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 Revenue Caps

Revenue caps are bad policy, don’t address the real problems & take #localcontrol from communities #txlege #254Strong ow.ly/J8Wz2
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Lowering the current 8 percent revenue cap (rollback rate)—limits increases in a county’s overall property tax levy—will restrict counties from providing the efficient and effective government services taxpayers demand.
 
Lower revenue caps are a one-size-fits-all approach based on the faulty assumption that the need for services is steady from year to year. Local revenue needs often spike above or below proposed revenue limits. These spikes are caused by numerous factors such as local growth spurts, declining local or regional economics, receipts of—or reduction in—federal grants, new or modified state and federal mandates, and natural disasters or homeland security breaches.
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 TALKING POINTS

 
     
  • Lower caps hurt local control by taking the decision-making out of the community.

  • Lower caps do not address uncontrollable costs that affect counties, such as unfunded mandates, emergencies and demand for services caused by rapid population growth.

  • Lower caps affect the fiscal health of counties resulting in lower bond ratings that end up costing taxpayers more money.

  • Lower caps hurt the ability of local communities to spur economic development by diminishing the flexibility to provide economic incentives.

  • Lower caps attempt a one-size-fits-all solution for counties. This does not work. Commissioners courts, the locally elected governmental bodies, make the decisions best for counties.
 

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