Healthcare Benefits for Community College Faculty & Staff Should be a Priority for 81st Legislature

President of Brazosport College says Texas is shirking it's duty by failing to fund community college employee health care insurance

Dr. Millicent Valek

Every year more than one million students pass through the doors of Texas community colleges in search of their dreams. Some students embark on a journey toward earning a bachelors degree, while others seek to acquire the workforce skills needed to help grow the state’s economy. As the fastest growing sector of higher education the future of Texas relies greatly on the success of community colleges.

Today, in the midst of nationwide economic troubles, the role of community colleges has never been more significant. According to State Comptroller Susan Combs an increase of 10,000 students in community college enrollments would add 13,000 jobs to the Texas economy within one year. Our institutions are well positioned to provide solutions for the workforce and economic growth needs of the state.

Texas community colleges have been doing their part to bring these educational opportunities to Texans. Over the past seven years, community college enrollments have risen by more than 31%, adding nearly 140,000 new students (the equivalent of nearly three Universities of Texas at Austin or five Texas Tech Universities). Despite this enormous growth in our enrollments, community colleges have worked hard to keep student costs low. Over the past ten years community college students have seen on average only a 2.6% annual increase in tuition & fees statewide.

Community Colleges have operated with the understanding that a partnership exists between local colleges and the state. Under this compact, the state promised local communities it would fund the instructional costs for community colleges if local residents would tax themselves to build and maintain necessary the physical facilities. In this partnership, the state historically funded community college employee health care insurance based on an employee’s job function – teaching and serving our students. With this partnership the state’s 50 community college districts have flourished.

However, the state’s historical commitment to this agreement has been shrinking. Over the years – good economic times and bad – the community college state formula has continued to be largely underfunded. Because of this, community colleges have been forced to use student tuition and local tax dollars to fill the growing state funding gap. Some contend that now the state should only pay part of the health insurance costs of our faulty and staff.


The argument for the state paying only a proportional share is based on the notion of linking employee health insurance funding to the level state formula funding. By tying the funding of these critical employee insurance benefits to the amount of state formula funding our colleges will be penalized for shouldering costs, which are the state’s responsibility. This will result in an even greater financial burden being placed on students and local communities.

The historical partnership between the state and community colleges needs to be renewed. An essential step toward accomplishing this is for the 81st Legislature to honor its commitment to community college employees by passing Senate Bill 41 by Senator Judith Zaffirini. With passage of this bill, community colleges will be better equipped to hire and retain talented faculty and staff members who are essential components in providing quality educational opportunities for all students.

Community colleges remain committed to their missions of providing excellent educational opportunities for students and as a place where any Texan reach for their dreams. But they need support. The state must continue its commitment of paying group health care insurance for community college faculty & staff. Senate Bill 41 would ensure that our colleges can rely on the state to remain our partners in providing solutions for the economic and workforce needs of Texas.

Dr. Valek is the Chair of the Texas Association of Community Colleges and President of Brazosport College

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Wasteful Spending Dressed in "Stimulus" Clothing

Senator John Cornyn on the recently passed stimulus bill

Texas Times
Feb 10, 2009
By:Sen. John Cornyn

For months, Americans across the country have been grappling with the results of our nation's economic downturn: layoffs, foreclosures, salary cuts, and the tough family budgeting decisions that go hand in hand with a recession. While Texas has fared better than most states—largely due to our pro-business economic policies and the can-do spirit inherent to the Texas culture —we are not immune.

According to Texas Workforce Commission Chairman Tom Paulken, "Our state's economy has been fairly resilient during these months of economic uncertainty, but the national economic storm has reached Texas." In January, Texas Comptroller Susan Combs predicted a loss of 111,000 Texas jobs and announced a 10.5 percent drop in tax revenue in this fiscal year. In North Texas, the jobless rate has climbed to 5.6 percent—a significant ascent from one year ago, when the rate was 4.1 percent. The jobless rate for the entire state recently hit 6 percent—nearly two percentage points higher than a year ago.


The housing crunch has taken its toll in Texas as well. In 2008, Texas was listed as one of the top ten states in foreclosure totals. Meritage, one of the nation's biggest homebuilders with more than 65 percent of its communities located in Texas, reported that its fourth-quarter orders in Texas fell 61 percent. Experts claim that a decrease in prices in some of Texas' top industries like oil and natural gas is having a negative impact on the state's housing market.

In the U.S. Senate, I have been working with my colleagues to stop the recession in its tracks and turn the economic tide back in our favor. This has been no easy task. Unfortunately, while the new President has indicated his desire for bipartisanship, Democrat leaders in Congress have taken a different approach, attempting to jam an enormous spending bill totaling more than $1 trillion down the taxpayers’ throats.

Instead of producing a plan aimed at reviving the housing market, providing significant tax relief to hard-working Americans, and creating quality jobs for men and women looking for work—the Democrat plan instead reflects a political slush fund brimming with billion-dollar pet projects that will not have an immediate, tangible effect on our nation's economic health.

With respect to Texas' interests in the economic rescue plan, the most simple analogy that comes to mind is 'robbing Peter to pay Paul.' In Texas, we have embraced low taxes and pro-growth policies that support our small businesses and middle class families. The Democrats' plan would take billions in Texas taxpayer dollars and reward reckless states with pet projects dressed in 'stimulus' clothing. Some of the more absurd examples include a request for $600 million to build an "ethnic heritage trail" or a request for $6 million to build three aquatic centers with water slides.

My Republican colleagues and I have sought to improve this inflated bill by offering low-tax, pro-growth amendments. I offered an amendment that would have lowered the 10 percent tax bracket to 5 percent, providing much needed relief to every taxpayer who pays income tax and files their taxes by April 15. Unfortunately, this was blocked by Senate Democrats. Another important amendment, offered by Sen. John Ensign, would have provided much-needed relief to the struggling housing market by reducing mortgage rates to as low as 4 percent for millions of homeowners. More than 3 million mortgages in Texas could have qualified for refinancing under this measure, and each household would have benefited from $293 in savings on monthly payments. This amendment was also defeated.

Sadly, while the American people were counting on Congress to present a final economic rescue product that reflects bipartisanship and includes true tax relief and tangible economic growth measures, the Democrats' $1.2 trillion "stimulus" package is no such product.

We need to work together to craft legislation that provides real relief for everyday Texans. It should begin with providing much overdo relief to the struggling housing market. Secondly, the majority of any economic stimulus plan should be tangible tax relief for families and small businesses. Hard-working Texans deserve to keep more of their own money to spend, save and invest how they see fit. Finally, any proposed new spending must be made fully transparent to ensure Congress is not spending taxpayer dollars on unnecessary or ineffective projects.

If American families are having to tighten their belts and make tough financial decisions, the federal government should follow suit. I will continue to fight for a common-sense plan that incorporates these principles to help Texans weather the economic storm and emerge stronger and more prosperous.

Sen. Cornyn serves on the Finance, Judiciary and Budget Committees. He serves as the top Republican on the Judiciary Committee's Immigration, Refugees and Border Security subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.

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Honoring Our Nation’s Presidents

Senator Kay Bailey Hutchison on President's Day

Capitol Comment
Feb. 13, 2009
By: Senator Kay Bailey Hutchison

Throughout Texas this coming Monday, children will enjoy a day off from school. Although the federal government honors “Washington’s Birthday” each year on the third Monday of February, Texas goes one step further by concurrently observing “Presidents’ Day,” a state holiday that celebrates all of our past Presidents.

Our forty-four presidents have included men who have been a carpenter (James Garfield), a cloth maker (Millard Fillmore), a star athlete (Gerald Ford), a launderer (Herbert Hoover), a mail room clerk (Harry Truman), a shoeshine boy (Lyndon Johnson), an insurance salesman (Warren Harding), a toymaker (Calvin Coolidge), an actor (Ronald Reagan) and a school principal (Chester Arthur). Ten presidents were farmers before reaching the White House; seven were diplomats; and twenty-six were lawyers. Their diverse perspectives strengthened the quality of our nation’s leadership and inspired foreign nations to embrace democracy.


In the nineteenth century, half a dozen presidents were born in log cabins, including one whose bicentennial we celebrate this week. Abraham Lincoln – the eloquent small town lawyer who helped set our nation on the path toward the “more perfect union” that our Founding Fathers envisioned – continues to inspire our leaders today. Former President George W. Bush chose to hang Lincoln’s portrait in the Oval Office and drew inspiration from Lincoln’s fortitude in perilous times. President Barack Obama paid tribute to his home state predecessor by retracing Lincoln’s path to the White House on a train ride from Philadelphia to Washington before his inauguration last month.

The democracy and entrepreneurial spirit at the core of our American identity have propelled our nation from a relatively small federation with fewer than four million citizens to the world’s economic and political superpower. As Americans, we can take great pride in the many individual contributions of ordinary citizens, but it is also fitting that we pay tribute to those national leaders who courageously established our freedoms during the earliest years of our nation.

George Washington, the commander of the Continental Army during the Revolutionary War, was the first of twelve generals who went on to serve as president. After refusing a royal title, he became our country’s only leader to be re-elected unanimously. As our Chief Executive, he established customs regarding interaction with Cabinet members, the negotiation of treaties, and the use of the presidential veto on legislation from Congress. He appointed our first federal judges, helped implement the American currency and banking system, and chose the location of our nation’s capital.

Our next two presidents, John Adams and Thomas Jefferson, worked together to draft the Declaration of Independence. In the White House, President Adams used his considerable diplomatic skills to avert further strife with European powers. President Jefferson enlarged our nation through the Louisiana Purchase and encouraged Lewis and Clark’s explorations of the West. Mr. Jefferson also was the first president not to powder his hair and to establish casual handshakes instead of deep bows as the preferred mode of greeting in the White House. Coincidentally, these two great men, lifelong friends and political rivals, passed away 500 miles apart on the very same day, July 4th, 1826, the fiftieth anniversary of the Declaration of Independence.

During later eras in American history, Texas contributed four outstanding presidents. General Dwight Eisenhower, who was born in Denison, ended the Korean War and built our current highway system. Lyndon Johnson, from Stonewall, championed civil rights legislation and education reform. George H. W. Bush represented the seventh district of Texas in the U.S. House of Representatives before entering the White House, where he led a successful effort to liberate Kuwait from the clutches of a tyrannical dictator. And George W. Bush brought his strong leadership from Texas’ state capital to the White House, where he protected our country after the attacks by terrorists on September 11, 2001.

Today, as our military forces fight abroad in defense of our freedom, we more fully appreciate the heroism of several of the best of our wartime presidents. I especially admire President Ronald Reagan for his steadfastness toward the end of the Cold War. His careful diplomacy with our country’s allies, combined with his firm hand with Communist leaders, helped topple oppressive dictatorships throughout Eastern Europe and the former Soviet Union. Today, many of these nations benefit from constitutions that were inspired by our own. Our Founding Fathers’ vision continues to resonate and provide hope. Let us take this opportunity to honor our presidents for their fortitude in upholding our freedoms for over 200 years.

Kay Bailey Hutchison is the senior U.S. Senator from Texas.

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What To Do About Dating Violence

Dating violence isn't something you have to live with

By: Texas Attorney General Greg Abbott

Dating violence is far too common among teenagers across the nation. According to a recent survey, one in five teens who have been in a serious relationship say they have been hit, slapped or pushed by their partner. Even more disturbing: 30 percent of all murders involving females ages 15 to 19 are committed by their romantic interest.

This month, the Office of Attorney General (OAG) is joining with crime victim advocates across the country to observe the fourth annual National Teen Dating Violence Awareness and Prevention Week. The week-long observance is intended to educate teens about the differences between healthy and unhealthy relationships. It is also intended to help adults and teens recognize when a friend or loved one is being abused.


The National Teen Dating Abuse Helpline provides many tips for recognizing and responding to teen dating violence, as does its Web site, www.loveisrespect.org. Abuse most likely exists if teens’ dating partners:
* Look at them or act in ways that scare them
* Seem jealous or possessive
* Criticize them
* Try to control where they go, what they wear or what they do
* Text or IM them excessively
* Threaten to kill or hurt themselves or their partners if they leave
* Try to stop them from seeing or talking to friends and family
* Hit, slap, push or kick them

Young Texans who find themselves in abusive relationships should first consider talking to a friend or an adult about the situation. Anyone who does not feel safe should avoid being alone with their boyfriend or girlfriend.

Teenagers who have witnessed or experienced potential dating violence are encouraged to call the National Teen Dating Abuse Helpline at (866) 331-9474. The helpline offers real-time, one-on-one support 24 hours a day. Through the helpline, trained volunteers advise teenagers to recognize unhealthy behavior and explain how to leave abusive relationships in the safest way possible.

Parental involvement can be a powerful tool that prevents teen dating violence. By talking with their teenage children and staying aware of developments in their child’s life, parents can show that they care – and are approachable when problems arise. Setting boundaries and simultaneously entrusting kids to conduct themselves responsibly may feel like a balancing act, but it can really help protect teens from harmful relationships.

The OAG has long been involved in the fight against domestic violence. Recently, the OAG joined the Texas Council on Family Violence to launch the “LOVE” campaign, which was created to heighten public awareness about teen dating violence.

The OAG Web site, www.texasattorneygeneral.gov, contains information about victims’ rights, protective orders, and the OAG’s Address Confidentiality Program, which provides a post office box and mail forwarding at no charge to victims who want to prevent an abuser from knowing where to find them. Abuse victims seeking information about the OAG’s Crime Victims’ Compensation Program, which reimburses out-of-pocket expenses to victims of violent crime and their families, can also find it on the Web site.

All Texans have the right to live violence-free lives, but some may need help getting out of violent relationships. The OAG is committed to working with victim groups and others to ensure that Texas teenagers have access to the resources they need to end a dangerous or harmful relationship.


Attorney General Greg Abbott was reelected as the 50th Attorney General of Texas on November 7, 2006. Prior to his election as attorney general, Greg Abbott served as a Justice on the Texas Supreme Court and as a State District Judge in Harris County.

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Texas Uncorked

A toast to Texas wineries

By: Senator John Cornyn

You’ve heard it described as medium heavy, sweet and low in sulfates. Its presence pre-dates the arrival of the first Anglo-American settlers to Texas. And today, its industry pumps millions in revenue into the Texas economy each year.

While crude oil may first come to mind, this liquid is Texas wine. More than three centuries ago—long before the first wine grapes arrived in Napa Valley— Franciscan priests brought grapevines from Mexico and planted the first North American vineyard at Ysleta, perhaps the oldest town in Texas, along the Rio Grande near present-day El Paso. These grapes provided the priests and missionaries with sacramental wine for the Eucharist.


Over the next 200 years, the El Paso Valley would be recognized by travelers for its grape-growing capabilities and wine production. The concept of viticulture did not really gain traction in the rest of the state until settlers from European countries like Spain, Italy, and Czechoslovakia brought their interest in wine and the European vinefera vines to Texas. These European vines did not take well to the Texas climate, local pests, and fungus, however, and many of these initial efforts did not survive.

After these setbacks, German immigrants who settled in the 1840s in South and Central Texas—founding Hill Country cities such as Fredericksburg and New Braunfels—learned to adapt their process and incorporate local Mustang grapes, a high-climbing vine native to Texas and well adapted to heat. By adding more sugar during fermentation, they produced commercial wine and are largely recognized as the most successful wine-makers in Texas history.

Meanwhile, back along the Texas-Mexico border, an Italian immigrant, Frank Qualia, found success with the Lenoir grape, a Spanish black grape, in Del Rio, Texas. He started the Val Verde Winery, and today, as the only Texas winery to survive the Prohibition, it remains the oldest continuously running winery in Texas and still uses the Lenoir grape.

One of Texas’ most famous grape breeders was horticulturist Thomas Volney Munson, more simply known as T.V. Munson. A native of Illinois, Munson moved to Denison, Texas in 1876. While he devoted much of his life to the study of native American grapes, his work on rootstock development would earn him international acclaim. In Denison, Munson researched and developed rootstock that was resistant to phylloxera—tiny, yellow insects that feed on roots of grapevines and had severely damaged many native American grapevines. In the late 19th century, a phylloxera epidemic devastated the French wine industry—destroying almost two-thirds of France’s vineyards. Little did they know the solution to their problem would come from an American horticulturist in Denison, Texas. Munson’s phylloxera-resistant rootstock saved the industry in France and in gratitude to his contribution, the French government named him Chevalier du Merite Agricole of the French Legion of Honor, and the city of Cognac, France became a sister city to Denison. Today, Grayson County College’s West Campus houses much of Munson’s research and work.

After the Prohibition, the Texas wine industry was slow to get back on its feet. But as the grape culture began to boom in the U.S. in the 1970s, so did the number of vineyards that began popping up across Texas—beginning with the establishment of the Llano Estacado and Pheasant Ridge wineries near Lubbock. Today, Texas is home to nearly 3,700 acres of family-owned vineyard land, including eight American Viticulture Areas—wine grape-growing regions that have been identified by the U.S. Alcohol and Tobacco Tax and Trade Bureau. Texas is America’s fifth-leading grape and wine producer and the industry contributes more than $1.35 billion to the state’s economy.

In its February issue, Bon Appetit magazine lists Becker Vineyards in Stonewall, Texas as one of seven of its favorite wineries off the beaten path. As our state’s wineries and vintners continue to gain national and international attention, fortunately, we don’t have to travel far to enjoy the unique Texas wine culture. Wine trails through vineyards across the state occur throughout the year. In late February, the Texas Wine and Grape Growers Association holds its Annual Conference & Trade Show which brings together members of the industry from every region of Texas.

The Texas wine industry is yet another hallmark in Texas’s long history of ingenuity and achievement. Let’s toast to the men and women who have built up this industry and wish them many more years of success.

Sen. Cornyn serves on the Finance, Judiciary and Budget Committees. He serves as the top Republican on the Judiciary Committee's Immigration, Border Security and Refugees subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.

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Working Together We Will Build A Stronger Texas

Governor says to overcome economic woes, we need to focus on education, business and infrastructure

By: Texas Governor Greg Perry
Jan. 30, 2009

On Tuesday, I delivered my State of the State address to the 81st Legislature outlining priorities that will preserve our state’s strength and security while helping Texans weather the effects of the global economic downturn.

This session, your elected state leaders have an opportunity to build on the strong foundation we created together over the years by maintaining our focus on the people we serve and continuing our careful stewardship of the tax dollars they send us.

We will overcome big challenges like balancing the state’s budget, enhancing our state’s competitive position in the global marketplace and improving Texans’ quality of life by prioritizing the needs of our citizens over those of our parties, caucuses and special interests.


In the midst of the global economic troubles, the most important thing we can do is continue to nurture an economic environment that creates and sustains jobs for Texans. Fortunately, we have a big head start on the rest of the nation, as evidenced by our lead in exports, Fortune 500 companies and job creation.

To improve our state’s job growth, we need to improve the quality of our education at every level. As Texas leaders, we should maintain our emphasis on graduating high school students proficient in math, science and English so they are ready to enter the workforce or continue their studies. Increasing our investment in community colleges and in worker re-training programs will also fortify an essential part of our state’s workforce development efforts.

Furthermore, we need to ensure government is not unduly adding to the pressure that Texas employers are feeling these days. I am in favor of updating the reformed business tax by raising the small business exemption to $1 million. I also believe our government can do more to fine-tune regulations that sometimes choke off innovation.

In addition to reducing burdens, we should continue to invest in proven economic development efforts by replenishing the Texas Enterprise Fund, Emerging Technology Fund and our Film Incentive Program so they can continue drawing ideas, investment and jobs to Texas.

Continued investment in critical infrastructure is also essential. Efforts to repair and expand our transportation network will benefit from the decision to only spend tax dollars for the purposes they are collected. We should return to funding the Department of Public Safety from general revenue and restore gas tax dollars to their original purpose – maintaining and improving our roads.

We must also sustain our focus on protecting our citizens. Texas is still vulnerable to natural disasters, from fires and floods to hurricanes and tornadoes. Our experience in the aftermath of hurricanes Dolly and Ike reminds us that the federal government is ill equipped to respond to our communities’ needs at the necessary speed. That is why we must fund a Texas disaster contingency and relief account that will provide speedy funding for state and local emergency efforts and let the state carry the burden of waiting for federal reimbursement.

Our citizens’ safety is also threatened by cross-border crime and the increasing presence of transnational gangs in communities across the state. We must continue to fund our border security efforts and allocate additional resources to tackle the growing gang problem head-on.

Texas has come a long way since the $10 billion budget shortfall of six years ago. We overcame that challenge by making tough decisions, tightening our belts, and cutting spending where we could. All along, we stayed focused on key priorities and never forgot that the tax dollars we spend don’t pour from some mythical money pot, but the pockets of our hard-working taxpayers.

I am confident that we can maintain our state’s strength if we continue to follow the fiscal discipline we learned by necessity and have followed closely ever since.

Together, Texas leaders have fostered a climate that has attracted new families, businesses and jobs to Texas, making our great state a better place. Together, we will weather this storm and create confidence in a better tomorrow and a stronger Texas.

Sworn in as the state's 47th governor on December 21, 2000, Rick Perry was elected to a four-year term November 5, 2002 and re-elected November 7, 2006.

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History Shows Big Spending Can Prolong Recession

Sen. Kay Bailey Hutchison on the new "New Deal"

Capitol Comment
Jan. 30, 2009
by: Senator Kay Bailey Hutchison

In one of history’s more candid reflections, Henry Morgenthau, Jr., Treasury Secretary under President Franklin D. Roosevelt, confessed, “We have tried spending money. We are spending more than we have ever spent before and it does not work.” Just six years after crafting the New Deal, Morgenthau declared that their efforts to create jobs and restore America’s depression-ravaged economy by expanding the federal government to unprecedented levels had been a failure. By Morgenthau’s own assessment, the New Deal saddled our country with “as much unemployment as when we started…and an enormous debt.”

More than 75 years have passed since FDR signed the New Deal into law, and many noted economists are studying the Great Depression and trying to learn from the experience. In 2004, a team of UCLA economists concluded that the policies of the New Deal, which suppressed competition and kept unemployment in the range of nine to 16 percent, actually prolonged the Great Depression by seven years.


Amity Shlaes, an economic scholar and Great Depression historian, has argued that the sheer “arbitrariness” of the New Deal actually exacerbated the crisis. The National Recovery Administration, the operative arm of the New Deal’s competition code, failed to establish clear, actionable policies for businesses to follow. Instead, some corporations got sweetheart deals, while others were unduly penalized. As a result, businesses stopped investing in equipment, hiring came to a halt, and the markets froze. Many economists conclude that the New Deal fostered uncertainty, which was salt in the wound of the American economy.

As in 1933, today our nation is confronted with an economic crisis that grows worse each day. The burst of the housing bubble and the subsequent credit crisis has badly impaired our financial markets. Many individuals and small businesses are struggling to get loans, and the home foreclosure rate is rising. Large corporations, once deemed “too big to fail,” are now teetering on the edge of insolvency. In December, the nationwide unemployment rate reached a 15-year high of 7.2 percent.

Some in Congress are rallying around a “solution” that sounds alarmingly familiar: spend more than we have ever spent before. Literally. And the nearly $900 billion stimulus measure that the House passed and the Senate will consider has many deficiencies.

First, the federal government doesn’t have the money. Today, Washington is running an all-time record annual deficit of $455 billion, and that deficit is projected to reach an astounding $1.2 trillion this year. In addition, the gross federal debt is $10 trillion, or almost $33,000 per U.S. citizen. We are approaching a tipping point whereby creditors will be unwilling to buy government debt.

Second, even if we could afford it, this bill isn’t actually stimulative. With any stimulus package, our goal should be to swiftly pump money into the economy, create jobs, and free up credit. The non-partisan Congressional Budget Office (CBO), which analyzes the financial dimensions of legislation, estimates that only 64 percent of the funding in the Senate bill would actually be spent within the next two years. Market trends indicate that even without government interference the economy should begin rebounding on its own within the next two years; at which point, “stimulus” spending would only add to our debt burden rather than help the economy.

Ultimately, this “solution” will result only in the accumulation of greater debt that will fall on the shoulders of our children and grandchildren, while not providing the stimulus we need today. Moreover, it will leave us vulnerable to future economic challenges. A better proposal would emphasize tax relief so that individuals and businesses can have more capital to inject into the economy, thereby encouraging private sector job creation. It would also guard against massive government expansion. In short, we should promote permanent private sector jobs, not a permanent increase in spending and debt.

I am eager to work in a bipartisan fashion toward a speedy and sustainable recovery. But we have to ensure that any stimulus package is balanced, reasonable in size, and targeted specifically to job creation, keeping people in their homes, and overall economic growth. The plan before us lacks these objectives. What we have learned from those before us is that excessive spending may prolong a recession. Moving forward, we must carefully consider the spending decisions before us.

Kay Bailey Hutchison is the senior U.S. Senator from Texas and is the Ranking Member of the Senate Committee on Commerce, Science, and Transportation.

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Keeping Americans Connected in the Digital Age

Texas' Senior U.S. Senator shares her thoughts and priorities on the broadband opportunities offered by the digital television conversion.

Capitol Comment Jan. 23, 2008
By:Sen. Kay Bailey Hutchison

Recently, I outlined my goals for keeping Texas and the United States connected through our national highway system and commercial and passenger air transportation. As the Senior Republican on the Senate Committee on Commerce, Science & Transportation, I am also focused on another kind of connectivity: telecommunications. Over the past several decades, America has seen a rapid advancement in communication technologies. While most citizens enjoy its benefits, we have not kept pace with other nations and the advantages of connectivity have not reached all our citizens. We must find ways to leverage new innovations to expand their reach and improve the lives of all Americans.

Perhaps the most pressing priority facing us this year is the Digital Television (DTV) Transition, during which broadcasters nationwide will switch from an analog format to digital broadcasting. Congress mandated the transition to digital broadcasting in 2006 to free up broadcast spectrum for important public safety activities that will increase the nation’s ability to respond to terrorist attacks and national disasters.

For more than a year, the federal government and the broadcasting industry have worked to inform the public about the transition and to help consumers prepare. The transition date had previously been scheduled for February 17. However, in January, a senior official in the Obama administration called for postponement of the transition, citing dwindling funds for the federal Coupon Program, which helps consumers buy converter boxes at a discounted rate.

Initially, I had serious concerns about shifting the digital television transition without a sound plan to inform consumers and resolve the converter box coupon shortage. But Commerce Committee Chairman Jay Rockefeller has worked with me to address many of my reservations with the initial proposals to move the date. Once legislation is enacted to reschedule the transition, the changes I worked to secure will help consumers whose coupons have expired to apply for new coupons. Other modifications to early delay proposals will allow prepared TV stations to move forward without the added costs of operating multiple broadcast facilities. Moreover, I have received assurances that there will be no further postponement, and that we will bring the transition to a conclusion this year. Significant challenges remain, however, and I will continue working with my colleagues in Congress to ensure a smooth changeover to digital television for all Americans.

Another telecommunications issue that begs the Senate’s thoughtful consideration is access to the high-speed communication service known as broadband. Most in Congress agree that the widespread availability of high-speed Internet will create jobs. Moreover, in heavily rural states, like Texas, broadband deployment will expand educational opportunities through distance learning and improve the delivery of medical services and information through telehealth programs.

Where lawmakers tend to disagree, however, is on how to deploy broadband. Some in Congress would like high-speed Internet access in the U.S. to match that of urban centers like Hong Kong and are ready to spend hundreds of billions of dollars to that end. There are two problems with that approach. First, the U.S. is geographically and demographically diverse – what makes sense for New York City might not work in the Texas Panhandle. Second, it isn’t cost-efficient. Even if the federal government builds a nationwide fiber-optic network, there is no guarantee that all consumers would subscribe to it. Instead, I am hopeful we will adopt incentives for investment by individuals and companies through changes in tax treatment, enhanced bonding authorities for broadband construction and targeted grant programs. This will allow the marketplace to determine what technology is appropriate for a community and how best to deploy it. In the meantime, broadband mapping efforts, which collect data on internet use, will help us better target our efforts.

Finally, just as Congress must support efforts to upgrade and expand telecommunications technology where we need it, we must limit it where it can do harm. In January, Rep. Kevin Brady and I introduced a bill to prevent prison inmates from using smuggled cellular phones, which are often used to orchestrate criminal enterprises and harass or threaten public officials from behind bars. In Texas, death row inmate Richard Tabler used a smuggled cell phone to intimidate a state senator. Current law prevents any kind of interference with wireless services. Our legislation provides a reasonable process for approval and use of jamming technology without compromising public access to 911 and emergency services or infringing on legitimate users’ rights.

This year in the Senate Commerce Committee, I will work to advance sound, practicable policies that will keep Americans connected and allow our nation to keep up in the fast-moving digital age.

Kay Bailey Hutchison is the senior Senator from Texas and is the Ranking Member on the Senate Committee on Commerce, Science and Transportation.

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How Government Interference Hurts Consumers

Bill Peacock argues against government over-control.

By:Bill Peacock

A column in Monday’s Wall Street Journal on the bailout crisis said, “It's now clear that the data that banks used were distorted by years of government initiatives to promote homeownership.”

For those of us who believe in the superiority of free markets over government regulation, it was quite clear before the fact that government intervention would distort the markets. And that’s the problem today. Government intervention to force the “process of discovering the full losses” will only further distort the markets and make a bigger mess. Just like government intervention caused this mess in the first place.

Another example: In Texas a few years back, the government tried to help consumers by forcing insurance companies to use a common form for offering homeowners’ insurance. The common form was designed to be easy to understand, force companies to offer certain coverages, etc. All good and fine until a court decided that the form didn’t really mean what its clear language said. So companies had to offer mold coverage. Suddenly, Texas had a mold crisis, with everyone discovering life-threatening mold in their homes. Claims rose so fast that premiums skyrocketed.

A few years later, companies were finally allowed to use their own forms, and the mold crisis was over. But not before Texas consumers had been socked for a $900 million increase in homeowners’ insurance premiums to pay for mold remediation efforts that dried up once mold was no longer covered by insurance policies. Seems as if mold wasn’t a health problem after all, but folks just got all stirred up by the news coverage and easy access to insurance dollars. The whole exercise simply transferred wealth from one set of consumers to pay for the remodeling of their homes.

Government intervention just doesn’t work, no matter how well intentioned or intelligent the interveners are. Unfortunately, too many folks won’t acknowledge this until after the mess has been made and consumers have to pay the cleanup costs – no matter how many messes the government makes.

- Bill Peacock

Mr. peacock writes regularly for the Texas Public Policy Foundation

Reprinted by permission

The original Article can be found at http://www.texaspolicy.com/legislativeupdates_single.php?report_id=2401.

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Celebrating Country Doctors

Serving rural Texans with distinction.

By:Sen. John Cornyn

Over the past several decades, Texas’ reputation for quality medical facilities has been growing. Nationally acclaimed hospitals and care centers like the M.D. Anderson Cancer Center in Houston, the Baylor University Medical Center, and the Texas Children’s Hospital – to name just a few – have delivered Texas into the forefront of medical research and care.

While these facilities provide excellent care to millions of patients each year, there is another kind of doctor that has for generations been an icon of Texas medicine: the country doctor. Throughout our great state country doctors serve some of Texas’ most hard to reach citizens – often traveling hundreds of miles to make house calls.

These doctors treat underserved communities with far sprawling populations long distances from larger clinics and hospitals. But despite these difficult conditions, Texas’ country doctors continue to provide their invaluable services, developing lasting relationships with each of their patients – often having been the doctor at their birth. While these country doctors seem almost antiquated in contrast to the enormous medical centers across the state, their service remains an integral part of our commitment to give every Texan access to quality health care.

Last December, one of Texas’ many dedicated country doctors even earned national distinction, being named “Staff Care’s Country Doctor of the Year.” For more than half a century, Dr. David Watson has been the primary doctor for the residents of Yoakum, Texas.

A graduate of Baylor College of Medicine, Dr. Watson says he never wanted to be anything more than a family doctor. Over his years of service to Yoakum, he’s become much more. He’s served as physician, surgeon and obstetrician. On Friday nights, he walks the sidelines of the high school football games to treat any injured players and in his spare time volunteers with abused children at the Bluebonnet Youth Ranch.

Dr. Watson’s recognition as Country Doctor of the Year comes as little surprise to the families that have for so long depended on him. And while much has changed in medicine since he first opened doors offering $5 house calls, Dr. Watson’s dedication to the community has not. His service to the people of Yoakum has made him a staple of the community and an example to doctors throughout our state and across the country.

As Texas continues to grow and foster an even greater medical community, we should take the time to recognize the men and women who have pioneered Texas medicine and brought care to families living even in the remotest of Texas towns. Doctors like David Watson remind us of an older time in Texas, before the advent of large hospitals and medical research centers. But today’s country doctors remain a primary source of care for rural Texans.

I congratulate Dr. Watson on this much-deserved recognition, and I thank the many doctors like him who attend to rural communities throughout Texas. As we work to improve Texas’ medical community, we must remember our country doctors and the important work they do.

Sen. Cornyn serves on the Finance, Judiciary and Budget Committees. He serves as the top Republican on the Judiciary Committee’s Immigration, Refugees and Border Security subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.

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Revenue Estimate: Texas Has Seen Worse

Writing for the Texas Public Policy Foundation, James Quintero says Texas has the right formula to weather our economic woes.

By: James Quintero

One week ago, Texas Comptroller Susan Combs released her Biennial Revenue Estimate (BRE) – a projection of how much legislators can spend in the next budget – which predicted flat state revenues and a worsening economic outlook.

Just how tough do things look? Well, according to the Comptroller’s BRE, lawmakers will only have $77.1 billion in General Revenue (GR) to spend this session whereas last session’s lawmakers had $86.2 billion in GR – a $9 billion difference.

The state’s economy is also predicted to lose as many as 111,000 jobs during the first three quarters of next year and the growth in personal income is expected to slow to an average 3.7 percent during 2010 and 2011, according to the Comptroller’s estimate.

Yet, even in spite of all the bad economic news, Texas still fares remarkably well when compared to other states.

Texas is among the rare states not reporting a budget shortfall this biennium. Combs’ revenue estimate also projects a $9.1 billion balance in the “rainy day” fund by 2011, and the return of job creation by the fourth quarter of 2009.

Times may be tough, but the state has seen much worse and come out on top – just ask the legislators of the 2003 session. Using Texas’ tried-and-true policies of low taxes and limited government, the state has little to fear.

TPPF article

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Arts – A Smart Investment in the Texas Economy

By Billye Proctor Shaw, Chair
Texas Commission on the Arts

If you ask your next-door neighbors, they will tell you the arts enrich our lives, our schools and our communities. But, if you ask them how arts impact our economy, they might not have an answer.

As the Chair of the Texas Commission on the Arts (TCA), I lead a 17-member board that provides grants to arts organizations across the state. We promote the arts and play a leadership role in the arts and cultural industries in Texas – and those industries have a major impact on our state’s economy.

Arts are big business. They are one of the top factors corporations and businesses cite in deciding where to locate, stay and expand. Arts attract cultural tourists that will spend nearly twice the time and money as the average visitor and return more often. The arts are a major contributor in reversing the trend of outflight by bringing populations back to city centers.

The economic impact of the arts in Texas is staggering. Organizations that receive support from TCA report total audiences of more than 35 million attendees each year. Those patrons will spend more than twice the cost of their tickets in the local economy. In Austin alone, the cultural sector contributes over $2.2 billion to the economy annually and creates 44,000 permanent jobs. The arts are good business and artists are powerful creative capital.

Arts are smart business. Arts are essential to a well-rounded education. The arts not only encourage self-expression and teamwork but are great complements to a strong education in math, science and literacy. Every dollar and each minute spent on arts education is an investment, paying us back with improved student performance, a more vibrant economy and a richer American culture. The research is overwhelming – students involved in the arts do better in school, score higher on tests and are more likely to graduate.

Texas is the number one state for Fortune 500 company headquarters. These companies require a strong and capable workforce. A recent study revealed that among the top ten concerns of CEOs are employees that demonstrate creativity, innovation, entrepreneurship, critical thinking, communication and problem-solving skills. Both CEOs and school superintendents rank arts study and experience in performing arts and entertainment as the top factors for instilling these qualities.

TCA is your arts “voice” in the Capitol, and as the Chair of TCA, I am asking for your help.

Texas currently ranks 49th out of 50 states in arts funding at 22 cents per person. TCA is asking our state leaders, as leaders who care about community and economic development, to invest $1 per person per year in the arts. This $20 million dollar request is but .0002 percent of the state’s $167.8 billion budget – a small investment with a priceless return.

Chambers of Commerce and City Councils in cities throughout Texas have already endorsed this request and will present this endorsement to their legislators. But, the arts also need the support of Texans all across the state. Contact your city and state officials and tell your friends and neighbors. Be a part of this grassroots appeal to elected officials.

When tough budget choices are required, our legislators should be reminded that arts can help prevent crime; arts education contributes to academic achievement, particularly for low-income students; arts programs in corrections facilities result in lower recidivism and less crime; and arts programs engage disadvantaged youth more effectively than other programs.

Not only do arts bring beauty and meaning to life, arts are big business, good business, and smart business. “One generation plants a tree, the next sits in its shade,” says the Chinese proverb. An investment of $1 per year per Texan is an investment in our economy and an investment in the future of Texas.

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Cornyn On Martin Luther King

U.S. Sen. John Cornyn, R-Texas, today issued the following statement in observance of Martin Luther King, Jr. Day.

“Today, our nation commemorates a great hero whose powerful message has inspired countless Americans and speaks forcefully of the importance of equality and opportunity. As the United States prepares to swear in our first African American president tomorrow, we are reminded of the noble cause for which Dr. King fought and died. We remember the dream he so passionately spoke of and pursued – and the progress our country has made since he first spoke of that dream over 40 years ago. I join my fellow Americans in celebrating the life and contributions of this great man, and the honorable legacy he left behind, which is still alive and well today.”

Sen. Cornyn serves on the Armed Services, Judiciary and Budget Committees. He serves as the top Republican on the Judiciary Committee’s Immigration, Refugees and Border Security subcommittee and the Armed Services Committee’s Airland subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.

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Tackling Washington Challenges the Texas Way

Senator Cornyn advocates some common sense in Washington.

By: Senator John Cornyn

As the New Year begins, I want to start by thanking Texans for sending me back to Washington for another six years. Together we can make the great state of Texas an even more prosperous and peaceful place to raise our families, work, and plan for the future.

I couldn’t be prouder to represent a state where folks value hard work, family, faith and freedom; it’s what makes Texas a land of opportunity. From business to education; energy to medicine—Texas leads the way with its spirit of independence and legacy of accomplishment.

That’s why I find that many of the best ideas and solutions I take to Washington come from Texas. As I roll up my sleeves to start work in the 111th Congress, I do so with confidence, knowing that so many Texans stand ready to help me make a difference in Washington.

At the top of my list this year is the state of our nation’s economy. While Texas has fared better than most, we are not immune to the recession. Last year brought layoffs and salary cuts, and thousands lost their homes. But with a combination of pro-growth policies on the federal level and ingenuity on the local level, we can turn the economic tide back in our favor.

I will oppose any effort to increase taxes on working families and small businesses—the backbone of our economy. Instead, I will push for significant tax relief that will keep more of the hard-earned money in your pocket. Our first step should be to permanently extend tax relief that will soon expire; otherwise Americans will be hit with the largest tax increase in history. Things like small business investment incentives and individual tax relief will help grow jobs, expand opportunity here at home, and make us more competitive. In other words, these efforts will bring a little Texas common sense to Washington.

Another Texas hallmark that has been missing in Washington is government transparency. I have and will continue to make open government a top priority. I have worked to shed light on the federal government for all Americans to see their tax dollars at work. My goal is to create a federal sunset commission, based on the successful Texas model, to comb through and weed out ineffective or wasteful government programs. With the new Administration intent on passing a more-than $700 billion stimulus package, we need this commission now more than ever.

Equally important is the need to finally pass a comprehensive energy plan. Last year, with gasoline above $4, energy independence was the popular pledge. But as quickly as gas prices dropped, the topic also disappeared from the political spotlight. Today we are no closer to reducing our dangerous dependence on foreign oil. I will push for new domestic production and refining capacity. Texas already leads the nation in energy production, but we can do more. We must cut through the red tape and allow Texas producers to tap into our rich natural resources while fully developing clean energy alternatives like wind, solar and biomass.

Also on my agenda are enhanced benefits for our troops and veterans. These fine citizens have made tremendous sacrifices for our protection; we owe them the best benefits and care possible. We need additional resources to research post-traumatic stress disorder and other “invisible wounds” from the wars in Iraq and Afghanistan. We have a solemn obligation to help our wounded warriors make a successful transition back to civilian life or return to military service, if they so choose.

I will not give up on achieving broad immigration reform that until now has been blocked by partisanship. Continued inaction is a serious risk to our national security. I am committed to fixing our flawed system while enforcing the rule of law and securing our borders. I will continue to work with Texas law enforcement, Border Patrol, and community leaders to learn firsthand the challenges that face our border.

This year will also bring opportunities to make real differences in health care and education—especially for low-income Texas children who need more affordable preventive health care and college tuition.

In Texas, when a problem arises, we don’t wait for someone else to fix it, we tackle it. I hope all Texans will join me in tackling this year’s challenges by sending me your ideas, your concerns and your priorities. Together we can take Texas to new levels and help the rest of the nation get back on the right track.

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The Japanese Experience With Fiscal Stimulus

Japan's past suggest that our government's economic recovery plan may be flawed.

from the Texas Public Policy Foundation - Speaking Freely
The last couple of days I’ve been examining the muddled thinking that is driving the debate over how to get us out of our current economic funk. The solution de jure seems to be more government intervention in the economy, such as the economic stimulus package being worked on by President-elect Barack Obama.

Dr. Arthur Laffer, the author of our Thinking Economically series, recently sent me an email commending a December 16th Wall Street Journal editorial (subscription required) on the efforts to create a stimulus package as “the single best editorial I’ve ever read.” The editorial outlines stimulus package after stimulus package passed by the Japanese Kokkai, or Diet, as their parliament is called in English. Here is a brief excerpt:

“In 1992, Japanese Prime Minister Kiichi Miyazawa faced falling property prices and a stock market that had sunk 60% in three years. Mr. Miyazawa’s Liberal Democratic Party won re-election promising that Japan would spend its way to becoming a "lifestyle superpower." The country embarked on a great Keynesian experiment.”

Here is a listing of what Japan did over the decade: August 1992: 10.7 trillion yen ($85 billion); April 1993: 13.2 trillion yen ($117 billion); September 1993: 6.2 trillion yen ($59 billion); February 1994: 15.3 trillion yen; September 1995: 14.2 trillion yen ($137 billion); April 1998: 16.7 trillion yen ($128 billion); November 1998: 23.9 trillion yen ($195 billion); November 1999: 18 trillion yen.

What did Japan get for all this? Well, mainly a lot of government debt. Japan’s debt-to-GDP ratio started out this period at about 63%. By the time all this spending was through, it had reached 128.3%. It finally peaked in 2006 at 180%. Compare this to the U.S. level that has hovered between 35% and 40% for most of this decade.

What Japan didn’t get was an improved economy. Its economy grew anemically during the 1990s; all of the “stimulus” and negative interest rates didn’t help a bit. As the WSJ said, “Only in this decade, with a monetary reflation and Prime Minister Junichiro Koizumi’s decision to privatize state assets and force banks to acknowledge their bad debts, did the economy recover.”

We face the same situation today in the U.S., and may also have to deal with this in Texas if our economy starts to falter because of the drop in oil prices. Our only hope for a turnaround is turning to the market – rather than the government – to lead us back to prosperity. Our paper, The Economy, part of our Influential Issues series, offers some thoughts and ideas about how to do this in Texas.

- Bill Peacock

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