PIISD board rejects LNG tax limitation – Port Isabel-South Padre Press


By JACQI LEYVA-HILL

Special to the PRESS

The Point Isabel Independent School District (PIISD) Board of Trustees unanimously rejected a proposed taxable value limitation agreement — a decision that was applauded by residents in attendance — for Texas LNG Brownsville LLC following a public hearing that drew strong community participation.

The hearing at Port Isabel Early College High School was held to consider Texas LNG’s application under the Texas Jobs, Energy, Technology and Innovation (JETI) Act, Texas Government Code Chapter 403, Subchapter T. The proposal sought to limit the taxable value of the project for school district maintenance and operations taxes.

During the presentation, consultants representing Texas LNG said the proposed export facility would represent approximately a $4 billion private investment and would create 110 permanent jobs paying at least $70,000 annually. Company representatives said the project would generate additional tax revenue for the district and emphasized that, because Point Isabel ISD is subject to Texas’ school finance recapture system, the agreement would not reduce existing district funding.

Following the board’s vote, Texas LNG issued a statement regarding the decision.

“A yes vote would have delivered an additional $15 million per year to the Point Isabel ISD,” a Texas LNG spokesperson said in a statement. “The no vote results in $15 million less for the education of local students. We are at a loss at how school board leadership could have made such a decision.

During the meeting, company representatives stated the facility would produce “zero methane emissions” and described the project as having undergone extensive federal and state regulatory review. Throughout the presentation, representatives sought to reassure trustees and residents that the project would provide economic benefits to the district and the surrounding community.

Ten individuals signed up to speak during the public comment portion of the hearing. Speakers raised questions about environmental impacts, potential safety risks, and the possible effects on the region’s fishing, shrimping and tourism industries. Some residents also asked who would be responsible for cleanup costs or damages if an accident or environmental incident were to occur. Other speakers raised concerns about potential impacts to land considered culturally significant to Native American groups in the region. Several speakers challenged the company’s claim that the project would produce zero methane emissions and asked for additional clarification regarding potential air emissions and environmental monitoring.

Some residents also questioned whether large industrial companies should receive tax incentives while local taxpayers continue paying full property taxes. Several attendees held signs reading “No Abatement,”  reflecting broader concerns about tax incentives for large industrial  projects,  even though the proposal before the board was technically  a  taxable value limitation under the  state’s  JETI  program.

Resident David Wolverton focused on school finance issues. Referring to a previous district budget meeting, he questioned how additional industrial tax revenue would interact with Texas’ school finance recapture system—often referred to as the “Robin Hood” system—which requires property-wealthy school districts to send a portion of locally collected property tax revenue back to the state for redistribution.

After hearing the presentations and public testimony, trustees voted unanimously to reject the resolution to proceed with the JETI agreement. Those in attendance applauded the decision, with several audience members expressing approval of the board’s vote.



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