Legislature closer on budget, tax reform

But impasse over ‘bathroom bill’ still could force a special session

AUSTIN — Compromises to resolve two key issues holding up the final approval of property-tax reform and the state budget are close to being forged, legislative leaders confirmed Tuesday, as the first steps to a settlement began falling into place.

But Senate and House leaders cautioned that a lingering impasse over the latest version of a scaled-down “bathroom bill,” a priority of Gov. Greg Abbott and Lt. Gov. Dan Patrick, remains a potential stumbling block in the push to avoid a special legislative session.

Legislative leaders said both chambers have tentatively agreed to changes in Senate Bill 2, the controversial property-tax measure that is opposed by cities and other local taxing jurisdictions as an unfair state mandate. The tax deal would retain new transparency provisions in the appraisal system supported by both chambers, but would “restructure” a rollback election provision supported more widely in the Senate than in the House.

It is scheduled for a House vote on Thursday.

On the budget, both Senate and House members close to the negotiations said the House is now open to using a Senate plan to use an accounting maneuver involving transportation funds to balance the budget, while the Senate appears agreeable to tap the Rainy Day Fund, the state’s savings account.

Approving those two measures before the Legislature must adjourn on May 29 would leave no reason for a special session, House Speaker Joe Straus said in a letter delivered to Lt. Gov. Dan Patrick late Monday.

“The House wants to finish all of our work in the regular session, and we believe that this goal is well within reach,” Straus wrote in the letter. “While I respect and defer to Governor Abbott’s right to call a special session on any topic, I believe that such a session will not be necessary if we work together to pass two critical bills.”

For his part, Abbott told reporters on Tuesday he believes his top priorities can be addressed during the regular session.

“We are in the process …

of identifying the priorities of what must be passed, the priorities of the House, the Senate and the governor,” Abbott said. “We are working diligently around the clock to hammer those out to try to get this done.”

Asked whether the priorities important enough for a special session include a so-called “bathroom bill,” Abbott said: “We are on a pathway where those priorities can be addressed during the regular session. It’s just a matter of getting everybody on the same page.”

Time ticking away

Legislative leaders, who spoke anonymously Tuesday because of the sensitivity of negotiations, said the plan calls for the House to approve the property-tax reform bill, after which the Senate will move ahead to approve Senate Bill 310, a safety-net measure designed to protect state agencies slated for so-called sunset review, if the reviews are not completed by the deadlines set in state law.

Also in play are Senate Bill 8, an anti-abortion bill limiting the use of fetal tissue, and Senate Bill 11, a key bill designed to reform the state’s troubled foster care program and child-protective system. Both are in the House, where they are expected to be voted upon later this week.

All remaining Senate bills must be voted out of House committees by Saturday, and must be voted on by the full House for the first time by May 23.

“I think we can get there, but timing is everything, and time is starting to run out,” said one senator who is familiar with the negotiations, echoing the frustration of some House leaders.

Patrick vs. Straus

All blamed a breakdown in talks between Patrick and Straus, who reportedly have not spoken directly in days, for the number of unresolved issues with just 13 days to go in the legislative session. Most cited Straus’ letter as an example of the strained relations between the two men, who are not close politically or personally. Though both are Republicans, Patrick is a staunch conservative while Straus is more moderate on some issues.

By law, the budget is the only bill the Legislature must pass — and negotiators on both sides hinted they could have a deal by Friday.

House leaders had earlier opposed an accounting maneuver in the Senatepassed version.

Senate leaders had opposed using money from the Rainy Day Fund, the state’s savings account, except for special one-time projects.

Both sides confirmed that the remaining budget issue involves funding for higher education, which the Senate cut and the House generally left intact at current levels.