AUSTIN, Texas — State Representative Brooks Landgraf has filed a new program to reinvest funds into the Permian Basin and to make all of Texas stronger, according to a news release from his chief of staff, Marco Fuentes.
According to the release, Landgraf "has introduced a House Joint Resolution 47 and House Bill 188, known as TEXAS STRONG," to be considered in the upcoming session of the Texas Legislature.
The goal of this program is to propose the creation of the Texas Severance Tax Revenue and Oil and Natural Gas (STRONG) Defense Fund. This is designed to modernize the distribution of severance tax revenues to address infrastructure, education, healthcare, and public safety needs in oil- and energy- rich communities, such as the Permian Basin.
“All this comes down to is that we would take money that is generated through oil and gas severance taxes and - instead of sending to an overnight rainy-day fund - we would re-invest those funds here in the Permian Basin," Landgraf said. "It will help address some of the problems we have here in the oil patch, like having teacher shortages, law enforcement shortages, infrastructure problems as well as some of the environmental concerns that come with life in the oil patch.”
According to Fuentes, chief of staff for Brooks Landgraf, since 2014 severance taxes have passed out over $35 billion dollars to key state priorities. These distributions include $9 billion to public education, $13.3 billion to the state highway fund, and $13.3 billion to the "rainy day fund." Eighty percent of these funds- around $40 billion- originate from 32 Texas counties, many located right here in the Permian Basin.
Landgraf said, "the Permian Basin has fueled America for decades, powering homes and industries, generating billions in tax revenue, and driving Texas forward."
"Our region deserves a reinvestment that reflects its contributions to our state," Landgraf said.
If Texas STRONG is enacted, severance tax revenue that would normally flow into the state's "rainy day fund", which is expected to reach its constitutional cap in 2025.
“The way the Texas Strong Defense Fund would work is it's based on a percentage of this oil and gas severance tax after we put it to already dedicated uses," Landgraf said. "So, there's not a hard number. It's a percentage that can change from year to year.”
With this enactment of Texas STRONG, these funds would be redirected to dedicated accounts benefiting energy producing communities.
These funds would be crucial in funding of long-time infrastructure, public services, and environmental cleanup efforts such as orphaned well plugging, and groundwater protection.
"We actually have provisions in this Texas Strong Defense Fund to help cover the costs that that the state has to bear when it comes to plugging orphaned and abandoned wells that are causing some environmental catastrophes in various places in the Permian Basin and other parts of the state," Landgraf said. "Those are problems that can be fixed, it just takes money to do it. So why not use funds that are coming from the oil patch to help fix problems in the oil patch?”
With Texas STRONG, it is believed that all Texans would benefit with statewide property tax relief.
Landgraf added, "the Permian Basin is the backbone of Texas's energy sector, yet it faces ongoing infrastructure and public service demands."
"Texas STRONG, is the practical solution to ensure our community has the resources to meet these demands and ultimately thrive," Landgraf said.
According to the news release, the Texas Legislature will convene at the Capitol for the 89th legislative session on Jan. 14, 2025, with Landgraf set to work diligently with lawmakers.