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At the Capitol, all eyes turn to Senate
House passes last of 5 tax reform bills, raising cigarette tax by $1

Determined to rebalance tax dollars and prevent teens from smoking, the Texas House voted Thursday to increase the cigarette tax (now 41 cents) by $1 per pack. After rejecting an effort to increase the tax by only 65 cents a pack, the House voted 82-57 to send House Bill 5 to the Senate. It was the final piece of Gov. Rick Perry's plan to use new state tax revenue to cut local school property taxes and beat a June 1 deadline to revamp the tax system. Attention now turns to the Senate, where the Finance Committee today began hearing the tax bills.

The tax bills essentially floated through the House but are expected to be weighed down on the Senate side by additional proposals - many of which would add money to the public school system instead of simply reorganizing revenue streams. Sen. Juan "Chuy" Hinojosa of McAllen (pictured), for example, said he plans to propose a 5 percent tax on video games when he and other members of the Senate Finance Committee meet this weekend. That, he said, would raise about $65 million every two years and could be designated for new schools and building upgrades at poor school districts.


Eminent domain debate reinvigorated

Sturzl

A U.S. Supreme Court decision in 2005 allowing cities to use their power of eminent domain to take land for economic development led Texas lawmakers to restrict that power last year for local governments in the state, but the issue is still up for discussion. Both the House and the Senate are considering further changes to Texas' eminent domain laws as they work through their interim charges before the start of next year's regular session. It's a process being monitored closely by Texans such as Frank Sturzl (pictured), executive director of the Texas Municipal League. "We hope that whatever the Legislature does, cities' authority to obtain land for such governmental purposes as streets, water treatment plants, sewage treatment plans, solid waste landfills, and the like will not be damaged," Sturzl said.

Duncan

The Senate Committee on State Affairs, chaired by Sen. Robert Duncan of Lubbock, is studying eminent domain policies in the state and receiving the most attention right now as it holds meetings on the subject. By the end of the year, the committee will recommend what the state should do about it beyond the legislation enacted in 2005 that limits the taking of land for economic development. Besides determining which state, regional or local entities have eminent domain power, the State Affairs Committee is charged with monitoring the implementation of the legislation passed in 2005 and making any recommendations as to the use of eminent domain for economic development. Duncan said his committee asked the Legislative Council for the number of entities the state has granted eminent domain authority. It was more than the council could count, Duncan said, leading him to believe that Texas has been "extremely liberal of our grants of eminent domain authority."


State, federal leaders prepare for hurricane season

During a meeting at the State Capitol this week, U.S. Homeland Security Secretary Michael Chertoff promised Gov. Rick Perry the use of nearly two dozen military helicopters during hurricane season, which runs from June 1 to Nov. 30. Chertoff - who was accompanied by Federal Emergency Management Agency Acting Director R. David Paulison, U.S. Army Lt. Gen. Robert Clark and Coast Guard Adm. Timothy Sullivan - promised to provide 10 Blackhawk helicopters for search-and-rescue missions and 13 Chinook helicopters to haul cargo, including boats for Sullivanswift-water rescues.

Along with the promise of helicopters, federal officials granted Perry's request for the Coast Guard's Sullivan (pictured) to act as the principal federal official to coordinate with state, regional and local officials in preparing for and responding to natural or terroristic disasters. Next week Sullivan will be stationed at the State Operations Center in Austin, the Texas command headquarters during disasters, to participate in a statewide hurricane exercise.


Oil derricks may spring up at D/FW airport

The D/FW Airport has taken bids from some of the world's largest energy companies for the right to search for oil and gas. More than 60 companies applied for the right to drill on the 18,076 acres that will be open for drilling. Airport executives recently narrowed the candidate list to 12. The airport sits on the eastern edge of the Barnett Shale natural gas field that encompasses Fort Worth. D/FW officials said they may see as much as $34 million a year in royalties and a one-time bonus of $72 million from the initial lease. The finalists must submit their bids to the D/FW Airport Board by May 8. A lease is expected to be signed in August or September.


PUC: Plenty of power for summer

Texas should have ample electricity to meet demand this summer despite the rolling blackouts prompted by last week's unseasonably hot weather, members of the Texas Public Utility Commission told a Senate panel this week. Thousands of Texans unexpectedly found themselves without electricity on April 17 when the demand for power exceeded the supply as temperatures climbed to the upper 90s and the low 100s.

PUC commissioners also said that the next time the state will have rolling blackouts, power customers will get some notice. The warnings, which will be broadcast through the Emergency Operations Centers, are just one step the commission is taking in response to last week's power outages. The PUC is still investigating the events that led to the blackouts and will issue another report next month.


UT investigating database breach

The University of Texas has posted an informational Web site for those affected by the recent computer hacking. On April 21, a security breach was discovered in the primary administrative information system at the McCombs School of Business at UT-Austin. The system contains 197,000 individual records. Of these records, at least 106,000 contain Social Security numbers and names. Among those in the system are Business School alumni, students (including students who have taken even one course at the Business School), admissions applicants, present and former faculty and staff, and corporate recruiters.


Flower Mound names new town manager

The Town Council in Flower Mound, just north of Dallas, removed the interim tag this week from town manager Harlan Jefferson's title. Mr. Jefferson had been filling in since Van James stepped down in September. Last week, the council had named only one finalist - and it wasn't Mr. Jefferson. It was Arlington Deputy City Manager Ronald Olson. Jefferson has worked for Flower Mound for nine years, most recently as deputy city manager and chief financial officer. He earned a master's degree in public administration from the University of North Texas.


UT snags $5M grant to study dark energy

Simmons

The University of Texas has received a $5 million challenge grant to study dark energy at the McDonald Observatory. Harold Simmons, a Dallas resident and UT graduate, gave the money to help fund the Hobby-Eberly Telescope Dark Energy Experiment. Simmons has previously donated to UT's athletics program and the McCombs School of Business. Scientists believe that dark energy, discovered in the late 1990s, causes the universe to expand, but they don't know exactly what the energy is or how it acts physically.


Parkland decries low Katrina payments

Parkland's leadership is disappointed that the Federal Emergency Management Agency isn't sending a check to cover all $1.4 million worth of care provided to evacuees of Hurricane Katrina. The costs include $436,642 of contributions by Parkland to the clinic established at Reunion Arena. Overtime pay to employees and the cost of goods are reimbursable expenses. Of the $1.4 million in costs, Parkland officials estimate the government will reimburse the system $930,580, according to a report provided to Parkland's Board of Managers on Tuesday.


San Antonio passes on three big prospects

After being invited, San Antonio Mayor Phil Hardberger said his city is not interested in hosting the 2008 national conventions for Democrats or Republicans. Hardberger said the city is already hosting some large events during that time and couldn't spare the hotel rooms needed for either convention. At about the same time, Bexar County Judge Nelson Wolff confirmed that talks with Major League Baseball's Florida Marlins have fizzled out. Wolff had proposed building a stadium for the Marlins if they would relocate to the Alamo City.


Taylor secures unique family detention center

In the small Central Texas town of Taylor, a private prison could become the second facility in the country to house immigrant families detained by federal authorities. The T. Don Hutto Correctional Center, owned and operated by Corrections Corporation of America, already had a contract to house immigration detainees but a new agreement approved by Williamson County commissioners last week changes the class of detainees from adult men to families, said Assistant County Attorney Dale Rye. Currently, the prison has no detainees but can hold up to 600. The nation's only facility allowed to house detained families is in Berks County, Pa. Williamson County will work as an intermediary in billing transactions between Immigration and Customs Enforcement and Corrections Corporation of America. The county will earn $1 per day for each inmate at the facility, or about $200,000 each year, if the facility is at capacity, officials said.


HHSC: Families say CHIP renewal remains easy

The majority of families whose Children's Health Insurance Program (CHIP) coverage lapsed in recent months were well informed about the renewal procedures, felt the materials were easy to understand and found the renewal process "as easy as it could be," according to partial results of a survey released recently by the Texas Health and Human Services Commission (HHSC). More than 60 percent of families said they did not believe they were asked for too much documentation. However, two-thirds reported being notified that they had failed to submit all the information needed to renew their coverage, possibly reflecting a recent change that requires families to provide proof of their income each time their coverage is up for renewal. Click here for more details.


Houston's Metro converts to smart card

The Metropolitan Transit Authority in Houston is replacing its fare system to get rid of outdated and troublesome rider cards. Metro's current cards, which contain a magnetic strip, will soon be phased out by smart cards, which are embedded with a computer chip. Metro officials said the current cards, used since 1994, account for 30 percent of bus breakdowns because the card readers frequently malfunction.


Denton launches commuter bus line

Commuters that want to cut the cost and hassle of driving from Denton to Dallas will have some relief beginning May 30. That's when the Denton County Transportation Authority is scheduled to begin its commuter bus line operations. The proposed one-way fare for a Denton-to-Dallas trip is $5, but riders can save considerable money by buying a multi-ride pass. Stops will include Denton, Lewisville and downtown Dallas. The bus line will run until the DCTA builds its commuter train line from Denton to Carrollton.


Lewis

Pasadena ISD names top administrator

Kirk Lewis, who for years has served as a spokesman for Pasadena schools, will now head the school district near Houston. Lewis was named the lone finalist for the position earlier this month but under state law, the school board had to wait 21 days before offering an official contract. Lewis, who has been acting superintendent since December, replaces Rick Schneider, who retired at the end of last year.


USDA grant paves way for S. Texas plant

The U.S. Department of Agriculture (USDA) will award the city of Moore a $1,038,000 grant to help build a new wastewater collection system and treatment plant, according to U.S. Rep. Henry Cuellar of Laredo. The residents of Moore, which is 13 miles northeast of Pearsall in North Central Frio County, have also been approved to receive a $100,000 USDA loan to help assist in the building and implementation of the system. The proposed wastewater system will allow Moore to provide a safe, sanitary means for disposing of treated wastewater for the first time. Along with the grant and loan, the Texas Water Development Board is supplying $1,160,000 in leverage funds. The community will receive its federal grant today.


Austin may offer health benefits to same-sex partners

Domestic partners of City of Austin employees will get health benefits if a May 13 proposition passes. Voters must approve changes to the City Charter in order for that to happen. The ballot measure was proposed by council members Brewster McCracken, Lee Leffingwell and Betty Dunkerley. Austin estimates that one percent - 100 out of 10,000 employees - would sign up for domestic partner benefits, at a budget cost of $250,000 a year, human resources director Cathy Rodgers said. The estimate assumes the city would pay half of the partners' premiums, plus administrative costs, just as it pays half of spouses' premiums, or $190 per person per month.


TxDOT: Buy a sticker, skip the ferry lines

Drivers willing to pay $250 to bypass the lines waiting for the Galveston-Bolivar and Port Aransas ferries can sign up now for one-year priority boarding stickers. But the Texas Department of Transportation said it will not begin building the new boarding lanes until it gets at least 500 priority boarding applications for each location. The fee varies by type of vehicle, rising to $500 for those with more than two axles, such as buses or motor homes, and $1,000 for 18-wheelers. The basic fee of $250 for most passenger cars, sport utility vehicles and pickups drops to $150 for additional vehicles in the same household.


Bee County officials boycott gas

Spurred by rising gas prices, elected officials in Bee County are urging motorists to boycott fuel pumps in hopes of sparking a state trend. Officials planned to ask other counties to join the boycott, set to begin Monday, and said they hope it will attract the attention of oil companies.


Most counties lack cell phone 911 technology

About 80 percent of counties in Texas don't have the equipment to pinpoint cell phone locations, and most counties won't have it for at least a year and a half, according to the Commission on State Emergency Communications. Many counties said their systems aren't up to date because the Legislature has dipped into a fund created from a phone tax designated for 911 services, using the money for other purposes.


Rose Bowl boots up for auction

Gov. Rick Perry on Thursday kicked-off an online auction of two pairs of hand-crafted boots donated in a Rose Bowl wager with California Governor Arnold Schwarzenegger. Proceeds of the 10-day, eBay-sponsored auction will benefit the Texas Disaster Relief Fund, which assists families and communities recovering from last year's devastating hurricanes. Before the Texas Longhorns' historic Rose Bowl victory on Jan. 4, Perry offered Schwarzenegger custom-made calf-skin boots by noted Texas boot maker Justin Boots in a friendly wager. Schwarzenegger matched with a pair of his own horn-back leather boots and the governors agreed they would be auctioned together to benefit the winning governor's designated charity.


Houston Airport System named Airport of the Year

The Federal Aviation Administration's Texas Airports Development Office has selected the Houston Airport System as Airport of the Year for 2005. Among the reasons for this accolade were the airport system's capital improvement program, its overall global importance and the aid it rendered to neighboring airports during hurricanes Rita and Katrina.


Cost of growth a growing burden

Mary Scott Nabers

By Mary Scott Nabers, CEO of Strategic Partnerships, Inc.

For government officials across the state, the cost of keeping pace with demand is becoming a serious challenge. The cost of building anything - roads, sewer systems, schools and everything in between - has skyrocketed.

There are many reasons for this. Reconstruction work from eight hurricanes that hit the U.S. since 2004 consumed much of the labor, material and equipment - resources already stretched by the state's steadily growing population. Another prevalent reason: Inflation. It simply costs more to do business today. Add to that the fact that fuel prices are again approaching record highs and the problem is exacerbated.

School districts seem to get criticized most for the costs of building schools. Many recent bond proposals have been turned down by voters wary of costs. One of the reasons why schools cost much more today than in the past has to do with technology. Consider this: 15 years ago schools had typing labs. Those relatively cheap typewriters have been replaced by computers and sophisticated networks. It's an expensive step toward the modern world, but an essential one. Voters should remember this when they go to the polls in two weeks to decide on bond proposals. Here are some of the larger proposals to be considered in the near future:

  • If approved by voters on May 13, Frisco ISD will spend $800 million to expand the district. Most of the money would be spent on construction, but $50 million is earmarked for technology; $7 million is set aside for security; and $9 million is allocated for vehicle purchases.
  • Northside ISD officials in San Antonio are currently planning for a bond election in 2007. While nothing has been recommended to the school board, nor has a citizens' bond committee been formed, the likelihood of another bond election that would build 12 to 15 more schools is likely in May 2007.
  • Rockwall ISD near Dallas has $74 million of money available to acquire new technology, build two new elementary schools and renovate several existing facilities.
  • And Pearland ISD near Houston has two new high schools on the drawing board - each of which promises to be filled with the latest technology, communications equipment and teaching tools.

SPI expanding again

Strategic Partnerships, Inc. is pleased to announce two new Consultants to the Texas Team. BassettSPI clients have access to seasoned government executives, subject matter experts and sales and marketing gurus from all sectors. Elsewhere in this publication is a notice and job posting for additional slots the firm hopes to fill.

McElvain

Most recently, Dr. Ron Bassett (top) and George McElvain (bottom) joined SPI. Dr. Bassett served for over a decade as an award-winning tenured Professor and Associate Dean for Academic Affairs at the University of Texas-Austin's College of Communication. McElvain has more than 30 years of hands-on experience in healthcare, insurance, IT, sales/marketing and international business including planning, financial management, adherence to applicable regulations and the day-to-day operation of clerical, professional and management staffs.


TEA unveils 'Best of Texas'

The Texas Education Agency is honoring 11 individuals who volunteered their time and effort towards the Communities in Schools Program. Click here to find out who TEA is honoring with its Best of Texas award.


Procurement articles online

Click here to view recent articles on government procurement authored by Mary Scott Nabers, president and CEO of Strategic Partnerships Inc., and published in the Austin Business Journal and Houston Business Journal.


ONLINE POLL

Do you support the tax changes passed by the House?

(Non-scientific results next week)

Last week, 85% of respondents said state and local officials, rather than federal officials, should take the lead on responses to major disasters. 15% believe that the feds should retain control.

SPI seeks subject matter experts

Strategic Partnerships, Inc., is seeking affiliates with subject matter expertise in a number of areas, including oil and gas, environmental, engineering and transportation. Candidates should have an extensive knowledge of their related industry, including budgetary and procurement processes, and should have existing relationships with executive decision-makers in that industry. For a full job description, click on any of the above links. SPI is also seeking a researcher with expertise in federal government procurement, its processes and concepts. Applicants for all positions may send a cover letter and resume to jcarl@spartnerships.com.

Ask the experts

Q: What's the easiest way to track the progress of the House and Senate's interim charges?

Barsumian

A: Each House and Senate committee is assigned topics to study during the legislative interim. These are referred to as "interim charges" and can be important predictors of future legislation and policy. The interim charges assigned to both House and Senate committees can be found on the website, Texas Legislature Online. The website also includes notices of upcoming committee meetings to consider interim charges. Email notifications of upcoming committee meetings can be requested through the website as well. Some legislative committees actually have been holding hearings on their interim charges during the current special session.

-Lisa Barsumian,
Senior Consultant at Strategic Partnerships, Inc.

Have a question for one of SPI's government affairs experts?
Drop us a line!

Event Links

World Congress on Information Technology (WCIT) 2006 - 5/1/06-5/5/06

2006 Lone Star Conference - 5/2/06-5/5/06

TCEQ's Environmental Trade Fair and Conference - 5/9/06-5/11/06

TAGITM Annual Conference - 5/16/06-5/19/06

Texas Hurricane Conference - 5/23/06-5/25/06

ICMA conference in San Antonio - 9/10/06-9/13/06

Upcoming Executive Women in Texas Government events

Texas Government Insider Archives

Volume 1, 2, 3 and 4 Archives - 11/7/03 - 4/21/06

Resources

Top 100 Federal Funding Sources in Texas State Budget - NEW!

Texas Statutes Granting, Prohibiting, or Restricting the Power of Eminent Domain - NEW!

Higher Education Graduation Rates - NEW!

Presiding Officers of the Texas Legislature 1846-2006 -NEW!

LBB Budget and Performance Assessments

Senate Interim Charges

House Interim Charges

Texas Fact Book '06-'07

LBB's Fiscal Size-up '06-'07

Texas Human Resources Management Statutes Inventory

TBPC Vendor Guide

State Budget Resources

HUB Forms Library

State Contract Management Guide

State Procurement Manual

Who Represents Me? Texas Districts By Address

Diagram of Texas' Biennial Budget Cycle


Cyber Crimes Summit

The Office of the Attorney General will be hosting a Cyber Crimes Summit on May 22 in Austin. This informational one day conference is designed for local, state and federal officials, law enforcement and technology industries. Please visit the AG's Web site and click on the "Conferences" link for more detailed agenda and registration information.


LCRA Vendor Open House

Businesses will want to mark their calendars to attend LCRA's fifth-annual Vendor Open House on Thursday, May 11, in Austin. The open house provides an opportunity for vendors to establish new relationships - - or strengthen existing relationships - - with LCRA staff and vendors. Last year, the open house attracted more than 400 people. Click here to register.


TSAE breakfast for associations

Join the Texas Society of Association Executives for a short, inspiring breakfast program on May 3 in Austin that will help you evaluate and improve your association's government affairs program. Members of the ASAE Government Relations Council will, in part, discuss a unique tool they have developed to give associations the basic elements for conducting either a peer review or self-assessment. Click here for details.