As Texas’ major cities continue to struggle with vagrancy and crime, movement in the state legislature to expand existing good government efforts is underway.
State Representative Jeff Leach (R-Plano) introduced House Bill 4078 and Senator Mayes Middleton filed the similar Senate Bill 2594 – both legislative measures aimed at improving the management and funding of Public Improvement Districts (PIDs) in Texas’ major cities. The legislation appears to impact cities with populations between 900,000 and 2,000,000, such as Dallas, Austin, Fort Worth, and San Antonio.
What is a PID? Put simply, a PID is a publicly established taxing district operated by a nonprofit that spends those dollars towards public improvements. These districts often support projects that strengthen public safety, cleanliness, and spur economic development.
The legislation would deliver a major infusion of local, county and state funds to the PIDs, increasing the dollars at their disposal by 250%, and ensure proper representation from all the stakeholders.
The major PIDs in Dallas and Austin – Downtown Dallas Inc (DDI) and the Downtown Austin Alliance – focus on their commercial centers,
Downtown Dallas in particular is grappling with a public safety crisis that threatens its economic future and has city leaders worried.
A comprehensive report on downtown commissioned by Downtown Dallas Inc. (DDI) and Boston Consulting Group (BCG) in early 2025 reveals a 34% increase in crime from 2019 to 2023, a 42% surge in violent crime, and a concentration of lawlessness that has driven businesses and visitors away from the area.
That dramatic increase in violent crime is made even more stark by declines in violent crime in other parts of the city. Non-violent crime also grew faster downtown than in most neighboring areas.
New PID Law
Under HB 4078, PIDs in downtowns of Dallas, Fort Worth, Austin, and San Antonio would be overseen by a seven-member board of directors with five appointed by a mix of city, county, and state officials. These members would be joined by two local stakeholders elected from amongst the ten largest property owners in the PID.
This change will accomplish two things.
First, it will allow state, county and property owners – less beholden to the traditional machine politics of Texas’ major cities – to help steer spending towards reducing crime, improving cleanliness, and getting the homeless the help that they need. In this arrangement, accountability is enhanced.
Second, the major influx of funds will provide PIDs with the resources they need to magnify the good work they are already doing and do much more of it. The bill establishes matching funds by the city, county and the state.
By refining the governance and funding structure, both a greater amount of money and a greater share of assessments can go toward the core service improvements residents, land owners, and downtown visitors routinely say they want. This greater focus on essential services like public safety, sanitation, beautification and cleanliness will pay dividends over time.
Additionally, the bill would require the non-profit managing the PID be subject to open meeting and open record requirements that Texas’ local governments abide by, thereby increasing accountability to the taxpayers who fund the PIDs.
Supporters see the bill as a critical step forward, addressing frustrations with city-run PIDs that have not had the resources to tackle these crippling issues, and who are beholden to the cities in which they’re located.
HB 4078 represents a determined effort to renew downtown areas in Texas’s major cities by reshaping PID leadership and boosting financial resources, permanently.