HHSC Plan Aims to Improve Services and Produce Savings

Making better use of technology will make it easier for Texans to apply for services and will save at least $389 million over the next five years, according to a new report by the Texas Health and Human Services Commission (HHSC).

Health and Human Services Executive Commissioner Albert Hawkins said the proposed redesign of state systems would allow Texans to apply for Medicaid, food stamps, cash assistance and other programs in person, through the Internet, over the phone and by fax or mail. The state would establish call centers to receive and process applications, and consumers would be able to track the progress of their applications through an automated phone system.

Key components of the proposed system include:

  • Using the 2-1-1 calling system to provide general information and referrals to state and community resources.
  • Making automated screening tools available over the phone and through the Internet.
  • Maintaining 164 field offices and staff in more than 200 hospitals to allow consumers to apply for services in person and get additional help and information.
  • Allowing consumers to access the system through convenient access points, such as schools, libraries and community organizations.
  • Using mobile offices to expand access in rural areas.
  • Establishing three call centers in Texas to accept applications over the phone, process documents and determine eligibility for services.

HHSC anticipates that additional savings can be achieved by streamlining central office administration, information system support and other eligibility support functions.

Hawkins said another key advantage of the proposed system is improved access to state services for working Texans, for people who lack transportation or live in remote areas, and for others who have difficulty traveling. HHSC's examination found that state systems that could be accessed after hours were popular among consumers. In Pennsylvania, a web-based system receives more than half of its applications outside of normal business hours, and an Idaho system is most heavily used on Sundays.

House Bill 2292, passed by the 78th Texas Legislature, directs HHSC to evaluate whether call centers are cost effective and, if so, to determine whether state workers or private-sector employees should staff them. The new HHSC report concludes that call centers would be a cost effective way to determine eligibility for services.

HHSC will publish rules for the proposed eligibility determination system in April and will conduct public hearings to receive input on the new model. A request for proposals will be issued later this spring to determine if outsourcing some functions within the new system would increase the savings associated with the new model. For more information, visit http://www.hhsc.state.tx.us/Consolidation/Projects/IE/IE.html.


Toyota Suppliers to Bring New Jobs to San Antonio, $100 million Investment Expected for Texas Economy

Many major automotive suppliers will be locating and expanding in San Antonio to support the new Toyota Truck Plant opening there. The parts and services suppliers are expected to add approximately $100 million to the Texas economy with direct investments in buildings, jobs and equipment.

A number of parts suppliers and several service suppliers will either open new operations in Texas or expand existing facilities to meet production demands of the new Toyota plant. Several suppliers are expected to open facilities on Toyota property, marking the first time in the auto industry that a manufacturer and suppliers have located on the same campus.

Construction of the $800 million San Antonio plant is scheduled to begin later this year. Once operational in 2006, the plant will produce 150,000 Tundra trucks each year, will employ 2,000 people and generate a $100 million annual payroll. The Toyota plant is expected to add $2.4 billion to the Texas economy over the next decade.


Governor Outlines Plan for Property Tax Reduction

Gov. Rick Perry outlined his Taxpayer Protection Plan in a speech to the Teamsters Local #745 in Dallas. The governor's four-part plan aims to provide relief to property tax payers through the following measures:

  • Limit property appraisal increases for homesteads to 3 percent per year - a significant reduction from the current 10 percent cap.
  • Limit the amount of revenue local entities can raise from property taxes to the amount raised the previous year plus an inflation and population growth factor.
  • Require mandatory sales price disclosure for real property.
  • Establish appraisal district boards of five elected officials who will be accountable to taxpayers.

Perry noted that the median sales price of a Texas home is just under $129,000 and the annual property tax bill on that home is just over $3,500. Under current law, even without a property tax rate hike, that Texas homeowner could see his or her bill increase $350 in one year, and by even more in succeeding years.

While some local governments and their supporters argue that the plan will paralyze municipal governments, Perry maintains that his plan will allow cities, counties, schools and special taxing districts to raise additional revenues beyond the caps, but only if they first get the approval of local voters.


Texas 3rd Graders Make Gains on Standardized Test

Texas third graders exhibited marked improvement this year on the Texas Assessment of Knowledge and Skills (TAKS) reading test. Preliminary results show that 91 percent of third-graders passed the spring administration of the reading test - a 2 percentage point increase over last year's passing rate. These gains are all the more positive when one notes that they were made in spite of higher passing standards being implemented this year. Furthermore, 35 percent of third grade students received commended performance, meaning they scored at least 90 percent on the test - a 35 percent improvement in one year.


Low Taxes and Corporate Incentives Do Little to Sway Businesses to Relocate

Low taxes and corporate incentives are poor bait for luring businesses to Texas, according to a report by the Economic Policy Institute, a Washington D.C.-based think tank. The study, "Rethinking Growth Strategies: How State and Local Taxes and Services Affect Economic Development," indicates that business relocation decisions are not based primarily on taxes, but instead on factors such as the availability of qualified workers, proximity to customers and the quality of public services. The study shows that raising taxes to support public service oftentimes can stimulate job and economic growth.

The Austin-based Center for Public Policy Priorities recently publicized the report to strengthen support for the idea of raising taxes to finance public schools in Texas.


Business and Commerce Committee Hears Criticism Of Unemployment Insurance

Texas Association of Business (TAB) President Bill Hammond testified at the Senate Business and Commerce Committee meeting this week, calling for legislators to reexamine the unemployment insurance program. He charged that "flaws" in the program cost the state $5 billon for every biennium. He drew attention to statistics that showed unemployment fraud and overpayments constituted 20 percent of the $2.1 billion annual expenditure, which is far above the national average of 9 percent. This issue is compounded by the fact that current Texas law enables automatic tax increases whenever the unemployment insurance fund drops too low, according to Hammond.

He is arguing that the law should require Texas Workforce Commission (TWC) and the legislature to vote to increase taxes in such a situation. The TWC has recently examined some of these issues, and renovated its work placement rules and fraud unit in an effort to cut down on false claims.

TAB represents approximately 140,000 large and small employers and 200 chambers of commerce throughout Texas.


DFW Receives $104 Million for Security Upgrades

The Transportation Security Administration has committed $104 million to Dallas/Fort Worth International Airport (DFW) to upgrade security at the airports four - soon to be five - terminals. The money will be used to install a new digitized surveillance system which will greatly enhance DFW's ability to monitor all key terminal entrances and the airport's perimeter.

New cameras will be installed on the public and secure sides of the terminals as well as at all fire exit doors. The new system will give DFW the ability to monitor, record and analyze data from hundreds of cameras simultaneously. It will also allow the airport the ability to record real-time video of all the locations under surveillance and archive and preserve the images which would be useful in a security or safety investigation.

DFW, the world's third busiest airport, expects to have the upgraded system in operation by this summer.


Environmental Group Gives Port of Houston an "F"; Port Disagrees

The nonprofit Natural Resources Defense Council (NRDC) awarded Texas' largest port the unflattering "F" grade this week in a report titled "The Dirty Truth about U.S. Ports." The organization's study focused on the 10 largest container ports in the U.S., as of 2001. While only one port, Oakland, California, garnered a "B" grade, and the majority of the study subjects took home "C" grades, the port of Houston was the only one to receive an "F." In the study's ranking schema, the failing grade was limited to ports that have consistently conducted themselves with "a reckless lack of concern for public health and the environment." Houston was most harshly criticized for its' poor choices regarding land usage in that it did not utilize already industrialized property for port development.

The Port of Houston Authority (PHA) issued a rebuttal to the NRDC charges, pointing out that some of their information was outdated and arguing that they did indeed choose industrialized property for their expansion and maintains an active "brownfield" within the city of Houston to address water reuse issues. For more information on both sides of the issue, visit the NRDC's website, http://www.nrdc.org/air/pollution/ports/contents.asp, and the PHA's site, http://www.portofhouston.com/pdf/pubaffairs/Enviro-responses.pdf.


U.S. High-tech Group Argues that Effects of Off-shoring Are Exaggerated

The nation's largest high-tech trade association, AeA, published a report this week arguing that offshore outsourcing is just one part of today's dramatically changing and increasingly competitive world. The paper asserts that offshore outsourcing cannot be viewed in isolation and, despite the fact that some workers are hurt by the migration of jobs overseas, offshore outsourcing is exaggerated as the primary cause of lost jobs and will most likely benefit the U.S. over time.

The group identified other factors contributing to jobs going overseas, most specifically, a weak international and domestic economy and productivity improvements. The report also maintains that any protective measures put in place by Congress will only hurt the high-tech industry, the nation's largest exporter, by jeopardizing some $171 billion in products that are sold overseas.

The AeA study highlights how other countries have caught up with the United States in education. They assert that, over the long run, staying ahead of the curve in education will be the single largest competitive challenge facing the nation. The entire report is available at AeA's website.


Coastal Areas Receive $ 7.38 Million in Grants

Jerry Patterson, Commissioner of the Texas General Land Office, announced more than $7.38 million in grants to fight coast erosion. Since 2000, the Legislature has appropriated around $15 million biannually towards battling land erosion via Coastal Erosion Planning and Response Act grants to local communities. The 78th Legislature reduced this funding by half. The federal government magnifies state funds by contributing four times the amount state governments allocate to the cause. Texas, with 367 miles of gulf beach and more than 3.300 miles of shoreline, has the third longest coast in the nation. Texas also faces one of the fastest rates of coastal erosion, with some beaches losing between five and ten feet annually.

Houston Metro to Consider Contractors' Unpaid Taxes

Taking its lead from Harris County, the Metropolitan Transit Authority of Houston announced this week that it will hold contractors accountable for unpaid taxes and use any tax debts as a factor in awarding and negotiating contracts. Harris County began implementing a similar policy in late February and early March, which has already resulted in the identification and collection of unpaid tax revenue. Last week, Harris County Commissioner Sylvia Garcia delayed two contracts due to back taxes.

Workshop Highlights Funding Resources for South Texas

Agriculture Commissioner Susan Combs announced that the Texas Department of Agriculture is partnering with American Electric Power to host a series of workshops on economic development and funding opportunities for South Texas.

The workshops, called Economic Development - Funding Resources for South Texas, are scheduled for April 1 in Alice, April 22 in Roma, June 16 in Uvalde and Sept. 15 in George West.

The target audience includes city and county officials, economic development professionals and bankers, but the workshops are also for anyone who is involved in improving the quality of life in their respective communities.

The program will feature professionals in the field of economic development and speakers from state and federal agencies including the Office of Rural Community Affairs, the Small Business Administration and the U.S. Economic Development Administration.

For more information on workshops, contact Lupe Torres at lupe.torres@agr.state.tx.us or (956) 787-8866.


Event Links

The Corridor NanoBioTech Summit - 3/29/04

Accessibility: A Review of Laws and Applicable Technologies - 4/7/04

Texas Police Chiefs Association: Mid-year Conference 2004 - 4/13/04 - 4/16/04

Spring 2004 Power to Purchase Expo, DIR's Semi-Annual Technology Show - 4/13/04

2004 Texas Aviation Conference - 4/14/04 - 4/16/04

Texas Fire Chiefs Officers Conference and Exhibition - 4/20/04 - 4/23/04

NASCIO 2004 Midyear Conference - 4/25/04 - 4/27/04

4th Annual Internet Security Forum for Texas State Government - 4/27/04

TASSCC 3rd Annual Technology Education Conference - 4/28/04

All-Rural Texas Summitt - 4/27/04 - 4/28/04

Texas State Agency Business Administrator's Association 24th Annual Conference - 6/7/04 - 6/9/04

EDA National Economic Development Conference - 6/8/04 - 6/10/04

2004 Workforce and Economic Development Conference - 6/23/04 - 6/24/04

NCSL Annual Meeting: The New Legislative Reality - 7/19/04 - 7/23/04

Texas Association of School Administrators/Texas Association of School Boards 44th Annual Convention - 09/17/04-09/20/04

NASCIO 2004 Annual Conference - 9/19/04 - 9/22/04


WIN BUSINESS WITH TEXAS GOVERNMENT

As a follow up to its successful roll out of The Guide to the Texas State Government Marketplace, and because of repeated requests, SPI is announcing a new service offerings.

SPI has a dedicated Information Services (IS) Division that researches governmental entities and analyzes data for future and current business opportunities. Our team studies and reviews strategic plans, legislative appropriations requests, appropriations bills, and budgets to identify potential business projects. IS provides these key services and products:

  • Future Opportunity Analysis - email notification of new opportunities as they are discovered and updates to opportunities as new information becomes available


  • Bid Monitoring - timely email notification of current procurement opportunities for over 500 state agencies, institutions of higher education, cities, counties, school districts, airports, and ports.


  • Customized Research - specific intelligence on entities, opportunities, markets, trends, products, competitors, etc.


  • The Guide to the Texas State Government Marketplace - This comprehensive report identifies funding allocations and projected timelines for projects as well as historical spending data in 20 key state agencies. The Guide also offers explanations and insight to potential opportunities in significant legislation from the Regular Session of the 78th Legislature.


Please contact SPI's Michael Mojica at mmojica@spartnerships.com for more details.


Past ABJ articles by Mary Scott Nabers

Health care arena filled with outsourcing deals - 2/23/2004

River authorities pumping opportunity in Texas - 2/02/2004

Millions in security funds sailing into Texas - 1/19/2004

Believe It! It Is Possible to Win Government Business Without Having to Bid For It! - 12/4/03


Texas Government Insider Archives

Volume 2 Issue 11 - 3/18/04

Volume 2 Issue 10 - 3/11/04

Volume 2 Issue 9 - 3/4/04

Volume 2 Issue 8 - 2/27/04

Volume 2 Issue 7 - 2/20/04

Volume 1 and Volume 2 Archives 11/7/03 - 2/27/04


News from Strategic Partnerships, Inc.

SPI Invites Suggestions for Upcoming Legislative Communications Conference

As SPI prepares for next fall's Legislative Communications Conference, we invite input on what issues and speakers our readers and colleagues would like to see on the program. Please email us at editor@spartnerships.com with your ideas.


Resources

NASBO Fiscal Survey of the States

Fiscal Year 2003 Quality Assurance Team's Annual Report

New Texas Fact Book 2004

Joint Select Committee's Report on Public School Finance, March 17, 2004

Texas Public Policy Foundation's Policy Paper on Public School Finance

Center for Public Policy Priorities' Finding a School Finance Solution


Public Hearings

Senate Subcommittee on Higher Education-- 9:00am, March 29, 2004, Betty King Committee Room

Joint Select Committee on Public School Finance-- 10:00am, March 29, 2004, E2.014

Senate Comittee on Finance-- 1:00pm, March 29, 2004, E1.036.

House Appropriations, Subcommittee on Heatlh and Human Services-- 10:00am, March 30, 2004, E1.030

House Committee on Regulated Industries-- 10:00am, March 30, 2004, Capitol Extension E2.012.

Senate Select Interim Committee on Water Policy-- 10:30am, March 30, 2004, Montgomery College Auditorium Building B, General Academic Center in The Woodlands.

Insights from Government Insiders:

On Voice Over Internet Protocol: "Real and tough questions related to universal service, 911 call routing, and access charges all require new thinking on the part of industry and regulatory entities. I believe new technology and innovation thrive best with minimal regulation. However, as VOIP technology develops and matures, we must find answers to these real and tough questions. -- Paul Hudson, Chair of the Public Utility Commission (volume 2 issue 2)

"LCRA is unlike most organizations because it is a governmental agency that must function as a business. It funds the services it provides to the public with revenues from the sales of energy, water and other operations. We are like a business in that we don't receive legislative appropriations and we have no authority to tax anyone. That means we have to be efficient -- conducting ourselves like a business and earning our own way." -- Joe Beal, General Manager LCRA (volume 2 issue 2)


Higher Education Accountability Examined at Capitol

While the Texas Legislature's efforts to reform public school funding have been in the headlines this spring, the state universities have also been examined very closely. Accountability was the word at this week's hearing at the Texas Capitol, as the Joint Interim Committee on Higher Education quizzed university representatives about how effective their programs were and what the state was getting for the millions that go to higher education each year. Co-chair Florence Shapiro said this was especially important in the wake of university tuition deregulation.

Texas Tech University Board of Regents Chairman Bob Black led off the testimony, saying that the University had a responsibility to ensure that state funds get to the classroom first, then to other parts of the University. He named growth, diversity, a focus on people, partnerships with other universities and accountability as primary goals for Texas Tech.

University of Houston System Assistant Vice Chancellor Ed Hugetz followed, telling the committee that as far back as the fall of 1997 UH had worked with performance indicators, ways the university could judge how effective it was in educating students.

Don Brown, Commissioner of the Texas Higher Education Coordinating Board and Lee Jackson, Chancellor of the University of North Texas System, said that it is the Legislature's job to decide exactly what the schools should be held accountable for, so they can determine whether the performance of the universities achieves the desired results. Brown asserted that Texas institutions should be compared to their peers across the country. Jackson was concerned that if an institution didn't meet the goals set by the Legislature, and then its funding might be cut, making it even more difficult for the institution to meet those goals.

Mark Yudoff, University of Texas System Chancellor, spoke about UT's commitment to accountability. He said his institution had studied many different accountability systems and that "it's really many different things to many different people." UT has a separate office dedicated for accountability that is responsible for assembling statistics across the many varied institutions. Dr. Geri Malandra, Associate Vice Chancellor for Accountability at UT, told the members that the institution is gathering a lot of data so accurate reports can be given to the Legislature.

The Committee's next meetings are scheduled for April 20 when it will be examining community colleges.


NanoBioTech Summit

The Greater Austin-San Antonio Council and Winstead, Sechrest, and Minick P.C. are sponsoring this forum on March 29 in San Marcos, at the Texas State University LBJ Student Center. The event aims to unite academic, economic development, government and business leaders throughout the Austin-San Antonio Corridor. For more information and to register, visit http://corridornanobiotech.org.

The Quarterly Workforce Forum

Sponsored by the Texas Workforce Commission, this event is designed to increas staff (Board, Contractor, and TWC) capacity through knowledge and information exchange. The Forum will be held on April 6-8, 2004 at the Omni Southpark Hotel in Austin. Presentations will focus on how to better serve customers through the workforce centers. For more information, visit http://www.twc.state.tx.us/events.html.

2004 Texas Aviation Conference

Sponsored by the Texas Department of Transportation and Texas Airport Management Association, the 22nd Annual Texas Aviation Conference will be held at the Hyatt Regency Hotel, Austin on April 14-16. For more information, visit http://tti.tamu.edu/conferences/tac04/.

EDA National Economic Development Conference: Translating Ideas into Prosperity, the Innovation Imperative

The annual event will be co-hosted this year by Economic Development Administration and the Council on Competitiveness on June 8-10, 2004 at the Omni Shoreham Hotel in Washington, D.C. The conference brings together successful grassroots practitioners and top national experts to discuss how to turn America’s ideas into more marketable products, processes, services, and most importantly, more new jobs here at home. Conference participants will also go to Capitol Hill to honor this year’s EDA Excellence in Economic Development Award winners and to visit with elected officials and other federal policymakers so important to local success. For more information visit http://www.edanationalconference.com/.

The Second Workforce and Economic Development Conference: Growing a Ready Workforce

This event is hosted by the Texas Workforce Commission at the Doubletree North Hotel in Austin on June 23-24. For more information, email readyworkforce2004@twc.state.tx.us.

Lawrence F. Alwin

Lawrence Alwin, State Auditor, Steps Down After 19 Years

Lawrence F. Alwin, CPA, Texas State Auditor, announced today that he will resign his position on March 31, after serving in that capacity for 19 years. The State Auditor's Office is a legislative agency responsible for conducting financial and performance audits of Texas state agencies and institutions of higher education.

"This has truly been the job of a lifetime because I had the opportunity to transform the State Auditor's Office into a progressive and well-respected audit organization that is nationally and internationally recognized- and perhaps most important, I had the privilege and the honor to work with an exceptional staff that holds to the highest professional standards. The many achievements of the Office would not have been possible without the support of the Legislative Audit Committee. I have indicated to the Committee that I will be happy to assist during the transition to new leadership," Alwin said.

Alwin was appointed State Auditor in 1985 by the Legislative Audit Committee, which oversees the Office and is jointly chaired by the Lieutenant Governor and the Speaker of the House. Before his appointment as the State Auditor, Mr. Alwin was with Gulf Oil Corporation for 20 years.

Mr. Alwin devoted himself to the financial management profession throughout his career and has been an active member and a tireless leader in a number of leading financial organizations, which have recognized his leadership with various awards for his service. Mr. Alwin currently serves on the Domestic Accountability Working Group established by the Comptroller General of the United States. He also served as a member of the Governmental Accounting Standards Advisory Council to the Governmental Accounting Standards Board and was on the Executive and Finance Committees.

Mr. Alwin is the past president and serves on the Executive Committee of the National Association of State Auditors, Comptrollers and Treasurers (NASACT). He is also the past president of the National State Auditors Association (NSAA) and the Austin Chapter of the Texas Society of Certified Public Accountants. In addition, he served on the Board of Directors of the Texas Society of Certified Public Accountants and is a member of the American Institute of Certified Public Accountants. Mr. Alwin also served as Chair of the Government Relations Committee of the Institute of Internal Auditors, as state representative to the National Intergovernmental Audit Forum, and as Chair of the Southwest Intergovernmental Audit Forum.

DHS Outlines Rail and Transit Security Initiatives

As a result of the recent rail bombing in Spain, the U.S. Department of Homeland Security is revisiting the issue of rail and mass transit security enhancements post September 11, 2001. These new initiatives further bolster homeland security activities and priorities established by the Administration following the terrorist attacks of September 11. The U.S. Department of Homeland Security, U.S. Department of Transportation, Amtrak, and state and local rail authorities have all renewed their emphasis on track and rail safety.

The responsibility of securing our nation's rail and mass transit systems is a shared one. The Department of Homeland Security (DHS), the Department of Transportation (DOT) and other federal agencies have taken significant steps to enhance rail and transit security in the last two years in partnership with the public and private entities that own and operate the nation's transit and rail systems. Efforts over the past two years have focused on greater information sharing between the industry and all levels of government, assessing vulnerabilities in the rail and transit sector to develop new security measures and plans, increasing training and public awareness campaigns and providing greater assistance and funding for rail transit activities.

Some of the measures in place to ensure safety are as follows:

U.S. Department of Homeland Security

  • The Department of Homeland Security's Information Analysis and Infrastructure Protection division and the Federal Railroad Administration and Federal Transit Administration have conducted comprehensive vulnerability assessments of rail and transit networks that operate in high-density urban areas. The risk-based assessments have provided information on where current and future security resources must be directed to reduce vulnerabilities to terrorism. As a result of these assessments, transit systems are producing robust security and emergency preparedness plans.
  • The Department of Homeland Security's grant program for improving rail and transit security in urban areas has awarded or allocated over $115 million since May 2003.
  • The Department of Homeland Security is screening high risk rail cargo entering the U.S. through the National Targeting Center (NTC) and through its border inspection workforce to help prevent rail lines from being used as instruments of terrorism delivery against transit.
  • The Department of Homeland Security has assisted in the deployment of biological and chemical detection equipment to some local transit districts. In the DHS FY 2004 appropriations, $285 million was allocated for efforts to develop biological countermeasures and $61.5 million for chemical and high explosives countermeasures. DHS Science and Technology has specifically dedicated some of these funds for rail security.

U.S. Department of Transportation and Amtrak

  • The Department of Transportation is coordinating rail security-related projects including responding to bomb threats, monitoring incident databases for acts of sabotage and vandalism, and serving as a liaison to railroads regarding terrorist activity.
  • The Department of Transportation will provide nearly $4 billion in transit formula grants to States and localities under the President's FY 2005 budget request. States and localities have the ability to spend some of these resources on security-related projects. Formula grant funding permits the local transit agencies to determine the optimum security strategy and to target funding to areas with the greatest need.

State & Local Transit and Rail Security

  • Local systems have participated in exercises, protocols, and training for identifying the effects of a chemical/biological attack and have developed system-wide Employee Awareness Campaigns as well as deployed chemical and biological detection equipment.
  • All major state and local mass transit and rail commuter operators have completed vulnerability assessments since Sept. 11 with federal technical assistance to best determine where current and future security resources must be directed to reduce vulnerabilities to terrorism.