Texas House Bill HB3956

Texas 2009 - 81st Regular

• Out of House Committee: 5/8/09

Caption

Relating to use of sales and tax revenues by certain development corporations to promote higher education and job training opportunities.

Impact

If enacted, HB 3956 would enable Type A development corporations to commit up to one-eighth of their sales and use tax revenue for educational initiatives. This shift in revenue allocation may have significant implications for local economic development strategies, as communities could enhance their capacity to support education and job readiness in tandem with business growth. By investing in education and training, municipalities could foster a more skilled workforce, potentially attracting industries that require specialized skills.

Summary

House Bill 3956 seeks to amend the Local Government Code by allowing certain development corporations to allocate a portion of their sales tax revenues specifically for promoting higher education and job training opportunities. The bill defines 'education and job training project' which includes providing scholarships to students enrolled in local higher education institutions, as well as funding job training opportunities through these colleges. This legislative push is part of a broader effort to enhance educational access and workforce training within communities throughout Texas.

Contention

Despite the potential benefits, the bill may face scrutiny regarding its financial implications for development corporations and local budgets. Opponents may argue that diverting sales tax revenues away from traditional projects could hinder ongoing community development efforts. Additionally, concerns about the effectiveness of such allocations in actually improving educational outcomes and job placements may be raised. Ultimately, the success of HB 3956 would depend on the execution of these programs and the partnerships formed between development corporations and educational institutions.