Increasing homestead exemptions for local property taxes?

There is a Texas House Joint Resolution bill pending in the Texas House Ways and Means Committee and poses a change to how local taxing authorities who impose property taxes use exemptions and value property. Texas HJR 21 (Callegari, Fletcher, Zerwas, Harper-Brown, and Pickett) and SJR 13 (Patrick) propose that a constitutional amendement be added to the ballot that Texans see next time they enter the voting booth.

There are a few different proposals, but in sum, the spirit of the whole is to consitutionally limit the assessed property value as well as increase the amount exemptions available for individuals.

My worry, however, is that this will create a funding gap that will pose substantial problems for these taxing authorities. Many local taxing authorities are already limited in either the sheer amount they can tax or in the amount they can increase taxes each year (ex. counties can only tax @ 30 cents on the $100 of property value). If enacted, this would change the funding structure of these organizations and create a gap--a gap that in an economic downturn could prove very harmful. Where will these local taxing authorities make up the revenue shortfalls? Included in one proposal is a clause that would force the state governement to step in with the funds that are missed out on under this new propsal. Will this work? Is this going to increase the need for local government aid (LGA) funds that are oftentimes decried as unnecessary spending and subject to being cut in future budgets?

Just a thought. I don't know any answers to these questions but thought I'd pose them.

Anyway, I'm off to bed tonight, I'm tired after my bike ride this afternoon. Just thought I'd share this with whoever is paying attention now that this technology class is over.