New Online Employment Resource Unveiled

The new web portal WorkInTexas.com was officially unveiled this week. The state-supported website is an online job resource tool that aims to foster connections between Texas employers looking for workers and workers looking for jobs. The new program is being administered through the Texas Workforce Commission (TWC).

WorkInTexas.com is made possible through a partnership between the TWC, more than two dozen local workforce boards, and 270 local workforce centers. Since the website went live May 24, more than 27,000 jobs have been posted, more than 46,000 Texans seeking work have registered, and more than 3,800 people have been hired. Up to the minute job leads are provided in real time and grouped according to a variety of industry categories that will help skilled workers find work that appeals to their interests and their training.

At the unveiling, Gov. Perry noted that from September to April, 88,000 new jobs were filled by Texas workers. The governor highlighted other signs of the economy's improvement as well, noting that sales tax receipts have recently exceeded projections, and Texas' position as the nation's top exporting state. Furthermore, according to the Federal Reserve, high-tech manufacturing in Texas reported its first quarterly gain in three years.

For more information, visit http://www.workintexas.com.

TEA Rearranges Budget to Pay for School Books

School textbook orders are proceeding after Gov. Rick Perry, Lt. Gov. David Dewhurst and Speaker Tom Craddick announced a workable solution to the cash flow problem that threatened timely delivery of textbooks for next school year.

Prompted by concerns that a number of school districts, especially high-growth school districts, did not have sufficient funds to supply all incoming students with school books, the legislative leadership authorized the Texas Education Agency (TEA) to transfer funds from various accounts within the agency to cover the $63 million cost of textbook purchases for the current budget cycle. The state will later reimburse TEA for the cost of purchasing biology and bilingual/ESL books and other textbooks needed because of enrollment growth.

Many school districts ordered books this week, following an announcement from the TEA on Tuesday that school districts could begin ordering books. According to the TEA, the textbooks should arrive at school districts in time for the new school year.

In an effort to deal with legislative budget cuts earlier in the year, TEA officials eliminated 200 jobs and closed the state textbook depository, a space where school districts could trade books they were not using for books they needed. Legislative leaders and TEA officials expected a new law to generate the $63 million needed to buy schoolbooks. The law however, which moved the collection of gas and diesel taxes from truckers to tank farms and underground pipelines and was expected to reduce fraud and evasion, failed to produce as much revenue as expected. Legislators projected that the new law would raise $75 million for textbook purchases; according the Comptroller's Office, as of May, it had only brought in $8 million for this purpose.

Kaufman, Martinez & Zinnecker to Participate in Upcoming Legislative Conference

The sponsors of the 4th Biennial Pre-legislative Session Conference have announced that Lisa Kaufman, General Counsel for Senator Duncan and Committee Director for the Senate State Affairs Committee and Anita Zinnecker, Assistant Director of the Legislative Budget Board, will participate in a panel on Working with Legislative Staff. A panelist from the House of Representatives staff will be announced in the near future. The panel will be moderated by Libby Martinez, who served as Chief of Staff for Senator Shapleigh prior to joining Strategic Partnerships. The conference, which is jointly sponsored by SPI and the LBJ School of Public Affairs, will be held on October 7th at the JJ Pickle Center in Austin. Registration for the conference will open in mid July.

Lisa Kaufman joined the Texas Senate staff of Senator Robert Duncan in 1997 with a bevy of experience in investigative and legislative law. That experience began when she served as Special Counsel to the U.S. House of Representatives Government Reform and Oversight Committee. There she was responsible for investigating the death of Vincent Foster, the business dealings of then Commerce Secretary Ron Brown, and Travelgate. From the House, Kaufman graduated to the U.S. Senate where she served as Senior Investigative Counsel to the Senate Judiciary Committee where she was responsible for investigations surrounding the government's role at Waco, Whitewater and Ruby Ridge. Currently, Kaufman serves as General Counsel to Senator Duncan where she helps draft and negotiate legislation for the Senator. She also serves as the Committee Director for the Senate State Affairs Committee, currently chaired by Senator Duncan. Prior to his current chairmanship, Senator Duncan served as the chairman of the Senate Jurisprudence Committee from January 2003 until February 2004. During that time, Kaufman served as the Jurisprudence Committee Director. Before her stints in state and federal governments, Kaufman was an associate in the Washington D.C. office of Akin Gump Strauss Hauer & Feld. She holds an undergraduate degree from Washington University in St. Louis and a law degree from George Washington University in Washington, D.C.

Anita Zinnecker has been the Assistant Director of the Legislative Budget Board (LBB) since 1999. She has joint responsibility with one other Assistant Director for development of the Legislative Budget Board recommendations to the legislature regarding funding levels for all state agencies, courts and institutions of higher education. Zinnecker is the lead representative for the LBB at budget hearings before the House Appropriations Committee. A 1990 graduate of the LBJ School of Public Affairs, Zinnecker began her career as a statistical analyst for the LBB and has served as a budget analyst and team manager. She had been nominated for the "Outstanding Professional Development" award and the "2002 Outstanding Women in Texas Government" award.

Libby Martinez joined the SPI team after serving as Chief of Staff for Senator Eliot Shapleigh. She successfully implemented the Senator's governing vision by formulating legislative strategies and harnessing professional relationships. As Chief of Staff, Martinez forecasted broad trends in economic development, e-government, health and education policy. An attorney-at-law, she managed all legislative aspects of the Senator's policy-making efforts. Martinez directed the preparation and proofing of bill drafts, and tracked and managed all legislation authored or sponsored by the Senator from initial filing through final passage. She also prepared appropriation requests for both district-specific and statewide items. Prior to serving as Chief of Staff, Martinez was a Legislative/Press Aide to a Texas State Senator. She effectively secured passage of key legislation in the areas of criminal justice, open records, education, health and child care during the Regular Session of the 75th and 76th Legislature. In addition to analyzing pending legislation by other members, Martinez prepared the Senator for committee and floor debate and monitored district projects and interim committees. In addition, she successfully managed a multi-faceted public relations plan. She holds a J.D. from Stanford Law School and a B.A. in Government with Honors from the University of Texas at Austin.

South Texas Medical Center Continues to Grow

The South Texas Medical Center is expanding rapidly, according to the 2004 South Texas Medical Center Area Progress Report by the nonprofit San Antonio Medical Foundation (SAMF). The report shows that more than $310 million in capital projects at the Medical Center are currently in progress or in the planning stages. More than $141 million in capital projects are in progress, a 26 percent increase over the previous year. An additional $169 million worth of new projects are expected to be completed over the next five years. The combined budgets of all entities involved with the Medical Center totaled $2.5 billion in 2003, a 2 percent increase over the previous year, according to the report.

The report suggests that investment in expansion and renovation projects at the Medical Center is expected to continue into 2010. Projects currently underway at the Medical Center include an $11 million expansion and equipment upgrade at the Cancer Therapy & Research Center and another $15 million in new construction for what will be the competing Texas Cancer Clinic. At the top of the list of problems hindering progress at the Medical Center were infrastructure issues that have led to traffic congestion.

Reynolds to Retire, Shipe to Serve as Acting ED of TWCC

Executive Director of Texas Workers' Compensation Commission (TWCC) Richard Reynolds announced he will retire as of July 16, 2004. Mr. Reynolds was formerly a state representative, a Commissioner (one of three) at the Texas Department of Insurance, and chaired the governing board for TWCC. The Commisioners of TWCC announced that Bob Shipe will serve as Acting Executive Director following Reynolds' departure. Mr. Shipe has years of experience with TWCC, having served in field operation, as Chief of Records Processing, as the Commission's legislative liaison, and currently in his position as Director of the Medical Review Division.

Toyota Plant Spin-off Jobs Fall Below Expectations

In a recent report, Keith Phillips, an economist with the San Antonio Branch of the Federal Reserve, predicted that the spin-off jobs created by the new Toyota plant will be less than the 2,000 jobs created by the plant itself. Ten suppliers and auto-parts makers currently employ around 1,000 workers at a supplier park located near the Toyota plant-this group "represent[s] the bulk of the new permanent indirect jobs," according to Phillips and Fed researcher Kristen Hamden. The forecast is disappointing in that the Texas Comptroller's office predicted the addition of 12,000 permanent jobs, and University of Texas San Antonio's Institute for Economic Development projected 7,300 new permanent positions. President of the San Antonio Economic Development Foundation, Mario Hernandez, maintains that 1,300 jobs have already been created, and argues that the city and region is far from realizing the final impact of indirect job creation.

Phillips accounts for the low job creation by pointing out that industries that are new to an area tend to have low multiplier effects, at least initially, in that suppliers must decide whether they can service the area from their current base, or if it is necessary to establish operations in the area. He also hinted that multiplier effects would improve significantly if Toyota was to add another line, because existing suppliers would add capacity.

UT System Appoints Executive Vice Chancellor for Business Affairs

The University of Texas System has appointed Scott C. Kelley, vice president for administration, finance, and human resources at West Virginia University, executive vice chancellor for business affairs. Kelley succeeds Kerry Kennedy who announced his resignation last year. Philip R. Aldridge has served as interim vice chancellor for business affairs since Kennedy's resignation and will resume his previous role as associate vice chancellor for finance for the UT System.

Announcing Kelley's appointment, U.T. Chancellor Mark G. Yudof said: "Scott Kelley has all the qualifications that are fundamental to running the business affairs of a complex organization like the UT System: outstanding credentials and experience in a state university system that includes multiple academic and health institutions."

When he begins his job with the UT System on July 19, Kelley will take over responsibility of overseeing the financial operations of the UT System's administration as well as the System's nine academic and six health institutions. Kelley holds a bachelor's degree in economics from Brigham Young University, an MBA in finance from Oklahoma City University, and a master's degree and doctoral degree in higher education administration from Harvard University. He will assume his new role at the UT System on July 19.

TMA Voices Concern About Physician Shortage

The Texas Medical Association (TMA) has passed a resolution to help address a growing physician shortage. The TMA says deep cuts to state and federal graduate medical education funding has reduced the number of doctors at a time when physician demand is growing rapidly. Also contributing to the doctor shortage are limits on hours that physicians in training can work and the great number of uninsured patients being treated at hospital emergency rooms.

The resolution calls for the elimination of current outdated caps on the number of funded Medicare graduate medical education training slots and the stabilization of Medicare graduate medical education and Medicaid Disproportionate Share Hospital funding. It also calls for leveling the playing field for Texas teaching hospitals affected by geographically inequitable Medicare graduate medical education funding.

School District Goes Wireless

The Houston-area Spring Independent School Districts recently decided to install state-of-the-art Wi-Fi security systems. California-based Aruba Wireless Networks will be responsible for the installation of the new technology. Wi-Fi access points and switching systems will populate the district's 25 elmentary, middle and high schools, allowing students and teachers access to the network via some 6,500 PDAs, desktop computers and laptops. The district already operates a converged voice, vide and data network which supports more than 2,000 IP phones and 27,000 students and teachers.

Senate, House Education Work Groups Agree on Teacher Pay Raise, Other Issues

At a meeting on Wednesday, both the House and Senate education work groups voted to give Texas teachers a pay raise and restore the $1000 health-care supplement, as well as create a small incentive pay program. The legislators also voted against creating a school-voucher program, and delayed consideration of end-of-course exams and Gov. Perry's incentive proposals. The work groups also mandated the creation of a pilot tracking system for state accountability tests and the creation of a dropout and truancy tracking system. Furthermore, they determined that all high school students will take the ACT and SAT exams at state expense. A number of proposals were sidelined, including a measure that would force school districts to disclose lobbying and association fees.

Austin Officials Mull Over Proposal to Add, Increase Fees

In an effort to help balance the 2005 budget, Austin city officials are considering a revenue-generating plan that would generate $1.1 million for the city. The money would come from new fees and increases to existing fees in every city department. Proposed fee increases include a 10 cent raise per page for library photocopies and a $15 increase in the fee for Austin Nature and Science Center Adventure Camps. New fees include a $250 fee for historic zoning applications. While most of the fee increases are nominal, a proposal by the Austin Fire Department to charge $400 for a motor vehicle accident cleanup is thought to be excessively high by some residents and insurance representatives. Revenue from this fee is expected to be $480,000, close to three-fourths of all other projected revenue combined.

Toll Roads Garner Opposition

A number of persons opposed to the Central Texas toll road plan have coalesced into the organization People for Efficient Transportation (PET). The group, which is discontent with the Central Texas Regional Mobility Authority and Texas Department of Transportation's (TxDOT) plans for the region, is particularly opposed to the Mobility Authority and TxDOT's May proposal that called for tolling the U.S. Highway 290 West segment of the "Y" in Oak Hill and the MoPac Expressway overpass at William Cannon Boulevard. PET, whose three board members are all from Southwest Austin, argues that this could equate to double taxation on certain sections of the toll road. PET intends to educate Austin residents of the plan and lobby against it before the proposal comes up for approval by the Capital Area Metropolitan Planning Organization.

Two Big Home Insurers Accused of Using Lawsuits to Stall Rate Reductions

Lt. Gov. David Dewhurst has accused Farmers Insurance Group and State Farm Insurance of using lawsuits to stall rate reductions. Spurned by skyrocketing homeowners insurance costs, the 78th Legislature passed a law giving the Texas Department of Insurance more control over homeowners coverage. Since the law went into effect, many insurance companies have lowered their premiums. However, Farmers and State Farm have not headed Insurance Commissioner Jose Montemayor's demand that they cut their rates by17.5 percent and 12 percent respectively. Instead, Farmers and State Farm have gone to court to appeal Montemayor's orders. Homeowners' rates will drop by an average of 12 percent if Farmers and State Farm's appeals are settled, according to Montemayor. Together, Farmers and State Farm write about 40 percent of homeowners coverage in Texas.

Homeland Security Funding Task Force Delivers Recommendations to Secretary Ridge

Task Force on State and Local Homeland Security Funding Report

The members of the Task Force on State and Local Homeland Security Funding delivered their report with findings and recommendations for expediting the flow of homeland security funds to ensure that our nation's emergency managers, first responders and law enforcement officials get the federal funds they need, as soon as possible to protect their communities.

In March, Secretary Tom Ridge announced the creation of this Funding Task Force, comprised of state, local, municipal and tribal leaders, after recognizing that the current system was not efficiently distributing the unprecedented amount of homeland security funds totaling over $8 billion that has been awarded over the past two years. The task force focused on three core areas: examining the funding process to understand why there have been delays; examining and cataloging best practices; and providing specific recommendations to eliminate choke points that impede the timely distribution of funds.

The Funding Task Force is a bipartisan group of officials selected by their national associations of state and local representatives and by the Homeland Security Advisory Council. The creation of this Task Force, utilizing the first-hand experience of leaders at all levels of government, is evidence of the shared commitment to continually improving this necessary and highly important process. During the last two months, the Funding Task Force met regularly and solicited input from numerous sources to create this final report.

The report underscores that no one issue or level of government has been responsible for the delays, but rather it appears that there are several independent issues that have compounded one another to slow the funding flow. This includes everything from procurement rules to backlogs of equipment orders from private sector homeland security vendors. The report also outlines a number of innovative best practices that select jurisdictions have put in place to support the procurement and delivery of emergency response equipment.

The Funding Task Force has operated under the aegis of the Homeland Security Advisory Council (HSAC), a group of leaders from state and local governments, the emergency response community, academia and the private sector, who meet to deliver recommendations and expert advice to Secretary Ridge on homeland security issues.

For a condensed summary of findings and recommendations, visit http://www.dhs.gov/dhspublic/display?content=3723.

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.

LBB, Governor's Office Issue Recommendations on Agency LARs

The Legislative Budget Board and the Governor's Office of Budget, Planning, and Policy have posted instructions for the submission of legislative appropriations requests on their websites. In a letter to state agency executives, they noted that all agencies' baseline requests were to be limited to 95 percent of the 2004 expenditures and the 2005 budgeted expenditures. For the complete letter, click here. For further instructions and recommendations, visit the LBB's LAR information page.

U.S. House Okays Sales Tax Write-offs in Export Tax Bill

On Thursday the U.S. House of Representatives passed a bill that would reinstate the sales taxwrite-off, which was suspended in 1986. The write-off addresses the inequity between states with income taxes, which are federally deductible, and those without, such as Texas, where citizens did not have any legal recourse for deducting the taxes that go towards supporting state government. If the measure is passed by the Senate, it is expected to save the average Texas household approximately $300 a year. Texas taxpayers, overall, will save $1 billion a year. The measure is just one of a number of provisions tacked on to bill aimed at repealing $50 billion worth of export tax breaks.

Texas Job Market Shows Signs of Improvement

The Texas labor market showed signs of growth in May, according to the Texas Workforce Commission. The state unemployment rate during May was 5.9 percent, an improvement of 0.1 percent from April and 1 percent from a year earlier. In Central Texas, the rate remained unchanged from April at 4.3 percent. Compared to a year ago, this is a 1.4 percent improvement. Statewide, 14,467 less Texans were unemployed in May compared to April.

Property Tax Increase Proposed for Dallas Homeowners

Homeowners in Dallas could see their tax rates go up if the city council heads warnings from city finance officials that a property tax increase is needed to fund public safety improvements. Under the proposed 1.99-cent tax increase, a homeowner with property valued at $139,000, the Dallas average, would pay $800.31 in property tax each year, $22 dollars more than what they currently pay. City officials have also told the Council that Dallas must account for a $7.6 million budget shortfall this summer before budget negotiations for the 2004-2005 fiscal year starts.

Phase One of $215 Million Aquifer Storage Project Completed

The first phase of construction of a $215 million aquifer storage and recovery and water treatment facility in South Bexar County has been completed, according to the San Antonio Water System (SAWS). The facility will be able to hold 3.5 billion gallons of water. SAWS also announced the completion of its first water treatment plant. Because the project is coming in under budget, SAWS estimates it will pay $25 million to $30 million less than the $215 million projected cost of the entire project.

Plano Hospital Breaks Ground for Expansion

Construction of a planned $120 million expansion at Presbyterian Hospital in Plano has begun. The expansion, which is expected to be completed in the first quarter of 2006, will add 117 beds to the hospital. The hospital is currently operating at 95% capacity, according to Phil Wentworth, president of the hospital. Plans include construction of an eight-story bed tower and renovations to 90,000 square feet of the hospital to expand radiology and cardiac services, pastoral care, and space for laboratory facilities and storage of medical records.

Dallas Federal Reserve

We often hear about speeches by Federal Reserve Chairman Alan Greenspan, but did you know that the Federal Reserve Bank has twelve districts, one of which is headquartered in Dallas. It has its own Web site at http://www.dallasfed.org/. That site has a great deal of Texas-specific data at http://www.dallasfed.org/data/region.html#tx. For instance, the site has employment data for the six largest cities in Texas. There is also a quick slide show on regional economic information.

Event Links

HHSC HUB Vendor Fair - 6/23/04

EXPERIENCE IT 2004 Conference7/29/04 - 7/30/04

Identity Crime Regional TrainingVarious Dates

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

EXPERIENCE IT 2004 Conference7/29/04 - 7/30/04

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 23 - 6/10/04

Volume 2 Issue 22 - 6/4/04

Volume 2 Issue 21 - 5/27/04

Volume 2 Issue 20 - 5/21/04

Volume 2 Issue 19 - 5/14/04

Volume 1 and Volume 2 Archives 11/7/03 - 5/7/04

News from Strategic Partnerships, Inc.

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. Registration will open in mid July after all of the panels have been announced. At that time, a link to the registration page will appear here.

Resources

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

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 Papers on Public School Finance

Center for Public Policy Priorities' Finding a School Finance Solution

Public Hearings/Meetings

Local Government Ways and Means Committee-- 10:00am, June 22, E2.014

Human Services-- 1:00pm, June 22, E2.010

Subcommittee on Higher Education-- 8:00am, June 24, E1.036

International Relations and Trade Committee-- 10:30am, July 7, San Antonio City Council Chamber Municipal Plaza Building

HHSC Vendor Fair

The Health and Human Service (HHS) agencies are sponsoring a HUB Vendor Fair on Wednesday, June 23, 2004 at the Brown-Heatly Building in Austin. This one-day event is free to the public and offers a great opportunity for vendors to meet and network with key agency purchasing and HUB staff. We will also feature workshops on HUB certification, the state procurement process, and the latest HUB subcontracting rule changes. Additionally, we are hosting a prime contractor panel discussion in an effort to get the word out on subcontracting opportunities with some of our large contractors. Bid opportunities will also be available at the event. For more information, visit http://www.hhsc.state.tx.us/about_hhsc/BusOpp/BO_HHSCForum.html.

ICMA Cosponsors EXPERIENCE IT 2004 Conference

On July 29-30, 2004, ICMA is cosponsoring the EXPERIENCE IT 2004 Conference at the Disneyland Hotel in Anaheim, California. The conference, presented by Government Technology Magazine, EDS, and the city of Anaheim, will examine how federal, state, and local governments are leveraging IT innovation through public/private collaboration to connect, protect, and serve citizens better than ever. Read more at ICMA's website.