Kelly Hall

Texas has been a shining example of a pro-business environment, consistently attracting entrepreneurs, corporations and skilled employees, earning us recognition as the eighth-largest economy in the world.

The recent passage of the largest property tax cut in Texas’ history has further strengthened our reputation as an appealing destination for businesses and individuals alike. As a leader in the East Texas business community, I am deeply concerned that we may inadvertently burden Texas taxpayers with unnecessary local debt, potentially jeopardizing the positive progress we have made.

In recent times, there has been a growing concern about the municipal bond market facing potential constraints due to the stringent enforcement of state laws targeting corporate governance policies. This has raised the specter of financial firms being excluded from underwriting bonds for our cities, school districts, utility districts, and other public entities. Such exclusion would reduce competition in the bond market, leading to higher interest rates and more debt for Texas taxpayers.

Texas has long been a magnet for financial services giants, attracted by the flourishing bond market, which is worth a staggering $50 billion annually. However, it is important to note that many of these large firms, which happen to be the only ones with sufficient capital to underwrite bonds, could be barred from doing business with public entities in Texas if the attorney general’s office implements an overly broad interpretation of Texas law regarding “social governance” policies.

The potential repercussions of such a move are significant and far-reaching. A study conducted earlier this year estimated that Texas taxpayers could end up shouldering an additional $500 million in interest debt due to reduced competition in the municipal bond market. This is just the tip of the iceberg.

Without a healthy level of competition, taxpayers and business owners across our state will bear the burden of this unnecessary and avoidable extra debt. This not only affects the affordability of living but also puts at risk the quality of life that our communities need to sustain Texas’ remarkable economic growth. Preserving a regulatory environment that encourages competition in the municipal bond market is not merely a matter of financial prudence; it is a safeguard for the well-being and prosperity of all Texans.

As the president and CEO of the Longview Chamber of Commerce, I strongly believe a thriving business ecosystem should extend to all parts of our great state, including East Texas. This region holds a special place in my heart, and I am committed to ensuring that we do not add regulatory hurdles that could diminish our ability to attract and retain a skilled workforce. Squeezing the municipal bond market could disrupt the tremendous progress we have made and stifle the growth we have worked so hard to achieve.

As we celebrate the reduction in property taxes in Texas, we must also remain vigilant about the potential unintended consequences of burdensome regulations. Instead of introducing new restrictions that could significantly shrink the municipal bond market, our focus should be on what Texas does best — removing government barriers so that we can continue to attract new businesses, grow our skilled workforce, and promote further economic expansion, not only in Longview but also across the Lone Star State.

In conclusion, let us remember that Texas has thrived by promoting a business-friendly environment that encourages growth, innovation and prosperity for all generations. We must ensure that we preserve these principles and avoid imposing unnecessary debt on our taxpayers. Together, we can continue to lead the way in creating opportunities for businesses, workers and future generations in the great state of Texas.