Latest news with #TexasComptroller'soffice
Yahoo
04-06-2025
- Business
- Yahoo
Texas allows state agency investment in BlackRock after firm steps away from climate initiatives
The Texas Comptroller's office removed international investment giant BlackRock Inc. from a list of companies public agencies were required to divest from as the company has realigned with state law by withdrawing from key clean energy initiatives. Senate Bill 13, passed in 2021, requires the comptroller's office to maintain a list of financial firms that 'boycott' the fossil fuel industry, and included BlackRock, several other companies and roughly 350 investment funds before Tuesday's update. Texas Comptroller Glenn Hegar called the removal of BlackRock and over a dozen investment funds a 'meaningful victory' for Texas' energy economy but clarified in a statement that the list or divestment proceedings were not done to intentionally target companies. 'We never set out to punish any of these firms, and the hope was always that any firm we included on the list would eventually take steps to ensure they were removed,' Hegar said. SB 13 defines boycotting as refusing, terminating or penalizing business with a company that works in the fossil fuel industry 'without ordinary business purpose.' Known as an 'anti-ESG (environment, social and governance) law,' the bill led the Teacher Retirement System of Texas and the Texas Permanent School Fund to divest billions from BlackRock in 2023 and 2024. The firm was placed on the initial list in 2022 for its involvement in initiatives like Climate Action 100+, which aims to reduce corporate greenhouse gas emissions. Direct investment into fossil fuel companies does not preclude firms from being considered as boycotting, according to an information sheet from the state comptroller's office. BlackRock has since stepped back from Climate Action 100+ and completely removed itself from another initiative, Net Zero Asset Managers, which the comptroller's office attributed to the company's removal. In a statement to the Texas Tribune, John Kelly, BlackRock global head of corporate affairs, said they appreciated the comptroller's resolution and touted the firm's investment in other state affairs. 'BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state,' Kelly said. 'These investments support the continued growth of the Texas economy.' Among the firm's in-state investments is assistance in creating a Texas-based Stock Exchange, which aims to launch in February 2026 with a boost from new legislation signed by Gov. Greg Abbott in mid-May. BlackRock was one of the initial investors, and Hegar said that while the investment in the stock exchange plan was unrelated to the list update, it represented 'a real commitment to overall policy changes.' BlackRock's removal from the divestment list has not completely withdrawn the business from scrutiny by Texas officials. Attorney General Ken Paxton sued the company and two others in November 2024, claiming they comprised an 'investment cartel' that intentionally bought shares in coal companies to reduce output and achieve clean energy standards. The Federal Trade Commission and the Department of Justice submitted a joint statement of interest in the case in late May. Hegar touched on the suit briefly in his remarks, but said the company's move away from clean energy initiatives is a signal of good favor. 'Even as legislators and state leaders continue to address lingering concerns about proxy voting and other policies that prioritize politics over profits, I am hopeful these actions represent a long-term shift,' Hegar said. Hegar and Paxton are facing their own lawsuit over SB 13 in federal court from the American Sustainable Business Council, a progressive business group. The suit claims the law violates companies' First and Fourteenth Amendment rights by discriminating against firms' viewpoints and circumventing due process. That suit is scheduled for a motion hearing on June 18. First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!
Yahoo
25-02-2025
- Business
- Yahoo
High housing costs, inflation bite into Texas sales tax growth
It's more expensive to live in Texas than in previous years, and the cost of living is making it harder for the state to generate much-needed tax revenue, state officials said Tuesday. The state's high housing costs — like rising homeowners insurance premiums and sky-high rents — as well as higher food costs have bitten into the state's sales tax revenue, representatives for the Texas Comptroller's office told state lawmakers Tuesday. Sales taxes make up more than half of the state's budget. Texans are spending a larger share of their budget on keeping a roof over their heads and food on the table, costs that largely don't generate sales tax revenue, and aren't spending as much of their income on goods that do, said Brad Reynolds, chief revenue estimator for the comptroller's office. Sales tax revenue makes up about 58% of Texas' overall budget. State sales tax revenue ballooned amid the state's pandemic-era economic boom. But the state's population and economic growth have slowed and sales tax collections, too, have contracted. Reynolds told lawmakers on the House Ways and Means Committee he expects sales tax collections to grow over the next few years — but at a slower pace than in recent years. State tax collections declined slightly in fiscal year 2024, he noted. 'We had really abnormally high growth in state tax revenues,' Reynolds said. 'That's gone.' Homeowners and renters alike spend more of their income toward housing and utilities than they did before the COVID-19 pandemic. The state's robust population growth and high housing demand sent home prices and rents skyward during that time. Those costs have since cooled, but remain high. More than half of the state's renter households — 2.1 million — are considered 'cost-burdened,' according to a recent report from Harvard University's Joint Center for Housing Studies. That means those households spend more than 30% of their income on rent and utilities, crowding out other costs in their budget. Nearly a quarter of the state's homeowners, too, are cost-burdened — the result of rising homeowners insurance and high property taxes. State legislators, meanwhile, are considering ways to reduce housing costs. Lawmakers want to spend at least $6 billion on new property tax cuts this year. Legislators also are eyeing ways to boost the state's housing supply. Texas needs about 320,000 more homes than it has, according to one estimate, a key driver of high home prices and rents. We can't wait to welcome you to the 15th annual Texas Tribune Festival, Texas' breakout ideas and politics event happening Nov. 13–15 in downtown Austin. Step inside the conversations shaping the future of education, the economy, health care, energy, technology, public safety, culture, the arts and so much more. Hear from our CEO, Sonal Shah, on TribFest 2025. TribFest 2025 is presented by JPMorganChase.
