Perry signs sweeping property tax cut bill
Law could be boon to his re-election bid; opponents say it doesn't go far enough
12:00 AM CDT on Thursday, June 1, 2006
By GROMER JEFFERS JR. / The Dallas Morning News
PLANO – Gov. Rick Perry on Wednesday signed into law a sweeping property tax cut bill that could be a boost for his re-election campaign.
"This is one of the most significant legislative accomplishments for Texas in generations," Mr. Perry said before a ceremony in Plano.
In TV commercials and a statewide tour of ceremonial bill-signings, the Republican has lauded the school finance plan passed during a recent special legislative session.
The bill he signed will cut school property taxes by a third over two years and enact a range of education initiatives, including a $2,000 raise for teachers. The cut is part of a legislative package that will raise billions of dollars in new taxes on businesses and smokers.
The plan removed a dangerous potential obstacle for Mr. Perry: the chance that lawmakers would fail to meet a Texas Supreme Court deadline for overhauling the school-finance system. Instead, he has a package of bills to tout as he takes on three major candidates in his re-election bid.
"Good public policy will take care of politics," Mr. Perry said after signing the bill. "This is the centerpiece of the future of the state of Texas."
His opponents have wasted little time in criticizing the plan. Comptroller Carole Keeton Strayhorn, running as an independent, has charged that the average homeowner would see little benefit.
Strayhorn spokesman Mark Sanders said the comptroller welcomed a debate over how little the bill accomplishes. She has said the bill will provide only a modest tax cut once school districts raise their tax rates to pay for local programs.
"It's a paltry property tax reduction this year, and it's a pittance for teachers," Mr. Sanders said.
Chris Bell, the Democratic nominee, criticized the bill's education initiatives and said teachers deserve more.
Mr. Bell called the tax package "Rick Perry's imagined conquest" and said: "When people start reading the fine print, they're going to be sorely disappointed. People are starting to realize it didn't do enough for them."
Mr. Perry said his opponents were posturing. He said Mrs. Strayhorn's estimates of the tax cut were misleading.
"It's not lost on anyone that ... [the candidates are] grasping at straws to find a way to get their name in the media," Mr. Perry said. "It's quite hollow criticism, and her numbers are suspect, to say the least."
Mr. Perry and several legislators participated in the bill-signing ceremony at the Plano school district's headquarters. The governor presented ceremonial pens to Sen. Florence Shapiro, R-Plano, and Rep. Kent Grusendorf, R-Arlington.
Ms. Shapiro was the bill's author. Mr. Grusendorf, who lost a GOP primary in March and will be leaving the House, was less involved in the crafting of this bill but was credited with helping shape debate on the issue in previous sessions.
Republicans say the tax package should make candidates, including Mr. Perry, immune to a backlash like the one Mr. Grusendorf suffered.
"A lot of people ran on these issues for years," said Rep. Dan Branch, R-Dallas. "We ran on lowering property taxes and making our business tax more modern."
E-mail gjeffers@dallasnews.com