Southwest bond, tax election results have officials cheering or regrouping

Southwest officials are mapping out their debt issuance plans in the wake of voter approval for a big burst of bonds in the Nov. 7 election, which also resulted in different outcomes for high-profile property tax cut measures in Texas and Colorado.

Voters approved and businesses through rate compression and an increase in the homestead exemption. The measure was overwhelmingly passed with 83.4% of the vote.

Gov. Greg Abbott posted a message on X, the message board formerly known as Twitter: “Congratulations Texans! You voted yourself an $18 Billion property tax cut. The largest in Texas history.”

Texas voters also greenlighted 12 of the remaining 13 constitutional amendments, including Proposition 6, which creates a $1 billion New Water Supply for Texas Fund with the aim of finding 7 million acre feet of additional water by the end of 2033 via desalination, importation, and other projects.

Texas State University, Texas Tech University, University of Houston, and University of North Texas will get a financial boost with the passage of Proposition 5, which sets up a nearly $4 billion Texas University Fund.

Water or municipal utility districts in El Paso County won the ability to levy property taxes and issue bonds to fund parks and recreational facilities with voter approval of Proposition 11.

Retired public school teachers will get a one-time cost-of-living boost that will cost the state’s general fund about $3.35 billion under Proposition 9.

Colorado Gov. Jared Polis ordered a special legislative session for Friday to take up short-term property tax relief for the current tax year when tax bills are projected to jump by as much as 50% due to higher property assessments.

Colorado voters rejected the enactment of a statute allowing the state to spend revenue in excess of its current cap, make temporary assessment rate reductions for residential property, incrementally reduce the assessment rate for commercial property, and create a limit for local property taxes that excludes school districts and home-rule cities and counties.

In the wake of the defeat, Democratic Gov. Jared Polis ordered a special legislative session for Friday to take up short-term property tax relief for the current tax year when tax bills are projected to jump by as much as 50% due to higher property assessments.

“If we do nothing, Colorado homeowners are facing record property tax increases,” he told reporters Thursday. “The cost of inaction is too high. It means people could be forced to make the hard choices between their property taxes and groceries and gas.”

Polis said $200 million the Democratic-controlled legislature set aside for Proposition HH could be tapped for immediate tax relief and was asking lawmakers for a “blue ribbon panel” to come up with a long-term plan.

Republican lawmakers, who opposed the Democratic Party-supported proposition, are pushing an alternative plan to address skyrocketing property taxes that includes lower assessment rates for most property and a cut in the state’s flat income tax rate.