MINUTES SENATE COMMITTEE ON FINANCE Wednesday, January 31, 2001 8:00 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 Wednesday, January 31, 2001, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Rodney Ellis Senator John Whitmire Senator Chris Harris Senator Gonzalo Barrientos Senator Robert Duncan Senator Troy Fraser Senator Tom Haywood Senator Mike Jackson Senator Jon Lindsay Senator Eddie Lucio, Jr. Senator Steve Ogden Senator Carlos Truan Senator Judith Zaffirini ***** The chair called the meeting to order at 8:01 a.m. There being a quorum present, the following business was transacted: The Chair recognized the following witnesses to provide testimony regarding Legislative Budget Board (LBB) recommendations: Office of the Governor Zelma Smith, LBB Budget Analyst Barry McBee, Executive Asst. Introduced staff in attendance. Spoke to the proposed budget and the one additional rider they are asking for. Answered questions. Richard Nedelkoff, Director, Criminal Justice Answered questions about plans for the use of the monies that will be funded in the budget for the Criminal Justice Division. Registering, but not testifying: Paul Gulick, Director, Support Services William M. Hale, Executive Director Jerry Tucker, Director of Finance Donna White, Director, Administration Secretary of State Stanton Korn, LBB Budget Analyst Henry Cuellar, Secretary of the State Spoke to the proposed budget and the two exceptional items they are requesting. Answered questions regarding the Secretary of State's responsibilities to Colonials, along with many other questions. Ann McGeehan, Director, Elections Division Answered questions regarding pay raises for primary election poll workers. Registering, but not testifying: Jim Beck, Director, Administrative Services Juneteenth Commission Al Edwards, State Representative Answered questions. Senator Lindsay assumed Chair. Commission on Human Rights Tom Lambert, LBB Budget Analyst William M.. Hale, Executive Director Gave information on the duties of the Commission. Spoke to the exceptional items; Texas Star Program, EEO Training Academy, and Information Resources technology in proposed budget. Answered questions. Laura Ayoub Keith, Chairman Introduced other members of the Commission in attendance. Spoke to the request for a salary increase for the Executive Director. Answered questions. Registering, but not testifying: C.G. Madin, Commissioner Texas Incentive and Productivity Commission Jess Calvert, LBB Budget Analyst Ed Bloom, Executive Director Gave an overview of the past biennium. Spoke to exceptional items in proposed budget. Answered questions. Craig Pedersen, Commissioner, Executive Administrator, TWDB Spoke to the salary increase for Executive Director. Steve Robinson, Commissioner, Executive Director, TYC Spoke to the thought process that goes into the suggestions made by state employees and how worthwhile the program is. Department of Information Resources Stanton Korn, LBB Budget Analyst Carolyn Purcell, Executive Director Gave an overview of the past biennium. Spoke to the exceptional items in proposed budget. Answered questions. Carole Greisdorf, Board Member Made a brief statement and praised Ms. Purcell and her work. At 10:43 a.m. Senator Lindsay moved that the committee stand recessed until 45 minutes after adjournment of the Senate; without objection, it was so ordered. At 1:00 p.m. the committee reconvened with Senator Zaffirini in the chair. Texas Historical Commission Sarah Foster, LBB Budget Analyst John L. Nau, III, Vice-Chair of Commission Introduced other Commissioners in attendance. Gave an explanation of what the duties of the Texas Historical Commission are and an overview of the last biennium. Lawerence Oaks, Executive Director Spoke of ways to empower people at the local level to help save our history and the importance of the public being made aware of how vital their participation is. Spoke to the exceptional items in proposed budget. Senator Truan assumed the chair. Texas State Library and Archives Commission Sarah Foster, LBB Budget Analyst Sandra Pickett, Commissioner Brief overview. Answered questions. Peggy D. Rudd, Executive Director Spoke to exceptional items in proposed budget. Public Testimony: Patrick Heath, Former Commissioner, Mayor of Boerne Janice Weber, Director, Laredo Public Library Steven L. Brown, Director, North Richland Hills Public Library Registering, but not testifying: Edward Seidenberg, Deputy Director, Texas State Library Eileen Shocket Altmiller, Librarian Gloria Maraz, Director of Communications, Texas Library Association Julie B. Todaro, President, Texas Library Association Pat Tuohy, Librarian State Pension Review Board Stephanie Coates, LBB Budget Analyst Shari Shivers, Chairman of Board Spoke to the LBB major items not included in recommendations. Joe Walraven, Sunset Commission Registering, but not testifying: Rita Hornitz, Executive Director State Preservation Board Jeff Scarpelli, LBB Budget Analyst Rick Crawford, Executive Director Spoke to item #1 under Major Items Not Included in Recommendations. He also talked about the exceptional items in proposed budget. Answered questions. Registering, but not testifying: Brian Ragland, Director of Finance and Administration Senator Ellis assumed chair. Texas Veterans Commission Jess Calvert, LBB Budget Analyst Alexander Vernon, Vice-Chairman Introduced other Commissioners and staff. James E. Nier, Executive Director Gave an overview of accomplishments in past biennium. Addressed the exceptional items in the proposed budget. Answered questions. James S. Breden, III, Commissioner Spoke to the number of exceptional items presented. James S. Duncan, Commissioner Read a letter from a disabled veteran who had received help from the Texas Veterans Commission. Senator Barrientos recognized Manuel Castillo, a disabled veteran of WW II and a recipient of a purple heart. Public Testimony: Manuel Castille, WW II Veteran Betty S. Zuspann, Veterans Health Care liaison John David Freye, Self Office of State Federal Relations Jeff Scarpelli, LBB Budget Analyst Laurie M. Rich, Executive Director Gave a brief overview. Answered questions. Employees Retirement System Stephanie Coates Sheila W. Beckett, Executive Director Introduced Chairman. Spoke to the exceptional items in proposed budget and the hugh increases in all medical costs. Answered many questions. Bill Barton, Chairman of the Board Spoke to the request to re-establish the insurance contingency reserve fund. Gary Anderson, Executive Director, Texas Public Employees Association Spoke in support of the ERS budget request. Registering, but not testifying: Philip S. Dial, Consulting actuary Darrell Leslie, Director of Finance, ERS Ann Waterman, Director of Operations, ERS There being no further business, at 4:49 p.m. Senator Ellis moved that the Committee stand recessed until 7:00 p.m., Wednesday, January 31, 2001. Without objection, it was so ordered. ______________________ Senator Rodney Ellis, Chair ______________________ Myra J. Schmitt, Clerk