Texas Could Soon Be The First State To End Taxpayer-Funded Lobbying

Though most of them weren’t aware, Texas taxpayers spent a total of $75 million on contract lobbyists during the last session of the state legislature. That is one of the findings of a new report from the Texas Public Policy Foundation (TPPF). A bill introduced in the Texas Senate, however, would put an end to taxpayer-funded lobbying, which critics contend is an inherently corrupt practice.

Senate Bill 175, introduced by Senator Mayes Middleton (R), would prohibit local governments and other political subdivisions in Texas from using taxpayer funds to hire lobbyists. Middleton’s bill also prohibits cities, towns, counties, and other political subdivisions from paying dues to nonprofit organizations that represent political subdivisions or hire contract lobbyists.

Senator Middleton and other proponents of SB 175 note that contract lobbyists hired with taxpayer dollars often work against the interests of taxpayers, opposing legislation to provide property tax relief and fighting reforms that would reduce the rate of growth in government spending. Taxpayer dollars are also being spent to lobby against legislation that would expand school choice.

“Taxpayers should not be bankrolling efforts to advocate against their interests,” Senator Middleton said about the need for SB 175. “Every step of the way, taxpayer-funded lobbyists have lobbied against key conservative priorities including: property tax relief, election integrity, disclosures of what bonds truly cost taxpayers, the constitutional ban on a state income tax, and they even opposed the bill to fund and protect the teacher retirement pension system.”

TPPF previously found that local governments in Texas spent $41 billion on lobbying in 2017, meaning that figure has nearly doubled over the course of two legislative sessions (the Texas Legislature is in session every other year). While Texas Ethics Commission data show that local governments spent $75 million on lobbying in 2021, TPPF notes that is a conservative estimate.

“This figure excludes the salaries and activities of in-house lobbyists, also known as intergovernmental relations personnel, as well as membership dues and other monies paid to pro-government associations, like the Texas Municipal League, the Texas Association of Counties, the Texas Association of School Boards, and others,” explains James Quintero, policy director for TPPF. “Thus, the $75 million spent by local governments to lobby is only a partial account—albeit an important one.”

While many local officials and the lobbyists they have on contract at taxpayer expense are fiercely opposed to SB 175, polling suggests the vast majority of Texans support Senator Middleton’s proposal to put an end to taxpayer-funded lobbying. A poll conducted by the University of Texas and the Texas Tribune found 69% of Republicans, Democrats, and Independents support a ban on taxpayer-funded lobbying. A TPPF poll released in 2019 found almost 90% of those surveyed support such a ban. More recently, a ballot proposition was placed on the March 2020 primary ballot to gauge public support for Senator Middleton’s proposal, with nearly 95% of Republicans voting in favor.

Governor Greg Abbott (R) has already voiced his support for Senator Middleton’s proposal. “Austin – don’t even try to defend taxpayer-funded lobbying,” Governor Abbott tweeted in 2020. “It is indefensible that you tax residents to get money that you use to hire lobbyists to support legislation to allow you to tax even more.”

In addition to Governor Abbott, Senator Middleton’s proposal is also supported by Lt. Governor Dan Patrick (R) and Texas House Speaker Dade Phelan (R). Given the bill has support from the Governor, is backed by leadership in both legislative chambers, and has already once been passed by the Texas Senate, many are optimistic about SB 175’s prospects for enactment in 2023.

State agencies are already barred from hiring contract lobbyists in Texas and other states. Enactment of SB 175, however, would make Texas the first state where local governments and political subdivisions are not allowed to hire contract lobbyists.

Lawmakers in Florida and Tennessee have also voiced an interest in passing a reform similar to the one introduced in Texas by Senator Middleton. Florida, Tennessee, and Texas are all no-income-tax states where lawmakers have been able to keep the growth of state spending in check and maintain a relatively low tax burden. Yet, in these and other states where lawmakers have done a good job of keeping their fiscal house in order, local government profligacy and onerous taxation are still a problem, one that has driven up property burdens.

Prohibiting taxpayer-funded lobbying is seen by many as a first step in reining in local spending that has grown at what is widely believe to be an unsustainable rate, even in places where spending restraint is exercised at the state level. Texas is poised to become the first to prohibit taxpayer-funded lobbying. But, for many reasons, it is unlikely to be the last.