Texas Delegation Spends Time in Washington Seeking Transportation Funding

A group of Texans took their transportation issues to Washington this past week. As a result, the concept of commuter rail in Central Texas is being floated as a solution to Central Texas' continually worsening traffic congestion. A number of key Texas lawmakers rallied around the concept as it was shopped around the Capitol City. Some proponents are optimistically hoping that the plan may get a jump-start through the six-year federal highway bill, which the U.S. House of Representatives is currently debating. The Senate has already passed a $314 billion plan.

The proposal being discussed involves moving Union Pacific freight trains to newly built or renovated tracks on the eastern side of Austin, San Marcos, and San Antonio. This would open up the MoPac Corridor track for conversion to passenger rail and commuter use. The railroad estimates that constructing and updating new routes for freight would cost $700 million.

Despite the cost, lawmakers are arguing that such a project is necessary to handle the congestion plaguing the San Antonio-Austin corridor. And, this would open up a number of options. The current track could support commuter trains running between Georgetown and San Antonio, with depots along the way, or allow for additional automobile capacity on MoPac, by adding center lanes and exits, thus saving homes and properties that would be compromised if the highway was widened. Furthermore, building new freight rail to the east would coincide with plans to construct the southern portion of Texas 130, thus adding leverage to that project.

Many obstacles remain, however, as the highway bill is already proving highly contentious within both Congress and the Oval Office: the President is threatening lawmakers with a veto if they do not excise some of the expensive pet projects tacked onto it. While no one expects an appropriation of $700 million for the cause, Senator Kay Bailey Hutchison stated that she would attempt to loosen regulations on how highway money is spent so that Texas could allocate federal funds to relocating rail.


Advanced Materials Research Center Receives $40 Million from Texas Enterprise Fund

A $40 million grant from the Texas Enterprise Fund (TEF) will help launch the Advanced Materials Research Center (AMRC) in conjunction with semiconductor technology leader Sematech. Considered critical to the growth of new and emerging technologies in Texas, the AMRC will support research and development efforts in fields like nanotechnology, biotechnology, and micro-electro-mechanical systems. The Governor's Office hopes the investment of funds will foster the growth of these important industries in Texas, with more jobs and greater tax revenue as a result.

The mission of the AMRC will be to accelerate the development of critical technology research, with a special focus on leading-edge materials and capabilities for next-generation semiconductors. Sematech estimates that this effort is expected to generate more than 4,000 high-tech jobs in Texas over the next 10 years.

In addition to the $40 million TEF grant, Gov. Rick Perry, whose office administers the fund, stated that the state will work to help Sematech secure another $160 million in funding from federal, state and local sources over the next five years.

Perry successfully urged the Texas Legislature in 2003 to appropriate $295 million to the Texas Enterprise Fund to help Texas create new jobs and grow its economy. The grant to Sematech, a global semiconductor technology development consortium, represents the fourth project funded with Enterprise Fund money. Other recipients of TEF support include the University of Texas at Dallas, for enhancements in engineering and computer science programs, Maxim, for a new semiconductor facility, and Vought Aircraft, for facilities expansion


HHSC Reorganization Could Eliminate Over 3,300 Jobs

More than 3,300 state employees could lose their jobs under the Health and Human Services Commission's (HHSC) plan to improve the Texas social service delivery system, according to testimony by Albert Hawkins, Executive Commissioner of HHSC and Gregg Phillips, Deputy Commissioner of HHSC, before the House Appropriation Committee's Health and Human Services Subcommittee. Plans are being drafted to assist state workers who are laid-off, Hawkins said.

Over 200 of HHSC's field offices will be cut this year under a plan which is designed to make it easier for people to apply for aid and save the state an estimated $389 million over five years. Fewer workers would be needed under the plan because applicants for social services such as food stamps and Medicaid would be able to apply on the Internet, by phone, fax or through the mail. Currently, applicants must seek aid in person. It is not yet known which of the 381 field offices will be closed. The decision will be based on factors such as when office leases expire and what options are available for relocating services within local government.


D/FW Airport Courts Lucrative Army Contract

Dallas/Fort Worth International Airport could soon gain an Army contract worth an estimated $20 million. According to a memo from the United States Central Command, the Army is considering replacing Baltimore/Washington International Airport, which is currently the nation's only point of entry for some soldiers returning from overseas duty, with an airport that operates around the clock. Both Dallas/FW and Hartsfield-Jackson International Airport in Atlanta have been named possible replacements. Atlanta and Dallas/FW provide more flights for service members to reach their final destination, according to the memo.


Washington Might Send Work on C-17 Aircraft to San Antonio and Abilene Bases

Maintenance work on the C-17 aircraft should be shifted to KellyUSA in San Antonio and Dyess AFB in Abilene, according to a pitch made by Sen. Kay Bailey Hutchison to the Pentagon recently. Hutchison, R-Dallas, made her pitch to Air Force officials during a hearing on the military construction budget for FY 2005, which begins October 1. Air Force officials are seeking construction funds to build maintenance facilities for the C-17, which will replace many of the antiquated C-141 cargo planes. Hutchison, chairwoman of the Senate Appropriations subcommittee on military construction, believes moving the maintenance work to the two Texas bases would offer cost-saving benefits.


Texas is Second on National Mass-Layoff List

Fifty-two employers in Texas laid off 4,062 employees in February, the second highest number of mass layoffs in the nation that month, according to the U.S. Bureau of Labor Statistics. This represents a 44 percent drop from February 2003 when 93 Texas companies implemented mass layoffs. Mass layoffs are defined as ones where at least 50 workers at a single facility are laid-off. California topped the mass-layoff list with 365 companies implementing mass layoffs during February. Video production companies and temporary help services were responsible for 13 percent of the total mass layoffs nationwide.


House Elections Committee Examines Electronic Voting Systems

The House Elections Committee recently met to examine Texas-certified electronic voting systems. The committee heard presentations on three different voting systems. One system, which was used recently in California elections, registers vote choices in three places: on a ballot card inside the voting machine, in the machine, itself, and in a "mobile ballot box" monitored by the precinct judge. Another system, which was used recently in several Texas counties for early voting, utilizes touch-screen technology. Voters are provided with "smart cards" which activate the machines upon insertion. The third voting system relies on personalized electronic ballots. Headphones allow visually-impaired voters the use of an audio option to cast their vote.


Mexico Water Debt Proposal Draws Mixed Reviews

A plan to negotiate a dollar amount Mexico can pay the United States to wipe out its 1 million acre-foot water debt has received mixed reactions from Valley residents. The proposal to settle the water debt, the equivalent of the amount of water 2 million families would use in a year, was made by Arturo Duran, the new leader of the U.S. section of the International Boundary and Water Commission. The money repaid by Mexico would be used to increase water availability in the future by providing funding for water-related projects in municipalities and irrigation districts along the Rio Grande, said Duran. Critics say water would be more useful than money while those in favor of the plan say the money could be used to repay past damages caused by low water accounts.


Employee Pension Fund for City Workers Struggling

The City of Austin's employee pension fund had a $203 million shortfall last year, a 7 percent increase from 2002. This is a trend that is being noted statewide. A bear market is partly to blame for the shortfalls. Current shortfalls could potentially worsen because the funds must still absorb some stock losses from the 2000 - 2002 bear market. Pension plans account for gains and losses over a five-year period.


Clean Air Plan Means Emissions Testing for Central Texas

A clean air plan signed recently by elected officials from 5 Central Texas counties will force residents of Travis and Williamson Counties to start vehicle emission testing soon. Officials from the other counties, while agreeing to participate in many of the proposed clean air programs, did not agree to participate in the vehicle testing program. Emissions testing for passenger vehicles 2 to 24 years old will be required during the annual state safety inspection beginning at the latest in December 2005.

The clean air plan, which contains dozens of pollution reduction programs, has been submitted to state and federal environmental agencies for final approval. Developed under an Early Action Compact with the U.S. Environmental Protection Agency (EPA), the plan is designed to cut lung-damaging pollution and to help Central Texans avoid stricter environmental measures imposed by federal authorities. In exchange for taking voluntary measures to reduce air pollution, the Central Texas region won't have to worry about the EPA declaring it in violation of the federal Clean Air Act until at least 2008.


Productivity at TPMHMR Increases

Staff productivity at the Texas Panhandle Mental Health Mental Retardation center (TPMHMR) has increased since the agency began operating under the mandate to provide the best services for less money set out in HB 2292 passed last year by the Texas Legislature. TPMHMR staff has been able to spend more face-to-face time with clients by implementing changes such as using telemedicine for patient intake and reducing the number of appointment no-shows.


ERS Executive Director Sheila Beckett to Retire

Sheila Beckett announced that she is retiring from her position as Executive Director of the Employee's Retirement System in June to accept a position with the U.S. Treasury Department in Belgrade, Serbia where she will serve as Resident Budget Advisor to the Minister of Finance and Economy.

Beckett has served as executive director of the retirement system since she was appointed by the ERS Board of Trustees in 1996. Under her leadership, ERS oversees a $20 billion trust fund and administers retirement and health insurance programs for more than 200,000 current state employees and retirees and their families.

As executive director of ERS, Beckett was named Agency Administrator of the Year by the Texas Public Employees Association in 1998. The Central Texas Chapter of the American Society for Public Administration named her Administrator of the Year in 2001 and she received the prestigious National Public Service Award from the American Society of Public Administration and the National Academy of Public Administration in 2003.

ERS Deputy Executive Director William S. "Shack" Nail will serve as interim acting executive director of the system after Beckett's retirement becomes effective on June 30 while the board searches for a replacement.


Event Links

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

TASA's Spring Conference - 4/14/04 - 4/17/04

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

SALSA Presents BioDefense Summit III - 4/29/04 - 4/30/04

TexMed 2004: Educational Showcase & Expo - 5/13/04 - 5/15/04

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 12 - 3/25/04

Volume 2 Issue 11 - 3/18/04

Volume 2 Issue 10 - 3/11/04

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


News from Strategic Partnerships, Inc.

SPI CEO and President Mary Scott Nabers was recently elected to the World Conference on Information Technology 2006 Texas Leadership Council. The Council, which consists of leaders from business, government and academia who come from a variety of technology and non-technology environments from across the State of Texas, will help ensure that the World Congress is an economic catalyst for the state and a driver for increasing global relationships for Texas. For more information on WCIT 2006, visit http://www.wcit2006.org.

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

House Committee on Licensing & Administrative Procedures-- 10:00am, April 6, 2004, Room: E2.026

House Committee on Corrections-- 10:00am, April 8, 2004, Bradshaw State Jail

Senate Subcommittee on Higher Education-- 9:00am, April 8, 2004, Capitol Extension E1.012

Senate Committee on Infrastructure Development and Security-- 9:00am and 1:00pm, April 13, 2004, E1.036 - Finance Com. Rm

Senate Committee on Infrastructure Development and Security-- 9:30am, April 14, 2004, DPS Headquarters: Austin

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)


TWC Explains How it will Replenish the State’s Unemployment Compensation Trust Fund

At recent hearings of the Senate Business and Commerce and House Economic Development committees, officials from the Texas Workforce Commission (TWC) testified on the benefits of using bond revenue monies to replenish the state’s insolvent Unemployment Compensation Trust Fund. TWC advocated for this option instead of borrowing from the federal government. Because of the economic downturn in 2001 which resulted in massive layoffs statewide, the Trust Fund disbursed more money than it collected. The money was used to pay unemployment benefits to individuals unable to find work. Legislation passed in 2003 allowed TWC to sell bonds if that method was more cost-effective than borrowing from the federal government.

In September 2003, TWC, in partnership with the Texas Public Finance Authority, sold $1.4 billion in bonds, at an average rate of 1.9 percent instead of borrowing money from the federal government at a six percent rate of interest. The agency then paid the federal government $300 million and the rest of the money was used to bring the Trust Fund to the statutorily-mandated level. In the years to come, Texas employers are scheduled to pay an obligation assessment, along with other unemployment taxes owed, to pay off these bonds. TWC estimates, however, that the use of bonds instead of a federal loan will allow about $1 billion to remain in the economy that would otherwise be paid in additional taxes.

Unemployment compensation is a temporary partial replacement of wages that are paid to eligible individuals. The amount that an individual is allowed to collect depends on previous income.


TexMed 2004: Educational Showcase & Expo

The Texas Medical Association’s (TMA) 137th Annual Session will be held May 13-15 at the Hilton in downtown Austin. More than 2,000 physicians will be in attendance. A variety of clinical, legal and practice management topics will be addressed at the conference. More than 170 TMA and specialty society business meetings will be held during the event. For more information, visit http://texmed04.texmed.org/content/default.asp.

TASA's Spring Conference

The Texas Association of School Administrators Spring Conference will be held April 21-22 at the Hyatt Regency in downtown Austin. Conference participants will hear an update on critical legislative issues and the latest legislative developments on school finance. For more information, contact Paul Whitton, Jr. at 800-725-8272 or visit http://www.tasanet.org/learning_opportunities/conferences/spring/2004/sessions.html.

TMUA Spring Conference

The Texas Municipal Utilities Association's (TMUA) Spring Conference will be held April 28 - 29 at the Hilton Austin Airport Hotel. Officials from across the state will share information about current water supply and demand, water conservation policies, and future water requirements and potential solutions. For more information contact TMUA's Program Development Department at 512-231-7400 or visit: http://www.tml.org.

Carlos Cascos Sworn In As Public Safety Commissioner

Gov. Rick Perry administered the oath of office to Carlos Cascos this week as a commissioner on the Texas Public Safety Commission. Cascos' term will expire Dec. 31, 2009.

As one of three members of the Public Safety Commission, Cascos will help oversee activities of the Texas Department of Public Safety.

A native of Brownsville, Cascos is a partner at the accounting firm of Pattillo, Brown & Hill L.L.P. Cascos, served as a Cameron County commissioner from 1991-2002 and is a member of the Association of Government Accountants and the American College of Forensic Examiners. Cascos is a graduate of Brownsville High School and the University of Texas at Austin.


UT Austin Honors Distinguished Alumni

The Texas Exes announced the 2004 University of Texas Distinguished Alumnus Award Recipients. The six alumni recipients of the Distinguished Alumnus Award are being recognized for distinguishing themselves professionally and through service to the university. The award recipients are:

  • John M. Coetzee of Newton, Australia, Ph.D., 1969. He is an author and 2003 recipient of the Nobel Prize in Literature.
  • Kenneth M. Jastrow, II of Austin, bachelor of business administration, 1969, and master of business administration, 1971. He is the chairman and chief executive officer of Temple-Inland Inc., a diversified company with operations in corrugated packaging, forest products, and financial services.
  • Teresa Lozano Long of Austin, bachelor of science, 1948, master of education, 1951, and doctorate in education, 1965. She is an educator, civic leader, and philanthropist.
  • State Sen. Bill Ratliff of Mount Pleasant, bachelor of science, 1960. He is a former lieutenant governor and state senator of Texas, and a consulting engineer.
  • Roy M. Spence, Jr. of Austin, bachelor of arts, 1971. He is the president and founding partner of GSD&M advertising agency.
  • Trisha Wilson of Dallas, bachelor of science, 1969. She is the president and owner of Wilson and Associates, an internationally acclaimed interior architectural design firm.

The six recipients will be honored at a presentation on Friday, October 1, 2004 at the LBJ Auditorium. Created in 1958 by the Texas Exes, this award recognizes annually up to six graduates or former students of The University of Texas at Austin who have distinguished themselves professionally and through service to the university. Recipients are chosen by a special Texas Exes committee from nominations submitted by alumni and other members of the university community. The Distinguished Alumnus Award is the highest alumni award given by the University of Texas at Austin.


Billions in Grants Flow to State and Local Governments for Urban Security

In the coming weeks, the Department of Homeland Security will award $2.2 billion from the State Homeland Security Grant Program and $725 million from the Urban Area Security Initiative to state and local governments to help first responders across the nation better protect their communities. These funds are part of over $8 billion the Department has allocated or awarded since March 1, 2003 to help our nation's first responders and state and local governments to prevent, respond and recover from potential acts of terrorism and other potential disasters.

In total across the Department of Homeland Security, the Department of Health and Human Services and the Department of Justice, this Administration has provided $13.1 billion dollars in direct homeland security grants from FY'02 to FY'04, as compared to only $1.2 billion allocated from FY'99 to FY'01 - more than a 900% increase in the commitment and spending on homeland security.

Secretary Ridge announced the allocation of these FY'04 counterterrorism grants in November 2003. Information about these grants, distributed through the Department's Office for Domestic Preparedness, is available at http://www.dhs.gov/grants.State_and_Local_Homeland_Security_Grants_Awarded.