Texas Mayors Object to State Bills Limiting City Revenue
100 Texas mayors sent a letter to Gov. Abbott, criticizing state laws they call a "war on cities." They argue policies like SB 2, which caps property tax
AUSTIN — In an unprecedented display of collective political pushback, a coalition of nearly 100 Texas mayors representing more than 10 million residents sent a formal letter to Governor Greg Abbott and legislative leadership on Monday, Nov. 18, 2019, drawing a line in the sand over what they describe as the state’s “war on cities.”
The missive, organized by the Texas Municipal League (TML), serves as a searing critique of the 86th Legislative Session. The mayors argue that recent policy shifts, specifically Senate Bill 2 (SB 2) and House Bill 3 (HB 3), represent a systemic erosion of local governance, leaving municipalities unable to fund essential infrastructure, public safety, and core city services.
At the heart of the controversy is SB 2, the Texas Property Tax Reform and Relief Act of 2019. The legislation mandates that if cities, counties, or special districts wish to increase their property tax revenue by more than 3.5% over the previous year, they must first secure approval from voters in an automatic election. Before the passage of SB 2, cities could increase revenue by up to 8% before triggering a potential rollback election.
Critics among the municipal leaders argue that the 3.5% threshold is an arbitrary cap that ignores the rapid growth and inflationary pressures facing Texas’s urban centers.
We are tasked with the daily responsibility of delivering police, fire, and emergency medical services, yet the state continues to strip away the very tools we need to fund them, said Houston Mayor Sylvester Turner. This is a clear, concerted effort to undermine local control. It is, frankly, a war on cities.
The coalition, which includes the mayors of Texas’s largest metropolitan hubs—including Eric Johnson of Dallas, Ron Nirenberg of San Antonio, and Steve Adler of Austin—contends that the state’s approach to property tax relief is fundamentally flawed. While HB 3 provided significant school finance reform and aimed to curb the burden on homeowners, the mayors argue that the legislation failed to provide adequate offsetting funds, effectively shifting the financial weight onto municipal governments already constrained by the new tax caps.
The friction between the Texas Capitol and City Hall is not a new development, but it reached a boiling point during the 2019 session. Beyond tax caps, the letter highlights a growing anxiety regarding "preemption" legislation—state laws that override local ordinances. Mayors have increasingly voiced frustration over state attempts to regulate everything from short-term rental platforms to local tree-preservation ordinances and municipal utility revenue.
The Texas Municipal League, the advocacy group that coordinated the letter, has long served as a clearinghouse for city officials to challenge the legislative agenda of the state’s conservative leadership. Throughout the session, proponents of the legislation, including Governor Abbott and Lieutenant Governor Dan Patrick, argued that the tax caps were a necessary check on local government spending and a vital component of providing relief to property owners who have seen their tax bills skyrocket due to rising home appraisals.
In the wake of the letter’s delivery, the divide remains stark. State leaders have consistently argued that cities have grown too reliant on property taxes and should focus on efficiency rather than increasing tax rates. Conversely, the mayors insist that they are the level of government closest to the people and are best equipped to determine the needs of their communities, whether that means expanding a local park or staffing a new fire station.
As the 2019 legislative cycle concludes, the letter signals that the struggle for local autonomy will be a defining feature of Texas politics for the foreseeable future. With the next legislative session approaching, the mayors are warning that continued state mandates will ultimately result in a degradation of the quality of life that has drawn millions of new residents to the Lone Star State over the last decade.
For more information on the Texas Municipal League’s legislative priorities and the full text of the letter, residents can visit tml.org.