MINUTES
SENATE COMMITTEE ON FINANCE
Tuesday, October 19, 1999
10:00 a.m.
Capitol Extension, Room E1.036
*****
Pursuant to a notice posted in accordance with Senate Rule
11.18, a public hearing of the Senate Committee on Finance was
held on Tuesday, October 19, 1999, in the Capitol Extension,
Room E1.036, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Bill Ratliff Senator Mario Gallegos,
Jr.
Senator Carlos Truan Senator Royce West
Senator Gonzalo Barrientos
Senator John Carona
Senator Robert Duncan
Senator Troy Fraser
Senator Jon Lindsay
Senator Mike Moncrief
Senator Steve Ogden
*****
Senator Ratliff called the meeting to order at 10:00 a.m. There
being a quorum present, the following business was transacted:
The chair laid out the proposed interim committee rules and
recognized Senator Truan for a motion. Senator Truan moved to
adopt the interim committee rules as written; without objection,
it was so ordered.
The chair laid out the interim committee charges and appointed
subcommittees to address each of the charges. Subcommittee
assignments were made as follows:
Subcommittee on Charge #1: Examine the policies and
practices used to invest major state funds including cash
balances, and evaluate state investment goals and the funds'
performance in reaching those goals.
Subcommittee members: Senator Robert Duncan, Chairman
Senator Carlos Truan
Senator Gonzalo Barrientos
Senator Troy Fraser
Senator Steve Ogden
Subcommittee on Charge #2: Review employee benefit issues
facing the Employees Retirement System and Teacher
Retirement System.
Subcommittee members: Senator Steve Ogden, Chairman
Senator Gonzalo Barrientos
Senator John Carona
Senator Mario Gallegos
Senator Jon Lindsay
Subcommittee on Charge #3: Review the expenditure by
agencies and institutions that received appropriations from
tobacco settlement proceeds to ensure the efficient and
effective use of those funds, and identify priorities for
the use of future tobacco settlement proceeds.
Subcommittee members: Senator Royce West, Chairman
Senator Mike Moncrief
Senator Troy Fraser
Senator Steve Ogden
Senator Robert Duncan
Subcommittee on Charge #4: Evaluate the financial
viability and educational effectiveness of graduate medical
education in light of changes in Medicaid, managed care,
and other cost factors, including the impact of
uncompensated care.
Subcommittee members: Senator Mike Moncrief, Chairman
Senator Carlos Truan
Senator John Carona
Senator Jon Lindsay
Senator Royce West
Charge #5: Consult and coordinate with the Committee on
State Affairs in their charge related to the study of the
effects of federal devolution on state agencies.
Member: Senator Mario Gallegos, Liaison
Charge #6: Monitor the implementation of SB 1547, enacted
during the 76th Legislature, Regular Session relating to
motor fuel tax collection improvements, especially the
impact of the bill on state motor fuel tax revenue.
Member: Senator Jon Lindsay, Liaison
The chair recognized Senator Ogden for an introduction. Senator
Ogden introduced Mr. Howard Graves, Chancellor of Texas A&M
University System. The chair recognized Mr. Graves for remarks.
Mr. Graves said that he looked forward to bringing useful
information to the committee.
The chair asked subcommittee chairmen to work with assigned
staff on drafting a committee work plan. He asked that the work
plan be prepared by November 15, 1999. The Chair also told
members to be prepared to submit their subcommittee reports to
the full committee no later than July 1, 2000 in order to allow
the full committee to meet the Lieutenant Governor's reporting
deadline.
The chair recognized the following invited witnesses to provide
background information on the interim committee charges:
Charge #4
Dr. John D. Stobo, President of The University of Texas
Medical Branch at Galveston, provided an overview of some
of the issues facing graduate medical education. He
specifically spoke about the impact indigent health care
has on graduate medical education.
Charge #1
Roger Ferris, representing the State Auditor's Office,
provided a summary of the state's major investment
practices.
Charge #2
Sheila Beckett, representing the Employees Retirement
System, provided an overview of ERS retirement and
insurance benefits. She discussed some of the challenges
facing the agency, and spoke specifically about the
challenge of bridging the gap between expenditures and
revenues.
Charles Dunlap, representing the Teacher Retirement System,
provided an overview of the retirement system and spoke
specifically about some major challenges facing TRS-Care,
which provides health coverage for retired public school
employees.
Charge #3
John O'Brien, representing the Legislative Budget Board,
provided an update on tobacco settlement proceeds.
Charge #6
Karey Barton, representing the Office of the Comptroller,
provided an overview of the implementation of SB 1547,
which provides for improvements in the collection of motor
fuel taxes. Senator Ratliff asked Mr. Barton to keep
Senator Lindsay apprized of the status of implementing this
legislation.
The chair told members that Patricia Hicks and Amber Martin
would be available to assist with subcommittee hearings. He
asked the chairmen to inform him of any subcommittee activities
as he would be interested in participating in some of the
discussions.
Senator Moncrief suggested that all subcommittee chairmen
coordinate their meeting schedules in order to accommodate those
members who are assigned to more than one subcommittee.
There being no further business, at 12:30 p.m. Senator Moncrief
moved that the Committee stand recessed subject to the call of
the chair. Without objection, it was so ordered.
______________________
Senator Bill Ratliff, Chair
______________________
Patricia Hicks, Clerk