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Public Statements

Gov. Perry Praises School Finance Reform Victory

By:
Date:
Location: Sherman, TX


Gov. Perry Praises School Finance Reform Victory

Plan Provides for Record Property Tax Relief, Taxpayer Protections, Historic Tax Reform and Educational Excellence

SHERMAN - Gov. Rick Perry today was joined by Rep. Larry Phillips of Sherman to praise the historic school finance reform plan passed by the Texas legislature. The plan reduces property taxes by an historic $15.7 billion, provides strong taxpayer protections, raises salaries for all teachers while creating the largest performance pay program in the nation to reward teaching excellence, and gives Texas a broader, fairer business tax that reflects our diverse economy and is assessed at a low rate.

"I appreciate Representative Phillips' work to move this legislation through the House and to my desk," Perry said. "The people of District 62 can be proud of the way he voted, because this school finance plan will forever change Texas for the better."

Perry said due to the historic property tax cut, the owner of an average-priced home will see a one-third reduction in school maintenance and operations taxes and realize a total savings of nearly $2,000 over three years. "And because we have dedicated increased revenue from other sources to sustain that relief in the future, this is a tax cut that Texas can take to the bank, and count on in the years to come. Taxpayers will have new protections that empower them to stop local tax increases, greater transparency in school budgeting, and significant protections against rising home appraisal values that often force families to pay more each year," Perry said.

In addition to historic property tax cuts and tax payer protections, the school finance reform package closes loopholes in the current franchise tax and makes it fairer by broadening the tax base.

"Under the old system, gaping loopholes divided people into winners and losers. Now we will have a reformed business tax that provides greater fairness for employers, reliable funding for our school classrooms and the revenue to keep property taxes low for homeowners and businesses," Perry said.

http://www.governor.state.tx.us/divisions/press/pressreleases/PressRelease.2006-05-25.4413

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