All Eyes on HHSC as Eligibility Determination Report is Released

House Bill 2292, which was passed during the 78th Legislature, requires the Health and Human Services Commission (HHSC) to examine ways to streamline the process of determining eligibility for programs such as CHIP, Medicaid, Long-term Care, Financial and Nutritional Assistance and Community Based Support. Currently, the state spends almost $600 million year to determine eligibility for these programs. Numerous private sector vendors stand ready to offer the state options and savings through outsourcing.

House Bill 2292 requires HHSC to establish "at least one but not more than four" call centers for the purposes of determining and certifying a participant's eligibility and need for services related to the programs. The legislation directs HHSC to first determine whether call centers are cost effective and whether the state should outsource the functions of the call centers to private vendors.

In order to comply with the legislative mandates, an integrated eligibility project team was formed last year. The team was charged with determining whether an integrated eligibility system could reduce inefficiencies and costs associated with multiple eligibility processes, and if call center processes and technologies could support integrated eligibility.

Additionally, the team was charged with investigating the feasibility of employing the state's existing 2*1*1 assets for select HHSC eligibility determination processes and to propose next steps for planning, designing, implementing and operating an expanded 2*1*1 program.

The Integrated Eligibility Team, which is comprised of HHSC staff, studied the issue and determined that current 2*1*1 assets and other technology should be further examined for possible use in combining eligibility determination processes into a centralized Converged Call Center approach. The team concluded that:

• There is opportunity to create a new service delivery model for eligibility determination that is client centric and optimizes business processes.
• A number of current eligibility related activities may be centralized in a Converged Call Center environment to more efficiently use capital and human resources.
• Preliminary research suggests potential for substantial cost savings for HHSC.
• Opportunities exist to improve the client experience while increasing client responsibility.

The eligibility consolidation effort consists of four phases. The first, discovery, has been completed with the delivery of this report, while the second phase centers on the presentation of a valid and viable cost-effective business case for using a call center solution. The third phase, which is predicated on the approval of the business case, will be its implementation and transformation of the system. The fourth and final phase will center on the ongoing improvement and optimization of the new system.

All eyes are truly on HHSC as activities continue. Much interest has been generated and it is expected that this will be a major public/private sector partnerships designed to save the state millions of dollars each year.

Interesting New Concept Being Touted by Dallas Business Leaders: A Trend to Watch in Texas!

A private group, The Central Dallas Association (CDA), chaired by David Biegler, is considering the establishment of a private company to manage development in the downtown area. The company would assume responsibility for public construction projects, building roads, and a number of other duties that traditionally fall under the purview of the municipal government. The concept has met with both positive and negative reactions.

Texas Government Insider presents this overview because many believe that such initiatives will receive serious consideration in the months to come. Here is a bit of history about the efforts and the controversy behind this initiative.

The CDA, the main proponent of this concept, has two options for forming such a company: creating either a "local government corporation" (LGC) or a "municipal management district" (MMD). Under the terms of a LGC, the organization could "construct or improve a transportation project" and "issue bonds and notes to carry out its purpose." MMDs, which are allowed by the Texas Water Code, have slightly different powers available, including the ability to incur debt, issue bonds, provide services-both inside and outside of the MMD-and establish rates, fares, tolls, rents, or other fees for the use of any improvements constructed or maintained within the district.

Houston has many LGCs/MMDs operating within its city limits. These groups manage distinct geographic areas and generally serve the interests of a single, distinct neighborhood. Houston leaders indicate that such entities have been successful enough to be considered positive initiatives by most citizens.

Some Dallas residents however, are skeptical about allowing a privately held corporation such powers within the city. While the CDA itself holds the option of a LGC or MMD in a positive light, opponents to the plan note significant differences between the Houston situation and the scenario developing in Dallas. Most skeptics are concerned primarily about the position of the City Council, the citizen's normal path of recourse, in an LGC/MMD environment.

It is being argued that in a municipally incorporated environment, the City Council would have little authority over the decisions of the LGC or MMD. Another concern rests on the fact that while Houston has multiple LGC/MMD type organizations, Dallas would have only one single, highly powerful authority.

As local governments throughout Texas struggle with issues of organization in budget-tight times, alternative solutions such as LGCs and MMDs will inevitably be presented. The situation in Dallas offers an interesting case study for the benefits and challenges of such solutions.

Darren Whitehurst Named Public Affairs Director of Texas Medical Association

Darren Whitehurst, currently Vice President of Government Relations for the Texas Hospital Association, will soon become the new Director of Public Affairs for the Texas Medical Association (TMA).

"Darren Whitehurst knows Texas, he knows health care, and he knows the Texas Legislature inside and out," Dr. Louis J. Goodman, Executive Vice President of TMA stated.

Mr. Whitehurst worked directly with such leaders as former Lt. Gov. Bob Bullock, Sen. Chris Harris (R-Arlington), and Rep. Steve Wolens (D-Dallas). He also served as the clerk for the House Committee on Business and Industry and the House Committee on Transportation and held the position of Senior Manager at Methodist Medical Center in Dallas and Saint Francis Hospital in Tulsa, Oklahoma.

TMA is the largest state medical society in the nation, representing more than 39,500 physician and medical student members. It is located in Austin and has 120 component county medical societies around the state. TMA's key objective since 1853 is to improve the health of all Texans.

Lawmakers Call for Audits of University of Texas and Texas A & M Systems

The Legislative Budget Board (LBB) decided earlier this week to review the finances of both the University of Texas and Texas A & M University systems. The audits follow decisions to increase tuition at UT Austin by 26 % and Texas A & M by 21 %.

Facing tight budgets, legislators delegated tuition decisions at state universities to the Boards of Regents. The universities, in turn, dealt with funding shortfalls by raising tuition. The increases, however, prompted an interim study on the issue.

The performance reviews, which will be conducted by the LBB, come in addition to that study, and will examine all of the university systems' finances. Traditionally, the Legislature appropriated 27 % of the budgets of the two systems and retained authority over how that money was spent. University Regents were responsible for the substantial remainder of the budget. These audits, however, will encompass the complete budgets of both university systems, not just the monies appropriated by the Legislature.

TEXAS SHORTS:

U.S. Senate Approves $318 Billion for Infrastructure Improvements

Despite colleagues' arguments against increased spending, a bipartisan coalition pushed through a $318 billion highway and mass transit measure in the U.S. Senate. Despite the White House's opposition to such a move (the bill calls for $62 billion more than the President's budget suggested), the six-year proposal was approved by a vote of 76 to 21. Supporters of the measure argue that the money will result in construction jobs and pay for needed road and transportation projects across the nation. The bill would increase the current six-year plan for highway and mass transit spending by almost 47%. The U.S. House is drafting a similar bill that calls for $375 billion for the same purpose. Republican leadership of both the U.S. Senate and the House of Representatives is pushing for closer adherence to the President's request.

UT a National Leader for Patents

Standing out amongst its peers in higher education, the University of Texas (UT) ranked fourth in the nation for the most patents received in 2003. According to the annual list issued by the U.S. Patent and Trademark Office, UT was awarded 96 patents last year, up from 93 in 2002. The University of California has been the nation's frontrunner for ten consecutive years, producing 439 patents in 2003 alone. The California Institute of Technology and the Massachusetts Institute of Technology took the second and third place positions, respectively.

State Receives Final Payment for Medicaid Fraud

The state of Texas received the final payment in a $5 million settlement from healthcare provider HCA, Inc., who was accused of defrauding the state's Medicaid program in the early nineties. The payment, which is meant to correct many instances of fraudulent reporting and over-billing by the company, also includes a $2.6 million criminal penalty. In Texas alone, HCA, Inc. has been held accountable to federal and state governments for $9.5 million. Nationally, the Nashville, TN-based company has paid $1.7 billion in damages and fines for criminal and civil violations related to Medicaid fraud.

Hutchison Teams With Others to Prevent Internet Tax

Sen. Kay Bailey Hutchison, along with three other U.S. Senators, drafted legislation to extend a ban on taxing Internet access for two more years. Supporters of the ban worry that, without it, local governments would begin levying taxes on all Internet related activities, from Web surfing to email traffic.

Many local governments are struggling as traditional revenue from telephone calls and phone-taxes evaporates because of increased reliance on the Internet for business and personal communication. The two-year moratorium would allow Congress more time to deal with the dilemma.

Texas Economy Ahead of the Curve in 2004

John Saving, a senior economist at the Federal Reserve Bank of Dallas, stated that he expected Texas to lead the country in economic performance. The analyst predicted that Texas should "outperform the national economy" in 2004. He warned, however, that disruptions in high tech, energy, or Mexico could compromise that performance.

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

NEW SPI GOVERNMENT OPPORTUNITY PACKAGE

SPI has a dedicated Information Services (IS) Department that researches governmental entities and analyzes data for future and current business opportunities. IS provides these key services:

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



• Bid Notifications - 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.

Please contact SPI at 512-531-3905 for more details.

Past ABJ articles by Mary Scott Nabers

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

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

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 5 - 2/6/04

Volume 2 Issue 4 - 1/30/04

Volume 2 Issue 3 - 1/23/04

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.

As we here at SPI gear up for next fall's Legislative Communications Conference, we'd like to hear 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.

Michelle Luera joins Strategic Partnerships, Inc. after serving as a policy analyst for the Sunset Advisory Commission for six years. As a policy analyst, Michelle performed background research on agencies under Sunset review, interviewed agencies' staff and various stakeholders who interact with the agencies, analyzed policy issues, and developed and presented staff recommendations to the Sunset Advisory Commission. She holds a an undergraduate degree in Environmental Studies from Mount Holyoke College and a master's degree in Environmental Policy from Tufts University.

Jason Glass has spent eight years in the public and private sectors. After working as an Information Specialist with the Office of the Attorney General for three years, he joined CyberTrader, Inc., where he focused on marketing, sales, and business development. He received an undergraduate degree in finance from the University of Texas, Austin, and his M.B.A. from Texas State University-San Marcos.

Kimberleigh Potts joins SPI from Los Angeles, CA, where she worked as Director of Human Resources for Wilshire Country Club for two years.

Upcoming Event: Mary Scott Nabers, CEO of Strategic Partnerships, Inc., will address the DFW Homeland Security Alliance on March 25 in Dallas. The DFW Homeland Security Alliance was created to promote economic growth in Texas and support partnerships between universities and industries related to Homeland Security concerns.

Upcoming Event: Business Success Center and Strategic Partnerships, Inc. Networking Luncheon, March 9

The Texas State Government Marketplace: Billions of Dollars of Current Commercial Opportunities Identified!

We are living in historic and evolutionary times. State and local governments are being forced to address critical issues at an alarming pace. That translates into commercial opportunities for private sector companies!

Crystal Kuhs of Strategic Partnerships, Inc. (SPI) will talk about the Billions of dollars being spent in the Texas government marketplace, a marketplace where 80% of the decision makers are located in Austin, Texas. Crystal will tell you where immediate opportunities for vendors exist and offer tips on how to successfully maneuver through government bureaucracy to capture new business.

New regulatory mandates are creating an abundance of opportunities for vendors and service providers of all types. Add to this the budgetary constraints, transportation issues, a school finance crisis, healthcare problems, and the state's focus on terrorism avoidance and security and it is obvious that government marketplaces are ripe for agile and aggressive private sector contractors.

SPI recently published a "Guide to the Texas State Government Marketplace," which was designed to help businesses identify and qualify opportunities that have already been approved and funded. This publication will be available at the luncheon and complete details are available at http://www.budgetreport.com.

For more information or to RSVP, visit http://www.bscusa.com.

Upcoming Event: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

NASBO Fiscal Survey of the States

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 Subcommittee on Homeland Security Strategy-- 1:00pm, February 13, 2004, E2.010

House Select Committee on Public School Finance-- 2:00pm, February 17, and 10:00am, February 18, 2004, E1.030

Joint Committee on Higher Education-- 9:00am, February 17, 2004, E1.030

Senate Select Committee on Water Policy-- 1:00pm, February 18, 2004, City Council Chambers, San Antonio

Insights from Government Insiders:

"Water availability is a critical component of all future economic health and economic development. We are just beginning to implement the state water plan and must use every tool, from water conservation to developing new supplies. We must also ensure adequate freshwater inflows to maintain our fisheries and the ecological health of our coastal systems. -- Margaret Hoffman, Executive Director TCEQ (volume 1 issue 5)

"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)

Legislative Budget Board Sends Money South, Plans Performance Reviews, and Approves Creation of Criminal Justice Work Plan

At the Monday, February 9, 2004 Legislative Budget Board Meeting the first item of business was to move nearly $20 million within the state's two-year, $117 billion budget. To move the money, by law, the board had to deem that there is an emergency regarding that specific item. Contrary to some of the initial news reports on this issue, the state was never in crisis, and the "emergency" language is simply a formal technicality.

The $20 million dollars that was moved will support the following projects:

• $9 million for the University of Texas Health Science Center at San Antonio for operating the Regional Academic Health Center in Harlingen and Edinburg
• $2 million for the Texas Tech University Health Sciences Center for a new medical school in El Paso
• $3 million to the Texas Cooperative Extension for each of the two fiscal years to address the risks of wildlife-borne diseases and wildlife damage. Last year, Perry vetoed a $6.5 million appropriation for the previous agency that oversaw wildlife management, saying it could be managed in other ways. The Texas A&M University System Board of Regents later absorbed the service, then sought the new aid to maintain the 87-employee operation, which maintains a smaller office in San Antonio.
• Up to $2.5 million over the two fiscal years to cover increased election costs and ensure access to polling places through the Secretary of State's Office.

The Board also heard an update on the state economy and trends. Dr. Bernard Weinstein, Director of the Center for Economic Development and Research and Institute for Applied Economics at UNT, James LaBas, Chief Revenue Estimator from the Comptroller's Office, Angelos Angelou from Angelou Economics in Austin, and Wayne Pulver, Manager of the Estimates and Revenue Analysis Group at the Legislative Budget Board, presented a picture of the changing Texas economy.

The economic analysts said the US economy is increasing at a greater pace than any time since 2000. Texas is the leading exporter of all the states. That is particularly good when the US dollar is falling as compared to other nations' currency. They predicted that the state's economic growth will outpace the nation. Mr. Angelou said that the economy is enduring a "jobless" recovery with only 15,000 jobs created in 2003 versus 200,000 jobs created in a prior year. He stated that we are missing technology jobs, venture capital for startup companies and a lack of entrepreneurship being taught in all levels of higher education.

The Board then gave approval for the Budget Performance Unit which moved from the Comptroller's Office to the LBB. This unit brought 34 employees and about $5.3 million in appropriations. For the efficiency review of state agencies (formerly known as e-Texas reviews), no staff transferred to the LBB from the Comptroller's Office.

The board also gave the LBB staff approval for $500,000 aforementioned performance reviews of Texas A&M University in College Station and the University of Texas at Austin (see News). This is a function that came over from the Comptroller's Office without staff. Outside contractors will be used for these reviews.

The board also approved a Criminal Justice Work Plan for a new unit within the LBB. This unit will develop criminal justice population projections, develop projections to assess the impact of legislation on population, analyze recidivism rates and analyze the cost per day for the incarcerated population. These are several of the core functions previously handled by the Criminal Justice Policy Council that were vetoed by the Governor.

The Wireless Future Conference

The Austin Wireless Alliance, The Futures Lab and Polycot and the IC2 Institute will be featured at a conference at the Austin Convention Center during South by Southwest Interactive, on March 12-16. The Wireless Future Conference will also feature discussions on the future of wireless technology and its social and cultural impact. For registration and program information, visit http://www.wirelessfuture.org.

The Austin Mobility Roundtable

The Roundtable is a series of global conferences that bring together business, technology and policy leaders from industry and academia to debate the challenges and opportunities facing the wireless and mobile industries. Registration and program information can be found online at http//:www.austinmobility.org.

TASSCC 3rd Annual Technology Education Conference

The Texas Association of State Systems for Computing and Communications (TASSCC) will be hold its third annual Technology Education Conference (TEC) at the J.J. Pickle Research Campus, in Austin, on April 28.

The theme of this year's event is, "An Information Security Primer for Managers." A recent survey of over 7,500 executive-level information technology managers, CEOs, CFOs, and CSOs revealed that 76 percent of those surveyed were either "somewhat confident, unsure, or not at all confident" that their organization's information security activities were effective.

For more information and to register, visit the TASSCC web site at http://www.tasscc.org.

Gary Fuchs named Regional Director of EDS Office of Global Government Affairs

Gary Fuchs has been named Southwest Regional Director of Electronic Data Systems (EDS) Office of Global Government Affairs. As director of a multi-state region that includes Texas, Fuchs will direct political activities and support EDS's public sector business development efforts. Fuchs joined EDS in 2000, leading both commercial and non-Medicaid state government accounts in Austin and San Antonio. He most recently was Director of Global Business Partner Development within EDS's marketing organization.

Prior to joining EDS, Fuchs was a consultant for Austin-based Tonn & Associates. Fuchs's state experience includes serving as Executive Assistant with the Texas Youth Commission and as aide at the Texas Department of Health.

22 to Serve on Texas Energy Planning Council…6 from Central Texas

Gov. Rick Perry has named 22 individuals to the Texas Energy Planning Council and said the group will develop the first statewide Energy Plan since the oil bust of the 1980s. Perry announced the formation of the Texas Energy Council and named Texas Railroad Commission chairman Victor Carrillo as Council Chair.

Texas Energy Planning Council Members include:

• Victor Carrillo, Austin - Texas Railroad Commission Chairman. He is a former Taylor County Judge, and previously served as an attorney in the energy section of the General Land Office.
• Julie Parsley, Austin - Public Utility Commissioner. She previously served as a solicitor general in the Office of the Attorney General.
• Larry Soward, Austin - Texas Commission on Environmental Quality Commissioner. Soward formerly served as the deputy land commissioner at the General Land Office managing the agency's operations.
• Jerry Patterson, Austin - Texas Land Commissioner. A former state senator, Patterson oversees administration and stewardship of state lands and resources.
• Rep. G.E. "Buddy" West, Odessa - State Representative. He currently chairs the House Energy Resources Committee and serves as a member of the House Environmental Regulation and Administration committees.
• Sen. Ken Armbrister, Victoria - State Senator. He chairs the Senate Natural Resources committee and the Select Committee on Water Policy. He also serves as a member of the Business and Commerce, State Affairs and Government Organization committees.
• F. Scott LaGrone, Williamson County - Lower Colorado River Authority Board of Directors. He is one of the founders and principals of the Radian Corporation, an environmental service firm, where he worked for twenty-eight years and retired as senior vice president.
• Michael Flores, Flower Mound - Texas Director of Business Solutions for Johnson Controls, Inc., an energy services company.
• Kim Godfrey, Houston - Senior Director for ERCOT Business Development with FPL Energy
• Paula Harris, Houston - Global Collaborative Projects Manager with Schlumberger.
• R. William "Bill" Jewell, Houston - Business Vice President of energy at Dow Chemical Company.
• Ken Kelley, Amarillo - CEO of Applied LNG Technologies.
• Irwin "Irv" Kowenski, Houston - President of Occidental Energy Ventures Corp.
• Jerry Langdon, Houston - Executive Vice President and CEO of Reliant Energy.
• Steve Mayer, San Angelo -Secretary and Treasurer of T Half-Circle Ranch, Inc. He is president of the National Association of Royalty Owners.
• Lawrence O'Donnell III, Houston - Executive Vice President of Operations Support and CEO of Waste Management, Inc.
• Ronald Oligney, Katy - Director of the Texas Energy Center, a public-private sector effort to address long term energy needs.
• Charles Patton, Austin - Vice President of State Governmental Affairs for American Electric Power.
• Douglass C. Robison, Midland - General Counsel at Henry Petroleum LP.
• Grant Swartzwelder, Dallas - President and Managing Director of PetroGrowth Advisors, a financial advisory firm for the energy industry.
• Joel Trouart, Jewett - Vice President of Engineering and Environmental Services for Northwestern Resources Co.
• William Wallace, Midland - President of Wallace Petroleum Investments, Inc.

Gov. Perry Appoints Bell to Texas Board of Criminal Justice

Gov. Rick Perry announced the appointment of Oliver John Bell of Austin to the Texas Board of Criminal Justice for a term to expire Feb. 1, 2009. The board oversees the operations of the Texas Department of Criminal Justice.

Bell is the owner and Chief Executive Officer of E Team Companies Communications, consisting of E Team Communications, Inc., Global Labor & Employment Strategies, Inc. and Direct Labor Training Corporation.Bell served as an officer in the U.S. Army and is a graduate of the U.S. Military Academy at West Point, N.Y. His appointment requires Senate confirmation.

Homeland Security Spotlight: Critical Infrastructure Protection Council

The 78th Legislature, recognizing that planning for and taking precautions against a potential terrorist attack was a formidable task for just the Governor's Office, created the Critical Infrastructure Protection (CIP) Council to assist and advise the Governor in his efforts.

The main duties of the Council, which consists of 13 state agencies, are to develop and coordinate a statewide infrastructure protection strategy, insure the implementation of the Governor's homeland security strategy at the state and local agency levels and assist in other matters related to the security initiatives. The council is required to submit a yearly report that outlines the state's vulnerabilities and makes recommendations on how to improve security.