Senate Committees Discuss Homeland Security Funding: Questions of Where, How Much, and To Whom Dominate Talks

Kevin Younger, SPI Homeland Security Specialist

The Senate Finance Committee and the Senate Committee on Infrastructure Development and Security held a joint session this week to hear invited testimony and to take up Interim charges related to homeland security. Both Senate committees are charged with monitoring and reporting on the distribution and uses of federal homeland security dollars to Texas that are appropriated through the Governor's Office.

Gerry Dube, with the Legislative Budget Board (LBB), was first to testify and related to the committee that new federal funding is expected for the state. Dube told the committee that 15 agencies and institutions of higher learning receive a portion of federal homeland security funds. He emphasized that the focus has been on post-event response, rather than on preventive measures. He also informed the committee that the LBB tracks money that is allocated and how it is spent, with the exception of funds that are given directly to entities such as ports and cities that receive funds through the Urban Area Security Initiative.

Jay Kimbrough, Director of Homeland Security for the Governor's Office, also testified before the committee stating, "In the spring of 2002, we began to formulate a strategy for handling federal funds, seeking to balance urban needs with those of rural communities. Out of this effort came the Regional Councils of Government (COG) that bring together local entities, state officials and law enforcement officers. We disperse these funds to regions throughout the state, rather than to cities or counties. Most of the money used comes directly from federal coffers, though some is given directly, without oversight of any kind." Kimbrough said that $65 million was given to Texas ports for security purposes. Mr. Kimbrough ended his testimony by saying, "Up to now, most of the money we've received has been spent on equipment which we will have to maintain in future years."

Charles Todd, Director of Domestic Preparedness for the Texas Engineering Extension Service, the State Administrative Agency for homeland security fund distribution, also testified before the committee. Todd said that state homeland security funds were initially used for first responder equipment and training, however, the current trend is shifting towards using funds for prevention rather than response. Todd told the committee that funds were allocated to local governments through the Councils of Government, and that funds within each region are dispersed according to assessed risk levels and needs. Todd assured the committee that money is being used for equipment and training, and that no salaries are paid from homeland security grants.

Todd also told the committee that TEEX anticipates that first responder allocations for 2005 will be reduced by some $900 million, a fact that further supports the shift in emphasis from response to prevention. $25 million in Law Enforcement Terrorism Prevention grants are expected to be released soon for the sole purpose of prevention. Jim Ray, Executive Director of the Texas Association of Regional Councils of Government (TARC), the organization that oversees the COG regions, also testified regarding new funds expected to be released soon. Ray said that $185 million in homeland security grants will be awarded to COGs within the next 60 days.

For a complete list of all homeland security funds received in Texas to date, including 152 pages of handouts and Senate briefing materials from the Senate's joint session on homeland security funding, SPI Consulting clients can login to our website at http://www.spartnerships.com/secure/index.asp.


Mobility Authority Proposes $2.2 Billion in Toll Roads to Cure Central Texas' Traffic Woes

Together with the Texas Department of Transportation (TxDOT), the Central Texas Regional Mobility Authority (CTMRA) unveiled a plan to construct more than $2.2 billion worth of toll roads throughout the Austin area. The plan, which consists mostly of increasing capacity on current roadways and tolling their usage, would progress in phases over three years. The first phase, if the plan is approved, would begin late this year.

Some of the new capacity is already under construction by TxDOT on SH 71 and IH 35. The full proposal, however, incorporates added capacity on Loop 1, Loop 360, and US 183. The plan only supports tolling added capacity: tolls will not be installed on any highway capacity already open to traffic.

CTMRA and TxDOT are seeking support for the plan from a number of sources, including TxDOT itself, the new Texas Mobility Fund created by the Texas Legislature, and proceeds from bonds sold to investors that would be repaid from toll revenues. Private road building consortia also might be allowed to develop some of the added capacity in return for the right to collect tolls for a period of years.

This week the CTRMA board approved a resolution recommending the tolling program to Capital Area Metropolitan Planning Organization (CAMPO) for approval. CAMPO will vote on the proposal in June. If the plan advances, it must receive final approval from the Texas Transportation Commission.


TxDOT's Corridor Proposals to be Determined by Environmental Study

At the first of three public meetings, officials from the Texas Department of Transportation (TxDOT) outlined an environmental study that will determine their proposal of two Trans-Texas Corridors. The proposed corridors - Oklahoma-Mexico/Gulf Coast Corridor 35 and Interstate 69 - are part of the 4,000-mile Trans Texas Corridor System. The two-tiered environmental study will focus on protecting the water, air, wildlife habitat, historical structures and archaeological sites in building environmentally sensitive transportation projects. The study will focus on an area that is 20 to 50 miles wide and includes 39 counties. The first part of the study will examine regional and area impacts of the project and will assess alternative locations for the corridors. The study is expected to be completed by summer 2006.


Texas Growth Fund Negotiates $15.2 Million Default

The Texas Growth Fund is attempting to recover at least part of $15.2 million it invested in a Houston construction equipment company. The state-created fund invested public employee pension monies into the company, Consolidated Equipment Companies, Inc., in 1999, only to see the company file for bankruptcy two years later. Since that time, the fund and other investors have been involved in a legal battle to recoup some of their investment. Last month, all the parties agreed to a confidential legal settlement.

The Texas Growth Fund has invested over $442 million in 43 companies since its creation in 1988. The health of the Fund has been somewhat in doubt lately, given that many large-scale investors, such as the Teachers' Retirement System of Texas (TRS), have decided not to invest more money due to unsatisfactory returns. The most recent fund pool created in 1998, which included Consolidated Equipment, has showed an estimated return of 2 percent, in comparison to the two previous fund pools, which both demonstrated a 13 percent return.

Any money actually recovered via the settlement should benefit key investors in the Texas Growth Fund, most notably the aforementioned TRS and the Employees' Retirement System (ERS). A spokeswoman for ERS stated that she expects that any recovery will improve the pension fund's returns.


Audit of Houston Street Projects Finds Multiple Problems

An audit of Houston street projects conducted by the Houston Office of the City Controller found that several projects were not completed on-schedule. Twenty-five of the 196 projects reviewed finished a combined 5,000 days behind schedule. The audit also found that the city's Public Works and Engineering Department does not have a complete and accurate database tracking the projects. The auditors discovered that oftentimes the department's project records did not include vital information such as final payment records, change order forms, and completion reports.


HHSC to Review and Reorganize APS Programs

The Health and Human Services Commission (HHSC) will begin an immediate review and reorganization of the state's Adult Protective Services (APS) programs in response to an executive order issued by Gov. Rick Perry. Perry issued the order after the release of a report by an El Paso judge detailing serious problems in the protection and treatment of persons with disabilities and the elderly.

HSSC will begin a complete review of closed cases not just in El Paso but statewide to determine the extent of problems and to undertake a systemic reorganization of APS. APS is responsible for protecting the elderly and persons with disabilities from abuse, neglect, and exploitation by investigating and providing or arranging for services to prevent or alleviate maltreatment. It is overseen by the Department of Family and Protective Services, one of four agencies that constitute the HHSC.

The order also directs HHSC to take specific measures to address problems at APS. For example, HHSC must take appropriate disciplinary action against any APS staff found to be involved in the mistreatment, abuse or neglect of elderly residents or those with disabilities. The commission must also develop new training guidelines and minimum qualifications for caseworkers and implement new guidelines for working with local and county law enforcement in investigating cases of alleged elder abuse and neglect.

The Governor has also told the Department of Public Safety to "give high priority" to investigating and addressing any potential criminal cases of elder abuse. HHSC must submit a report to the Governor by Nov. 1 addressing problems discovered in the review and steps the commission is taking to correct them.


State to Audit ESCs

The Legislative Budget Board (LBB) is currently seeking proposals from auditors to review the state's twenty Education Service Centers (ESCs). The audit will determine if the centers, which provide professional development for teachers, administrators and other school district, private and charter school employees are operated efficiently and whether they should be shut down or not. The audits were scheduled after the Legislature passed Senate Bill 929 last year mandating a review of all ESCs to determine their financial status. The project is scheduled to take place this summer. The LBB is planning to spend up to $650,000 on the audit.


Congress Gives $1 Million to Border Health and Environment Security Initiative $1 Million

U.S. Rep. Ciro D. Rodriguez has secured $1 million in funding from the Department of Defense Appropriations Act for Fiscal Year 2004 to support the Border Health and Environmental Security Initiative. He is seeking an additional $3 million for the project during the current appropriation process. The money will be given to the International Consortium for Health and Environmental Security (ICHES) to create a comprehensive environmental health security plan. ICHES will create the plan with the help of resources from a military research facility, several colleges and universities, health clinics and other health providers along both sides of the border. The study will address migration and disease reporting, carrier-borne diseases, drug resistance, geographic information systems and modeling, as well as community response planning along the border. Results of the study may also be useful in protecting soldiers deployed out in the field worldwide.


Jobless Rate Falls

Austin's unemployment rate dropped to 4.7 percent in March, down 1.3 percent from a year ago, according to the Texas Workforce Commission. Unemployment for the month was slightly less than in February. In the Austin area, 36,027 people were unemployed in March. Over 45,000 people were looking for work a year ago. Texas' unemployment rate fell in March to 6 percent, compared with 6.6 percent for March of last year. The unemployment rate also decreased slightly from February. March is the sixth month in a row where job growth in the state has improved. More than 13,500 non-agricultural positions were added during the month.

Strategic Partnerships, Inc. Launches New, Enhanced Web Site

Strategic Partnerships, Inc.(SPI) is happy to announce the re-launch of the firm’s website, http://www.spartnerships.com, which boasts improved usability and greater access to valuable resources. The new site consolidates three former SPI-operated sites and provides a comprehensive portal for all types of information, procurement opportunities, and information resources.


Full Brief on Texas Homeland Security Funding

For the most complete list of all homeland security funds received in Texas to date, including 152 pages of handouts and Senate briefing materials from the Senate's joint session on homeland security funding, SPI Consulting clients can login to our website at www.spartnerships.com/secure/index.asp. The brief outlines the most comprehensive list available of recipients, funding amounts, and schedules for funding disbursal.

Governor Calls Special Session on Public School Finance

The Governor's Proclamation for the Fourth Called Session is slightly broader than public school finance and property tax relief, and allows legislation on privatization of delinquent tax collection, increased tax on adult entertainment venues, accelerated tax revenue collection, and legislation to reduce fraud in automobile sales. Everything else, including consideration of video lottery and an increase in the cigarette tax, relates back to public school finance and property tax relief in that revenues for some proposed initiatives will be dedicated to the Educational Excellence Fund.


Correction from the Department of Family and Protective Services

In last week's Insider (Vol. 2, Issue 14), in the article entitled "Comptroller Critical of State Foster Care System," we incorrectly reported that, in response to the report from the State Auditor's Office stating that there were 26,133 children in 2003, Geoff Wool, the Public Information Office for the Department of Family and Protective Services "contradicted that assessment… estimating the number as 10,000 or fewer."

Wool writes: "What I actually said regarding the number of foster children in the care of DFPS is that on any given day, there are about 10,000 fewer children in the Texas foster care system than what the comptroller states in her report. Because the state's foster care system is fluid - children are constantly leaving the system and coming into the system - it's hard to put an accurate number on how many are in the system at one point in time. We take an official census at the end of each fiscal year and on Aug. 31, 2003, there were 15,709 children in the Texas foster care system. The comptroller used a figure that reflects the number of children who were served in the foster care system in FY 2003, but it does not take into account the number of children who left the system during the course of the year due to reunification with family, relative placement, or adoption. My point is, at any one time there are roughly 16,000 children in the Texas foster care system, 10,000 fewer children than the overall "clients served" yearly total the comptroller states in her report."


Event Links

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

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.


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  • 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 Crystal Kuhs at ckuhs@spartnerships.com for more details.


Past ABJ articles by Mary Scott Nabers

It pays to be schooled about education projects - 3/22/2004

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

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


Texas Government Insider Archives

Volume 2 Issue 14 - 4/8/04

Volume 2 Issue 13 - 4/1/04

Volume 2 Issue 12 - 3/25/04

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

Invitations have been extended to speakers for this important conference that will be held on October 7th at UT's JJ Pickle Center in Austin. The conference is sponsored jointly by SPI and UT's LBJ School of Public Affairs. As the agenda becomes firm and speakers confirmed, details will be available at SPI's website.


Mary Scott Nabers, President and CEO of SPI, will give a speech to IEEE Engineering Management Society, Central Texas Chapter on Understanding The New Homeland Security Environment in Texas. The IEEE's Central Texas Engineering Management Section Central Texas Section covers all of central Texas from San Antonio to Austin has about 4,500 members. The presentation will be held a the Holiday Inn, Town Lake at 6:30pm on April 22.

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 Business and Industry-- 10:00am, April 19, 2004, E2.010

Select Committee on Public School Finance-- 10:00am, April 19, 2004, E2.036 amd Cap. Ext. E1.030

Select Committee on Public School Finance-- 10:00am/adjourn., April 20, 2004, E1.030

House Committee on Defense Affairs and State-Federal Relations-- 1:00pm, April 19, 2004, San Antonio

Senate Subcommittee on Baser Realignment and Closure--1:00pm, April 19, 2004, Challenger Learning Center

Senate Committee on Health and Human Services-- 9:00am April 20, 2004, Senate Chamber Rm. 2E.8

Joint Interim Committee on Higher Education-- 9:00am, April 20, 2004, JH Reagan Bldg. Rm. 120

Speaker Announces New Chairs for Committees

In the wake of Governor Perry's official announcement of a special session on public school finance, Texas House Speaker Tom Craddick announced replacements for committee chair vacancies that opened because of retirements and recent election losses. Under House rules governing committees and Texas statutes, a legislator whose re-election campaign proved unsuccessful or who intends to leave the House cannot act in a leadership role on a committee or board.

The following changes brought about by vacancies will be in effect at the special session beginning on Tuesday, April 20:

  • Rep. Brian McCall, Plano will replace Rep. Ron Wilson, Houston, as chair of the House Ways and Means Committee
  • Rep. Wayne Smith, Baytown, replacing Rep. Glenn Lewis, Fort Worth, will chair the County Affairs Committee
  • Rep. Jaime Capelo, Corpus Christi, will be replaced by Vice-Chair Jodie Laubenberg, Parker, on the House Public Health Committee
  • Rep. Jerry Madden, Richardson will chair the House State Affairs Committee, replacing Rep. Kenny Marchant
  • Rep. Gene Seaman will replace Rep. Arlen Wohlgemuth, Burleson, as vice chair of the Calendars Committee

The promotion of these individuals leads to changes on other committees, as follows:

  • Rep. McCall was also appointed to the Legislative Audit Committee and the Legislative Budget Board
  • Rep. Carl Isett, Lubbock, was appointed to Texas Legislative Council
  • Rep. Byron Cook, Corsicana, succeeds Rep. Madden as vice chair of the House State Affairs Committee
  • Rep. Warren Chisum, Pampa, steps in for Rep. Smith as vice chair of County Affairs
  • Rep. Leo Berman, replaces Rep. Lewis as vice chair of House Administration
  • Rep. Dan Flynn, Van, will serve as vice chair of the Committee on Financial Institutions, replacing Rep. Wayne Christian, Center
  • Rep. Glenn Hegar, Katy, vice chair of the House Committee on Law Enforcement, will replace Rep. Timo Garza, Eagle Pass
  • Public Education Committee Chairman Kent Grusendorf, Arlington, will vice chair Pensions and Investments, replacing Rep. Barry Telford, DeKalb, who will retire
  • Rep. Larry Taylor, Friendswood, succeeds Rep. Laubenberg as vice chair of Public Health
  • Rep. Ken Paxton, McKinney, succeeds Rep. McCall as vice chair of Ways and Means
  • Rep. Linda Harper-Brown, Irving, will serve as the vice chair of the Select Committee on State Health Care Expenditures, replacing Rep. Roberto Gutierrez, McAllen
  • House Appropriations Committee Chairman Talmadge Heflin, Houston, named Rep. John Davis, Houston, to replace Wohlgemuth as chair of the Appropriations Committee's Subcommittee on Health and Human Services

Speaker Craddick also disbanded the House Select Committee on Ethics -- which was chaired by Rep. Steve Wolens, Dallas, who is retiring -- in recognition of the omnibus ethics bill that was enacted by the 78th Legislature.

Governor's Texas Round-up Health and Fitness Festival

The Round-up Health and Fitness Festival will be held on Saturday, April 17 at the Capitol in Austin. The event is being co-hosted by Gov. Perry and RunTex Founder and Owner, Paul Carrozza. Tens of thousands of Texans will convene on the Capitol Grounds as the culmination of a program initiated by Gov. Perry to get Texans fit. The event features a 10K Walk/Run and a Health and Fitness Expo, speakers, and demonstrations. For more information, visit http://www.texasroundup.org.

Texas BioDefense: Getting to Action

San Antonio-Austin Life Sciences Association (SALSA) will host its third regional biodefense summit on April 29-30 at the T Bar M Ranch hotel and conference center in New Braunfels. The event will feature speakers on regional defense capabilities in regards to bioterrorism. Sessions will focus on convergent technologies, medical community preparedness, and the testing and detection of biological agents. The conference is open to SALSA members, biomedical professionals, service providers, academic leaders and government representatives. For more information, visit http://www.bio-salsa.org.

San Juan Resigns from Greater Houston Partnership

Miguel R. San Juan, president of the Greater Houston Partnership's World Trade Division, has announced his resignation, effective April 15. San Juan leaves the Partnership to assume the position of government and public relations vice president for CITGO Petroleum Corporation in Tulsa, Oklahoma. A search for his successor is under way. San Juan was named acting president of the World Trade Division in October 1991 and was named president in January 1992.

He has been honored by the government of Chile with the Order of Bernardo O'Higgins for his extraordinary efforts to promote Houston-Chilean business ties. He also was appointed by President George H.W. Bush to the President's Export Council, the premier national advisory committee on international trade.

He served as a member of the host committee for the 1990 Economic Summit of Industrialized Nations in Houston. He has been listed among Hispanic Business magazine's 100 Hispanic influentials. He serves as a director of Amigos de las Americas, the University of Houston Alumni Organization and the Houston Hispanic Forum. He is an appointed member of the South Texas District Export Council and is an ex-officio director of the Houston Livestock Show and Rodeo. He is an alumni of the Texas Lyceum Association.

San Juan received his bachelor's degree, with concentrations in political science and Latin American studies, from the University of Houston.

Department of Homeland Security Announces Training Exercise Participants

U.S. Department of Homeland Security announced that the next Congressionally-mandated Top Officials (TOPOFF) exercise will take place in April 2005. Scenarios in the exercise will take place in Connecticut and New Jersey. Additional TOPOFF activities will be conducted within the United Kingdom as part of a partnership to strengthen security in both nations.

TOPOFF 3 is the third of the congressionally directed, weapons of mass destruction (WMD) national exercise series. The first was conducted in May, 2000, and TOPOFF 2 was conducted in May, 2003 with exercises taking place in Seattle and Chicago.