By State Rep. Brooks Landgraf
In Texas, we have something called “horse sense,” with thinking being that the best ideas are usually ones that can be explained so easily that even a horse could understand.
This legislative session I have offered an idea to the state legislature that I think makes a whole lot of horse sense. I’ve offered a bill that would re-invest state oil and natural gas production tax (aka “severance tax”) revenue back in the communities responsible for generating the lion’s share of that revenue.
It’s not just about improving quality of life in the oilfield, it’s about doing what is necessary so that Texas can be a global force for good. It’s about defending the Texas energy industry because of its importance to our state budget and economy as well as geopolitics and American freedom. It’s about making Texas strong.
The Texas Severance Tax Revenue and Oil and Natural Gas (STRONG) Defense Fund would keep a portion of state severance tax revenue and invest it in regions of the state significantly affected by energy production. Texas STRONG funds will support transportation infrastructure, workforce and economic development, public education, healthcare, and public safety needs in the regions of the state where oil and natural gas production are the highest.
I filed House Joint Resolution 111 and House Bill 2207 because I believe that what’s best for the Permian Basin is what’s best for the Lone Star State. HJR 111 seeks to amend the Constitution to create the Texas STRONG Defense Fund and HB 2207 sets out how the funds can be used. It’s going to take a lot of work, but it will be worth it if we are able to secure energy independence for future generations of Texans. A plus this time is that you will get the chance to vote on this yourself in November if we are successful.
Currently, severance taxes are deposited in the state general revenue fund, state highway fund and rainy day fund with part of the deposits in general revenue earmarked for public education. Since 2014, severance taxes have contributed $9 billion to public education, $13.3 billion to the state highway fund and $13.3 billion to the rainy day fund. Over that same timespan, a small portion (32 out of 254) of Texas counties generated 80% of the severance tax revenue for a total of nearly $40 billion. As you can imagine, the majority of those counties are located right here in the Permian Basin.
With HJR 111 and HB 2207, a portion of the severance tax revenue that would otherwise be deposited in the now overflowing rainy day fund would instead go towards the Texas STRONG Defense Fund. Texas STRONG funds would help address everything from teacher and nursing shortages to potholes. Our streets would be made safer not just with repairs, but with additional boots and badges, ready and trained to enforce CMV laws.
HJR 111 caps deposits in the Texas STRONG Fund at $500 million per year, with anything in excess of $500 million going to the state’s property tax relief fund. Yes, you read that right, we’re going to use oil and natural gas to lower property taxes statewide. Current projections show that deposits in the property tax relief fund could be as high as $250 million in 2025 if my Texas STRONG proposal passes. HJR 111 would also dedicate some severance tax revenue to plug orphaned wells and clean up Texas air and groundwater contamination. This is all possible without touching any of the severance tax revenue that goes towards public education and the state highway fund.
I was elected by the hard-working people of House District 81 to be their voice in the Texas House of Representatives. It’s impossible to articulate how proud I am to serve such incredible people. You elected me to fight for what’s right, to do the hard work for the results, not the credit. That is why I am going to fight tooth and nail to pass Texas STRONG this session. Horse sense or not, it’s the right thing to do for Texas.
God bless Texas!
