FULFILLMENT OF TAX RELIEF PROMISE Gov. Clements continues to believe there is a need for a constitutional amendment to assure there is no reinstatement of the ad valorem property tax. In his 1978 gubernatorial campaign, Gov. Clements advocated elimination of the state property tax. In the 1979 legislative session, the first after Gov. Clements assumed office, the tax was thought to have been abolished as the assessment ratio was reduced to .0001 percent. Later, however, grave constitutional doubts about the law arose and Gov. Clements is convinced a constitutional amendment is needed to forgive taxes of past years, which may now carry a potential liability of over $500 million, and eliminate them in the future. There have been no new taxes during his term, but beyond that: his reduction in the number of state agency employees and his decrease in the percentages of growth in the state budget have eased the tax burden on Texans. In addition, Gov. Clements has vetoed more than $190 million in individual budget items--more than any other Texas governor. The governor supported and worked for the passage of the local option homestead exemption which allows some local governments to exempt residential property from taxes for up to 40 percent of its value for one year--and for decreasing percentages in later years. Previously, the maximum homestead exemption which local governments could, allow in most cases, was $3,000 for counties and $5,000 for school districts.