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Presiding Officers’ Statements
On Thursday, the Speaker of the House and the Senate President both gave speeches in their respective chambers, indicating a contrast of approaches and positions between the House and Senate. One of the key issues at play relates to the chambers’ vastly different tax relief proposals. The House has proposed reducing the general rate of sales tax, currently at 6%, by 0.75%. The proposal also reduces other sales tax rates by the same 0.75%, including the commercial rent tax, the rate on electricity, the rate on sales of new mobile homes, and the rate on coin-operated amusement machines. The Senate has proposed a contrasting approach, preferring to renew certain tax holidays, such as the Back-to-School Tax Holiday, and permanently eliminating the sales tax on clothing and shoes priced at $75 or less. President Albritton has taken a more cautious approach to tax relief, stating, “cutting taxes now does little good if they have to be raised down the road.” There have also been clashes as it relates to budget negotiations. Notably, Speaker Perez in his speech stated that “the Senate’s expectation seems to be that the House should adopt the Senate budget with only slight modifications ... that position is not only unacceptable, but it is patronizing.”
Budget Proposals
This year’s budget negotiation process has differed greatly from years past. Typically, top-line budget allocations are negotiated during the seventh week of session, and budget chairs will meet and negotiate between chambers during the eighth week. This year, top line allocations are still in dispute. The House and the Senate budgets are about $3 billion apart. Budget negotiations will most likely involve policy exchanges, making it difficult to determine which bills are truly alive or dead.
Session Extension?
With tensions increasing between the two chambers, it is looking more and more likely that session will not end on its scheduled end date of May 2. If the Legislative Session is to be extended, the extension would have to be agreed to by a three-fifths vote of each house, and no new business may be taken up by either chamber without the consent of two-thirds of membership.
Stay Ready
Given the unpredictability of this session’s budget negotiation process, it is paramount that we all continue to stay as informed and energized as we have been from Day 1. Keep your devices close and accessible because it is important to be able to quickly respond to alerts and information that we will be sharing. We need all of us in order to ensure a successful Legislative Session. Please continue the hard work and dedication you have shown!
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