The Texas Senate and House passed a compromised version of HB5 that still fundamentally represents misguided economic development.  A 2-year campaign by Texas IAF and allies, however, led to major reforms in HB 5 compared to the now defunct and failed Chapter 313 program.  When these tax abatement deals are proposed at local school districts, there will now be a fair fight for taxpayers and public school supporters concerned about corporate welfare.  HB 5 Reforms to Chapter 313 include:

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In the attached audio interview, Rosalie Tristan and Joe Hinojosa, both organizers with Valley Interfaith, Joe Higgs from IAF, and Bob Fleming, an organizer with The Metropolitan Organization of Houston, say tax breaks for large corporations should not be paid for with monies that would otherwise go to public education. 

[Photos: Rosalie Tristan (left), Joe Hinojosa (holding sign in center) and Bob Fleming (right)]

Valley Interfaith: Don't Suck Money Out of Public Education to Help Large Corporations, Rio Grande Guardian [audio] 

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The Network of Texas IAF Organizations, a labor and faith coalition that has staunchly opposed using school property tax breaks for incentives... railed against the Texas Jobs and Security Act.

"It looks like it was written on the back of a napkin,"

stated Jose Guerrero, a leader with Central Texas Interfaith from Saint Ignatius Catholic Church.

The organization believes the proposed bill would have even less regulation than Chapter 313, including the exclusion of minimum job requirements as a key factor in a project's eligibility for approval. "It is hard to imagine that they would propose a program with even less accountability, fewer specifics (like no job requirements), and more leeway for companies to take taxpayer dollars from school children to line their pockets," Guerrero stated.

In small group conversations organized through their congregations, Valley Interfaith leaders Elisa Alfaro of Holy Spirit parish and Dayra Campos of San Juan Diego kept hearing the same stories: workers in cold storage facilities earning less than the minimum wage and experiencing rampant labor abuse. 

While the federal minimum wage is $7.25, parishioners shared that they are often paid less than half that by McAllen producers.  When one company closed access to the bathroom for employees, they were forced to walk 10 minutes to a gas station for their bathroom break.  Another parishioner shared constant threats by their boss if they were to admit to working 10 hours per day for $600 per month (less than half the minimum wage).   

In response, Valley Interfaith leaders are calling on the City of McAllen to ensure that no company that pays workers under the minimum wage, or is guilty of wage theft, receives incentives from the city.  They are also calling on the City to investigate abusive labor practices. Leaders are now meeting with the McAllen Economic Development Corporation and McAllen City Manager about making these changes.   

"Nobody should earn a slave wage," said Elisa Alfaro.

[Image Credit: KVEO footage]

Faith Leaders, Lawyer: Wage Theft Rampant at Local Cold Storage Facilities, The Monitor [pdf] 

Produce Industry Wage Dispute, KVEO [pdf]

Fair Pay a Distant Dream for Produce Packers in the Rio Grande Valley, San Antonio Express-News