2006-04-24 Regular Meeting, Public Hearing and Workshop Meeting

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Houston Port Region Resolution on Texas Tax Reform — April 24, 2006 Economies in Motion k14 . 2O06-13 The Economic Alliance Houston Port Region is a non-profit organization with a membership composed of industry and community leaders. Two of its task force work groups have reviewed the current Texas Tax Reform question currently before the special session in Austin: - Alliance Legislative Task Force (one county membership), and the - Alliance Industry Task Forces that was created to study problems facing both the community and the chemical industry in Brazoria, Chambers, Galveston, and Harris counties. Both have recommended this resolution be submitted to you based upon surveys and other avenues of research and feedback, in addition to the following: - The Alliance Industry Task Force, with expertise from economist Dr. Ray Perryman and the Texas Refining Chemicals Industry Initiative Cluster Study in which plant mangers across the state were surveyed to find out what issues most impact their business. The number one concern brought forth by all plant managers was the current taxing philosophy. - The role of the Economic Alliance Houston Port Region was to facilitate a clear consensus of the diverse stakeholders and teams. As the Texas State Legislature and Governor Perry consider various taxing plans and strategies while moving forward on tax structure reform; we respectfully request, on behalf of our stakeholders, that the governor and legislature develop a tax system that will: • Recognize the importance of a strong public education system which is key to the chemical industry, a healthy Texas economy and the creation of meaningful jobs • Be in strict accord with the Constitution of Texas • Be fair, diverse, stable, and dependable • Correct the current methodology of financing public education that is narrow and lopsided by assuring all segments of the economy are contributing equally • Not encumber the Texas citizenry with increased sales tax • Not reduce municipal/county revenue streams • Promote the long-term stability of current Texas businesses • Be conducive to expanding the Texas economy Education is the foundation of the strength of Texas communities and the workforce of the chemical industry. The Economic Alliance and its task forces appeal to Governor Perry and the Texas Legislature to consider our points when developing a taxing system that stands up to scrutiny and benefits all Texans. David M. Johnson Steve Pocsik Barry Beasley Project Manager Total Petrochemicals USA, Inc AT&T Alliance Industry Task Force Co -Leader Alliance Industry Task Force Alliance Legislative Task Force DMJ Services, LLC Co -Leader Co -Leader Debra Feazelle City of La Porte Alliance Industry Task Force Tax Solution Team Co -Leader Steve Hazelwood Carol Harmon The Dow Chemical Company Alliance Legislative Task Force Alliance Industry Task Force Co -Leader Tax Solution Team Co -Leader Jan Lawler - President/CEO Economic Alliance Houston Port Region Task Force Sponsor of Task Forces