A plan that could overhaul how parts of downtown Dallas are managed and funded took center stage Monday at a Texas Senate hearing in Austin, sparking sharp debate over crime, taxes, and local control.
The Senate Committee on Local Government, chaired by Sen. Paul Bettencourt (R-Houston), heard testimony on Senate Bill 2594, filed by Sen. Mayes Middleton (R-Friendswood). The bill would create a program reshaping how Public Improvement Districts (PIDs) operate in major Texas cities, including Dallas.
PIDs are publicly established taxing districts operated by nonprofits that use funds for public improvements like safety initiatives, cleanliness efforts, and economic development programs.
The proposed law would deliver a major infusion of local, county, and state funds to the PIDs, increasing the dollars at their disposal by 250% while also revolutionizing the governance structure, The Dallas Express previously reported.
Supporters argue the bill would address persistent concerns about crime, urban blight, and lack of accountability in downtown areas.
Billy Prewitt, representing downtown Dallas property owners and a member of Downtown Dallas Inc. (DDI), testified in support of the bill.
“What I found was a simple, straightforward bill that treats property owners fairly,” Prewitt told the committee.
Prewitt said the legislation was necessary for two reasons. First, he argued that tens of thousands of workers who spend much of their time downtown cannot vote in decisions affecting the area. Second, he criticized the current system, stating that PIDs are not governed by those who pay the PID assessments, leaving it “less incentivized to properly manage the area.”
“Please pass Bill 2594,” he urged lawmakers.
Monty Bennett, the chairman and CEO of Ashford Inc. and publisher of The Dallas Express, also testified in favor of the bill, calling it a “bold step towards revitalizing our urban cores.” Bennett cited downtown Dallas’ struggles with litter and crime as major deterrents to investment.
“Landowners deserve a stronger voice in shaping decisions” downtown, Bennett said, adding that passing the bill would “invest in a bright, clean, safe future.”
The Dallas Express has previously reported on rising crime rates—as documented in a report commissioned by DDI—as well as declining sanitation, and governance concerns within the downtown Dallas PID. Critics argue that despite substantial taxpayer investment, basic conditions have deteriorated in recent years.
Opposition from some senators, local officials, and DDI members surfaced during the hearing.
Sen. Royce West (D-Dallas) expressed skepticism about the proposed changes, questioning whether people who work downtown but do not live there should have a say in its governance. West suggested they could gain influence by moving into the district.
The version of the bill discussed at the hearing would split governance among a board of officials appointed by local authorities, the governor, lieutenant governor, speaker of the Texas House, and the largest property owners in the affected area.
West pressed Prewitt on whether statewide officials should be appointing representatives to a local body. Prewitt countered that it was appropriate given that the state might contribute funding to the effort.
Bennett described downtown Dallas bluntly, saying, “Downtown Dallas is a disaster,” and offered to show the committee a photo of “a man doing his business up against [the exterior] of the Neiman Marcus.”
Opponents of the bill voiced concerns about potential costs and governance changes, though supporters maintain that reforms are necessary to address persistent public safety and quality-of-life issues downtown.
Charles Reed, assistant Dallas County administrator, warned that the bill could impose new costs on local governments. He estimated that Dallas County’s contribution would be $6 million to $7 million annually, potentially requiring a 1% tax increase.
Speaking on behalf of DDI, Ross Martin noted that the PID is renewed periodically by petition. If stakeholders are satisfied, Martin argued, state intervention is unnecessary.
Ted Hamilton, a downtown Dallas property owner and DDI board member, also testified, praising DDI’s performance. He pointed out that the organization currently deploys 45 security officers and 25 cleaning team workers who “do an excellent job” downtown.
Prewitt partially agreed, saying, “Downtown Dallas Inc. does well, [but] we don’t have enough resources.”
Despite evidence of worsening public conditions, some local officials pushed back on the need for state-level intervention.
West remained unconvinced by the bill’s proponents. “Dallas doesn’t have a problem; bottom line,” he said.
Bettencourt countered that the recent passage of HERO charter amendments in Dallas, including a voter mandate to increase the police force and strengthen citizen rights to sue the city, suggested otherwise.
The hearing on this bill ended not with a vote but with Bettencourt’s words: “The bill is left pending subject to the call of the Chair.”