Patrick pitches tax swap; Van de Putte wants revenue surplus for schools

Republican lieutenant governor nominee Dan Patrick said Saturday it’s time for the state to consider a tax swap – reduced property taxes in exchange for a higher sales tax – to fund schools, while Democrat Leticia Van de Putte called for using the state’s projected multi-billion-dollar revenue surplus to restore past cuts in education funding.

Patrick said property taxes have become excessive for too many Texans and he believes the public would support a tax swap that spreads out the burden of paying for schools and state programs.Texas schools are primarily funded with local property taxes and state revenue – including sales taxes.

“What I have always believed is we need to transition from depending (so much) on property taxes to more of a sales tax base that requires more people paying,” Patrick said at a political forum in Austin.

“This is something we need to have a serious discussion about. I am talking about bringing senators and hopefully House members together and being honest about tax policy,” he said, pointing out that many Texans cannot afford to keep paying higher and higher property taxes. School property taxes make up about 60 percent of the average property tax bill.

Texas Tribune Editor in Chief Evan Smith, who separately questioned both Sens. Patrick, R-Houston, and Van de Putte, D-San Antonio, asked Patrick about complaints that a higher sales tax would be regressive and increase the tax burden of lower income families.

“If you take an extra penny or two, would a person stop buying something because it costs $1.10 instead of $1.08?” he asked, referring to the current sales tax of 8.25 percent in most areas of the state. The tax swap should be set up so that people below the poverty level are exempted from sales taxes. “It would not be a tax on the poor. If you want to do something about a tax on the poor, let’s get rid of the lottery,” he said.

Van de Putte, whose views contrast sharply with Patrick on most key issues, said one of her biggest priorities will be to restore the funding levels for public schools that were slashed back in 2011 and only partially offset last year. She pointed out that the cuts, which eliminated 11,000 teaching jobs and increased class sizes across the state, were pushed through by the GOP majority in the Legislature, including Patrick.

The funding can be restored, she said, by using the state’s expected revenue surplus of $5 billion next year and the rainy day fund, projected to have as much as $8.5 billion by the next budget cycle.

“I would put that money back into public education,” she told audience members at the forum. “We need to put those programs that were showing success back on track.” She cited the $200 million for pre-kindergarten that was “ripped out” of the state budget along with other programs that were helping disadvantaged students – who now make up about 60 percent of all students.

As she travels around the state in her campaign, Van de Putte said, it is clear that many Texans value the importance of their public schools and want to see them funded properly.

Asked whether she would support a tax increase for schools, she replied, “I am willing to have the Legislature look at the budget and decide our priorities, and get a budget out that meets our priorities. I don’t think in the current economic climate, it will be necessary to look at an income tax or how to bring in new revenue.” Van de Putte said she wants to look at indexing the state gasoline tax to raise more revenue for highway construction and repairs.

In separate 30-minute interview session, the two candidates also laid out education proposals they favor. Patrick wants to see school choice expanded, allowing students in failing schools to attend private or religious schools. That would be accomplished by setting up state tax credits for businesses that contribute to private or religious schools. The money would be used to pay for scholarships for students who enroll at those schools.

Van de Putte, who has been an ardent opponent of private school tax credits and vouchers, wants to expand pre-kindergarten to a full-day program for all eligible disadvantaged children. She also wants to offer two years of free tuition at all community colleges for lower income students. The San Antonio senator also has called for a rollback of high-stakes testing in public schools.

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