Austin Economist Predicts Promising, if not Booming, Year Ahead

A principal with AngelouEconomics Inc., an Austin-based economic consulting firm, estimates that Central Texas will add 14,300 new jobs in 2004. Angelos Angelou also predicted that employers would add 20,400 jobs in 2005. The forecast proved a relief for many who recalled Angelou's predictions for 2003, which projected an additional 3,000 layoffs for the region, with a recovery in 2004-2005 resulting in only 17,100 new jobs.

The Austin economist also maintains that 70% of the new jobs will come from the government, services, and retail sectors. Several hundred regional manufacturing jobs will be lost, however, according to his estimates.

The real estate market will develop at a slower pace, seeing a recovery in approximately two to three years as the job market picks up. The Austin office vacancy rate, which came in at 25 percent in the end of the fourth quarter, should drop to 17 percent in the next two years, according to CB Richard Ellis economists.

New Committee Formed to Fight Insurance Fraud

The Texas Department of Insurance (TDI) has joined with the private Insurance Council of Texas to combat the growth of insurance fraud in the state. The TDI's Fraud Unit originally met with the Council, an organization that represents 500 property and casualty companies, to simply discuss the problem. Together they determined that a more formal arrangement, incorporating the various private and public actors concerned with insurance fraud, was the only way of effectively confronting the issue. Their collaboration has resulted in the creation of the Texas Committee on Insurance Fraud, which will work with local and national organizations on a solution.

The goal of the new committee is to discuss what is needed and propose legislation that would be helpful to officials responsible for arresting and prosecuting persons responsible for insurance fraud. Furthermore, the committee intends to enhance the state's fraud-fighting capabilities through public education, increased cooperation between fraud-fighting organizations, and strengthening existing laws.

Craig Sparks, president of the Union Standard Insurance Company of Dallas, will serve as chairman of the Texas Committee on Insurance Fraud, which will be divided into various focus groups: property and casualty, life, health, workers' compensation, enforcement, and education. The committee includes more than 50 individuals and organizations. They will meet on January 28th in Austin.

Senate Run-Offs for Bivins' and Ratliff's Districts…

Coming off the special elections of Tuesday, January 20, both former Senator Teel Bivins' seat and former Senator Bill Ratliff's seat will be decided by run-offs in late February. Senate District 1, Ratliff's former district, will see a runoff between Democrat Paul Sadler, a former State Representative from Henderson, and Republican Kevin Eltife, previously the Mayor of Tyler. Paul Sadler garnered 39.47% of the vote in the general election, while Kevin Eltife won 36.02% of the vote. Placing third, Republican Tommy Merritt took 21.38% of the vote.

Likewise, Kirk Edwards, a Republican from Odessa will face Republican Kel Seliger of Amarillo in the runoff for Senate District 31, Ambassador Teel Bivins' district. Edwards, an oil and gas executive, took home 20.56% of the vote, while Seliger, the former Amarillo Mayor, won 35.72%.

Governor Perry is expected to call the runoff on February 17, 21, or 24, so that the new senators can be in office for the state legislative special session on school finance reform in April.

TEXAS SHORTS:

Texas a Frontrunner in Wind Energy

According to a report issued by American Wind Energy Association, Texas is a leader amongst states in the addition of wind power. In 2003, the state came in fourth in the nation, producing 204 new megawatts of wind energy. Minnesota, which added 226 megawatts, lead the country. Nationally, America added almost 1,700 megawatts of wind power in 2003, which is enough to serve 425,000 average households. The country currently produces over 6,370 megawatts via wind farms and utility-scale turbines operating in 30 states. Texas ranks second only to California for overall wind energy production, at a rate of 1,293 megawatts annually.

Smallest Raises for Teachers in a Decade

According to a survey from the Texas Association of School Boards, teachers' salaries went up a meager 1.5% this year-from $39,972 to $40,571-the smallest salary increase in the past ten years. The increases did not match the 2.2% inflation rate. Officials at TASB blamed the budget constraints for the negligible increase, noting that pay raises often mean cutting other valuable programs. 12 districts reported a freeze in teacher salaries. Richard Kouri, a spokesman for the Texas State Teachers Association also noted that the state cut health benefits by $500 and added to teacher retirement expenses last year, in essence nearly canceling out the average raise of $599.

Texas Enterprise Fund Update

Governor Perry discussed the success of the Texas Enterprise Fund at a journalists' luncheon this week, stating that the $295 million venture had already produced tangible results. As examples, he cited Tasus Inc.'s decision to bring 160 new positions to Georgetown and the planned addition of 350 workers at Sematech International due to a $40 million allotment. The Texas Enterprise Fund is made up of a one-time appropriation of $295 million from the state's Economic Stabilization, i.e. "Rainy Day", Fund. The money is to be used to bring jobs, companies, and new industries to Texas.

Texas Legislative Conference Honors David Robinson as Texan of the Year

Retired San Antonio Spurs' center, David Robinson, received the Texas Legislative Conference's Texan of the Year award. Robinson received the award, which recognizes outstanding public service benefiting the state, for his work with the Carver Academy, a school he helped establish, and his creation of family support programs via the David Robinson Foundation.

Texas Round-up, Perry's Statewide Fitness Initiative

Gov. Perry recently launched a program that aims to improve the health and well-being of Texans, while simultaneously reducing the amount Texas taxpayers and businesses lose due to a lack of fitness in the general population. According to the Texas Department of Health, this preventable condition costs Texans almost $10 billion annually in health care system usage and lost productivity in the workplace. The governor has teamed with the TDH to develop and implement the health education program, which focuses specifically on the epidemic of obesity confronting Texas. The initiative involves an online activity training guide, a scheduled 10K and fitness festival to be held in Austin on April 17, and a "Governor's Challenge" to encourage participation in individual cities/regions. For more information, see http://www.texasroundup.org.

NEW SPI GOVERNMENT OPPORTUNITY PACKAGE

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 procurement information package comprised of:

• Electronic information on unannounced procurement opportunities for over 120 state agencies plus major cities, counties, and other entities (you choose 3 industries).
  
  
• One year of customized daily bid monitoring.

RRC's 54th Annual State of the Industry - 1/28/04

Second Annual Courts and Local Government Technology Conference - 01/28/04-01/29/04

2004 Texas Higher Education Coordinating Board Facilities Conference - 02/04/04-02/06/04

Fourth Annual Purchasing and HUB Connection Forum - 2/11/04

58th Annual Texas Association of School Business Officials Conference and Expo - 02/23/04-02/27/04

Austin Mobility Roundtable 2004: The Future is Unwired - 3/11/04 - 3/12/04

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

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

Past ABJ articles by Mary Scott Nabers

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

Fingering opportunities in biometric technology - 11/03/2003

It's smart for vendors to watch 'smart card' deals - 10/6/2003

Watch Cap Metro, AISD for vendor opportunities - 9/22/2003

Watch state water board for flow of grant money - 9/8/2003

New state laws open up market at state agencies - 8/25/2003

Strategic Partnerships, Inc. (SPI) is a Texas-based, nine year old research and knowledge based consulting firm offering business development and public affairs services.

For details on SPI service offerings call Crystal Kuhs at (512) 531-3900. To see biographical data on members of the SPI team click here.

Texas Government Insider Archives

Volume 2 Issue 2 - 1/16/04

Volume 2 Issue 1 - 1/8/04

Volume 1 Issue 7 - 12/31/03

Volume 1 Issue 6 - 12/18/03

Volume 1 Issue 5 - 12/11/03

Volume 1 Issue 4 - 12/4/03

Volume 1 Issue 3 - 11/20/03

Volume 1 Issue 2 - 11/13/03

Volume 1 Issue 1 - 11/7/03

News from Strategic Partnerships, Inc.

Mary Scott Nabers, CEO of Strategic Partnerships, Inc., was elected to the St. David's Health Care System Board of Trusteesfor a term beginning January of this year. The St. David's Health Care System includes the St. David's Medical Center, South Austin Hospital, North Austin Medical Center, and Round Rock Medical Center.

Upcoming Events:The LBJ School of Government Affairs and Strategic Partnerships, Inc. (SPI) have scheduled the next Legislative Communications Conference for October 7, 2004. The day long conference will again be held at the JJ Pickle Center.

Resources

Fiscal Year 2003 Quality Assurance Team's Annual Report

Summary of 729 new statutes that became effective as of the beginning of fiscal year 04 in Texas

New Texas Fact Book 2004

Texas International Economic Development Fact Sheet

Public Hearings

House Select Committee on Transportation-- 9:00am, January 26, 2004, E2.012

House Select Committee on State Health Care Expenditures-- 2:00 pm, January 29, 2004, Capitol Extension E1.010

Insights from Government Insiders:

"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)

"One of the reasons I'm here is because Dr. Faulkner was willing to engage in an experiment. He was one of the few-though two years later there are many more-that believe education is a business, and it needs to be run as a business with a number of for profit concepts, etc…He brought me in here to see if we, together, could convert the way we think about running this university to a more business kind of concept." -- Kevin Hegarty (volume 1 issue 6)

"When Electronic Procurement gets implemented, it will be the equivalent of moving state purchasing from a horse drawn carriage to a super-sonic aircraft. There is no in-between." -- Sil Romero (volume 1 issue 3)

"Both the TxMAS and Reverse Auction processes, which were mandated by legislation passed in the 77th Legislative Session, provide viable purchasing alternatives to the traditional competitive sealed bid purchasing method and have generated savings and other benefits for the State." -- Texas Building and Procurement Commission (volume 1 issue 5)

Lt. Gov Dewhurst Announces New Senate Committee Chairs and Interim Charges

The Lieutenant Governor's Office published the Senate Committee Interim Charges this week, as well as a number of new Committee Chairmen. The Texas Government Insider will review the Interim Charges of the remaining Senate Committees in upcoming issues.

The Finance Committee, formerly chaired by Sen. Bivins, will now be chaired by Sen. Steve Ogden, R-Bryan. The committee is responsible for General Budget Oversight, as well as Revenue Oversight. This year, the committee has specific charges to monitor the implementation of the HHSC reorganization, as well as review tuition deregulation and public school finance.

Sen. Robert Duncan, R-Lubbock will Chair of the State Affairs Committee, a position left vacant due to Sen. Ratliff's retirement. This year, the senate committee's main charges involve state group health insurance, health insurance accessibility for Texans, medical malpractice rates, and mandatory liability insurance for the nursing home industry.

The Jurisprudence Committee, with Sen. Jeff Wentworth, R-San Antonio, replacing Sen. Duncan as the new Chair, will evaluate the jurisdiction of all local and state courts. The committee will also examine judicial salaries, supplements, retirement compensation, and benefits for judges.

Taking the reigns from Sen. Ogden, Sen. Todd Staples, R-Palestine, will serve as Chair of the Infrastructure, Development and Security Committee. The committee will study the implementation of HB 3588, which dealt with the full range of transportation issues facing Texas. This committee is responsible for examining the financial responsibility verification program managed by the Department of Insurance and the Department of Public Safety. The group will also evaluate innovative approaches to highway construction and maintenance and Trans-Texas Corridor projects. Additionally, the committee will look into the distribution of federal funds for Homeland Security measures and evaluate state and local efforts to combat terrorism.

The Committee on Natural Resources Subcommittee on Agriculture, previously chaired by Sen. Duncan, will be chaired by Sen. Mike Jackson, R-La Porte. This subcommittee will focus on early detection, treatment, and exclusion of diseased plants and animals, as well as new technologies and business opportunities related to agriculture.

Texas Committee on Insurance Fraud - Inaugural Meeting

The Texas Committee on Insurance Fraud will hold its first meeting at the Texas Department of Insurance in Austin on January 28, 2004, at 2:00pm. Representatives from the National Insurance Crime Bureau, the Coalition Against Insurance Fraud, and the National Health Care Anti-Fraud Association will address the meeting. For more information, call Mark Hanna at 512. 326.7616 or visit http://www.tdi.state.tx.us/fraud/frpress.html.

NanoForum 2004: 1st International Conference on Nanotechnology

Sponsored by Semiconductor Materials and Equipment International, at the Austin Hilton on November 14 through 17. NanoForum 2004 is expected to draw 500 participants from semiconductor equipment vendors and nanotechnology startups. The event is designed to educate semiconductor equipment vendors about the potential new market that nanotechnology may offer. It's also designed to help young nanotech companies find semiconductor-related companies that can assist in their development. Nanotechnology involves the manufacturing of devices, machines and materials by controlling individual molecules. For information, go to http://www.semi.org.

State Council on Competitive Government Meeting

The next CCG meeting is Thursday, February 12 at 10:00 a.m. at the Capitol Extension E1.014, in Austin TX. The agenda has yet to be published. For more information, visit the CCG's website at http://www.ccg.state.tx.us.

Perry Names Herring, Reappoints Hunt To Texas Water Development Board

James Herring of Amarillo will join the Texas Water Development Board and Jack Hunt of Houston will continue to serve as Vice Chair, following appointments by Gov. Perry this week. Both appointments will expire December 31, 2009. The Texas Water Development Board bears responsibility for statewide water planning and administration of financial programs for water supply, wastewater treatment, flood control and conservation projects.

Herring is President and Chief Executive Officer (CEO) of Friona Industries, L.P., a cattle feeding and livestock feed manufacturing company. He is a past president of the Texas Cattle Feeders Association and a board member of the Amarillo Area Foundation. He also serves as a director at the Cal Farley's Boys Ranch and is a former chair of the Cal Farley's Boys Ranch Foundation. A graduate of the University of Texas at Austin, Herring received his master's degree from Harvard Business School.

Hunt was first appointed to the board in 1998 and currently serves as the Vice Chair. He is President and CEO of King Ranch, Inc., a land-based multi-business resource company. Hunt is a member of the Agricultural Policy Advisory Committee to the Office of the U.S. Trade Representative and a trustee of Baylor College of Medicine. He serves as director of the Texas and Southwestern Cattle Raisers Association and is a former director of the Arvin-Edison Water Storage District and former president of the Tejon-Castac Water Storage District. An honors graduate of Williams College in Williamston, Mass., Hunt received a master's of business administration with an emphasis in agribusiness from Harvard Business School.

Federal Grants for Texas Fire Fighters

Michael D. Brown, Under-Secretary of Homeland Security for Emergency Preparedness and Response, announced another 151 grants to fire departments in round 29 of the FY03 Assistance to Firefighters Grant Program. Since June of 2003, Texas Fire Departments have received $26,712,370 in federal grants. While some of the money went toward fire prevention efforts and the purchase of new vehicles, most of the money is allocated for Fire Operations and Firefighter Safety. Nationally, around 7,800 fire departments have now received almost $619 million in federal monies to support their role as first responders in the neighborhoods and communities they serve. For a breakdown of funds for Texas by city, visit http://www.usfa.fema.gov/fire-service/grants/afgp/awards/2003awards/03awards/03tx.shtm.