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NXP Semiconductors, which is based in the Netherlands and has two fabrication plants in Austin, is seeking tax breaks from the Austin Independent School District under the state's Chapter 313 incentive program for proposed expansion. An initial presentation to the district's board Tuesday night didn't specify the amount, but previous incentives agreements from Texas school districts for similar Chapter 313 deals have been for tens of millions of dollars.

The Chapter 313 incentives program — which is named after a portion of the tax code — has been controversial. It's set to expire at the end of this year because state lawmakers declined to renew it during last year's legislative session, although deals struck before then won't be affected....

Under the Chapter 313 program, school districts are reimbursed by the state for the corporate tax breaks they agree to provide. That attribute has made Chapter 313 controversial among critics who say school districts have no reason not to grant them, and that the program siphons money from taxpayers statewide as handouts to corporations.

“There's no such thing as free money," said Doug Greco, lead organizer with Central Texas Interfaith, a group that opposes all Chapter 313 deals and has worked to help end the program.

“It's money that is being drained out of the state budget that could be going to schools," Greco said. "When you add these (deals) up, it's just a drain on the system that we can't sustain. Let's stop the gold rush here."

[Photo Credit: Mark Matson, Austin American Statesman]

Chipmaker NXP Considers Austin for $2.6 Billion Expansion, Up to 800 New Jobs, Austin American Statesman [pdf]

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[With support from Central Texas Interfaith], Texas students and campus leaders held the state’s first Texas Historically Black Colleges and Universities Conference in Austin over the weekend to discuss the need for increased investments in HBCUs.

The event, held at Huston-Tillotson University, featured speeches from campus leaders, a conversation with state lawmakers who represent HBCUs in their districts and a roundtable discussion with students who spoke about the experience and challenges of attending HBCUs....

Jeffrey Clemmons, a Huston-Tillotson alumnus, who graduated in 2021, said there has been a “funding inequity from day one” between money for HBCUs and the flagship state university systems. In addition to addressing inequities, he said one of the conference's goals is to develop a coalition of HBCUs that can address shared issues in the future.

“Prior to this moment, as far as we could tell, while there were informal channels, there was never a unified conference of HBCUs,” Clemmons said. “We were never able to come together in a unified fashion and advocate for issues, and so I certainly hope that the one thing that comes out of this is that we will no longer be strangers to one another and we will be united”

[In left photos, Huston-Tillotson students engage state legislators.  In right photo Huston-Tillotson University  professors and CTI Lead Organizer Doug Greco discuss the development of public leadership.  Credit: Aaron E.  Martinez, American-Statesman]

Texas HBCUs Hold Statewide Conference at Huston-Tillotson to Address Funding Inequities, Austin American Statesman [pdf] 

Following an opposition campaign by Texas IAF organizations, Comptroller Glenn Hegar is backing away from his proposal to gut Chapter 313 reporting and accountability requirements in the program’s final year of existence. Hegar signaled the change Friday after significant pushback by Chapter 313 critics, including a press conference held by Texas IAF organizations in December, and a barrage of public comments submitted to his office against the proposal, with the largest portion coming from Texas IAF leaders.

During the 2021 Legislative Session, the Texas IAF, along with allies, stopped the reauthorization of Chapter 313, the State’s largest corporate tax subsidy program. Though the current program, which costs taxpayers $1-2 Billion per year, is set to expire in December of 2022, Comptroller Hegar had proposed in November to reduce the reporting requirements on jobs, wages, and overall costs to taxpayers.

“Comptroller Hegar has recognized the voices of voters from across the political spectrum, including our organizations, and now says the data we are concerned will continue to be available,” said Bob Fleming, a leader with The Metropolitan Organization, the IAF affiliate in Houston. “However, we remain vigilant because he says the rules will still be revised and made ‘more efficient’. Given the history of this failed and discontinued program, we need even more transparency and accountability, not less.”

[Photo Credit: Mark Mulligan, Houston Chronicle]

After Backlash, Texas Comptroller Abandons Plan to Hide Details of Controversial Tax Break Program, Houston Chronicle [pdf]

Network of Texas IAF Organizations, Press Release