State legislators push critical issues to top of 2009 agenda

State legislators push critical issues to top of 2009 agenda

Share |

By Patrick Brendel Friday, 19 December 2008

A national recession and a natural disaster set the tone for the next Texas legislative session, which begins Jan. 13, with the decisions having the potential to impact the plans of local entities and the wallets of individuals.

Recurring battles over fundamental issues like education, health care and infrastructure are becoming even more contentious as the state’s obligations grow and space in the budget shrinks.

When the last session of the Texas Legislature adjourned in May 2007, lawmakers had a multibillion-dollar surplus for property tax relief or to save for later. State Rep. Tom Craddick, R-Midland, had outmaneuvered opponents to retain his powerful position as House Speaker, allowing him to dictate which issues the House would and would not consider. Gov. Rick Perry had defeated three opponents to retain his position as the state's top executive.

Central Texas House and Senate district map

Going into the 2009 session, the landscape has shifted. The effects of the nationwide financial collapse and Hurricane Ike have wiped out any anticipated budget surplus. Democratic victories have practically deadlocked the state House, and another battle for House Speaker rages while a 2010 contest for the governorship looms.

Given that context, lawmakers’ priorities are not radically different from those in past years. Legislators will battle for money in a finite budget. They will wrangle over the interests of preschoolers and post grads alike. They will debate how best to deliver health care to Texans. And they will argue over how much to invest in the state's aging transportation network.

Education

Public education commands the largest single portion of the Texas budget, comprising about $50 billion, or nearly 30 percent of the total, for 2008-2009.

“It is a must. Every session must be a session on education,” said state Sen. Florence Shapiro, R-Plano, who chairs the Senate Education Committee.

State Sen. Steve Ogden, R-Bryan, said Texas needs to put additional money into its public school fund or risk being taken to court over Constitutional mandates.

To make up for shortfalls in state money, school districts often turn to bond packages or local tax increases. In November, Austin voters OK’d a tax hike to pay for a 3 percent raise for teachers.

At the university level, lawmakers have already filed many bills that would address skyrocketing tuition costs in a variety of ways. Some propose temporary tuition freezes. Others say 2003 tuition deregulation has failed, and the Legislature should control rates once more.

Ogden said there needs to be a link between how much the state gives a college and how much it charges students.

“I’d reregulate them if I could, but I don’t think the votes are there,” he said.

Budget

When asked what the most important issue in the 2009 session will be for state lawmakers, state Rep. Jerry Madden, R-Plano, was blunt.

“It’s always the budget and money. Money,” he said.

The budget, which was about $170 billion for the 2008-2009 biennium, acts as a master plan for the state’s activities, determining how much money agencies and programs receive.

“How we prioritize the budget will determine how we prioritize a lot of other issues,” said state Rep. Sylvester Turner, D-Houston.

In addition to the usual contentions — lowering taxes, funding necessary programs and securing local projects — there are factors beyond lawmakers’ control, specifically Hurricane Ike and the nation’s financial crisis. The total impact of the phenomena might range into the billions of dollars.

Ogden and other members of the Legislative Budget Board, which drafts the budget before the session begins, gave one indicator of how much Texans might be affected by the nation’s woes. The LBB fixed a limit on certain areas of state spending, estimating the Texas economy will grow by only 9.1 percent during 2010 and 2011. That is down from 13.1 percent during 2008 and 2009.

(Download a PDF of the graphic "How a bill becomes a law")

How a House bill becomes a law

Ogden, as Senate Finance chair, is the chief budget writer. He said restoring the University of Texas’ premier medical school and teaching hospital in Galveston, which was devastated by Hurricane Ike, will be the costliest item associated with the storm. Ogden has heard that losses due to the hurricane could total $700 million.

State Sen. Kirk Watson, D-Austin, mentioned even larger numbers. Factoring in the replenishment of the state’s now-depleted windstorm insurance pool, some are saying that costs associated with the hurricane could rise to $2 billion, he said.

Another strain on the budget is a new state business tax, created in 2007, that looks like it will raise $1 billion less than expected. Offsetting that loss, Ogden said, are sales taxes that have brought in about $1 billion more than expected.

The good news is the state has approximately $9 billion in its Rainy Day Fund and from past budget surpluses, Ogden said, plus $3 billion set aside for property tax relief. That will help lawmakers keep pace with the inflationary costs of health care, public education, college tuition and highway construction.

Saying their districts contain the greatest number of state employees in Texas, Ogden and Watson are making it a priority to secure raises for state workers.

State Rep. Eddie Rodriguez, D-Austin, said he would like to see some funds go to Texas growing the solar industry.

“Texas has made quick progress in wind energy production, and this session we have the unique opportunity to become a world leader in solar energy, as well,” he said. “Texas has been referred to as the ‘Saudi Arabia of sun,’ yet many solar energy companies choose to operate in our bordering states because Texas does not offer competitive incentives.”

Transportation

Stressing the importance of efficient transportation to commerce, lawmakers say it is critical to put more money into the state’s transportation network, despite a general reluctance to increase spending amid the nation’s financial woes.

Watson said he would like to index the state gas tax — currently at 20 cents per gallon — to inflation. He also wants to ensure that gas tax revenue goes to its intended purpose, highway construction, instead of being diverted to other agencies, such as the Department of Public Safety.

As local entities take more responsibility for major projects that the Texas Department of Transportation used to pay for, those local entities should have more flexibility to manage and fund those projects, Watson said.

In 1997, during Watson’s first year as Austin’s mayor, the city decided to match funds with the state to build the interchange at Hwy. 290 and IH 35.

“And it’s still not finished. But that ain’t my fault. That is because the state decided not to finish that,” he said. “There is little way, if any at all, that a city or a county can come up with enough money to build those major types of projects.”

Roads projects may see some more funds this year. In 2007, voters approved $5 billion in bonds for road construction. Also, if the Obama administration injects billions into public works as proposed, more money could be available for Texas road projects, said state Rep. Mark Strama, D-Austin.

Health care

“Texas is the uninsured capital of the United States,” according to the Texas Medical Association. “More than 5.5 million Texans — including 1.4 million children — lack health insurance.”

Watson said 25 percent of people in his Austin district have no health insurance. Of those, about 80 percent have jobs.

“So these are folks that are working, but they can’t afford insurance,” he said.

This session, the Texas Department of Insurance is undergoing a Sunset Review, giving lawmakers a chance to scrutinize the agency.

“I think it’s real important that we figure out a way to utilize that opportunity and focus on health insurance,” Watson said.

TDI should protect consumers, not insurance companies, he said.

According to the TMA, most of the uninsured children in the U.S. are eligible for public health insurance, but are not enrolled. Increasing the number of Texas children enrolled in the State Children’s Health Insurance Program — and the number of adults using Medicaid — would bring more federal dollars to the state and reduce costs associated with indigent care and unnecessary emergency room visits.

State Rep. Elliott Naishtat, D-Austin, said he would like to see the reinstatement of low-income children who lost their coverage under CHIP in 2003.

“We have made progress in the last two sessions, but there are still about 100,000 children who don’t have CHIP and are eligible,” Naishtat said.

State Rep. Valinda Bolton, D-Austin, said CHIP is one of the biggest issues relating to health care.

“Although we have made some great strides in the last year or so getting kids back on, we lost a lot of ground with funding cuts,” she said.

Your local representatives and senators

Find more news about