November 01, 2024

The 2024 Election and What it Means for Texas

TXCPA Government Affairs Update

By Kenneth Besserman, JD

On November 5, 2024, and for many weeks before, the American and Texas electorate went to the polls to cast ballots for the President, Senators, Representatives, state officials, and a myriad of other local races. While elections seasons seem to be never-ending as of late, the 2024 election seemed especially long. The 2024 presidential race was in the news almost daily since the last election in 2020 and the change at the top of the Democratic Party ticket further cemented the 2024 election as one of the most newsworthy and important elections in decades.

On the national level, the election saw many close elections that will determine which party controls the White House, the Senate and the House of Representatives. While control of the Texas House and Texas Senate were not in jeopardy this election, there were still some significant races and issues taking shape. Statewide elected offices – Governor, Lt. Governor, Comptroller, Attorney General – were not on the ballot in 2024; those races will be on the ballot in 2026. In November 2024, the full Texas House (150 districts) and half of the Texas Senate (16 districts) were on the ballot.

The most significant news in the Texas Senate going into the 2025 legislative session will be that former Senator John Whitmire – the longest serving Texas Senator and the former Dean of the Texas Senate – retired from his Houston Senate seat to become Mayor of Houston. The new Dean of the Texas Senate will be Senator Judith Zaffirini (D-Laredo).

The Texas House of Representatives is where the action has been in 2023 and 2024 and will be during the 2025 legislative session. At the end of the 2023 legislative session and for the remainder of 2023, the issue in the Texas legislature, and especially the Texas House, was centered around the impeachment and trial of Attorney General Ken Paxton and the issue of school choice/vouchers. Those two issues were centerpiece during the Republican primaries and runoffs in early 2024.

Over 40 incumbent members of the House were challenged by members of their own party. Governor Greg Abbott and Attorney General Paxton took an active role in the Republican primary targeting many sitting members of the House on their impeachment and school voucher votes. Over 20 Republican incumbents were defeated in the primary or runoff elections. This has created an experience vacuum in the Texas House as many long-term leaders and committee chairs were defeated.

Most significantly in the Texas House, there was a challenge to Speaker Dade Phelan. It is very unusual for a sitting House Speaker to be challenged in their primary election. Speaker Phelan came in second in a three-way primary forcing a runoff. In the runoff, Speaker Phelan prevailed by 366 votes. As for Speaker Phelan’s continuing as Speaker of the House in 2025, while that is in question, most Austin insiders think that he will prevail in his run for Speaker. With at least 30 new members of the Texas House entering office in 2025, it will be a different legislature in 2025.

Important Issues in the Upcoming Legislative Session

The state budget, infrastructure, property taxes, school choice, and water will be front and center in 2025. TXCPA’s agenda will address CPA pipeline issues and other issues that are important to you. Stay tuned for a lot more information about TXCPA’s legislative initiatives and please reach out to us if you have any legislative, election or advocacy information you would like to share.

About the Author: Kenneth Besserman is TXCPA's Director of Government Affairs and Special Counsel. Contact him at kbesserman@tx.cpa.

 

Thanks to the Sponsors of Today's CPA Magazine

This content was made possible by the sponsors of this issue of Today's CPA Magazine:

Accounting Practice Sales

Capstan

Condley and Company

CPA Charge

Goodman Financial

Poe Group Advisors

Professional Accounting Sales

 

 

 

 


  • Assessing AI From a Tax Perspective, Part 1

    The article evaluates the potential use and limitations of AI in addressing tax-related queries during tax season. While AI tools show promise for aiding tax professionals and easing the CPA shortage, their responses are often inaccurate or misleading. The technology can assist with basic tasks, but it is not yet reliable enough to replace the educated judgment of tax professionals.
    View Article
  • CPE: Goodwill and Unit of Accounting

    This article provides an in-depth analysis of goodwill accounting under ASC 350, which defines goodwill as the excess payment over the fair value of acquired assets in a business combination. It covers the complexity of goodwill accounting, its significant financial implications and the importance of informed management judgment in acquisitions.
    View Article
  • What’s Happening Around Texas - January-February 2025

    November's Service Month and Career Awareness Month showcased our members' dedication to making a difference, highlighting their meaningful community impact. Through charitable efforts, educational outreach and career awareness initiatives, their collective generosity was a bright light for the accounting profession.
    View Article
  • The Impact of State Sales Tax Law on Federal Income Tax Returns for Businesses

    State sales tax rules impact federal income tax reporting for businesses operating in multiple states. Proper reporting is crucial to avoid audit risks and ensure compliance with gross receipts thresholds, which can influence tax methods and deductions. Tax practitioners should align financial accounting and tax reporting practices to minimize discrepancies and simplify compliance.
    View Article
  • Communicating with Senior Clients

    Recognizing typical age-related changes and making small adjustments can enhance how CPAs communicate with senior clients. Communication differences are not all related to a person’s generation category. The recommendations in this article draw from research and years of professional practice, as well as personal experience.
    View Article
  • Critical Timing for Licensure Discussions in Texas

    The new year brings a new legislative session in Texas. TXCPA will be advocating for important developments that directly impact your profession and the future of the CPA pipeline in Texas. We encourage you to stay engaged with us as the session progresses.
    View Article
  • Proposed Two-Track Path to a CPA License is Getting Serious Consideration

    A proposed two-track path to CPA licensure aims to address the shrinking pool of potential new entrants into the accounting profession. Traditionally, CPA licensure requires passing the Uniform CPA Exam, completing 150 semester hours of education and completing supervised work experience.
    View Article
  • Spotlight on CPAs: Shristi Upreti Sharma

    TXCPA member Shristi Upreti Sharma discusses her career journey, sharing key milestones and valuable lessons for aspiring CPAs. Passionate about accounting from a young age, she has actionable advice for students pursuing the CPA path, highlighting dedication, strategic planning, mentorship and resilience as essential elements for success.
    View Article
  • Government Affairs: Hold on Tight! Big Changes in the Accounting Profession for 2025

    The 89th Texas Legislative Session begins January 14, 2025, where there will be debates on property taxes, water resources, infrastructure, school choice, and CPA licensing reforms. Key bills for the accounting profession are SB 262 and HB 1757 that include proposals for an alternative CPA licensure pathway, and SB 522 that includes mobility protections. TXCPA will actively advocate for these and other measures.
    View Article
  • FASB’s New ASU 2024-03: Another Step Toward Greater Transparency in Financial Reporting

    The Financial Accounting Standards Board (FASB) issued ASU 2024-03 on November 4, 2024, to enhance financial reporting transparency by mandating more detailed expense disclosures in financial statements. This update, shaped by investor feedback during FASB’s 2021 agenda consultation, aims to help investors better assess a company’s performance, cash flow prospects and industry standing.
    View Article
  • Driving Strategic Growth: ASC 280 Segment Reporting Disclosure Fuels Investor Insight

    Updates to ASC 280 require public companies to disclose detailed segment-level financial data to meet growing investor demands for more insights. Implementing these changes involves identifying operating segments, ensuring data readiness and maintaining compliance with reporting standards. Enhanced transparency will help build investor confidence and support sustainable growth in a competitive, evolving market.
    View Article
  • TXCPA Thanks Our 2024-2025 Professional Group Membership Program Participants!

    TXCPA thanks the firms and companies that participated in our 2024-2025 Professional Group Membership program for membership renewals and new member activations. With our streamlined group billing option, renewing memberships is a breeze, while offering your team added value and benefits!
    View Article
  • Take Note

    In this edition of Take Note: Advocacy Day and Midyear Leadership Council Meeting; TXCPA's 2025 CPE Programs; Clarification for Today's CPA Article on Mitigating Medicare Mistakes; Printable Physical Wellness Checklist; Secure Your Future with Member Insurance; TXCPA's Career Center; Management Accountants - Stand Out With the CGMA® Designation
    View Article
  • Classifieds

    The classified ad section features listings for practice owners looking to sell, professionals seeking firms to purchase and a variety of specialized services. Whether you're looking to expand, sell or explore niche opportunities, this section connects professionals with valuable business prospects and resources.
    View Article

CHAIR
Mohan Kuruvilla, Ph.D., CPA

PRESIDENT/CEO
Jodi Ann Ray, CAE, CCE, IOM

CHIEF OPERATING OFFICER
Melinda Bentley, CAE

EDITORIAL BOARD CHAIR
Jennifer Johnson, CPA

MANAGER, MARKETING AND COMMUNICATIONS
Peggy Foley
pfoley@tx.cpa

MANAGING EDITOR
DeLynn Deakins
ddeakins@tx.cpa

COLUMN EDITOR
Don Carpenter, MSAcc/CPA

DIGITAL MARKETING SPECIALIST
Wayne Hardin, CDMP, PCM®

CLASSIFIEDS
DeLynn Deakins

Texas Society of CPAs
14131 Midway Rd., Suite 850
Addison, TX 75001
972-687-8550
ddeakins@tx.cpa

 

Editorial Board
Derrick Bonyuet-Lee, CPA-Austin;
Aaron Borden, CPA-Dallas;
Don Carpenter, CPA-Central Texas;
Rhonda Fronk, CPA-Houston;
Aaron Harris, CPA-Dallas;
Baria Jaroudi, CPA-Houston;
Elle Kathryn Johnson, CPA-Houston;
Jennifer Johnson, CPA-Dallas;
Lucas LaChance, CPA-Dallas, CIA;
Nicholas Larson, CPA-Fort Worth;
Anne-Marie Lelkes, CPA-Corpus Christi;
Bryan Morgan, Jr, CPA-Austin;
Stephanie Morgan, CPA-East Texas;
Kamala Raghavan, CPA-Houston;
Amber Louise Rourke, CPA-Brazos Valley;
Shilpa Boggram Sathyamurthy, CPA-Houston, CA
Nikki Lee Shoemaker, CPA-East Texas, CGMA;
Natasha Winn, CPA-Houston.

CONTRIBUTORS
Melinda Bentley; Kenneth Besserman; Kristie Estrada; Holly McCauley; Craig Nauta; Kari Owen; John Ross; Lani Shepherd; April Twaddle; Patty Wyatt

 

Your TXCPA membership has not been renewed for 2024 -2025. Renew now.