Political Season Again’

Presidential politics have been claiming the headlines of late, what with the Democrats holding primaries and President Bush crossing the country giving “non-campaign” campaign speeches. But in Texas a political storm of its own is brewing. In a legislative off-year, the powers that be are gearing up to work on financing the state’s ailing school system, maybe.

Texas Governor Rick Perry has promised to tackle the issue but has yet to say definitively when, or whether, he’ll call the special session that everyone expects. The question of financing public schools is a puzzling one, as nobody wants to propose “new” taxes, especially not a personal income tax, but everyone agrees the “Robin Hood” plan—which takes money from the wealthier school districts and gives it to the poorer one—has got to go. Meanwhile homeowners are reeling under constantly rising property taxes that currently carry the heavy load in funding local school districts.

So what has school financing got to do with independent insurance agents? Plenty, if lawmakers decide to go after a direct tax on agents’ commissions, a proposal that was being kicked around in legislative circles last year. In an interview with Insurance Journal that appeared in the Jan. 12, 2004, Texas/South Central edition, Gov. Perry said “everything is on the table,” including the possibility of such a tax.

With that in mind, various speakers at the Independent Insurance Agents of Texas’ Joe E. Vincent Management Seminar, held recently in Austin, urged agents to get involved and renew their political activism.

“Proposals to tax our businesses, including a direct tax on our commissions will be debated in Austin during this session,” IIAT President Jim Berger said, as he challenged attendees to join in the association’s grass roots political efforts and respond to requests to contact their representatives.

Former State Senator David Sibley, now a consultant with the Sibley Group and a lobbyist for the IIAT, reminded the audience that “last session it was about regulation of insurance, this session it’s going to be about taxation. They’re both important to us.” Sibley added that with the Texas primary season coming up, “a lot of the representatives and some of the senators out there have primaries and they’re looking for friends.” He urged agents to “get close to those people,” adding, “when we really need to make those contacts … we will need your help.”

That the insurance industry has political clout is obvious enough. Knowing the industry was in legislative crosshairs last year, industry activists, including independent agents, worked hard to secure insurance reforms in which most could find something to be happy about.

So now it is political season again. And the old saying about the squeaky wheel getting the grease is true—in politics and in public schools.

Stephanie K. Jones
Managing Editor
sjones@insurancejournal.com

Topics Texas Legislation Agencies