Texas Local Government, Bureaucracy, and Public Policy Study Guide

Local Governments in Texas: Constitutional Theory and Structures

Constitutional Relationship Summary: The prevailing theory governing the relationship between the state and local governments is Dillon's Rule. This system posits that local governments are mere creations of the state and possess only those powers specifically granted to them by the state government. Under this rule, the state conveys duties, powers, and functions to local entities. If there is any legal uncertainty or doubt regarding a specific power, it is generally denied to the local government.
Urbanization and Population Centers: - Approximately $90\%$ of Texans reside in urban areas. - Houston holds the record for the largest population among Texas cities. - Brewster County is the largest county by landmass, spanning $6,184\,\text{square miles}$ .
Classification of Texas Cities: - General Law Cities: These are limited to powers specifically granted by the state legislature. They typically serve populations under $5,000$ people and are the most common type of city in Texas by number. - Home Rule Cities: These cities possess greater local authority and allow voters to adopt a custom city charter. A population of at least $5,000$ is required to achieve home rule status.
Forms of Municipal Government: - Mayor-Council: Most common overall. It consists of a mayor (chief executive) and a council (legislative body). - Weak Mayor System: The mayor has limited authority and must share power significantly with the city council. - Strong Mayor System: The mayor has substantial executive and administrative power. Houston is the only major Texas city utilizing a strong mayor system. - Commission Form: Commissioners collectively hold executive, legislative, and administrative functions. There is no single person in charge, which often leads to a lack of unified leadership and minimal oversight. This form originated in Galveston following the devastating $1900\text{ hurricane}$ . - Council-Manager: The council establishes policy while a professionally hired city manager handles daily operations. This is used by all major Texas cities except Houston. In this system, the mayor is usually a voting member of the council but holds few other specific duties.
Election Systems: - At-Large Elections: Candidates are elected by the entire city population. Historically, this system has benefited non-minority, high-income areas. - Place System: Candidates run citywide but campaign for a specific, numbered seat on the council. - Nonpartisan Elections: Ballots do not include political party labels; this is the standard for virtually every Texas city. - Single-Member Districts: The city is partitioned into geographic districts, with each district electing its own representative.

Local Government Finance, Growth, and Obligations

Revenue Sources: Cities are primarily dependent on property taxes and sales taxes. Texas relies on a regressive tax system, meaning the tax burden falls more heavily on lower-income individuals as a percentage of their total income.
Taxation Limits and Rollback Elections: Historically, citizens could petition for a rollback election to cancel property tax increases exceeding $8\%$ . However, a $2019$ law instituted a more stringent $3.5\%$ cap that requires mandatory voter approval for increases beyond that threshold.
Public Financing through Bonds: - Bonds: Money borrowed to fund construction and infrastructure projects. - General Obligation Bonds: Secured by the government's general taxing authority and require approval from voters. - Revenue Bonds: Repaid using the specific revenue generated by the project the bond funded (e.g., tolls or utility fees).
Mandates: These are requirements imposed on local governments by higher levels of government (state or federal). They are frequently "unfunded mandates," where the state requires a service but does not provide the necessary funding to cover the costs.
Demographic Trends: - White Flight: The migration of White residents from urban centers to the suburbs, which often results in a weakened city tax base. - Gentrification: A more recent trend involving younger, often White residents moving back into urban areas.

County Governance and Special Districts

Commissioners Court: The governing body of a county, consisting of four commissioners and one county judge (five members total). - County Judge: Elected county-wide. They are not required to be a lawyer. The judge presides over the commissioners court and assists in setting tax rates and adopting the budget.
County Officers and Roles: - Sheriff: The primary law enforcement officer, particularly in rural counties. - County Clerk: Known as a "dumping ground" due to a wide variety of unrelated record-keeping duties. They serve as the chief record-keeping officer, administer elections, and process county documents. - Legal Representation: County attorneys prosecute misdemeanors, while District attorneys prosecute felony cases.
Special Districts: Local government units created by the state legislature to perform specific functions like water management, fire protection, or hospital services. - Independent School District (ISD): A special-purpose government for K–12 education. It is governed by an elected school board that hires a superintendent. The selection of the superintendent is considered the most important decision a school board makes.
Annexation and ETJ: - Annexation: The process by which a city expands its boundaries by adding territory. A $2017$ law now requires approval from landowners or voters for most annexations. - Extraterritorial Jurisdiction (ETJ): Authority allowing a city to regulate development in unincorporated areas adjacent to its borders without formal annexation.
Economic Development Tools: Cities use tax abatements, enterprise zones, reinvestment zones, affordable housing assistance, and lowered utility rates to attract business.

The Texas Bureaucracy and Policy Implementation

Bureaucratic Theory: Max Weber viewed bureaucracies as an efficient method for organizing large populations to achieve goals. Characteristics include large size, hierarchy, division of labor, specialization, and "faceless" workers.
State of the Bureaucracy: - Bureaucrats are responsible for executing policies adopted by elected officials. - Bureaucrat Bashing: Political rhetoric portraying state workers as wasteful or inefficient, leading to low morale and difficulty in recruitment. - Turnover: In $2019$ , the turnover rate for state employees was over $20\%$ . Reasons for leaving include low wages, benefits, and retirement.
Size and Per Capita Spending: - From $1972$ to $2017$ , the state and local bureaucracy grew by $200\%$ . - Texas ranks among the lowest in the U.S. for per capita government spending ( $\$4,000\text{--}\$4,500$ in $2018$ ). - The legislature appropriated $\$251\text{ billion}$ for the $2019\text{--}2021$ biennium.
Agency Employment Concentration: - $85\%$ of state employees work in education or health/human services. - $39\%$ of city employees work in public safety (police/fire). - $50\%$ of special district employees work within those specific districts.
Policy Roles: The legislature broadly defines programs, while state agencies fill in specific details via rules and regulations. Implementation is the process of turning these policy plans into reality.
Regulatory Functions: - Economic Regulations: Licensing, franchising, and subsidies. - Social Regulations: Public health, safety, and civil rights. - Co-optation (Agency Capture): Occurs when a regulatory agency is taken over or heavily influenced by the industry it is meant to regulate.

Bureaucratic Accountability and Reform

Legislative Oversight: - Budgets are set for agencies every two years (biennial cycle). - The Legislative Budget Board (LBB) conducts performance reviews to promote accountability.
Sunset Review Process: - Agencies must justify their existence every $12\text{ years}$ or face abolition. - Sunset Advisory Commission: Composed of five representatives, five senators, and two public members. They can recommend continuation, abolition, or transfer of functions. - If a sunset bill is not approved by September 1, the agency is phased out over one year. Constitutionally created offices are exempt from this review.
Conflict and Protection: - Revolving Door: Conflict of interest where former regulators work for the industries they once regulated. - Whistle Blower Protection: The Texas Whistle-Blower Protection Act protects employees reporting illegal acts from retaliation. Damage awards are capped at $\$250,000$ .
Employment Systems: - Political Patronage: Hiring based on favors/connections. - Merit System: Hiring based on competitive exams and performance. Since the $1930\text{s}$ , various federal grants have required states to use merit systems for specific programs. - Texas Workforce Commission: Oversees workforce development, job placement, and unemployment insurance.

Contemporary Public Policy Issues in Texas

Policy Definition and Stages: Thomas Dye defines public policy as "whatever governments choose to do or not to do." - Stages: (1) Issue Identification, (2) Access and Representation, (3) Formulation, (4) Adoption/Legitimation, (5) Implementation, (6) Evaluation. - Implementation Activities: Interpretation (translating law), Organization (structuring), and Application (delivering service).
Policy Influence Models: - Iron Triangle: Alliance between legislative committees, bureaucrats, and interest groups. - Issue Network: Coined by Hugh Heclo; a more complex web including various specialists.
State Budgeting: - Texas is a pay-as-you-go state; the Constitution prohibits deficit spending for operating expenses. - Education is the largest expenditure, followed by Health and Human Services. - Dedicated Funds: Revenue restricted for specific uses (e.g., Highway Trust Fund, Permanent School Fund).
Taxation Specifics: - Texas has the 2nd most regressive tax system in the U.S. - Sales Tax: Established in $1961$ at $2\%$ . It is now $6.25\%$ (up to $8.25\%$ with local additions). - Margins Tax: Replaced the franchise tax in $2006$ to offset property tax reductions. - Sin Taxes: Applied to tobacco and alcohol. Severance Taxes: Applied to oil and gas production. - Lottery: Legalized in $1991$ ; revenue was dedicated to public education in $1997$ .
Education and Social Policy: - House Bill 72 (1984): Implemented smaller class sizes and the controversial "no pass, no play" rule. - Edgewood v. Kirby (1989): Ruled the school finance system unconstitutional; led to the "Robin Hood" law in $1993$ . - Hopwood (1996): Banned race-based admissions; interpreted broadly by AG Dan Morales. Later overturned by Grutter v. Bollinger (2003). - Top 10 Percent Rule: Created in $1997$ to ensure diversity at state universities. - Higher Ed Costs: Deregulation in $2003$ allowed boards to set tuition. By $2015\text{--}2016$ , costs rose $65\%$ while funding dropped $27\%$ .
Criminal Justice and Health: - Ruiz v. Estelle (1980): Ruled prisons unconstitutional due to overcrowding; resulted in a $95\%$ capacity cap and increased prison construction. - Poverty: As of $2018$ , the poverty rate was $14.9\%$ ( $4.2\text{ million individuals}$ ). - Insurance: Texas has the highest percentage and highest total number of uninsured residents in the U.S. ( $5\text{ million residents}$ in $2018$ ).