Last Spring, the Governor Rick Perry's office has estimated that infusion of video slot machines could yield about $800 million that by 2006 cold be invested into the enhancement of public education. The machines were a major part of the governor's endeavors to cut local school taxes. His other deeds included setting higher cigarette taxes and putting a $5 admission tax on the adult entertainment. The special session has flopped since Perry and some of the legislative leaders could not reach consensus on the new funding plan in addition to the inflexible opposition exerted by the Republicans and House.
Last Wednesday, the governor admitted that there is little support in the Legislature for gambling expansion, but indicated his willingness to take into consideration at least parts of school finance program, offered by Gov. David Dewhurst and senators. The Senate has proposed to cut local school taxes by one-third on the expense of the higher state taxes, including a new broad-based state business tax.
In spite of Perry's unsuccessful plan to legalize slot machines at racetracks and on Indian reservations, track owners seeking an economical endorsement for their industry and are expected to make another trial this year. In order for this issue to be approved, a constitutional amendment is required which must be supported by two-third votes in the House and Senate. Strong fight is to be foreseen for the track owners.
