MINUTES Committee on Veteran Affairs & Military Installations Wednesday, February 19, 2003 1:30 p.m. (or upon adjournment of the Senate--whichever is later) Betty King Committee Room ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Texas Senate Committee on Veteran Affairs and Military Installations was held on Wednesday, February 19, 2003, in the Betty King Committee Room (2E.20) of the State Capitol Building, behind the Senate Chamber, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Leticia Van de Putte, Chair Senator Troy Fraser Senator Craig Estes, Vice Chair Senator Frank Madla Senator Eliot Shapleigh (Fraser arrived later) ***** The Chair called the hearing to order at 2:36 p.m. The Clerk called the roll. There being a quorum present, the following business was transacted: The Chair laid before the Committee the proposed Rules of the Committee. On motion of Senator Estes, seconded by Senator Shapleigh, the Rules of the Committee were adopted. The Chair made a statement relative to prohibiting the use of cellular telephones during the hearing. The Chair introduced to the Committee, and to the audience, the staff of the Committee. Senator Fraser now present (2:40 p.m.) The Chair laid before the Committee the minutes of the hearing of Wednesday, February 12, 2003, and moved that they be approved. Senator Shapleigh seconded the motion, and those minutes were approved. General Eugene Habiger President & CEO of the San Antonio Water System (SAWS), presented to the Chair a commemorative gavel. The Chair expressed her gratitude and accepted the gift. Senator Shapleigh, Chair of the Standing Subcommittee on Base Realignment and Closure (BRAC), spoke of legislation relative to base realignment and closure. He expressed his procedural intentions that the full Committee hear verbal testimony and receive documentation, so that verbal testimony and documentation need not be duplicated by going first through the Subcommittee and then through the full Committee. The Chair agreed that having verbal testimony and documentation presented to the full Committee would be an appropriate course of action. The Vice Chair requested clarification from Senator Shapleigh. Senator Shapleigh clarified for the Vice Chair the anticipated procedure proposed and expected to be followed relative to BRAC legislation requiring action by the Subcommittee and by the full Committee. Senator Shapleigh introduced to the Committee, and to the audience, his staff present at today's hearing. Senator Estes introduced to the Committee, and to the audience, his staff present at today's hearing. The Chair noted the importance of reliable, talented, experienced staff. The Chair noted that Senators will have the need to temporarily leave committee hearings in order to further legislative activities occurring elsewhere--and that doing so should not be misconstrued as disrespectful. The Chair noted that the hearings are public and are transmitted via television and other means. Major General Wayne D. Marty, Adjutant General of the Texas National Guard, presented invited testimony to the Committee relative to recent mobilization and activation of the Texas National Guard. He spoke also of legislation, pre-dating the 78th Legislature, relative to education tuition assistance for members of the military forces. He expressed concern that funding to implement that prior legislation is in jeopardy and is ranked as a low priority during the current 78th Legislature. He noted that failure to fund that program will result in difficulty retaining and in recruiting men and women into Texas National Guard. Brigadier General Bill Goodwin, Assistant Adjutant General for Army, presented invited testimony to the Committee likewise relative to recent mobilization and activation of the Texas National Guard. His testimony was accompanied by a slide presentation. A hand-out was presented to the Committee and was distributed to its members. Brigadier General Allen Dehnert, Assistant Adjutant General for Air, presented invited testimony to the Committee likewise relative to recent mobilization and activation of the Texas National Guard. His testimony was accompanied by a slide presentation. He noted that the recent Space Shuttle Columbia explosion and gubernatorial inaugural make 2003 already an unusually active year for them. The Chair expressed the gratitude of the public, and local officials, for the fine work of the Texas National Guard at the space shuttle tragedy over Eastern Texas. She noted also the cost implications of the Texas National Guard's mission. Mr. James E. Nier, Executive Director, Texas Veterans Commission (TVC), presented testimony to the Committee relative to the budget of that Commission and to the administrative activities of that Commission. He noted that the TVC recently filed more than 60,000 U.S. Department of Veteran's Affairs (VA) benefits claims during Fiscal Year 2002 on behalf of some of the estimated 1.7 million Texas veterans and their families. He asserted that the active caseload for veterans, widows and orphans, was in excess of 113,400. He pointed out that TVC was able--on behalf of those veterans and family members--to recover from the VA some $885 million in benefits payments of which $594 million was paid to service-connected veterans, $181 million was paid to widows and orphans of veterans, and $110 million was paid to totally-disabled/impoverished war-time veterans. He asserted that TVC provided training to 232 veterans county service officers. He stated that TVC met 100% of its key performance objectives, as audited, as set out in the Appropriations Act. He noted the devastating effects of a 12.5% budget reduction to TVC for the next biennium. He asserted that at an 87.5% budget level, the TVC would have to close offices, lay-off eleven counselors and support personnel, terminate the veterans hotline, and severely curtail training. He maintained that some 26,000 new original claims would not be filed during the biennium and that an estimated $260 million would be lost to the Texas economy because TVC would not be able to represent veterans in their claims against the VA. He requested that current funding levels be continued during the upcoming fiscal biennium. A hand-out was presented to the Committee and was distributed to its members. The Vice Chair and the Chair made statements sympathetic to the needs of veterans and their families, but noted that the budgetary realities facing the 78th Legislature will necessitate cuts in the TVC's appropriations. Mr. Jim Duncan, Chairman, Texas Veterans Commission, presented testimony to the Committee likewise relative to the budget of that Commission. He pointed out that the TVC actually provides to state government, and to the Texas economy, a very significant return-on-investment. He noted that 3.46% of the average Texas family's income goes back into the economy and, therefore, the state government coffers. He noted that $22 million in sales tax revenue came into the state coffers during 1998 as a result of spending by veterans and their families. The Vice Chair and the Chair noted the importance of the information and testimony provided by the TVC. The Chair thanked the TVC for its assistance in the Military Recognition Day on Wednesday, February 12, 2003, and noted her forthcoming visit on Friday, February 21, 2003, to Fredericksburg, Texas, Minutes Wednesday, February 19, 2003 page 4 for a tour of the Nimitz Museum and for the unveiling there of a replica of the bronze sculpture of the Iwo Jima memorial--the original of which is situated in the Washington, D.C. area. Mr. Ed P rez, Executive Director, Texas Office of State-Federal Relations (OSFR), presented testimony to the Committee relative to national defense and base realignment and closure (BRAC) and activities of the OSFR on the subject of BRAC. He noted that OSFR has worked cooperatively with the U.S. Department of Defense, the Texas Congressional Delegation, and the executive branch Administration, to bridge the information gap between Washington, D.C., Austin, and local communities. He noted that OSFR provided alerts, and conducted meetings, at regular intervals, to apprise interested parties of relevant happenings, and pledged that same shall continue. The Vice Chair noted the value of having the OSFR in Washington, D.C. The Chair expressed concern about the Texas Congressional Delegation and whether or not they were in strategic legislative circumstances to defend Texas' interests with respect to the BRAC process. Mr. P rez promised to send to the Committee a listing of the Texas Congressional Delegation's committee assignments, and other relevant information. On motion of the Vice Chair, the Chair, at 3:50 p.m., recessed the Committee subject to the call of the Chair. _____________________________________________ LETICIA VAN DE PUTTE, R.Ph., Chair ______________________________________________ GREGORY D. WATSON, Committee Clerk