Day 49: Earthquakes, Tax Cuts, And Culture Wars

Tax cuts for the rich, discrimination for LGBTQ kids, and no answers on earthquakes.

Yesterday, the Senate Committee on State Affairs held the longest hearing of the session (so far). Of the bills they heard yesterday, two were cannabis related. SB3, which will ban cannabinoids such as Delta-8 THC, and SB1505, which expands the Texas Compassionate-Use Program. In House, several key committees, including Energy Resources, met for the first time. It was a busy day. Let’s get into it.

Christi Craddick testified again.

We get to see some elected commissioners early on each session multiple times, testifying about their agencies to different committees. Railroad Commissioner Christi Craddick, Land Commissioner Dawn Buckingham, and Education Commissioner Mike Morath are familiar faces at the beginning of the legislative session.

Even though this is the third or fourth time we’ve seen Craddick testify this year, we’re still learning a lot. And yesterday, one of the topics was earthquakes. Craddick had a lot to say yesterday, but if you were hoping for a straightforward explanation of the recent seismic activity in Texas, you might be disappointed. The Railroad Commission isn’t quite sure what’s causing all the shaking, but they have a few educated guesses.

• KTSM: Scientists say fracking is behind frequent earthquakes in West Texas

• Texas Tribune: Scientists have attributed higher earthquake activity in the Permian Basin in West Texas to an increase in hydraulic fracturing

Craddick confirmed that a 4.8 magnitude earthquake struck Ackerly, Texas, last Friday. According to her testimony, the Commission sprang into action by shutting down 11 deep disposal wells in the area and sending out inspectors to investigate.

Craddick said the working theory is that deep water injection wells, where wastewater from oil and gas operations is pumped back into the ground, might contribute to seismic activity. Of course, science is in direct conflict with Republican ideology.

One of the more concerning revelations was that even if the problematic wells are shut down immediately, the seismic activity could take 12 to 18 months to subside. So, if you live in West Texas, maybe keep those fragile antiques in bubble wrap for a while.

The Railroad Commission is asking for more resources to handle this, including a bigger budget and additional staff to study the connection between injection wells and seismic events. They also need better technology to monitor underground pressure and data on water disposal volumes. Considering the Legislature’s habit of underfunding everything, it’s unlikely that this issue will be fixed this session.

Chasmophobia.

Chasmophobia is the fear of the earth opening up and swallowing you whole. In an interview with Bill Burch, a candidate for the Railroad Commission last year, I joked with him about this phobia related to all the damage the oil and gas industry has done to our state. Burch’s oil industry background includes crisis management, conservation, and environmental restoration expertise. He looked at me with complete seriousness and said, “Oh, yeah. That could happen.”

• Live Science: Is West Texas Sinking Into a Hole of Its Own Making?

• KWTX: A section of earth in West Texas is collapsing, and it’s taking a highway with it

• Texas Tribune: Large portions of West Texas sinking at alarming rate, new report finds

New fear unlocked. With the Railroad Commission as its enabler, the oil and gas industry has been pumping out profits while pumping produced water and waste back into the ground. All that injected water is more than a convenient disposal method. It destabilizes the bedrock. The result? Earthquakes, sinkholes, and a creeping sense of unease for anyone who lives above this ticking time bomb.

But the Railroad Commission doesn’t fully understand what’s causing the earthquakes or how to stop them. 😭 Meanwhile, West Texas teeters on the edge of a geological catastrophe.

Another slap in the taxpayer’s face came when Drew Darby implied that the oil industry is already taxed too much, insinuating that taxpayers should be responsible for oil and gas damages to our environment.

According to him, the industry posts bonds, provides financial credibility, and pays severance taxes, sales taxes, and ad valorem taxes. He argued that the industry’s financial contributions filter into the Economic Stabilization Fund (ESF) and general revenue, suggesting that it has already paid its dues.

But…

If the oil industry already pays so much, why are Texas taxpayers still facing a $100 million bill to plug orphan wells this year alone?

Why are thousands of wells sitting abandoned, leaking toxins, and causing seismic events that threaten entire communities? If the industry’s payments were truly sufficient, we wouldn’t be talking about emergency wells consuming nearly 40% of the Railroad Commission’s budget this year.

Make it make sense.

This brings us to the issue of the inactive and orphaned wells that refuse to stay buried. These wells are a physical manifestation of the state’s lax regulatory environment. When a company walks away from a well, it becomes the state’s problem. With more than 8,500 orphan wells currently on the books and 115,000 inactive wells waiting in the wings, the burden only grows.

Zombie wells are a hazard. They leak toxic gases, pollute groundwater, and contribute to the very seismic activity that has West Texans worried. The cost to plug these wells has skyrocketed from $15,000 to $57,000 per well, and with no end in sight to the industry’s “drill-and-abandon” strategy, Texas is left holding the bag.

And if Darby claims that the oil and gas industry is already paying its fair share, then why does the Railroad Commission need to ask the Legislature for more money every session? Why are we constantly in crisis mode, scrambling to find funds to fix the industry’s neglected infrastructure?

The House Committee on Ways and Means met to talk taxes.

Yeah, taxes are boring, but they impact everyone, especially working people. When businesses get tax breaks, they don’t always pass those savings on to workers or consumers. Instead, prices often stay high, and wages stagnate.

When property taxes are reduced for wealthy corporations, it often means cuts to public services like schools, healthcare, and infrastructure, or higher taxes on regular folks to make up the difference.

At the end of the day, every tax decision made at the Capitol reflects our state’s priorities, and too often, those priorities favor those at the top over the rest of us.

One of the bills they discussed yesterday was HB8, a temporary buy-down of the school property tax rate.

Every Texan, which I trust 100%, testified in opposition to this bill because the Republican Legislature has given around $50 billion in buy-downs since 2019. They also argued that the homestead exemption is more equitable than tax rate compression, providing a more balanced benefit across different income levels. Every Texan proposed redirecting surplus funds toward schools, healthcare for low-income Texans, and other public services, noting the financial challenges many school districts face, including budget deficits, school closures, and the end of federal pandemic relief funds.

The compression method distributes relief proportionally, meaning wealthier property owners benefit more. A homestead exemption, in contrast, could provide more direct relief to working-class and middle-class homeowners.

The Ways and Means Committee also discussed HB9, which would increase the business personal property tax exemption from $2,500 to $250,000, a jaw-dropping 10,000% increase.

While the state’s Republican leadership loves to frame tax cuts as a universal good, the reality is a little more complicated. Yes, HB9 could relieve some small businesses but also benefit larger corporations with hefty property portfolios. And while the bill provides funding to make school districts whole for lost revenue, it offers no such safety net for cities, counties, or special districts.

It’s a tax shift in disguise. Under HB9, local governments could be forced to raise property tax rates to cover the gap left by the business tax cuts. The Texas Association of Counties and local government representatives testified that smaller counties, in particular, could struggle to make ends meet. In Cass County, the loss could mean a $265,000 revenue hit, enough to affect road repairs, emergency services, and other critical needs.

Remember, when Texas Republicans talk about “small government,” they mean passing the buck. They want the state to look good by offering tax cuts, knowing full well that local governments will be the ones left holding the bag. It’s not a tax cut. It’s a tax shift that will inevitably land on the shoulders of working Texans.

It should be noted that Morgan Meyer (R-HD108) chairs the House Committee on Ways and Means and that Harlan Crow is one of Meyer’s biggest benefactors. Yes, the same Harlan Crow that owns Clarence Thomas and collects Nazi memrobelia.

The ten-hour Senate Committee on State Affairs.

This was the longest hearing session so far. Don’t be surprised if hearings last 14 hours, 16 hours, or even longer in the next few months. The vast majority of the hearing was about the cannabis issue, but that was far from the only culture war issue Senate Republicans pushed yesterday.

SB810 is framed as a protection for teachers’ “individual liberties” and “religious freedoms.” But beneath the rhetoric, this bill effectively grants teachers and school staff a free pass to discriminate against LGBTQ students, particularly transgender and nonbinary kids, by refusing to use their correct names and pronouns.

Speaking of religious freedom, their next bill, SB965, would establish a framework for teachers and school staff to proselytize or conduct religious activities during their professional duties without accountability.

The hearing for this bill was a love letter to the idea of embedding religious practices into public schools. Witnesses cited everything from the Bible to Thomas Jefferson (cherry-picking his words, of course) to make the case that religious expression should not only be allowed but actively protected in schools.

Imagine you’re a student who doesn’t share the same religious beliefs as your teacher. If your teacher chooses to pray out loud or share religious messages during class, do you feel free to opt out? The inherent power dynamic between students and teachers makes this a dangerous scenario for coercion and exclusion.

Once again, Texas lawmakers are prioritizing ideological agendas over the real needs of students and educators. Instead of focusing on underfunded schools, teacher shortages, and crumbling infrastructure, the Legislature is busy trying to legislate prayer in public schools.

The testimony from the two cannabis bills lasted about eight hours, but if you’re interested, you can see the testimony here:

• Part One

• Part Two

• Part Three

I’ll tell you what I know to be a fact about Texas Senate Republicans: It doesn’t matter how many Texans are against the legislation they propose; if the billionaires and special interests want it, they will pass it.

Dozens of witnesses testified, even talking about how banning certain cannabinoids is a violation of liberty, which it is. At a time when most of the country has legalized marijuana for recreational use, Senate Republicans want to walk us backward and take away our CBD gummies.

The Senate will pass this bill, but we’ll have to wait and see whether it gets through the House. Dan Patrick is the only person who wants to take our cannabinoids away, and he doesn’t control the House.

Republican lawmakers are laser-focused on culture wars, protecting corporate profits, and pushing their ideological agendas.

They’re not interested in solving the real problems facing Texans. They’re interested in keeping their donors happy and their base riled up. It’s a tale as old as Texas politics: the powerful get what they want, and the rest of us get the bill.

• March 14: The last day Legislators can file bills.

• June 2: The 89th Legislative Session ends.

• Click here to find out what Legislative districts you’re in.

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