Three Veterans of State Government to Retire

Thomas Chapmond, who stood at the helm of the Department of Family and Protective Services (DFPS), and Jason Cooke, Associate Commissioner for Medicaid and the Children's Health Insurance Program, and John Keel, long time leader of the Legislative Budget Board, all announced their plans to leave their respective positions this week.

Chapmond has been directing the agency of 7,000 since November 2001, most recently guiding it through the massive Health and Human Services Commission's (HHSC) reorganization. DFPS has an annual budget of approximately $800 million and is charged with investigating abuse and neglect of children, the elderly, and people with disabilities.

Chapmond, who has spent his entire professional career in social work, informed the legislators of his intention to retire in October at a hearing on Tuesday. After years of managing shelters and building the Services to Youth At Risk program at the Texas Department of Human Services, he joined the Department of Protective and Regulatory Services in 1992, rising to the position of Executive Director in 2001. He plans to visit Mexico and learn Spanish after he leaves the agency.

Jason Cooke was responsible for oversight of the state's Medicaid and CHIP division, which administers insurance coverage for over $2.3 million Texans. He has spent 23 years in state service. While his resignation is effective presently, he will stay on at the agency as an adviser through June 11. Reflecting on the recent CHIP/Medicaid transformation project in an email to colleagues, he said that the division has "laid the groundwork for creating the best Medicaid and CHIP administration in the country."

John Keel has led the Legislative Budget Board (LBB) since 1994. The board consists of 10 lawmakers -- five from the House and five from the Senate -- and is co-chaired by the speaker and lieutenant governor. It oversees an LBB staff that serves the fiscal policy and analysis needs of lawmakers, providing fiscal notes for bills, school performance audits and other budget information. In a letter commenting on Keel's resignation, Lt. Gov. David Dewhurst commented,"John Keel leaving the LBB is a real loss for the state. John has had one noble ambition -- to provide the legislature and the people of Texas with sound fiscal policy-- and he did an extraordinary job." Keel stated that he would be taking some time off before pursuing other opportunities.

Recent Appointments

Dickson To Join Texas Youth Commission

Gov. Rick Perry has announced the appointment of Gloria "Gogi" Dickson of San Antonio to the Texas Youth Commission for a term to expire August 31, 2009. The commission provides services to delinquent youths, ages 10 to 21, through programs and facilities that administer constructive training for rehabilitation.

Dickson is owner and president of Dickson Consulting Group, which specializes in educational, environmental and governmental services consulting. An adjunct professor in the department of education at the University of Texas at San Antonio, Dickson has more than 30 years of elementary, secondary and higher education experience. She is a member of the Texas A&M University's Department of Education Development Council, Leadership Texas and the American Association for Training. A graduate of Ladycliff College in Highland Falls, NY, Dickson received her master's degree from the University of Southern California and her doctorate in education administration from Texas A&M University.

Landreth Becomes Presiding Officer Of Texas Board of Architectural Examiners

Gov. Rick Perry appointed Gordon Earl Landreth of Corpus Christi Chairman of the Texas Board of Architectural Examiners. Landreth, who is currently a member of the board, will serve as the presiding officer at the pleasure of the governor. The board regulates the practice of architecture, landscape architecture and interior design throughout the state.

Landreth is president of Cotten Landreth Kramer Architects & Associates, Inc. He is a member of the American Institute of Architects and former director of the Texas Society of Architects. He has served as president of the Kiwanis Club of Corpus Christi, as chairman of Young Life and the Downtown Management District, and as a board member of Leadership Corpus Christi. Landreth currently serves as secretary and treasurer of the Coastal Bend Blood Center and is an elder in the Southside Community Church. He received a bachelor's degree from Texas A&M University.

Barth Joins School Land Board

Gov. Rick Perry announced the appointment of Todd Barth of Houston to the School Land Board. The board supervises the management, leasing, and sale of public school lands.

Barth is president of Bowers Properties. He is a member of the State Bar of Texas and serves on the capital campaign committee for St. Luke's Episcopal Health System. Barth is a trustee of the Neuhaus Education Center and serves on the alumni board of the Owen Graduate School of Management at Vanderbilt University. A graduate of the University of Rochester in New York, he received a law degree from Vanderbilt University School of Law and a MBA from Owen Graduate School of Management at Vanderbilt University. His term will expire Aug. 29, 2005.

On May 18, 2004, Gov. Perry announced that Earnest Gibson III will serve on the Texas Southern University Board of Regents. Also announced on May 18 were three additions to the Texas Council on Environmental Technology: Richard William Tock, Randall J. Charbeneau, and Deborah June Roberts. Ann Maria Pfeiffer will join the Texas Historical Records Advisory Board.

State Employee Turnover Rate On the Rise, Pay/Benefits Blamed

Data released by the State Auditor's Office reveal that the state employee turnover rate increased to 17.4 percent last year, up significantly from the rate of 14.8 percent in FY 2002. Until 2003, employee turnover rates had declined for three straight years. The Texas Public Employees Association (TPEA) points to non-competitive salaries and benefit cuts as the main culprits driving many state employees to seek work elsewhere. To bolster their argument they cited the State Auditor's employee exit survey which identifes "retirement" and "better pay/benefits" as the two top reasons government workers are leaving civil service.

The Auditor's information indicates that the high turnover costed Texas taxpayers at least $267 million in 2003, a $40 million increase over 2002. At its current rate, this expense will balloon to more than half a billion dollars for the biennium.

TPEA Executive Director Gary Anderson proposed a 3.5 percent partial compensation offset, effective September 1, as a temporary solution to check the rapid turnover and counteract the effects of declining benefits. A 3.5 percent offset for all employees would require $98 million. Looking towards the 2005 session of the Texas Legislature, TPEA has created a legislative agenda that calls for pay raises of 4.5 percent, with appropriate minimum dollar monthly increase through both years of the 2006-2007 biennium.

State Awards $25 Million Grant for Advanced Diagnostic Imaging Center

Governor Rick Perry this week announced a $25 million grant from the Texas Enterprise Fund (TEF) to attract a new Center for Advanced Diagnostic Imaging at the University of Texas Research Park.

In addition to the $25 million grant from the TEF, another $25 million was committed by M.D. Anderson Cancer Center and the UT Health Science Center at Houston. GE Healthcare is committing $30 million in equipment and personnel to the project, which will hasten the development of new commercially marketable biomedical imaging technologies. It is hoped the center will have a significant postitive impact on Houston by creating a top-tier, one-of-a-kind dynamic imaging research center.

In December 2001 Perry created the Council on Science and Biotechnology Development to look at ways to create partnerships between institutions of higher learning, industry and government to promote biotechnology as an economic development tool. Perry's plan at the time was to find ways Texas could tap into the billions of dollars in research and economic development money flowing into biotech leaders like San Diego and Boston.

Last year the Legislature approved the governor's request for the $295 million TEF to help create new jobs in Texas and recruit new employers.

Giddings, Hamilton, Heflin, and Zaffirini to Speak at Upcoming Legislative Conference

The 4th Biennial pre-legislative Conference, scheduled for October 7th at the JJ Pickle Center, will include three panels related to working with the Legislature:

• Working with the Legislature during sessions - The focus will be on areas like testimony tips, helpful written support, and describing the line between providing information and advocacy.
• Working with Legislative Staff during sessions - Recognizing how busy members are, how do you best work with staff to optimize the flow of information between your agency and the legislature?
• Working with Legislators and their Staffs throughout the Year - Dealing with constituent issues, keeping legislators from being surprised by major events occurring in their districts, and dealing with unexpected agency financial problems are among the examples to be covered by this panel.

Today, the sponsors are announcing the first of these panels. House Business and Industry Committee Chair Helen Giddings, House Appropriations Chair Talmadge Heflin, and Senate Finance Vice Chair Judith Zaffirini have agreed to serve on the panel that will discuss working with the legislature during the session. These three highly respected legislators have a wealth of experience in a wide variety of legislative committees.

Deputy Comptroller Billy Hamilton will moderate the panel. Billy has served as Deputy for Comptrollers of both parties and has earned widespread respect for his ability to present the facts in an objective, forthright manner. In addition to moderating the discussion with our three legislators, Billy will offer his own insights from having worked with the legislature for many sessions.

• Mr. Billy Hamilton: Mr. Hamilton has served as Chief Deputy Comptroller of Public Accounts of Texas since 1999. Hamilton previously served as Deputy Comptroller for seven years from 1991 to February 1998. As Deputy Comptroller, Hamilton is responsible for the day-to-day management of the Comptroller's office, which employs 2,800 people in Austin and in more than 40 field offices around the state and in three other states. Prior to joining the Comptroller in 1991, Hamilton was director of state and local services for the Policy Economics Group of KPMG Peat Marwick in Washington, D.C. He has been involved with state tax administration and policy for over twenty years.


• Rep. Helen Giddings: Rep. Giddings, of De Soto, is currently serving her fifth-term in the Texas House of Representatives. She is the first woman and the first African-American to Chair the Business & Industry Committee. She is also a member of Higher Education and House Administration committees and Chairs the Research and Oversight Council. Throughout her legislative career she has focused on a number of issues including consumers' rights and equity, literacy, domestic violence, and the promotion of affordable housing incentives.


• Rep. Talmadge Heflin: Rep. Heflin is serving in his 11th term as State Representative from Harris County District 149 (parts of Alief, west Houston, and Katy). A longtime legislative leader on budget and taxes -- and in several sessions, the only member of the House on both the Appropriations and Ways & Means committees -- Mr. Heflin was named Chairman of the House Appropriations Committee by Speaker Tom Craddick at the beginning of the 78th Legislature in 2003. By virtue of his Appropriations chairmanship, Mr. Heflin is also a member of the Legislative Budget Board, the Legislative Audit Committee, and the oversight board for the Legislative Reference Library. Speaker Craddick has also named Mr. Heflin to the Select Committee on Public School Finance.


• Sen. Judith Zaffirini: The first border resident elected to represent District 21 in 20 years, Sen. Zaffirini is the first Hispanic woman senator in Texas. She has seventeen years of experience in the Senate, where she has sponsored and passed legislation on issues ranging from student loans to children's immunization to dual language programs. She served three consecutive terms as Chair of the Senate Health and Human Services Committee and five terms as a member of the Appropriations Conference Committee. In 2003, she was appointed Vice Chair of the Senate Finance Committee and to the Senate Committees on Education and Health and Human Services, among others.

$20.7 Million Awarded for Terrorism Prevention

It has been announced that 433 Texas jurisdictions will receive more than $20.7 million in federal funds for programs to improve local homeland security efforts through increased intelligence, warning communication and facility security.

The 2004 Law Enforcement Terrorism Prevention Program Funding (LETPPF) grants will help communities pay for planning activities, intelligence distribution networks, equipment, and training exercises. Funds are distributed by the state to local councils of governments (COGs) based on critical infrastructure, population density and population. Area risks and vulnerabilities assessments help determine city and county funding.

Last week, the governor announced $58.3 million in First Responder Equipment Grants for purchase of equipment, security planning and training. Whereas the grants announced last week focus more on response efforts, the LETPPF grants focus on prevention.

A full list of grant recipients is available at: http://www.governor.state.tx.us/divisions/press/initiatives/LETPPFgrants2004.

Senate Committee Members Push for Changes to Indigent Health Care

Members of the Senate Health and Human Services Committee say changes need to be made regarding how Texas pays for indigent health care. Last year, local governments and hospitals spent millions of dollars paying for indigent health care bills not covered by the counties or state. Oftentimes, money was spent on non-residents. In 2002, the Baylor hospital in Dallas spent $14 million caring for indigent patients who did not live in Dallas County. The hospital was not reimbursed for its costs.

The state requires that counties provide medical care for any person who makes less than $163 a month for a single person, or 21 percent of the federal poverty level. Lawmakers argue that this threshold is too low and that many families without health insurance do not qualify. The Texas Department of Health County Indigent Health Care program provided $7.7 million to counties last year to help pay for indigent health care. The committee is considering a reorganization of the program to allow money to be redistributed among regions rather than statewide and will also possibly examine whether or not providing indigent health care should be the responsibility of individual counties.

Texas AG Files Another Medicaid Fraud "Whistleblower" Lawsuit

On the heels of two multimillion-dollar settlements with two major drug manufacturers, Texas Attorney General Greg Abbot has filed another Medicaid fraud "whistleblower" lawsuit against three drug companies. The suit, filed in Travis County District Court, alleges that Illinois-based Abbott Laboratories Inc. and Baxter Healthcare Corp. and Pennsylvania-based B. Braun Medical Inc. have engaged in a Medicaid fraud scheme designed to cause state and federal Medicaid programs to reimburse distributors, wholesalers, pharmacies, clinics and other customers of the defendants at grossly inflated rates. The alleged excessively high reimbursements persuaded many customers to form close business ties with the drug companies, creating a long-term, but illegal, market niche for them, according to the Attorney General's Office.

The suit requests three times the actual damages, thought to be around $8 million, plus civil penalties, attorneys' fees and cost. The state received close to $50 million in settlements with the two drug companies accused of the same wrongdoing.

UTMB to Create Massive Biotech Center

The University of Texas Medical Branch (UTMB) at Galveston will create a Center for Technology Development, which will accelerate the translation of UTMB's research into medical goods and technologies.

A key element of the Center is a "business incubator" which will be established on UTMB's campus: it will assist start-up companies by providing office space and basic business resources for the first few years of their existence. The "Office of Research Translation" will also serve a vital role at the Center. Along with UTMB researchers, these offices are cooperating with a coalion of academic and business entities expected to receive about $48 million in federal support over the next five year for biodefense-related research.

Furthermore, the National Institute of Allergy and Infectious Diseases has named UTMB as the site of its Galveston National Laboratory, which will be a $167 million infectious-disease research facility that could generate over $ 1 billion dollars in revenue over the next 20 years.

Strategic Partnerships, Inc. (SPI) is a Texas-based, nine year old research and knowledge based consulting firm offering business development and public affairs services. To learn more about the SPI team click here or contact Crystal Kuhs at 512-531-3900.

San Antonio Delegation Travels to Washington to Fight for Bases

A delegation led by San Antonio City Councilman Carroll W. Shubert has gone to Washington, D.C. to try to persuade officials not to close any of San Antonio's four active military bases during the latest round of base closures. San Antonio officials are worried the closure of Randolph Air Force Base, Lackland Air Force Base, Fort Sam Houston or Brooks City-Base could have a negative economic impact on the city. In 1995, the closure of Kelly Air Force Base by the government resulted in the loss of more than 10,000 local civilian jobs.

SBA Launches Business.gov Web Site to Connect Businesses with Federal Agencies

The U.S. Small Business Administration this week announced the launch of a Web site that will serve as the business gateway for U.S. businesses to connect with federal agencies, providing specific businesses to connect with federal agencies, providing specific business tools and resources. Currently in its initial phase, Business.gov is a powerful Web site that will provide one-stop, online federal government information and services that businesses need and can access in one easy-to-find location: http://www.business.gov.

California Embraces E-Government

California's State Controller announced at the Western Region Government Technology Conference a wide-ranging set of e-government proposals designed to save the state as much as $37.5 million a year. The Controller's Office is currently seeking proposals from technology companies for an online state payroll and benefits system. While the system is expected to cost $70 million to $100 million to build, it will save the state up to an estimated $20 million a year. Proposals will soon be accepted for a $3 million consolidated payment system that would reduce paper and processing time of payments to cities and counties. E-initiatives currently underway include an e-file system for taxpayers saving the state around $840,000 a year and an online travel expense claiming system for state employees which will ultimately save $9 million each year. Future plans include the launch of an inter-agency payment system.

Bayport Construction Could Start As Early As Next Week

Construction on the Port of Houston's $1.2 billion Bayport container and cruise terminal project could begin as soon as June 1, after contracts worth almost $100 million were approved by the port authority this week. Contracts awarded for the first phase of the project include a $62.4 million wharf and dredging contract and a $30.1 million contract for four new dockside electric container cranes. Negotiations are underway regarding a $37 million contract for container yard construction. Construction of the first phase of the new terminal calls for development of 1,600 feet of the planned 7,000-foot wharf and about 65 acres of what will eventually be a 1,043-acre facility. The initial phase of the project is expected to be completed in 2006. Bayport is slated to have seven container berths and three cruise berths and is expected to take two decades to complete.

Event Links

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

Identity Crime Regional TrainingVarious Dates

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

TASA 56th Annual Summer Conference - 6/13/04 - 6/15/04

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

TASSCC 2004 Conference: IT Olympics--Go For the Gold - 8/9/04 - 8/11/04

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.



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

Past ABJ articles by Mary Scott Nabers

Opportunities taking off at airports around Texas - 4/19/2004

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 20 - 5/21/04

Volume 2 Issue 19 - 5/14/04

Volume 2 Issue 18 - 5/7/04

Volume 2 Issue 17 - 4/30/04

Volume 2 Issue 16 - 4/23/04

Volume 1 and Volume 2 Archives 11/7/03 - 4/1/04

News from Strategic Partnerships, Inc.

Steve Robinson, formerly Executive Director of the Texas Youth Commission (TYC), has recently joined Strategic Partnerships, Inc. (SPI), where he will oversee the criminal justice consulting practice. While at TYC he was responsible for over 4,800 employees and an annual budget of $240 million. He has been involved in Texas Government since 1975 and has held many positions within the Juvenile Justice system. He currently assists a number of community efforts focused on youth.

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.

Resources

A Report on Contract Administration for the Texas Integrated Eligibility Redesign System

From the State Auditor's Office: On September 1, 2003, responsibility for TIERS began transferring from the Department of Human Services (DHS) to the Health and Human Services Commission (HHSC) as a result of the consolidation of health and human services agencies. As part of this transition, HHSC reports that it is re-evaluating TIERS's core functions and is terminating or extending related contracts. At this time, we cannot determine these changes' effect on TIERS's budget, time line, and functionality, which are the project elements our audit objectives were to address. According to DHS, $210 million was spent on TIERS between September 1999 and February 2004. DHS estimates that the amount expended since September 1999 will reach $296 million by October 2005, which makes TIERS Texas's largest information technology project currently in development. The full report is available here.

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

2004 NACo Annual Conference and Exposition

NACo's Annual Conference and Exposition is the place for county officials to network, attend educational sessions and workshops and meet with companies that sell products to counties. It draws some 4,000 officials annually and is held in a different county each year. As county governments are called upon to perform more and more services, this conference offers county officials and employees their best opportunity to discover new ways to address the needs of their constituents. The conference will be held July 16-20 in Maricopa County, Phoeniz, Arizona. For more information, visit http://www.naco.org.

US Conference of Mayors Annual Conference

The Conference of Mayors will be held in Boston, Massachusetts on June 25-29. Speakers include Sen. Edward M. Kennedy and Housing and Urban Development Secretary Alphonso Jackson. A draft agenda and conference details are available at http://usmayors.org/uscm/home.asp.