So by now that you have seen Gov. Rick Perry's paid political ad that states that folks in Houston and in the state will see property taxes decrease by $2000 over the next few years. You might want to stop spending the money you are "saving" and read the Houston Chronicle to see that you might only save only $14 or see a $35 higher bite in your property tax. What? How did that happen? What has the Governor been saying for the past month. Just pure BS? or some very creative analysis?

And if you think that is bad read Paul Burka's story in this month's Texas Monthly about what the GOP legislature really did when it comes to funding state government and public schools. Without changes we may see public schools get less money and prisons, children health care, aid to old folks, etc get more cuts. But don't worry if you have a very expensive house you may save some money and meanwhile schools, teachers, state employees and health care will get less.

Here is the Chronicles story:

"School-finance legislation that touted property tax relief would produce a tax bill $14 lower to $35 higher than last year's for the owner of a typical home with a taxable value of $125,000, according to an HISD projection. The school district assumes that the average home value increased nearly 9 percent over last year.

The numbers confirm that the property tax bill Gov. Rick Perry signed inside HISD headquarters won't put extra money in most homeowners' wallets this year, according to those who advocated for a more aggressive cut.

"The administration is doing the right thing by telling the board and the public that there is really not a cut coming, but there is a (possible) increase coming," said Paul Bettencourt, Harris County's tax assessor-collector.

"There's so much fallout in Austin over this that people need to know that, at least in the largest school district in the state, the administration thinks the average homeowner is going to pay $35 more than last year," Bettencourt said. "They should be commended for telling the public the truth."

Though the school property tax law might not cut HISD homeowners' bills, it did keep them in check" said the Chronicle.

Here is what Texas Monthly says about the property tax plan:

"But in solving one problem, the new plan creates others. The good news is that it raises more money for schools by increasing teachers’ salaries and funding math and science initiatives and allows many property-rich districts that are currently subject to Robin Hood to keep more of their locally raised tax revenue rather than send it to poorer districts. The bad news, however, is very bad indeed: For the sake of ideological purity, the Republican leadership would not allow the revenue from the new business tax and other new taxes passed by the Legislature to be spent on the public schools in future years. The Legislature tied up every dollar from the new taxes so they could be used only for future property tax reductions. Tax cuts, it seems clear, have replaced education as the number one priority of state government.

But that isn’t all there is to worry about. In order to achieve the cut, the Legislature must use the new business tax revenue to replace the money school districts will lose by no longer being able to tax at the old, higher rates­which means, believe it or not, that the tax cut is actually a spending program as well. This is no esoteric lesson in public finance. The state budget is subject to a constitutional spending cap; the growth in state spending cannot exceed the rate of economic growth, even when some of that spending is dedicated to replacing money cut elsewhere. It’s too early to know how the numbers will work out, but education advocates are deeply worried that when legislative leaders determine the new spending cap this fall, there will be little extra money for the state to put into public schools.

And here’s something else to worry about. In its determination to reduce property taxes by one third and increase spending on education, the leadership promoted a plan that did not balance. The new taxes do not cover the cost of the tax cuts and the new spending on education­which is why Strayhorn described the funding as a “hot check.” To make up the difference (around $4.5 billion), the Legislature dipped into the $8.2 billion budget surplus, which is largely the result of a healthy economy and high oil and gas prices. Unless the business tax raises a lot more money than it is projected to, legislative leaders will have to do the same thing next year and the year after that. In 2009 and 2010, leading up to the next gubernatorial election, the gap between projected revenue and the cost of HB 1 is $11.6 billion, an unheard-of figure in this state. That check is not just hot; it’s radioactive. So the tax cuts not only have first claim on all the revenue from the new taxes but will almost surely require dipping into future surpluses, leaving less money for education, health care, and other state responsibilities. What happens when the economy suffers an inevitable downturn and there’s a shortfall instead of a surplus? One of two things: a tax increase or budget cuts­and you know which one the Republican leaders will choose. One crisis is solved; another is born.

But even that isn’t all there is to worry about. In the past, school districts always had the ability, without going to the voters, to raise money through tax increases (and by taking advantage of rising property values), although such increases were subject to rollback elections. The new legislation allows districts to raise their tax rates by 4 cents per $100 of property valuation, one time, without an election. After that, any tax increase must be approved by the voters. Whether done intentionally or not, the lasting effect of the great tax cut of 2006 may be to achieve the fiscal conservatives’ dream of starving the public school beast."