is done by the state increasing its share of public education funding. That's why I voted for the state budget and landmark school finance legislation (HB3) in the Texas House to provide $9 BILLION in new funding for public education (beyond enrollment growth and current law requirements), including $2.7 BILLION for property tax RELIEF – putting real dollars back in the pockets of taxpayers.

Coming into this session, our voters demanded school finance reform and tax relief/reform…That's why I voted FOR transformational school finance legislation, FOR property tax reform, and will be voting AGAINST the GOP's sales-tax hike bait and switch. These votes will pave the way for long-term relief for taxpayers and working families.

Now let me just clarify something here...and pardon me for speaking bluntly, but seriously...there's no FUCKING REFORM in any of this. Its just a movida to rob Peter to pay Paul. 

That's not reform. $9 billion in "new" funding? And exactly how much have they cut in recent years? As we say in the valley, PURO PEDO.

As for Blanco's Republican talking point of "sky rocketing" taxes...here's what is even more disingenuous about that comment. This bill doesn't even apply to school districts. Where are the lion's share of your taxes going?

School districts! So the "reform" bill to stop "skyrocketing" taxes doesn't actually even address the biggest part of your tax bill. 

Here is Stout's reply to Blanco...

Rep. Blanco, it is unfortunate I have to repeat myself, but at El Paso County there are no "skyrocketing" taxes. What needs to be reigned in is the unfettered development in the unincorporated areas and the continuous unfunded mandates that are causing our budget to increase.

You are right: there are many things we agree upon, but misleading the public is not one of them.

It is unfortunate that in your response, you look to further mislead people by suggesting that I, or anyone on the Commissioners Court have anything to do with increasing property values and that we should be to blame because people may have to pay an additional $20. That is strictly due to values increasing, not tax rates.

Equally unfortunate is your misleading insinuation that I don't think taxpayers should have relief.

During my tenure on the Commissioners Court people have seen me fight to pay ALL of our employees what the market says they deserve, without discrimination. That includes ALL elected officials. And we did it WITHOUT raising taxes. I have also testified during 3 legislative sessions about tax caps, why they won't work and how they will hurt us, all the while giving suggestions on real solutions that would bring real relief to County taxpayers. Did you listen to any of them?

I appreciate you posting the KVIA article regarding our vote on this year's budget. If you open it, you'll see there is a quote of mine that clearly shows me warning about what is coming in the way of needed expenditures and possible tax increases (some of which I spoke about in my prior post... did you read it?). That was me being upfront and a straight shooter. That was me wanting to soften the blow. That was also me anticipating the largest attack on local control we have ever seen. Little did I know that in the end, you and others in our delegation would fall in line and throw Counties under the bus. I didn't expect it. None of us did ( and I DEFINITELY didn't expect you to be using the same Republican talking points we have been hearing for the last three sessions to justify your irresponsible and politically motivated vote).

I know it is difficult to be challenged on a vote, but it is sad to see you respond with more misleading statements, more republican talking points, deflection and a cheap shot about commissioner court salaries.