MINUTES
SENATE COMMITTEE ON FINANCE
Thursday, February 1, 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 Thursday, February
1, 2001, in the Capitol Extension, Room E1.036, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Rodney Ellis Senator Troy Fraser
Senator Chris Harris
Senator Gonzalo Barrientos
Senator Robert Duncan
Senator Tom Haywood
Senator Mike Jackson
Senator Jon Lindsay
Senator Eddie Lucio
Senator Steve Ogden
Senator Carlos Truan
Senator John Whitmire
Senator Judith Zaffirini
*****
The chair called the meeting to order at 8:00 a.m. There being a quorum
present, the following business was transacted:
The Chair recognized the following witnesses to testify on the Legislative
Budget Board (LBB) recommendations:
Baylor College of Medicine
Daniel C. Arnold, Chairman, Board of Trustees
Introduction of Dr. Feigin and Dr. DeBakey. Spoke of the mission
of Baylor College of Medicine.
Dr. Ralph Feigin, President/CEO, Baylor College of Medicine
Gave an overview of Baylor College of Medicine; the progress,
programs and leadership role in Texas and the nation. Spoke to
the exceptional items in proposed budget.
Dr, Michael E. DeBakey, Chancellor Emeritus
Spoke to the achievements of the school since 1969 and the
objectives for the future. Appreciates the role the Legislature
has played.
Texas Education Agency
Patrick Francis, LBB Budget Analyst
Ursula Parks, LBB Budget Analyst
John McGeady, LBB Performance Analyst
Paige Buechly, SAO
Carol Smith, SAO
Bill Wood, Project Manager, SAO
Senator Ellis suspended the hearing at 9:43 a.m. on TEA until members or
Chairman of the Board for the State Board of Education can be in
attendance.
Texas School for the Blind and Visually Impaired
Ursula Parks, LBB Budget Analyst
Phil Hatlen, Superintendent
Introduced members of the board and staff in attendance.
Overview of the school, it's Legislative mandate, it's mission,
programs and progress in the last biennium. Spoke to the
exceptional items in proposed budget.
Barney Schulz, Business Administrator
Spoke to the riders in proposed budget.
Registering, but not testifying:
Gloria Bennett, Program Specialist, TX School for the Blind
Roseanna Davidson, Assoc. Professor at Texas Tech University
Kerry Goodwin, Goodwill Industries of Dallas, Board of Trustees
Susan Houghtline, Executive Asst., TX School for the Blind
Debra Nesbutt, Director, Human Resources, TX School for the
Blind
Testimony continues on Texas Education Agency (TEA) with above witnesses,
now that members of the State Board of Education are in attendance.
State Board of Education
Grace Shore, Chair
Spoke to the SAO report, and the policy statement. Spoke to the
Permanent School Fund and asked the Committee to give them time
to change the problems on the Board. Answered questions.
Jim Nelson, Commissioner
Answered questions.
Chase Untermayer, Board Member
Despite the SAO report the Fund is in good hands and good shape.
Disputed the statement that "the Board did not have good
financial advice".
At 10:45 a.m. Senator Ellis moved that the committee stand recessed until
12:00 p.m. The Committee would continue with the State Board of Education
at 1:30 p.m.; without objection, it was so ordered.
At 12:01 p.m. the committee reconvened.
Senator Ellis announced that the Committee would take up several other
agencies until 1:30 p.m., at which time the testimony of the State Board
of Education would continue.
Texas School for the Deaf
Ursula Parks, LBB Budget Analyst
Beatrice Maestas Burke, President of the Board
Spoke to following exceptional items requested in proposed
budget; the completion of the master plan building program, a
visual communication and alert system and the salary increase for
the Executive Director. Answered questions.
Claire Bugen, Superintendent
Gave an overview of the goals, programs, and progress in the last
biennium. Spoke to all the exceptional items requested in
proposed budget. Answered questions.
Registering, but not testifying:
Jim Smith, Business Manager
Telecommunications Infrastructure Fund Board
John McGeady, LBB Budget & Performance Analyst
Carole Smith, SAO
Robert J. "Sam" Tessen, Executive Director
Introduced board members and staff. Gave an overview of the new
TIF and the Board's positive attitude in looking at the SAO
report. Spoke to the two items that the Board disagreed within
the LBB's recommendations. Answered questions.
Gwen Stafford, Vice-Chair
Spoke to her pride at serving on the Board and some of the plans
for the future. Answered questions.
Blair Fitzsimons, Board Member
Spoke to the excitement of having Sam Tessen as the new
Executive Director.
Registering, but not testifying:
Frank Pennington, Director, Finance and Administration
Martin V. Poucl, Finance Manager
Eileen Shocket, St. Edward's University, TIF Library
State Board for Educator Certification
Robert Norris, LBB Budget Analyst
Pamela Tacket, Executive Director
Introduced Chair. Spoke to the need for more master teachers in
reading.
James D. Harris, Chairman
Spoke to the following exceptional items in proposed budget; test
development that will update certification exams for alignment
with current public school curriculum, expand beginning teacher
induction program, national criminal background check on
certification applicants along with several others. Answered
questions.
Jayme Cox, SBEC, Specialist: ESC-20
Spoke to increased funding.
Edward A. Vera, ATPE
Spoke to increased funding for a statewide health insurance
program.
Xavier Rodriguez, Vice-Chair
Supports the agencies requests and priorities.
Registering, but not testifying:
Barry Alaimo, SBEC, Financial staff
William M. Franz, SBEC, Director, Professional Discipline Unit
Dan Junell, SBEC, Legal Counsel
Cynthia Phillips, SBEC, Board Member
Patricia Porter, SBEC,
Chair recognized Senator Teel Bivins and Lt. Governor Bill Ratliff who
were in attendance.
Continued with testimony from State Board of Education:
Grace Shore, Chairman of the Board
Continued answering questions from the Committee.
Paul Ballard, Executive Administrator, Permanent School Fund
Answered questions from the Committee.
Carole Smith, SAO
Answered questions.
Jim Nelson, Executive Director, TEA
Answered questions.
Chase Untermayer, Board Member
Answered questions.
At 3:00 p.m. the testimony of the Texas Education Agency continued with
the following:
Senator Truan assumed chair.
Jim Nelson, Commissioner of Education
Spoke to the exceptional items in proposed budget. Gave a brief
overview of where Texas stands nationally. Answered questions.
Public Testimony:
James Jones, Self
Melissa Fonseca, Self
William R. Hurt, Communities In Schools (CIS)
Lonnie Hollingsworth, Director of Legal Services, Texas
Classroom Teachers Association
Joel Romo, Association of Texas Professional Educators
Registering, but not testifying:
Ed Flathouse, Associate Commissioner, TEA
Don Loving, Communities in Schools
Robert E. Merrill, self
Brian S. Rawson, Managing Director, Information System, TEA
Ann Smisko, Administrator, TEA
Windham School District
Ursula Parks, LBB Analyst
Mike Morrow, Windham School District
Spoke to exceptional items requested in the budget for Windham
School District. Answered questions on treatment
programs offered at Windham
Charles E. Faulkner, Director of Administration Services
Answered questions regarding Windham School District.
Teacher Retirement System of Texas
Stephanie Coates, LBB Analyst
Bill Wood, State Auditor's Office
Charles Dunlap, Executive Director
Introduced board members present. Answered questions regarding
exceptional items for TRS. Gave an overview of the issues
surrounding their budget requests.
Jim Simms, Vice President of Amarillo National Bank
Spoke of his pride for the board he represents. Spoke of
managing the moneys for TRS. Answered questions.
Ronnie Jung, Chief Financial Officer
Answered questions on methods of finance and discussed funding
projections.
Registering, but not testifying:
Richard L. Elan, Texas Community College Teachers Association
Optional Retirement Program
Stephanie Coates, LBB Analyst
Public Testimony:
Chuck Hempstead, Texas Association of College Teachers
Dr. Charles Zucker, Executive Director, Texas Faculty Association
Higher Education Coordinating Board
Kim Carson, LBB Analyst
Pamela P. Willeford, Chair
Made several comments on the new ly adopted coordinating plan.
Spoke of new program and facility requests. Answered questions.
Don W. Brown, Commissioner
Described the responsibilities bestowed on the agency by the last
legislature. Addressed exceptional items requested by the
agency. Answered questions.
Jodie L. Jiles, Texas Higher Education Coordinating Board
Answered questions.
Public Testimony:
Major General Daniel James III, Adjutant Generals Dept.
Answered questions regarding public and private university
governing boards.
Registering, but not testimony:
Carol L. McDonald, Independent Colleges & Universities of Texas,
Inc.
Higher Education Employees Group Insurance Contributions
John Wilmaker, LBB Analyst
Public testimony:
Tom Scott, Vice Chancellor
Dan Stewart, Director of Group Insurance.
There being no further business, at 7:06 p.m. Senator Ellis moved that the
Committee stand recessed until 8:00 a.m., Monday, February 5, 2001.
Without objection, it was so ordered.
______________________
Senator Rodney Ellis, Chair
______________________
Myra J. Schmitt, Clerk