The Texas Report 6/2

The Texas Report 6/2

What’s Happening:

• New Interim Attorney General (More here)

• Texas Border Updates (More here)

• Texas Dad Vanishes (More here)

• Looking at the Texas Regular Session

• Houston ISD Gets new superintendent on first day of state takeover (More here)

We’ve reached the end of the 88th Texas legislative session, and the Governor has already called legislators back for the first special session to address property taxes and border security.

The Governor essentially endorsed the House’s property tax plans, setting up a battle between the three most powerful Texas politicians (Speaker & Governor vs. the Lieutenant Governor). Additionally, DeSantis is making plans for a major Texas fundraising trip with well known conservative billionaires.

New Interim Attorney General

Wednesday, Governor Abbott appointed former Secretary of State, long-time fixer, and confidant John Scott as Texas's short-term interim Attorney General.

In his statement, Abbott said, "John Scott has the background and experience needed to step in as a short-term interim Attorney General during the time the Attorney General has been suspended from duty. "He served under me in the Texas Attorney General's Office and knows how the Office of the Attorney General operates. Scott was the Deputy Attorney General for Civil Litigation and has handled cases at all levels of the justice system."

To many of the Texas Capitol crowd, it wasn't surprising to see John Scott appointed to this position. Abbott has routinely used Scott as a "fixer" for numerous state agencies, including the Health and Human Services Commission, where Scott oversaw the successful overhaul of the agency, its 56,000 employees, and its over $50 billion biannual budget.

Scott most recently served as the Texas Secretary of State for Governor Abbott and worked directly under the Governor when he was the Texas Attorney General. Scott is a well-known lobbyist and attorney who lives in Fort Worth and has offices in Austin. As an attorney, he has tried over 100 lawsuits at all levels including the U.S. Supreme Court to the State Office of Administrative Hearings.

What sticks out to me in this statement is that Abbott chooses not to mention Paxton by name and continues not to weigh in on the issue.

Paxton is the first Texas Attorney General ever to be impeached and is awaiting a trial in the Texas Senate, which will come later this summer. Six of his top deputies have taken leaves of office to serve as his defense team, and yesterday, the Texas House announced its impeachment team led by Houston-based legendary attorneys Dick DeGuerin and Rusty Hardin.

Per the Texas Tribune DeGuerin defended former U.S. House Majority Leader Tom DeLay against money laundering and conspiracy charges. DeLay was found guilty, but his conviction was overturned on appeal. DeGuerin also successfully defended former U.S. Sen. Kay Bailey Hutchison from misconduct charges, and other high-profile clients have included New York real estate mogul Robert Durst and Branch Davidian leader David Koresh during the 1993 Waco standoff.

Hardin has represented everything from celebrities to star athletes and major corporations. He was also involved in the White Water controversy against Bill Clinton and was named one of the "100 Most Influential Lawyers in America" by National Law Journal.

In the brief press conference introducing Hardin and DeGuerin, Hardin said that the accusations against Paxton are "10 times worse than what has been public." The impeachment trial has yet to be scheduled but will be before August 28.

More context:

Texas Border Updates

Thursday, Abbott released updated numbers detailing metrics on how many immigrants have been bussed across the country.

Since the start of the program, the state has sent:

• 9,500 immigrants to Washington D.C. since April 2022.

• 7,100 immigrants to New York City since August 5.

• 2,100 immigrants to Chicago since August 31.

• 1,200 immigrants to Philadelphia since November 15.

• 40 to Denver since May 18.

Additionally, several Republican governors have announced in recent weeks that they would be sending national guard, law enforcement, and other resources to assist on the Texas border.

The states that have so far directed the deployment of resources include the following:

• South Carolina, Virginia, Iowa, Idaho, Florida, Nebraska, and Tennessee.

Many of these states have sent national guardsmen, as well as state police and other resources like planes, drones, and boats. Operationally it's still being determined how long these out-of-state resources will stay on the border, but when Florida sent officers in 2021, the deployments typically lasted 14 to 16 days. In Florida's case, they've sent significantly more resources to the border this time.

• Virginia is sending 100 National Guard troops

• Details from South Carolina will be finalized over the next couple of weeks, with deployment expected by July 1.

• South Dakota is deploying "at least 50" by some time this summer.

More here:

Texas Dad Vanishes

Colby Richards, a 31-year-old Texas father, went missing on an early morning walk on May 26. His family, friends, and law enforcement have continued searching the Woodlands area for any signs of the father two.

His wife reported him missing last week and "found a water bottle of his near the trailhead in the wooded area with trails and stuff behind where they live." There have been no other signs of Richards, and he left that morning without his phone or wallet.

Colby was last seen wearing a T-shirt, black shorts, and gray Under Armour sneakers.

In interviews with his family, they said it was normal for Colby to go on early morning walks, but it wasn't a regular occurrence. He had recently started a full-time job at an engineering firm in the area and also worked as a part-time baseball coach.

The family has created a GoFundMe page titled "Help us find Colby Richards" to fund the volunteer search.

Property Tax Fight and Looking at the Legislative Session

The fight between the big three leaders of Texas continues, with the Speaker and Governor showing no signs of backing down from their policy position on property taxes and the Lieutenant Governor doubling down even further by releasing statements on social media targeting the decision-making of the Governor.

What's happening:

• During the recently ended 88th session, the Speaker and Lt. Governor were unable to compromise on property tax relief leading the Governor to call an additional "special session" on the issue.

• The Governor's call happened hours after the regular session and is narrowly focused on legislation cutting "property-tax rates solely by reducing the school district's maximum compressed tax rate. "Within hours after the announcement of the Special session, the House convened and passed what the Governor wanted.

• Abbott released a statement thanking the House and adding that they're "the only chamber that passed a property tax cut bill that is germane to the special session that I called to provide Texans with property tax relief." (More here)

Thirty homeowner, consumer, and business groups across the state weighed in with a letter signaling support for the Governor and House plan to cut property tax rates. In their letter, they explain how the $17.6 billion in state funds will be used to cut $1,300 over two years for homes with a $300,000 value. The plan would cause school tax rates for M&O would drop from $0.91 in 2022 to $0.64 next year. (More here)

Where this all get's complicated is the Lt. Governor and Senate have different opinions on property tax relief. Their bill does include language for compression but also creates a $100,000 homestead exemption for homeowners under 65 and a $110,000 homestead exemption for homeowners over 65.

The Lt. Governor has specifically called out the Governor for his plan and said on social media, "He seems misinformed about the roles of the executive and legislative branches of government. While the Governor has the sole authority to call the Legislature into Session, the Legislature writes the bills – the courts have been crystal clear on this. Governor Abbott has finally shown his cards. He chooses to give homeowners 50% less of a tax cut, nearly $700 a year, to give corporations more. This is not what homeowners expected when they voted for him." (More here)

In most Capitol insider's recent memory, this is the first time that Lt. Governor Dan Patrick has ever taken this specific a run at fellow Republican Governor Greg Abbott.

The Senate convenes today, and we may learn more about the road to compromise with $17.6 billion in property tax relief hanging in the balance.

Bills on interest that passed:

• House Bill (H.B.) 19 by Representative Andrew Murr (R-Junction) H.B. 19 creates an appointed statewide business trial court. Generally speaking, the business trial court has jurisdiction over three types of actions. Corporate governance disputes with at least $5 million in controversy, certain contract or commercial transaction disputes with at least $10 million in controversy, and actions for equitable relief related to the preceding two items. The business court will be rolled out in two phases, with the first five divisions created on September 1, 2024, in the state's large metropolitan areas. The second six divisions may be created on or after September 1, 2026.

• H.B. 8 by Representative Gary VanDeaver (R-Texarkana) This overhauls the state's portion for community college finance and increases the state's allocation for numerous programs to make higher education more affordable.

• H.B. 9 by Representative Trent Ashby (R-Lufkin). This creates new dedicated state accounts for broadband funding and will authorize $1.5 billion to improve Texas' telecommunications infrastructure, pending voter approval.

• S.B. 15 by Senator Brandon Creighton (R-Conroe) Requires athletes at public institutions of higher education to compete based on their sex at birth.

We will continue analyzing some of the major bills that passed this session over the coming weeks. If there is a specific policy area you're interested in, please let us know.

State takeover of Houston ISD appoints Superintendent

This week, the Texas Education Agency announced the new leadership for Houston Independent School District (HISD). This includes a nine-member board of managers and a new superintendent.

Mike Miles was named the new superintendent and officially began work on Thursday under a 21-day interim contract until he receives formal approval from the board of managers.

Miles released a statement vowing to fix the "system" failing HISD students and addressed the need to improve education for special needs students. (More here)

Previously, Miles served three years as superintendent of Dallas Independent School District, the second largest district in the state behind HISD. He was an officer in the Army and spent time working for the state department, including as a diplomat to Poland and Russia near the end of the Cold War. Miles holds degrees from West Point, UC Berkley, and Columbia.

In a statement on the hires, Texas Education Agency Commissioner Mike Morath said, "Over the past few months, we have been heartened to see so many Houstonians eagerly step up to serve their community and the students of Houston ISD. We were looking for people from a wide array of backgrounds, experiences, and perspectives who believe all children can learn and achieve at high levels when properly supported and who can work together. I believe the governing team I am naming today will work as a unified team dedicated to improving student outcomes and supporting educators."

Attached is a link to the other nine people appointed to the board of managers, many of which are involved community members in Houston. (Full list)

The board will adhere to similar open meeting requirements as traditional school boards, and their first meeting will be on Thursday, June 8.

This is significant because HISD has nearly 190,000 students and is the largest district in the state. The TEA said it received 462 total applications, 422 from within HISD boundaries.

The superintendent and board will make all the operational decisions behind running the school, and in two years, the TEA commissioner will reevaluate to see if the takeover can end.

More context: