Tax cut erosion is a major concern around the state. Since 2019, the Texas Legislature has committed substantial resources toward reducing property tax bills through twin strategies: compressing school district maintenance and operations (M&O) tax rates1 and increasing the residence homestead exemption. However, the Legislature’s tax relief efforts have largely been frustrated by the excesses of local government, which commonly take the form of aggressive rate hikes, frequent voter-approval tax rate elections (VATREs), large and costly bond propositions, and the abuse of certificates of obligation (COs).
The Staggering Amount of New Debt Added in May 2026
On May 2nd, 2026, Texas voters did something astonishing. They approved more new debt in that single afternoon than the entire gross domestic product of the country of Uganda. The $76.4 billion in new principal debt authorized that day won’t be issued tomorrow; but with voter approval in-hand, local governments now have the go-ahead to borrow more and add onto the $368.3 billion in principal debt already owed. Of course, these totals...