______________________________________________________________________________

The Brief: April 25, 2011
“Though the House has already thrown the first punch, the Senate will enter the ring this week to fight for billions of dollars in state funding. The budget fight — which this session has pitted a more moderate, though still Republican-controlled, Senate against a conservative House — will hit new dramatic heights this week, with the full Senate set to vote on a state budget for the next two years…”
(View full article here).

Inside Intelligence: And on Redistricting…
“We got a light turnout in this week’s survey of insiders; must’ve been the budget and the holiday. Maybe they’re spooked by redistricting, the subject of the week. More than half — 53 percent — think lawmakers won’t finish the political maps, and that the chores will be left to the courts (in the case of congressional redistricting, and to the Legislative Redistricting Board (in the case of House and Senate districts). But the wheels are turning; the House will vote on a redistricting plan next week…”
(View full article here)

Data Breach Cost: $1.8 Million So Far
“Gwen Rowling worked part time as a filing clerk for the Texas State Securities Board more than two decades ago, trying to pay her way through college. A week ago, Rowling received a letter from the comptroller notifying her that she was one of the 3.5 million Texans whose personal information — including names and Social Security numbers — was publicly accessible for more than a year because of a major data security lapse. ‘I had seen the news reports, but I didn’t imagine I would be part of it,’ Rowling said. Since the breach was discovered March 31, the comptroller’s office has racked up a $1.8 million bill as it attempts to rectify the situation… ”
(View full article here).

The Brief: April 26, 2011
“A seemingly benign piece of legislation, up for debate in the House today, has exposed an unlikely rift among lawmakers.State Rep. Senfronia Thompson‘s so-called puppy mill bill, which would impose new regulations on dog and cat breeding operations, last week sparked a fight among House members after Rep. David Simpson, R-Longview, used parliamentary tactics to knock the bill — as well as two others — off a fast-track vote…”
(View full article here).

Outside Groups Lobby Texas Budget Writers
“Various special interest groups have been pushing their budget ideas since before the legislative session began. Now, with the House budget already passed and a Senate version set for debate this week, the battle over which budget is right for Texas has intensified — and, in one case, taken to the airwaves. In a TV commercial produced by the Texas Public Policy Foundation, a conservative state-policy think tank, the group highlighted its wishes. ‘It’s time for us to wake up and remind them who they work for,’ the commercial says. ‘Texans want a fiscally responsible conservative budget. Texas works because freedom works, and defending Texas is defending freedom…’”
(View full article here).

Senate Democrats Weigh Whether Blocking Budget is Worth the Risk
“In the coming days, Democrats will get their best opportunity this year to slow the Legislature’s proposed remedy for the state budget shortfall. But that opportunity comes with risks. Senate Democrats can stall the cuts-heavy approach that Republicans are taking to solve the budget shortfall by voting not to bring the chamber’s proposed budget up for debate. It takes two-thirds of the Senate to bring up a bill, which means at least two of the chamber’s 12 Democrats must be on board…If the Senate budget passes, House and Senate negotiators will hammer out a final product in conference committee. Two Democrats, Sens. Royce West of Dallas and Juan ‘Chuy’ Hinojosa of McAllen, voted for the Senate budget when it came out of the Finance Committee last week. ‘If we don’t pass a budget, we will be in a special session,’ Hinojosa told the Rio Grande Guardian. ‘The two-thirds rule will not apply, and (Republicans) will ram House Bill 1 down our throats, and it is going to hurt a lot of people and cripple our education system…’”
(View full article here).

Texas Driver’s License Fee May Go Up $8
“Texans would shell out $8 more for a regular driver’s license to help pay for additional staff, updated technology and new facilities aimed, in part, at cutting wait times at DPS offices under a proposal in the state Senate. If approved, Houston could gain three “mega centers” and see driver’s license bureau staffing nearly double under legislation being pushed by Sen. Tommy Williams, R-The Woodlands. ‘It’s a huge problem just for everyday Texans,’ Williams, chairman of the Senate Transportation and Homeland Security Committee, said of the driver’s license logjam. ‘I think I get more complaints about this in my office than anything else.’ The driver’s license changes are in two pieces of legislation that have cleared committees and are awaiting full Senate consideration…”
(View full article here).\

State Workers: We’re Ready to Bolt Over Cuts
“Significant changes to pay and benefits for Texas’ employees, if enacted by legislators, could drive thousands of workers into retirement or jobs outside state government, survey results released Monday show. About 20,500 state workers — or 14 percent of the workforce outside higher education — responded to the online survey, conducted by the Texas Public Employees Association. About 57 percent of the respondents eligible for retirement said they would jump ship in the wake of pay cuts, increases in health insurance costs and other benefit changes now under consideration by lawmakers. Among those respondents not of retirement age, nearly one-third said they would look for work outside of state government. Another 28 percent would wait until the economy improves and then bolt…”
(View full article here).

Patrick: No Holdup on Abortion Sonogram
“Holdup? What holdup? Sen. Dan Patrick, R-Houston, says he’s got the votes to send abortion sonogram legislation back to the House — but the timeline for doing it depends on how quickly the Senate passes the budget. Under the version of HB 15 being considered by the Senate, women seeking an abortion would have to receive a sonogram ahead of time, and they would have to listen to a doctor describe the fetus in detail. Though some conservative groups have continued to lobby for a sonogram bill tougher than the version under consideration in the Senate, Patrick said that’s not delaying a vote. He said the Senate will likely take up his bill late this week or early next week, after the chamber gets through the budget…”
(View full article here).

The Brief: April 27, 2011
“The Senate will soon take up a budget bill with one proposal that has garnered some high-powered opposition. As reported by the Austin American Statesman, Lt. Gov. David Dewhurst, who presides over the Senate, said Tuesday that he ‘disagreed’ with senators’ decision last week to draw $3 billion from the Rainy Day Fund, the state’s $9.4 billion emergency savings account. The Senate, this session acting as a moderate check on the conservative House, has been searching for sources of revenue…”
(View full article here).

House Draws New Lines After 16 Hours of Debate
“One Houston House member said that after Wednesday-Thursday’s redistricting marathon he ended up with a district that runs through the middle of an apartment complex. An East Texas Republican complained that he’s never met 70 percent of his new constituents. And a San Antonio lawmaker warned that a lawsuit is in the offing after the House approved a Republican-drawn redistricting plan for the next decade. Making the case for legal action is one reason state Rep. Trey Martinez Fischer, D-San Antonio, and his Democratic cohorts forced a legislative endurance contest that began on the House floor at 11 a.m. Wednesday morning and seemed, at times, it might take a decade to end. It was nearly 3 a.m. Thursday before lawmakers batted away the last of Martinez Fischer’s proposed amendments and approved House Bill 150, sponsored by state Rep. Burt Solomons, R-Carrollton. The vote was 92 to 52…”
(View full article here).

Ogden: Still No Budget Deal
“Senators left a meeting this morning looking no closer to an agreement on the budget — and Finance Chair Steve Ogden, R-Bryan, said the method of financing remains the sticking point. ‘If we’re not going to use the Rainy Day fund when it’s raining, we might as well get rid of it,’ Ogden told reporters after this morning’s caucus. ‘This is what it’s for.’ The budget was originally slated for debate today, but negotiations broke down on Wednesday night. Ogden needs 21 votes in the upper chamber to bring the budget up for debate…”
(View full article here).

Texas Governor: Disaster Could Blow Hole in Budget
“With massive wildfires taking a toll on a strapped state budget, Gov. Rick Perry warned Tuesday that another natural disaster could leave the state “bankrupt” unless lawmakers show fiscal restraint. Because of those financial threats, the Republican governor said it would be irresponsible for the Legislature to use money out of the so-called Rainy Day Fund to soften the blow from staggering budget cuts proposed by state lawmakers. A Senate proposal would take $3 billion out of the reserve account, fattened with oil tax money, to cut less from nursing homes, public education and other core state programs. Perry made it clear that he was dead set against the idea…”
(View full article here).

Texplainer: What Does It Cost to Fight Texas Wildfires?
“So far, the estimated cost for fighting the wildfires is $49.2 million for this fiscal year, according to Robby DeWitt, a finance official with the Texas Forest Service, the state’s lead wildfire response agency. In recent weeks, as the fires have gotten worse, costs have mounted at a rate of over $1 million per day. Those costs will be shared among the state, local and federal governments, with the state likely to pay the bulk of the cost. In February, the Texas Forest Service asked the Legislature for an emergency appropriation for costs incurred since last session, and it has since been sending updated figures to the Legislative Budget Board each week as the fires continue…”
(View full article here).

The Brief: April 28, 2011
“After a 16-hour debate that stretched past 2 a.m. this morning, House lawmakers gave early approval to a map that would reshape their political districts. As the Tribune’s Ross Ramsey reports, the vote, 92-52, followed a day of drawn-out wrangling that centered largely on the fate of minority districts. ‘I recognize that some members are not going to be pleased with the results of the map,’ Rep. Burt Solomons, the Carrollton Republican who chairs the Redistricting Committee and drafted the proposal, warned members at the beginning of the day…”
(View full article here).

Where Are Rick Perry’s Emergency Items?
“With fewer than five weeks left in the regular session, none of Gov. Rick Perry’s emergency items — voter ID, sanctuary cities, sonograms for women getting abortions, a federal balanced budget amendment, and eminent domain protection — have made it to his desk. Perry says he isn’t concerned, however, telling reporters this week that lawmakers have plenty of time to pass the bills. ‘We have 34 days left in the legislative session,’ he said. ‘I’ve done this before. I don’t get too preached up with 34 days to go.’ While some emergency items are in fact rolling along, one of the most controversial could languish in the House Calendars Committee until the sun sets on the current session…”
(View full article here).

David Dewhurst: The TT Interview
“With less than five weeks left to go in the session, Lt. Gov. David Dewhurst sat down with the Tribune to talk about his future political plans, the status of the budget in the Senate and in the biennial parley between the Senate and the House, redistricting and the tug-of-war over the Rainy Day Fund. An edited transcript follows.…”
(View full interview here).

Senate Approves Medicaid Savings Bill
“The Senate unanimously approved Sen. Jane Nelson’s bill to find extensive cost savings in Texas’ Medicaid program, the primary health care provider for children, the disabled and the very poor. ‘Ultimately what we care most about are the patients,’ said Nelson, R-Flower Mound. ‘Our goal is to make sure none of our Medicaid patients are hurt or negatively impacted by anything we do.’ The measure expands Medicaid managed care into South Texas, where it has long been carved out — expected to save the state $290 million over the biennium. It pulls prescription drug sales into the managed care program and requires most Medicaid patients to use medicines on a state preferred drug list, at a projected savings of $51 million a biennium. And it ensures people with disabilities receiving attendant care services at home are using a Medicaid contractor, saving an estimated $28 million a biennium…”
(View full article here).

House Tentatively OKs New Juvenile Justice Agency
“Texas youths who get crossways with the law could soon find themselves under the supervision of a new state juvenile justice agency whose main mission is to keep young offenders close to home and quickly headed in a more positive direction. The Texas House on Thursday tentatively approved a bill by state Rep. Jerry Madden, R-Plano, that would abolish the Texas Youth Commission and the Texas Juvenile Probation Commission and establish a Texas Juvenile Justice Department that would deal with young offenders. It’s a move that the Texas Sunset Commission recommended as a cost-saving measure. But Madden and state Sen. John Whitmire, who worked together on the bill, have said their goal is loftier than saving money. The new agency would continue efforts the state started in 2007 to revamp its approach to juvenile justice…”
(View full article here).

The Brief: April 29, 2011
“Comptroller Susan Combs, whose office exposed the personal data of millions of Texans, struck a decidedly new tone Thursday. A contrite Combs said she now takes full responsibility for the data exposure, which left the personal information, including Social Security numbers and birth dates, of 3.5 million Texans publicly available online for a year. “We’re the last door. We’re it,” Combs told Ben Philpott of KUT News and the Tribune. “And as head of the agency, I am responsible…”
(View full article here).

From Harvey Kronberg’s Quorum Report:

TRUITT TRIES TO REIN IN PAYDAY LENDING

Compels two sides to get together in forced mediation.

It’s not often a committee chairman resorts to mediators to bring opposing sides of an issue together to negotiate, but then payday and car title lending is not your everyday issue.

On one side are regional and national corporations doing billions of dollars a year in virtually unregulated transactions. On the other are low- and middle-income consumers at the bottom of the financial food chain with no negotiating power. The industry reportedly has hired upwards of 30 lobbyists this session, some of them prominent; the would-be reformers, only two .

“I told them, ‘You need professional help,’” recounted Rep. Vicki Truitt (R-Keller). She said she took the extraordinary step of mediation because of the two sides’ mistrust of each other and the contentiousness of the issue. The chairman of House Pensions, Investments and Financial Services said it was their first face-to-face dialog ever.

Payday/car title loan brokers typically market short-term, high-interest loans to customers who can’t obtain credit elsewhere. Fees tacked on in the process often exceed the principal, all of which must be paid off in full to avoid rolling over the loan into a new one.

The last serious effort to address payday lending ended on a point of order in the House in 2005. Truitt recalls watching it and other efforts “blow up” on the floor and thinking, “I’m glad that’s not me carrying that bill.”

Although she agreed with critics that some bills filed this session would have eviscerated the industry and driven customers to worse alternatives, Truitt said some regulation was needed nevertheless. Bills now in both chambers would require reporting, disclosure and some level of state oversight. A more stringent version by Sen. Wendy Davis (R-Fort Worth) reportedly has been stuck on the Senate Intent Calendar while its language is being revisited and stakeholders are meeting.

Meanwhile, Truitt crafted a narrow set of bills that would attract “less enhancement” on the floor. To do so, she brought in the Center for Public Policy Dispute Resolution at the University of Texas Law School. Three members of each camp met with the mediators for some 30 hours over about 10 days in March to craft a compromise.

A representative of one of the reformers said that some of the key elements of their agenda, including loan rate and fee caps, were off the table from the outset due to the economy and the general Republican pro-business mindset. Truitt agreed saying she believes the market should self-adjust, adding that no single proposed cao would satisfy everyone.

For several years now the sub sub prime loan industry in Texas has enjoyed unfettered access to the high credit-risk, consumer loan market. Using what the reformers term a loophole in the law, lenders are operating as credit services organizations to arrange loans with lenders (other than banks and thrifts). The lenders’ fees are subject to constitutional interest rate limits and state usury laws, but the brokers’ fees are not because they are not considered interest. The lenders profit from the sheer volume while the brokers profit from recurring fees.

Reformers estimate the combined total annual loan volume in the sub subprime universe at approximately $5 billion ­­– $4 billion, payday; $1 billion, car title. Even ballpark figures for the number and average amount of loans are unavailable due to lack of reporting requirements. Their closest relative, installment loans, totaled 4.3 million loans averaging $545 each in 2009, according to Consumer Credit Commissioner Leslie Pettijohn. She said loan volume totaled $2.4 billion through 1,700 offices, which is less than half the number of their payday and car title loan cousins.

Advocates for reform contend that payday/car title loan storefronts have proliferated in excess of 3,500 in Texas largely because their parent corporations must pay only a $100 annual registration fee per company.

The newest combatants in the fray are self-help charities and religious organizations, namely the Texas Association of Goodwills, Texas Impact, and the Christian Life Commission of the Baptist General Convention of Texas.

They say they got involved because many among those they serve were overwhelmed with payday loan debt and sought churches’ help. Some Goodwill clients could not continue job training because their vehicles had been repossessed over unresolved car title loans. Some borrowers even called the Christian Life Commission offices directly, thinking they could help, according to their legislative counsel, Stephen Reeves.

He believes that he and his colleagues are gaining traction attacking abusive practices on moral grounds.

“They don’t care if you (can) repay the principal. You can pay the principal amount in fees and never repay the loan,” Reeves said. “There’s an acknowledgment that it’s not right. It’s got to stop.”

He and some of his colleagues see the unfairness inherent in industry practices as both pervasive and persuasive.   Despite being outnumbered by a lobby cadre he thinks may be larger than the pro-gambling forces. He also noted some unusual bi-partisan legislative Austin).

Michael Grimes, representing the loan-broker Consumer Service Alliance of Texas (CSAT), said he welcomes the input of the religious and social service groups, acknowledging that their presence has changed the political calculus somewhat.

“CSAT still hopes we can pass meaningful legislation and create a solid structure to continue operating in the state of Texas,” Grimes said.

Lori Henning, executive director of the Texas Association of Goodwills, believes change will come once people become dissatisfied with what’s happening to the poor, for whom she and others are advocating. She conceded, however, that changing the status quo after so many years is difficult.

“If I had the answer,” she said, “then I would know how to fix it.”

By Patrick Graves

The Texas Tribune reports:

Though secondhand smoke leads to nearly 50,000 U.S. deaths among nonsmoking adults every year, no southern state, including Texas, has adopted a smoke-free law for worksites, restaurants and bars, according to a new Centers for Disease Control report.

This regional disparity, unveiled in the CDC’s Morbidity and Mortality Weekly Report, comes as Texas lawmakers are debating implementatin of a statewide smoking ban, one that would outlaw smoking in workplaces and other public places like bars and restaurants.

Read: the full article.

Compiled by Arnold Public Affairs

Below are some general items of interest pertaining to the latest political developments and important events:

__________________________________________________________________

The Brief: April 18, 2011
“State budget writers should look this week to take steps toward finalizing a budget that currently seeks to gut billions from current spending levels. But the fight coming doesn’t look like an easy one for either chamber. The San Antonio Express-News reported Saturday that the Senate version of the budget for the 2012-2013 biennium would ease up a bit on the cuts to vital services – specifically education and health care – the House proposed earlier this month…”
(View full article here).

Soda Tax Could Raise $1 Billion Per Biennium
“Republican lawmakers have vowed to close the budget hole without a new tax. But that hasn’t stopped Sen. Eddie Lucio Jr., D-Brownsville, from proposing a penny per ounce tax on soft drinks. At a Senate Finance hearing this morning, he suggested his measure could bring in billions of dollars to the state, while curbing consumption of sugary drinks linked to childhood obesity and diabetes. ‘I have become convinced we cannot cut our way out of the financial hole we find ourselves in without devastating the services millions of Texans rely upon,’ he said. But while public health experts testified that the measure would dramatically curb the purchase of soft drinks, and limit the calories and caffeine young people consume…”
(View full article here).

Lawmakers Seek to Crack Down on Junk Food As Obesity Epidemic Worsens
“An epidemic of obesity, bringing higher medical costs and shorter life spans, has prompted a diverse mix of Texas legislators to target junk food and sugary sodas as enemies in the battle of the bulge. One House measure would ban food stamp users from buying cookies, candy and “sweetened beverages” with their Lone Star cards. Two other bills call on the federal government to restrict or eliminate low-nutrition items from food stamp purchases. And measures in both houses would add a penny tax per ounce of soda with the twin goals of reducing consumption and raising $500 million to $2 billion a year — estimates vary — for a state budget strained by a massive shortfall…”
(View full article here).

Op Ed: How to Bridge the Budget Gap
“At the risk of sounding like a broken record, I’ve told lawmakers repeatedly that the task of balancing our state’s budget this go-round would be difficult but doable. Now, as the clock counts down to the end of the regular session on May 30, it’s fair to ask our leaders to meet our needs, not our wants. The House and Senate budgets may seem worlds — or billions of dollars — apart in their budgets for state spending over the next two years. To bridge the $6 billion to $7 billion gap in their versions of the budget, there’s a workable solution that does not include any new taxes.…”
(View full article here)

Solomons Map Could Solidify GOP Hold on Districts
“A proposed map for redrawing Texas House district boundaries could help fortify the Republicans’ majority in the lower chamber in 2012. Plugging in the returns from the last presidential election shows how the changes in the new map, proposed by Rep. Burt Solomons, R-Carrollton, reshape numerous House districts across the state in a way that could protect most of the Republicans’ two-thirds majority… ”
(View full article here).

Inside Intelligence: With Money Short…
“This week, we asked the insiders about taxes and budget cuts — the order of the day. Some lawmakers have talked about revising the state’s business margins tax, and 57 percent of the insiders think they should do that. Only 12 percent think it ought to be left alone, and 30 percent would scrap it and replace it with something else. But if you read their comments, they don’t appear to think the Legislature will do anything dramatic about the tax this session…”
(View full article here).

State Consumer Offices Under Fire
“It’s a tough time to be a state-paid advocate for consumers in Texas right now. This legislative session, three state offices that help average Texans in disputes involving corporate giants have been targeted for closure or reduced roles:…”
(View full article here).

The Brief: Top Texas News for April 19, 2011
“Senate leaders on Monday delivered one of their strongest attacks yet on the House’s stark budget proposal. As reported in the Austin American-Statesman and The Dallas Morning News, Lt. Gov. David Dewhurst and state Sen. Steve Ogden, chairman of the Senate Finance Committee, said the Senate wouldn’t back down from fighting the types of cuts outlined in the House’s recently passed budget proposal, which would slash billions of dollars in state services. Ogden framed the fight in stark terms. ‘The debate is whether you want to save public education and whether you want to save nursing homes or not,’ he said…”
(View full article here).

Senators Look for Money Without Saying “Taxes”
“State senators have unveiled a list of almost $5 billion in cash-flow tricks, property sales and fees that could be used to ease cuts in the state budget, but it’s not enough to completely close the gap between what they have available and what they hope to spend. The Senate Finance Committee is wrapping up its most pressing work this week, planning to vote on a proposed 2012-13 state budget, a $4.3 billion package to eliminate the deficit in the current budget, and some or all of the revenue measures suggested today as a way to help pay for all of it…”
(View full article here).

Texas Data Exposure a Political Setback for Combs?
“You don’t have to search very long to find someone upset about the data snafu that exposed personal information of about 3.5 million Texans. Some think Comptroller Susan Combs, whose office mistakenly leaked the data, should resign. Others have said she should be placed under house arrest until the attorney general finishes his investigation. Neither is likely, but she is an elected official, so some have begun targeting her next election. ‘Well, I don’t think she has a political future anymore,’ said Jason Stanford, a Democratic political strategist. He said it wouldn’t take much imagination to come up with an attack ad to run against Combs in her next race…”
(View full article here).

Liveblog: A Conversation With Lance Armstrong
“We liveblogged this morning’s Triblive with Lance Armstrong, the seven-time Tour de France winner and cancer survivor who was instrumental in creating the Cancer Prevention and Research Institute of Texas, and is now pushing smoke-free workplace bills in the Legislature.  Armstrong knows adversity; in 1997, he was a 25-year-old cyclist battling testicular cancer that spread to his brain and lungs. In recent years, he’s been dogged by allegations of doping. Despite lingering controversy, none have been confirmed…”
(View full article here).

CDC: Southern States Lag in Smoking Bans
“Though secondhand smoke leads to nearly 50,000 U.S. deaths among nonsmoking adults every year, no southern state, including Texas, has adopted a smoke-free law for worksites, restaurants and bars, according to a new Centers for Disease Control report. This regional disparity, unveiled in the CDC’s Morbidity and Mortality Weekly Report, comes as Texas lawmakers are debating implementation of a statewide smoking ban, one that would outlaw smoking in workplaces and other public places like bars and restaurants. The number of states with comprehensive smoke-free laws rose from zero in 2000 to 26 states by the end of 2010…”
(View full article here).

The Brief: April 21, 2011
“The Rainy Day Fund, this session’s forbidden fruit, is still tempting some lawmakers. Sen. Steve Ogden, chairman of the Senate Finance Committee, said Wednesday that the Senate would need to withdraw $3 billion from the fund, the state’s emergency savings, to pay for the chamber’s 2012-13 budget proposal. The Senate, whose finance committee has spent this week in budget debates, has refused to vote for the House’s stark budget bill, which slashes billions in funding from services like Medicaid and public education…”
(View full article here).

Ogden Proposes Taking Another $3 Billion from Rainy Day Fund
“Members of the Senate Finance Committee kicked out a series of bills Wednesday intended to fund their chamber’s version of the state budget for the next biennium. Toward the end of the meeting, Chair Steve Ogden, R-Bryan, dropped the news many have been waiting to hear: He wants to attach a contingency provision to their spending plans that would withdraw $3 billion from the Rainy Day Fund to balance the budget for the next two years, provided other revenue can’t be found and the comptroller needs a last resort…”
(View full article here).

House Gives Early OK to Health Care Compact
“On Wednesday, House lawmakers put their initial stamp of approval on a health care compact — a partnership with other states to ask the federal government for control over Medicaid and Medicare in Texas. But opponents say the proposal won’t get much traction in Washington, where the Obama administration is unlikely to cede authority over the programs that provide health care for children, the disabled, the elderly and the very poor. House Bill 5 by Rep. Lois Kolkhorst, R-Brenham, would give Texas, in conjunction with other states, governance over Medicaid and Medicare…”
(View full article here).

Senate Panel Approves $176.5 Billion Budget
“A $176.5 billion budget for the 2012-13 biennium — 5.9 percent smaller than the current budget but almost $12 billion larger than the version passed earlier by the House — won approval from the Senate Finance Committee Thursday morning and will come to a full Senate vote after the Easter break. And, unlike the House version, the Senate would use up to $3.1 billion from the Rainy Day Fund. The vote was 11-4…”
(View full article here).

From the Texas Tribune:

Lance Armstrong, the seven-time Tour de France winner and cancer survivor who was instrumental in creating the Cancer Prevention and Research Institute of Texas…is now pushing smoke-free workplace bills in the Legislature.

Excerpts of his conversation with Editor Evan Smith:

8:22 a.m. by Emily Ramshaw
Smith asks about Armstrong’s smoke-free push, which has struggled in past sessions.
Armstrong: You sholud’ve been on the Altria website. They’re smart and they have deep pockets. Their argument in Texas is it’s peoples’ rights to smoke. That we’re stepping on their rights.

8:22 a.m. by Emily Ramshaw
Armstrong: “When you are jeopardizing the life and health of other people around you, you lose your rights.”

Armstrong’s comments on smoke-free legislation:

8:24 a.m. by Emily Ramshaw
Armstrong: “It will pass. It’s only a question of when. This is the most momentum we’ve had. We’ve tried a few times. This is the best chance we have so far.” Armstrong says Dublin, Paris are smoke-free. “If they can do it, why the hell can’t we do it?”

Read a transcript of the full conversation on the Texas Tribune site: here.

I have worked with the International Republican Institute since 1995, as a volunteer trainer in countries around the world.  The article below talks about democracy building organizations, such as IRI, and their imact on recent events in the Middle East.  I have conducted training in Jordan for Egyptian political parties, in Dubai for Syrian civil society members, and in Tunisia for Moroccan, Tunisian and Algerian women.  As the article mentions, the role of these groups is minimal, but I have found these training programs to be useful by allowing people, who would never meet under normal circumstances in these countries, to come together to discuss the political environment, strategies for action, and ways to affect change.

The New York Times published an article that revealed US-based democracy groups that work to train people in the Middle East contributed to recent Arab uprisings. While the US government formally supported many of the official ruling regimes, groups like the International Republican Institute, the National Democratic Institute, and Freedom House trained young leaders, in countries like Egypt and Yemen, on methods to promote democracy. These methods included the use of social media, which proved to be a popular way of disseminating information during the recent uprisings.

The International Republican Institute works around the world promoting democratic governance and the inclusion of women and marginalized groups in the political sphere. In addition, they study the effectiveness of various democratic methods. For more information, view their website: here.

The National Democratic Institute is a”nonprofit, nonpartisan organization working to support and strengthen democratic institutions worldwide through citizen participation, openness and accountability in government.” For more information, see their website: here.

Freedom House is a bipartisan non-profit that works to promote civil liberties and democracy around the world. For more information, see their website: here.

Although the extent to which these US groups nurtured the uprisings is unknown, there appears to be enough evidence that they played a role, however minute.

View full article: here.

Items of Interest Compiled by Arnold Public Affairs

Below are some general items of interest pertaining to the latest political developments and important events:
__________________________________________________________________

Texplainer: How Will High Gas Prices Affect the Budget?
“Oil prices have risen recently, as unrest in the Middle East continues. Gasoline prices have gone up in tandem. In Texas, a gallon of gas costs a dollar more than a year ago. For state policymakers, a crucial question is how higher prices at the pump will affect Texas’ estimated $15 billion to $27 billion budget gap. The answer, of course, is that it’s complicated. To some extent high oil prices are good for Texas tax revenues…”
(View full article here).

What a Hospital Tax Could Look Like in Texas
“Texas hospitals are abuzz over quiet conversations in the Senate about a possible “quality assurance fee,” or tax on hospitals to raise revenue to beef up Medicaid. Such a tax looks highly unlikely; lawmakers have said the hospitals would largely have to be on board before they’d risk it — and the hospitals aren’t there. But the Health and Human Services Commission contracted with Deloitte earlier this year to run the numbers on what such a tax could cost individual hospitals in the 2012-13 biennium, and how it could affect those hospitals’ bottom lines…”
(View full article here).

“Chuy” Hinojosa Sponsors Bill to Decriminalize Some Offenses by Students
“Hinojosa, D-McAllen, co-authored SB 1116, which would remove schools’ ability to levy misdemeanor citations on some troublesome students. The bill would prevent school police departments from issuing misdemeanor fines on students caught disrupting class, fighting in schools and causing disturbances on school buses. Hinojosa said the legislation aims to curb issuing criminal citations for ‘something that is not criminal.’ ‘Kids are kids and they’ll do dumb things, but that doesn’t mean they are criminals,’ Hinojosa said…”
(View the full article here)

Perry’s Pick for D.C. Office Plays Familiar Song
“A Washington liaison with an anti-Washington message might be just what Gov. Rick Perry thinks Texas needs, but some state senators aren’t so sure. The Senate delayed a decision on Perry’s appointment of Chip Roy as director of the Office of State-Federal Relations after he made remarks at his confirmation hearing that could have come straight from Perry’s Washington-bashing ‘Fed Up!’ A former staffer to U.S. Sen. John Cornyn, Roy spoke of an ‘intrusive federal government that spends our money recklessly.’ Roy said he wants to ‘empower state leaders ….. to push back on Washington where necessary.’ Roy said it was ‘hardly surprising’ that the Texas House had voted to slash most of the office’s funds and put them into a tuition reimbursement program for children of the military… ”
(View full article here).

Small Businesses Lobby to Keep Margins Tax Exemption
“Tim Piggott of Longview Radiator and Automotive has a prospering small business with increasing sales, a new building and the prospect of hiring another mechanic. But Piggott told the House Ways & Means Committee on Monday that the prospect of losing his small-business tax exemption makes him uncertain whether to press ahead with his plans. ‘Texas lawmakers should be encouraging growth, not squashing it,’ Piggott testified. ‘I need to hire one more employee, but I need to know what’s going to happen here.’ Rallying behind small business is politically popular at the Legislature. The committee is considering four identical bills…”
(View full article here).

3.5 Million Texans’ Data Compromised Online
“Personal and confidential data from 3.5 million Texans getting unemployment checks, teachers, state workers and retirees were left unprotected on the Internet for about a year, Texas Comptroller Susan Combs announced Monday. There is no indication that the personal information — Social Security numbers, addresses, dates of birth and more — was misused when it was parked on a publicly accessible server. Nevertheless, the Texas attorney general and FBI have opened a criminal investigation, said Jerry Strickland, a spokesman for Attorney General Greg Abbott. Combs spokesman R.J. DeSilva said it was human error, not a security breach by a hacker, that caused the problem. The people responsible for the error have been fired, DeSilva said, though he could not say how many people were involved…”
(View full article here).

Lawmakers Eye Repeal of Natural Gas Tax Break
“The state of Texas generates a fortune from taxes on mining for oil, gas and minerals. But as Ryland Barton of KUT News and ReportingTexas.com reports, the natural gas industry enjoys a special incentive that some legislators want to scrap.…”
(View full article here).

From Texas to D.C., Medicaid Funding Debate Rages
“If congressional Republicans’ proposed solution to cutting health care costs — giving states block grants to fund Medicaid — sounds familiar, it’s because it is. Texas’ GOP lawmakers are backing similar proposals to put states in charge of deciding how to insure indigent children, the disabled and the very poor. While the congressional proposal focuses on Medicaid financing, one Texas proposal, called a health care compact, takes it a step further — turning over not just the purse strings, but authority for operating Medicaid, to the states. Both are long shots. The Republican congressional proposal needs the unlikely support of the Democrat-controlled U.S. Senate and the Obama administration. The Texas proposal has a good chance at passing here, but it too requires a congressional — and presidential — OK. Currently, Medicaid is largely financed through a combination of state dollars and federal matching funds…”
(View full article here).

Senate Panel Considers DWI Deferred Adjudication
“For the first time in decades, first-time drunken-driving offenders could get deferred adjudication under a bill the Senate Criminal Justice Committee considered Tuesday. Current law does not allow deferred adjudication for DWI offenses, and many first-time offenders either take jail time or plead guilty to other, lesser crimes. In an effort to reduce the backlog of drunken driving cases in Texas courts and to increase the number of people who receive treatment for alcoholism, state Sen. Dan Patrick, R-Houston, has filed a measure that would give judges discretion to sentence first-time offenders to deferred adjudication…”
(View full article here).

Senate OKs Merging of Juvenile Justice Agencies
“The Texas Youth Commission and the Texas Juvenile Probation Commission would be combined into a new Texas Juvenile Justice Department under a bill the Texas Senate approved today. ‘It will allow a seamless system for juvenile detention,’ said the bill’s author, Sen. John Whitmire, D-Houston. The new state agency would have an 11-member board appointed by the Governor and would establish a unified state juvenile justice agency that works in partnership with local county government and the courts. In committee, Whitmire emphasized that by creating a more streamlined agency young offenders would be kept in their communities for treatment and confinement instead of being sent to rural TYC facilities…”
(View full article here).

House Tentatively Passes Eminent Domain
“Another bill on Gov. Rick Perry’s emergency items list — eminent domain — tentatively passed in the House today, and it could further curb the government’s right to take private property. Current law states the government cannot seize private property for public usage without adequate compensation, but CSSB 18, authored by Sen. Craig Estes, R-Wichita Falls, seeks to limit the entities from taking private property through eminent domain. The bill would require entities to make a ‘bona fide’ offer, which includes a written initial and final offer to the property owner and a written appraisal of the land…”
(View full article here).

Texas Lawmakers Want Congress to Balance Federal Budget
“The Texas House passed a resolution Wednesday urging Congress to propose a balanced budget amendment to the U.S. Constitution. Forcing Congress to balance its budget might be a good idea, Texas lawmakers said Wednesday, although some thought it hypocritical to force the issue. Opponents held up a Bible to make their case. Others invoked President Obama’s plan to cut the federal deficit by $4 trillion. Some kept reminding colleagues about Texas’ own $5 billion a year structural deficit. In the end, House members voted 115-17 in favor of the resolution. Another 16 legislators — all Democrats — cast a ‘present, not voting’ protest vote…”
(View full article here).

Democrats Plan to Target Texas in 2012 U.S. Senate Race
“In the latest twist in the U.S. Senate race in Texas, Sen. Patty Murray of Washington state, chairwoman of the Democratic Senatorial Campaign Committee, made the surprising announcement Thursday that Texas will be one of the party’s ‘six in 12’ — six target states with GOP seats up in 2012. There’s at least one holdup with those plans: No well-known Democrat has publicly shown interest in making the race in Texas, where Republicans hold every statewide office. Asked by the Star-Telegram why she is optimistic about Texas, Murray answered with ‘a two-word response: changing demographics.’ Asked about a candidate, Murray said: ‘Yes, we’re talking to someone. I expect to see something very soon…’”
(View full article here).

California Hopes to Learn from Texas Job Growth
“Gov. Rick Perry has made several trips to the west coast to talk up Texas’s business climate, and several times over the years has been proud to announce the relocation of jobs from California to Texas. He says that just because he’s pushed for companies to leave California doesn’t mean he wants the Golden State to fail. ‘We want California to succeed. I mean, the fact is we need a strong California in this country,’ says. ‘And that’s the way that I look at this relationship. And there’s still a lot we have that we can learn from California.’ Republican California Assemblyman Dan Logue thinks it’s his state’s turn to learn a trick or two, which is why he and 18 other California officials are in Texas this week…”
(View full article here).

The Brief: Top Texas News for April 11, 2011
“The fate of campus-carry legislation — once virtually assured of passage this session — may lie with a Senate Democrat (or two). The bill, which would allow concealed-handgun license holders to carry their weapons into college classrooms in Texas, enjoys broad Republican support. But last week, the bill’s sponsor, state Sen. Jeff Wentworth, R-San Antonio, unexpectedly stopped debate in the chamber after two Democrats — Sens. Mario Gallegos, D-Houston, and Eddie Lucio, D-Brownsville — withdrew their support, citing concerns from their constituents…”
(View full article here).

The Brief: Top Texas News for April 12, 2011
“In a turn of events, campus-carry legislation could provide Democrats with what’s sure to be one of their few legislative victories this session. On Thursday, state Sen. Jeff Wentworth, R-San Antonio, shut off debate on Senate Bill 354 — which would allow concealed-handgun license holders to carry their weapons into college classrooms in Texas — after two Democrats withdrew their support. The measure, which passed the Senate in 2009 but stalled in the House, boasts broad Republican support…”
(View full article here).

The Brief: Top Texas News for April 13, 2011
“Texas may have just secured $832 million in education funding. So why isn’t everyone happy? News surfaced Tuesday that the federal budget deal struck Friday night to avoid a government shutdown included a repeal of the so-called Doggett Amendment, a provision that U.S. Rep. Lloyd Doggett, D-Austin, tacked on to an education jobs bill last year to ensure that Texas would maintain education spending levels. Gov. Rick Perry said state budget processes prohibited him from guaranteeing such funding. The funding has remained stuck for nearly nine months, but the repeal effort, led by U.S. Rep. Michael Burgess, R-Lewisville — and widely applauded by fellow Republicans on Tuesday — could send those millions to cash-strapped school districts in Texas…”
(View full article here).

The Brief: Top Texas News for April 14, 2011
“The maps are out, and the race is on. For redistricting, that is. Though it’s not so much a race as a marathon, as the maps released Wednesday by Rep. Burt Solomons, chairman of the Redistricting Committee in the Texas House, are just the initial proposals in the long process that will redraw district boundaries to account for population growth, as recorded by the 2010 census. ‘The map we are proposing is a fair and legal map that represents the people of Texas and our growth over the last 10 years,’ Solomons said in a statement. ‘And, I believe the members understand this growth resulted in some difficult decisions for me personally…’”
(View full article here).

The Brief: Top Texas News for April 15, 2011
“A state commission wouldn’t rule Thursday on what’s become one of the highest-profile death penalty cases in the nation. Instead, the Texas Forensic Science Commission’s long-awaited report on the controversial Cameron Todd Willingham case issued recommendations for fire investigators, who have been accused of professional negligence for deciding years ago that the fire that killed Willingham’s three daughters was arson. Willingham was convicted in 1992 of setting fire to his Corsicana home and killing his children, but following his execution in 2004, the case became a national lightning rod when scientists began questioning the fire science used to convict him. Experts have since deemed that science scientifically unsound…”
(View full article here).

Items of Interest Compiled by Arnold Public Affairs

Below are some general items of interest pertaining to the latest political developments and important events:

__________________________________________________________________

The Brief: Top Texas News for April 4, 2011
“The House did its dance over the weekend, passing a stark $164.5 billion budget that left virtually no area of state government untouched. Debate began Friday morning, ran until roughly 1 a.m. Saturday morning and resumed Sunday. (The Tribune team was there the whole way.) The budget bill, which cuts $23 billion altogether from areas like public education and health and human services, was approved on a largely party-line vote, 98-49, late Sunday night…”
(View full article here).

Inside Intelligence: The Best and Worst So Far…
“No charts go with this week’s Inside Intelligence survey — it’s all text. We asked the experts what they think of the state’s top three leaders so far this legislative session. Who do they think is a standout — positive or negative — and ought to be getting the attention of Paul Burka and the other writers and editors putting together Texas Monthly‘s biennial list of Best and Worst state legislators? And which of the freshmen in the House and Senate — and there are a lot of freshmen this time — are making names for themselves, for better or for worse? It’s a mixed bag. Our full set of verbatim answers is available here…”
(View full article here).

Texas Clout in Congress Rises Along With GOP
“Last year, with Democrats controlling the U.S. House of Representatives, Texas’ delegation of Republicans was largely shut out of power. What a difference an election makes. Today, with Republicans now at the helm, Texas has the largest GOP delegation in Congress, and those members have relatively high seniority, spots on key committees and seats at the leadership table — evidence, observers say, of the state’s sway inside the Capitol. ‘Texas clearly has huge clout,’ said Brian Darling, a former Senate aide and now the government relations director at the Heritage Foundation, a conservative research organization in Washington. Texas members in both parties have, on average, 11 years of experience in the House, more than 39 other states’. Its senators also rank higher than those of 30 other states…”
(View full article here).

The Brief: Top Texas News for April 5, 2011
“The gulf between the House and Senate over budget cuts may be widening. Though House Republicans, with a two-thirds majority, handily passed a stark, service-slashing budget this weekend, Lt. Gov. David Dewhurst has said the House proposal wouldn’t get the votes needed to pass in the similarly Republican-dominated Senate, where lawmakers have said they’re prepared to spend about $10 billion more than the House. But key Republican senators now say they’ve also got beef with some of the amendments their House counterparts tacked on to the bill over the weekend… ”
(View full article here).

Lone Star Reform Hinges on Rick Perry
“Everything is bigger in Texas — the challenges for implementing the federal health reform law included. POLITICO interviews with Texas legislators and lobbyists indicate that Gov. Rick Perry is unlikely to take the steps necessary to implement the insurance exchange required under the federal health reform law, which means the task will probably be left to the Obama administration. To be sure, other Republican governors have also come out strongly against setting up the reform law. Citing their opposition to the law, Florida’s Rick Scott and Louisiana’s Bobby Jindal have sent health reform grants back to Washington. A Texas decision not to build a health exchange, however, would have much more wide-ranging consequences in terms of both politics and policy…”
(View full article here).

Pitts Talks, Gently, of Adding to Texas Budget
“Less than two days after approving a state budget that cuts $23 billion from current spending, House leaders are already talking among themselves about how much more money they’d be willing to spend. House Appropriations Chairman Jim Pitts said this afternoon that he’s already asked Rep. Larry Taylor of Friendswood, who heads the House Republican Caucus, whether the conservatives in the House would be willing to spend another $5 billion if it can be located. ‘I asked the caucus chair, ‘If I brought you a bill back that’s $5 billion more than we had on the floor, what would be the reaction from the caucus?’ And he said, ‘Well, it depends on where the money comes from,’ Pitts said to reporters Tuesday afternoon…”
(View full article here).

It’s Senate vs. Austerity In Fight Over Budget
“Democrats did something rare on Sunday on the floor of the Texas House: They pleaded with their colleagues in the Senate to stop a budget bill they did not have the votes to block, and used strong words to send their message across the rotunda. ‘Thank God for the Senate,’ said state Rep. Harold Dutton, D-Houston. ‘I appreciate their sentiment. We’ll do our best,’ was the wry response from Senate Finance Committee Chairman Steve Ogden, R-Bryan. ‘We have a fair amount of latitude, but we’ve still got to address how we’re going to pay’ for the budget. The Texas House, where Republicans control 101 of 150 seats, passed a two-year budget that is widely considered to be so austere that the chamber’s head budget writer, state Rep. Jim Pitts, R-Waxahachie, somberly promised the body he would do everything he could ‘to make the bill better’ as it moved forward to the Senate…”
(View full article here).

Texas GOP Legislators Push New Voter Bills
“Limiting the assistance offered to voters, increasing penalties for illegal voting and tweaking laws governing the use of cellphones by poll watchers are included in Texas Republicans’ ongoing efforts to overhaul Texas’ voting system. Fresh off its voter ID victory last month, the majority party in the House made good on its promise to go beyond that controversial measure to combat what it alleges is serious voter fraud. In what House Elections Committee Chairman Larry Taylor, R-Friendswood, called “the Peña Network” the committee on Monday heard more than a half-dozen bills authored by Rep. Aaron Peña, R-Edinburg. The measure that drew the most debate, House Bill 304, would limit how often an election worker would be allowed to assist voters to two per day…”
(View full article here).

The Brief: Top Texas News for April 6, 2011
“House Republicans may be inching toward a compromise on the billions of dollars they just voted to slash from the state budget. House Appropriations Chairman Jim Pitts said Tuesday, as reported by the Tribune’s Ross Ramsey, that he has asked the leader of the House Republican Caucus if conservatives in the House — which this weekend approved a stark, revenue-slashing budget — would be willing to spend more money…”
(View full article here).

Business Tax Needs Another Look, Key Senator Says
“Senate Finance Committee Chairman Steve Ogden on Tuesday continued his call to revisit the state’s main business tax, signaling that a debate on whether to increase taxes could be coming in the final eight weeks of the session. Led by Gov. Rick Perry and former Comptroller John Sharp , lawmakers rewrote the state’s corporate franchise tax in 2006 to pay for a one-third reduction in property tax rates for school operations. That plan was meant to be a net tax cut, meaning the revamped business tax — known around the Capitol as the “margins tax” — would not raise as much money as the property tax cuts. But the tax has performed well below even those expectations, and that underperformance costs the state billions of dollars a year. Ogden wants the state to revisit the tax, but many lawmakers have signed pledges saying they won’t raise taxes…”
(View full article here).

Dueling Rallies: Cut Spending or Save Programs?
“Texans on all sides of the budget equation rallied at the Capitol Wednesday for vastly different priorities. The first gathering on the north steps of the Pink Dome featured speakers representing conservative causes. They praised the lean version of HB 1, the general appropriations budget for the 2012-13 fiscal year, that is on its way to the Senate. ‘It’s not a perfect bill, but it’s a bill that stays within our revenue,’ said Talmadge Heflin of the Texas Public Policy Foundation’s Center for Fiscal Policy, the main organizer of the rally…”
(View full article here).

Will Hospitals Be Taxed to Prop Up Medicaid?
“Talk has resumed in the Senate — albeit quietly — about a so-called quality assurance fee, a revenue generator that would effectively tax hospitals to prop up the state’s cash-strapped Medicaid program. ‘There’s a quiet discussion going on, though nothing has been formally proposed,’ said Sen. Steve Ogden, R-Bryan, the chairman of the Senate Finance Committee. “It should be considered.’ But state leaders suggest Texas hospitals would largely have to be on board in order to get them to seriously consider this source of new revenue. John Hawkins, senior vice president with the Texas Hospital Association, said he’s expecting a proposal for a quality assurance fee soon — but with so many existing unknowns in Medicaid funding at the Legislature, a sign-off from the hospitals is unlikely to happen in the next six weeks…”
(View full article here).

Hispanics at Heart of Texas Redistricting Debate
“Efforts to redraw the Texas congressional map have begun in earnest, and the rapid increase in the Hispanic population will be at the heart of just about every redistricting decision made this year. The search for Hispanic-majority districts could also affect the re-election chances of some lawmakers. State Rep. Burt Solomons, R-Carrollton, who chairs the House Redistricting Committee, said he hasn’t drawn a map yet, but his committee has started hearing how the state would add four new congressional seats, which Texas gained in its 2010 census allotment. Two such proposals have come from the Texas Latino Redistricting Task Force, a coalition of advocacy groups…”
(View full article here).

Texas Bill Capping Fees, Interest on Payday Loans Clears Senate Committee
“Legislation by Sen. Wendy Davis of Fort Worth that would cap fees and interest on loans made by payday and car title lenders was approved Thursday by the Senate Business and Commerce Committee. The bill, which now heads to the full Senate, has strong support from a coalition of consumer and faith-based groups, who are calling for tougher regulations on the lenders. The Consumer Service Alliance of Texas, which represents lenders, opposes the proposed caps. The committee vote was 5-1; Sen. Chris Harris, R-Arlington, cast the dissenting vote. Davis and Sen. Royce West of Dallas introduced the legislation to rein in payday lending practices that they say subject consumers to a spiraling cycle of debt. The two Democrats modified their original bill as part of a compromise to soften some industry concerns. Other related measures are pending in the House. Rep. Vicki Truitt, R-Keller, chairwoman of the House Pensions, Investments and Financial Services Committee, has introduced a package of three bills that would add regulations…”
(View full article here).

The Brief: Top Texas News for April 8, 2011
“It’s no government shutdown, to be sure, but Texas has run into its own bout of fiscal drama: leaked budget documents. On Thursday, anti-tax group Empower Texans posted on its website a list of revenue sources under consideration by the state Senate, which has been unwilling to cut as deeply from the state budget as the House, which recently approved a stark, service-slashing budget that cuts spending by $23 billion. The Senate has since sent a subcommittee, led by Sen. Robert Duncan, R-Lubbock, on a hunt for at least $5 billion in non-tax revenue…”
(View full article here).

Via Harvey Kronberg’s Quorum Report:

Sen. Robert Duncan will reconvene his Finance subcommittee later this week to start a first round of discussions on where to find additional budget revenue.

With an austere budget passed in the House over the weekend, the work of the budget turns to the Senate, which has been far more generous in funding various articles in the new budget and more inclined to talk about finding even more revenue for problem spots in the budget, such as student financial aid.

The goal of Duncan’s Fiscal Matters subcommittee was to find $5 billion in non-tax revenue. Today, Duncan declined to put a number on what his committee work groups had found in their search so far. But he noted the group had made “some progress” toward closing the budget gap.

Ogden, who rolled out his own bill to cap spending on school district tax breaks in Senate Finance yesterday, reiterated his position today that the state’s current tax-and-spend policies ultimately were untenable and must be addressed.

“You have a system where statute after statute forces you to spend, while we continue to collect less and less in taxes,” Ogden told reporters today, alluding to tax abatement deals that continue to cost the state money. “That creates a system that is fundamentally unstable, and sooner or later, we’ll have to fix it.”

Businesses already pick up the tab on most of the state’s taxes, Ogden said. The state’s tax system needs to be uniform and equitable with a rate as low as possible.

“A lot of my criticism, as we continue to carve out exceptions, is that we’re basically subsidizing one group at the expense of everybody else,” Ogden said. “As a matter of philosophy, I don’t like it.”

The biggest component of that problem is the failure of the business margins tax, Ogden said. The tax needs to be fixed sooner rather than later, and Ogden suggested a constitutional amendment to return to a franchise tax as one potential fix.

Ogden pointed to Duncan as the point person on addressing a fix for the margins tax. Duncan, in turn, said his subcommittee would be meeting late this week to lay out an initial round of additional revenue sources that had the most consensus among committee members. That will be followed by more negotiation among the committee members, with the goal of laying out a second round of funding options sometime next week, Duncan said.

In the meantime, Chair Rep. Jim Pitts (R-Waxahachie) has announced his own revenue-finding mission for this week, with the goal of turning up another $3.5 billion in non-tax revenue on the House side of the ledger.

Dewhurst, in his comments to reporters after the Senate session today, noted he had never been a fan of the margins tax and knew early on it would underperform, telling Senate caucuses that revenue estimates were “wildly exaggerated.” Dewhurst also was critical of a tax on businesses that were losing money and one he considered to be excessively burdensome to start-up businesses.

While not expressing direct support for returning to the franchise tax, Dewhurst noted that he and Ogden had preferred broadening the franchise tax in 2005, choosing to tax across more businesses but at the lowest rate possible.

An actual school finance fix, Ogden noted, will be a two-pronged approach requiring both appropriations in the budget bill and some type of school finance bill that matches those appropriations. Sen. Florence Shapiro (R-Plano) will carry the bill that will serve as that vehicle, and Sen. Kel Seliger (R-Amarillo) has suggested he might propose a substitute to her proposal, one that is more favorable to school districts with low property wealth and low target revenue.

The Senate’s additional $6 billion commitment to public education in its budget, Dewhurst noted, closes the $3.2 billion structural deficit hole created by the use of stimulus funding for ongoing expenses and provides an additional $1.5 billion above funding levels in the current biennium, which Dewhurst said just about covers the cost of student enrollment growth.

Once the supplemental bill is passed, the rainy day fund will sit at about $6.5 billion. Neither Lt. Gov. David Dewhurst nor Ogden, interviewed after today’s Senate session, were inclined to discuss how much they might be willing to pull out of the state’s rainy day fund to cover a growing list of expenses that the Senate appears far more ready to approve than the House.

Dewhurst predicted the rainy day fund could grow by another billion a year given current growth projections, and Ogden said better-than-anticipated prices on oil would probably lead him to request an updated figure on the fund’s balance from Comptroller Susan Combs.

Items of Interest Compiled By Arnold Public Affairs

Below are some general items of interest pertaining to the latest political developments and important events:

__________________________________________________________________

The Brief: Top Texas News for March 28, 2011
“This week, we may find out just how hard the budget ax will swing — and who’s doing the swinging. The full House will take up its version of the budget on Friday, just over a week after the bill was voted out of committee. The bill cuts state funding by 12.3 percent for the next biennium, leaving services like Medicaid about $6 billion short and public education funding about $8 billion short under current finance formulas…”
(View full article here).

Inside Intelligence: Redistricting Will Be…
“The insiders, asked this week about redistricting and how it will affect other issues, are split on the outcome. Slightly more than half — 54 percent — think the Legislative Redistricting Board will have to clean up after the Legislature fails to come up with maps for the House and Senate (congressional maps skip that step and go straight to the courts if lawmakers can’t agree on plans). The Republicans have 101 members in the House and 19 in the Senate, but only 9 percent of the insiders think lawmakers will be able to draw maps that ensure future supermajorities in both the House and the Senate. Almost half — 48 percent — think that effort will fall short in both houses; 10 percent say it’ll work in the House and not the Senate, and 20 percent say it’ll work in the Senate and not in the House…”
(View full article here).

Lawsuit: Texas Failing Foster Children
“The national child advocacy group Children’s Rights has successfully sued for better conditions for foster kids in more than a dozen states. Now, the organization is turning its sights on Texas, for allegedly leaving children stuck in long-term foster care. Children’s Rights filed a class-action lawsuit against Texas officials this morning, alleging, on behalf of 12,000 abused and neglected children in long-term foster care, that the state hasn’t done enough to get kids in state custody into permanent homes. The organization argues that exorbitantly high workloads for inexperienced caseworkers, combined with a lack of foster homes and a reliance on remote care institutions, has created a system in which children are bounced from placement to placement — with little chance at a permanent home…”
(View full article here).

The Brief: Top Texas News for March 29, 2011
“The deck may now be stacked against the legalization of gambling in Texas, thanks to one state senator. With a House committee set to start hearing testimony on legislation aimed at legalizing several types of gambling, the Houston Chronicle reports that state Sen. Robert Duncan, R-Lubbock, has said he won’t bring up any such legislation in the Senate State Affairs Committee, which he chairs. ‘There is no support in my committee,’ Duncan says. ‘I just don’t think there are the votes in the Senate. I don’t see any chance of passage.’ That’s a blow to gambling proposals, which arguably stood their best shot at passage in years with lawmakers scrounging to fill a $15 billion to $27 billion state budget hole this session…”
(View full article here).

Former Lt. Gov. Hobby Calls for End to Tax Break for High-Cost Gas Production
“Former Lt. Gov. Bill Hobby called Monday for the elimination of a tax exemption on the production of high-cost natural gas, saying the oil industry tax break is siphoning off revenue that could be used to help ease the state’s budget pressures. Producers have relied heavily on the 22-year-old exemption as they developed natural gas properties in the Barnett Shale, which lies under about 20 counties in North Texas. Chesapeake Energy, one of the major producers in the Barnett Shale, has threatened to curtail activity in Texas if the exemption is eliminated. Hobby testified on behalf of legislation by state Sen. Rodney Ellis, D-Houston, that would subject the natural gas tax break and other exemptions to a periodic state review to determine whether they should be retained or abolished. Hobby, who served as a Democratic lieutenant governor from 1973 to 1991, called Ellis’ proposal a “good idea” and said he “absolutely” shares the Houston lawmaker’s view that the exemption should be abolished… ”
(View full article here).

Texas Lawmakers Prepare for Sanctuary City Battle
“It’s been modified from its original form to allay Democrats’ concerns, but lawmakers are nonetheless gearing up for a battle as emotional and time-consuming as Voter ID when they take up legislation addressing another one of Gov. Perry’s emergency items — abolishing sanctuary cities. Several bills addressing illegal immigration have been filed in the Texas House but HB 12 by Carrolton Republican Burt Solomons has advanced the furthest, making it out of the State Affairs Committee. The Calendars Committee, which sets the House agenda, has received the bill’s committee report and it should be eligible for floor action as soon as next week…”
(View full article here).

Zerwas: Texas Health Insurance Exchange May Be Dead
“State Rep. John Zerwas, the Simonton Republican who has filed legislation to implement one of the key elements of federal health care reform, said his bill may be permanently stuck. Zerwas, who proposed establishing a Texas health insurance exchange not because he approves of federal health reform, but because he fears the feds will do it for Texas, said he’s been told Gov. Rick Perry’s office doesn’t support the measure. ‘I am absolutely disappointed,’ said Zerwas, who is an anesthesiologist. ‘I believe this is one of the most important things we can do to protect our insurance market, by putting a Texas exchange in place.’ Perry’s office didn’t say whether he’d veto Zerwas’ bill. But a spokeswoman said the governor ‘strongly opposes the federal healthcare reform bill and the one size fits all mandates that come along with it…’”
(View full article here).

The Brief: Top Texas News for March 30, 2011
“With the big vote on massive budget cuts two days away, the pressure may be getting to some House Republicans. Jim Pitts, Republican of Waxahachie and the chairman of House Appropriations Committee, told the San Antonio Express-News after a closed-door meeting with the House Republican Caucus on Tuesday that the sweeping cuts laid out in the House budget proposal — which will be taken up Friday — have some GOP members on edge. ‘There’s a huge concern about what’s going to happen in nursing homes,’ Pitts said. ‘And what’s close to all of us — we all have a public school in our district — is what’s going to happen to our schools?…’”
(View full article here).

Lawmakers Want Fewer Tickets for Students
“Chewing gum may be considered rude, maybe even disruptive. But in some Texas schools, it is a class C misdemeanor. The Senate Criminal Justice Committee today discussed a bill that would reverse the statute that allows police officers to issue misdemeanor citations to students for infractions like chewing gum, sleeping in class and cursing. The bill, proposed by Committee Chairman Sen. John Whitmire, D-Houston, would prohibit school district police officers from issuing citations for disrupting a classroom — the citation that most students receive for non-criminal offenses. The bill would also allow citations, if any, to go through juvenile courts rather than through municipal courts…”
(View full article here).

Rep Seeking to Raise Taxes on Smokes
“Lawmakers are prepared to suspend the state’s smoking prevention program because of budget problems, despite estimates that smoking-related diseases cost Texas at least $1.6 billion a year in Medicaid payments alone. The House appropriations bill, scheduled for debate this weekend, would cut out the $10 million-a-year anti-smoking campaign, which remains a legacy of the state’s 1998 tobacco settlement. To save the anti-smoking effort, Rep. Carol Alvarado, D-Houston, is pushing a bill to increase the state cigarette excise tax by $1.05 per pack…”
(View full article here).

Graphic: The Texas Budget Cycle
“Confused about the state’s budget? Trust us — you’re not alone. The Texas Legislature creates a spending plan every two years, but it takes almost as much time to prepare that plan. This session, lawmakers will set a budget that will be implemented in fiscal years 2012 and 2013 (Sept. 1, 2011, to Aug. 31, 2012). This week, House members will be tested when they vote on their version of a general appropriations bill. Lawmakers are considering unprecedented cuts in every area of state spending, from public education and health services to public safety. Below is a flow chart to help you understand where we are in the process (highlighted in yellow) and what steps are next (highlighted in gray)…”
(View full article here).

Politics, Not Just Numbers, In Budget Amendments
“The House will launch Friday morning into a $164.5 billion budget proposal for 2012-13, which is about $23 billion, or 12.3 percent, smaller than the current budget. General revenue funding —which comes mostly from state taxes and fees — would fall $4.6 billion, or 5.2 percent, from current spending. The state’s debt service — what it pays on its borrowing in the budget — would rise 18.5 percent, to $3.3 billion, in the proposed budget. But numbers aren’t all that’s buried in the details of the budget. Lawmakers have filed hundreds of amendments that are largely political objectives, from repealing in-state tuition and financial aid for illegal immigrants to making abortions tougher to obtain. Here’s a look at the numbers — and the politics — behind what lawmakers are slated to debate…”
(View full article here).

The Brief: Top Texas News for March 31, 2011
“House debate over this session’s heavyweight bills — the only legislation that has to pass this year — gets under way today. This morning, the House will take up House Bills 4, which cuts about $1 billion from the state’s current budget (through 2011), and 275, which authorizes lawmakers to tap the state’s Rainy Day Fund. Expect both to pass, but not without lengthy debate. (Keep an eye on freshman Republicans, in particular, many of whom have said they were elected in November to make cuts, not to tap the state’s reserves.) Prepare for even lengthier debate tomorrow, though, when the House will take up the full budget bill, HB 1, which appropriates funding for 2012-13 — and includes those sweeping cuts to virtually all areas of state government (an $8 billion cut to public education, for instance) that have ginned up so much unease among concerned Texans and lawmakers alike…”
(View full article here).

Higher Oil Prices Have a Silver Lining for Texas: A Bigger Rainy-Day Fund
“Higher oil prices might irk consumers, but unrest in the Middle East could mean a tax revenue windfall for Texas’ tight budget. The money is coming from Texas oil producers that have increased drilling to take advantage of prices that spiked in mid-February, when fighting in Libya squeezed off shipments that had supplied nearly 2 percent of the world’s oil. A percentage of the price from every barrel of oil and cubic foot of natural gas produced in the state goes into the rainy-day fund. The fund was created by a constitutional amendment in 1987 and receives most of its money using a formula based on that year’s oil and gas severance taxes. In years that Texas severance taxes top the 1987 figure, 75 percent of the excess is moved into the fund, typically in November. While natural gas prices have been low recently, U.S. crude oil futures closed above $104 a barrel Wednesday, way above the $70 figure used to estimate state tax revenue this fiscal year…”
(View full article here).

Senate Panel Votes to Spend Additional $4.3 Billion on Human Services
“The Senate Finance Committee voted Thursday to restore a less-than-expected $4.3 billion in health spending in 2012-13 but promised to try to find more money in the coming weeks. The panel adopted most of the recommendations made recently by the Medicaid subcommittee, including a widely sought provision reversing a planned 10 percent cut in Medicaid reimbursements for doctors and dentists. Advocates had feared the cuts would force many physicians, already operating on thin margins, to stop seeing Medicaid patients. But the committee held off on plans to reduce steep cuts to nursing home and hospital reimbursement rates despite fears that the action would force nursing homes to close and hospitals to pass higher costs on to other patients…”
(View full article here).

Texas State Senators in Tricky Search for Money
“It’s not just that state Sen. Robert Duncan doesn’t like gambling. He doesn’t think he could get legalized casinos out of his Senate State Affairs Committee, or out of the full Senate. And why, the Lubbock Republican asks, would you waste the Senate’s time on something that might not win approval in the House? Better to wait. In the meantime, the senator — assigned with several colleagues to find some new sources of money that can’t be called taxes — says he’ll take another week or so to get that job done. The mission is to find $5 billion to $6 billion…”
(View full article here).

The Brief: Top Texas News for April 1, 2011
“In the House budget battle, it’s two bills down, one to go. But this one’s a doozy. The Texas House gave early OK to two bills on Thursday that collectively balance the budget for the remaining fiscal year. House Bill 275, which authorized use of the Rainy Day Fund, passed by a vote of 142-2. But HB 4, which outlined about $1.5 billion in cuts to state agencies, split the House, as expected, along party lines. Lawmakers filed 65 amendments to HB 4, many from Democrats attempting to restore funding for public education, higher education and health care. Republicans are “unwilling to protect those priorities, and they are willing to sacrifice them in favor of ideology,” said state Rep. Joaquin Castro…”
(View full article here).