The Greater Austin Chamber Board of Directors voted today to approve a statement supporting tax and education reform in the state legislature that would allow the Central Texas area to continue to build a competitive business environment and workforce ensuring future economic growth. The Chamber commends the Tax Reform Commission for its work incorporating the input, interests and concerns of diverse business industries.

"It appears that the Texas Tax Reform Commission is having success in putting forth changes that would result in a stable and largely, equitable, tax environment in our State. My hope is that we do not lose sight of two important things as this unfolds: the shared responsibility that we all have to ensure continued funding at proper levels for the education of our children, and the promotion or continuation of economic development tools important in the retention and attraction of quality employers to this region and this state."

STATEMENT ON 2006 TEXAS TAX, EDUCATION FUNDING DISTRIBUTION AND EDUCATION POLICY IMPROVEMENTS
Greater Austin Chamber of Commerce

Education is the foundation for the economic and cultural future of Central Texas.

Since 2003, the Greater Austin Chamber has supported the following major changes in state policy to provide permanent solutions to the state’s school finance policy:

• Provision for a broad based business tax, with capacity for growth,
• Significant reduction in property taxes, and
• Provision of school funding capacity sufficient to provide exemplary education.

Today’s Central Texas economy is more diverse than when the tax system was last reformed. Recognizing this diversity, the Greater Austin Chamber of Commerce Board commends the Texas Tax Reform Commission for its dedicated efforts and creative plan to expand business taxes to create a more uniform, lower, broader-based approach. The Texas House of Representatives should be commended for past efforts to restructure the tax system. It further commends both the Texas Senate and House for dedicated efforts to improve the number and rate of our high school graduates prepared for higher education and the high-performance workplace.

Central Texas businesses, through Opportunity Austin, have made a commitment to growing and diversifying our economy resulting in an increased tax base, more jobs and an improved business climate. A key to retaining and recruiting businesses is a stable and equitable tax environment that supports primary, exporting companies and cutting-edge research, plus a growing, entrepreneurial, and academically well-prepared labor force.

Chamber Position
To ensure Texas’ competitiveness in attracting primary employers, especially in Opportunity Austin’s industry clusters, the ultimate tax structure should:

• Expand payer base in similar ways to Texas Tax Commission recommendations
• Continue the research & development tax credit
• Continue economic development tools such as HB 1200
• Reduce school property taxes by 20 cents, or more
• Allow all local option school property tax revenues to remain local

To ensure Texas’ competitiveness in attracting primary employers, especially in Opportunity Austin’s industry clusters, the ultimate education structure should:

• Adopt competitive math and science expectations in high school graduation plans, as recommended by the Senate
• Ensure high school math and science academic standards are aligned with college
• Further facilitate technology into the management of education
• Properly account for differentiating cost of education, Social Security and education for English Language Learners

We urge the Texas House of Representatives and the Texas Senate to consider carefully the Texas Tax Commission’s Plan and the Texas Senate education proposals before the adjournment of the Texas Legislature’s special session and, prior to June 1, 2006.