pineda Posted October 6, 2004 Share Posted October 6, 2004 HoustonChronicle.com -- http://www.HoustonChronicle.com | Section: EditorialOct. 5, 2004, 9:21PMRevenue capsVote FOR Proposition No. 1 to limit hikes in property taxes and water rates.Vote AGAINST Proposition No. 2, which would put city in financial straitjacket.The most important and influential votes Houstonians will cast on the November ballot have nothing to do with the presidency. They have nothing to do with Congress or the Texas Legislature. They concern two referendums proposing to limit revenues to the city: Proposition No. 1 and Proposition No. 2.The Chronicle urges Houstonians to vote FOR Proposition No. 1. The measure, supported by Mayor Bill White, would limit the annual increase in property tax revenue to 4.5 percent, or the combined rates of inflation and population growth, whichever is smaller. Targeting additional property tax relief to those who need it most, Proposition 1 would require annual 10 percent increases in the homestead exemption for seniors and the disabled.The measure also would limit increases in water and sewer rates to the accumulated growth in inflation and population. Voters could approve property tax and water rate increases in excess of the limits, should circumstances warrant.The most pressing tax problem for all Texans is the rapid increase in the appraised value of their houses. Higher appraisals mean higher annual tax bills for homeowners, regardless of their ability to pay.Proposition 1 aims relief directly at the problem. Court pressure to reform the state's school finance system holds the prospect (if not the promise) of substantial property tax relief. Proposition One would keep Houston from ratcheting up local rates and reducing tax savings from school finance reform. Limits on water rate increases would keep the city from increasing utility fees in lieu of a tax increase.Proposition 2, for the uninitiated, sounds similar to and perhaps even more attractive to taxpayers than Proposition 1. Don't be fooled. Proposition 2 would endanger the health of Houston's budget and bond ratings without guaranteeing urgently needed limits on property taxes. Passage of Proposition 2 could continue the property tax crisis that is driving somehomeowners to sell their property.Proposition 2 would put the entire city budget, including separate enterprise funds, on a diet, no matter how slim some areas of the budget might be already. The growth in total city revenue from taxes, fees, fines and rentals could not exceed the combined rates of growth in population and inflation.The problems this would cause are limitless. The city could not pay steeply higher health insurance premiums for its employees without reducing their number. When the expanded convention center gets new business, the city could not spend the additional revenue on maintenance and other costs without reducing spending for basic services such as public safety and solid waste.Supporters of Proposition 2 have a point. The city of Houston's budget has grown rapidly in the past 20 years. However, it needed to grow. Decades of neglect and periodic recessions had left Houston underserved, with worn out infrastructure. Large investments need to be made, and Mayor White says he will add efficiency by cutting unneeded middle managers, placing more city employees on the front lines delivering basic services.Supporters of Proposition 2 say city government is too big. If so, who wants to cut police and fire protection? Who wants Houston to have fewer parks, ill maintained? Houston spends much less per capita on libraries than other cities. Should it eliminate them entirely?The answers are no one and no. Voters should give the same response to Proposition 2, while approving Proposition 1.HoustonChronicle.com -- http://www.HoustonChronicle.com | Section: Editorial This article is: http://www.chron.com/cs/CDA/ssistory.mpl/editorial/2832553 Quote Link to comment Share on other sites More sharing options...
Sunstar Posted October 18, 2004 Share Posted October 18, 2004 PITTED PROPOSITIONSVoters faced with battle of the tax capsProposed changes to city charter surrounded by questions, conflictBy DAN FELDSTEINCopyright 2004 Houston ChronicleRESOURCESFollowing are the two competing amendments to the city of Houston charter regarding municipal finances on the Nov. 2 ballot: Quote Link to comment Share on other sites More sharing options...
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