In a statement issued after the amendment failed, Rep. Slaton emphasized the importance of transparency for Texas taxpayers.
"I offered an amendment to the corporate welfare bill to provide transparency for the most important people affected: Texas taxpayers.”
Slaton’s amendment would have required school districts to notify the public when they received an application from a business seeking a property tax abatement via a website or social media account maintained by the school district.
HB 5, as outlined by the Texas House Research Organization, would establish provisions for property tax abatement agreements between school districts and those interested in constructing large-scale economic development projects within the district. These projects could include national or state security projects, supply chain infrastructure projects, manufacturing projects, or projects that require an investment of over $1 billion in a Texas school district.
The bill has received mixed reactions from the public, with some opposing it as "corporate welfare" and arguing that Texas is already attracting businesses without the need for tax breaks. One public commenter, Charlie Evans, stated, "I oppose HB5 because it would continue a $31 Billion mistake of diverting resources intended for schools and burdening taxpayers. Furthermore, I oppose this bill because studies show that 85% of companies would locate here without these incentives".
The Austin Journal has previously reported that Chapter 313, the program that HB 5 aims to replace, has faced significant criticism for being corporate welfare at the expense of individual taxpayers and for pitting Texas school districts against each other. Critics, such as the Texas Industrial Areas Foundation and the Central Texas Interfaith community, argue that Chapter 313 shortchanges children by taking money away from public schools and giving it to wealthy corporations, costing taxpayers $1 billion a year.
Jeramy Kitchen, executive director of Texans for Fiscal Responsibility, expressed concern that HB 5 could be "a continuation of corporate welfare at the expense of the individual taxpayer". Critics have also questioned whether Texas needs an incentive program like Chapter 313 or HB 5, arguing that investing in schools and communities would be a better use of funds.
In his statement, Rep. Slaton thanked his colleagues who voted to support the amendment.
“Unfortunately, this common-sense transparency amendment failed. I am grateful to Representatives Cain, Dorazio, Isaac, Leo-Wilson, Ramos, Schaefer and Tinderholt for supporting this attempt to protect Texas taxpayers.”
Despite Rep. Slaton's attempt to add additional transparency, the bill has passed the House on second reading.