Weekly Summary
Federal budget cuts, called sequestration, will go into effect unless Congress and the Obama administration reach a fiscal compromise. The state will see nearly $70 million in education cuts and up to $500 million over the next few years if Congress does not act. Hundreds of millions of dollars could be cut from defense spending, impacting 34,000 military jobs, eliminating hundreds of Border Patrol agents, and costing Texas $2.4 billion.
Gov. Perry has been busy this week promoting business initiatives and reassuring parents that legislators know their frustrations with high stakes testing. On Wednesday, he spoke in front of national business leaders highlighting his job making priorities and Texas’ investment friendly policies. Perry was quoted, “Thanks to the hard work, innovative spirit and dedication of Texas entrepreneurs, and the discipline of state leadership in Austin, our economy is growing, our future is limitless and our jobs-friendly climate provides a solid foundation for companies to build upon.”
At a luncheon for the Texas Business Leadership Council Education Summit, the Governor outlined his agenda for education reform. He reiterated the importance of school choice, charter expansion, transparent accountability ratings, and reviewing the STAAR system. He also stressed vocational training and flexible course selection in high schools. At a separate event, former Houston Mayor Bill White discussed how Texas workers are failing to meet the demands of skilled industries that are booming in the state.
Political leaders and finance service providers are clashing over tighter restrictions on payday lenders. Former Speaker of the House Tom Craddick filed HB 2019, which would standardize lending rules for cash advance, payday, and auto title financial services. By bringing these services in line with the rules applied to other consumer lenders, Craddick said: “HB 2019 will bring relief to borrowers by ensuring consumer lenders are all operating under the same rates and fees. The legislature cannot stand back any longer while these businesses take advantage of people in need.”
The session is hitting its midway mark as March 8th is the last day to file bills without suspending the rules.
News of the Week
Sequester cuts would land heavy on Texas
The White House estimates the state would lose $67.8 million in federal funds for education and see reductions in staff and furloughs for thousands of federal employees. According to the Army, hundreds of millions of dollars cut from defense spending in Texas could affect more than 34,000 jobs and cost the state$2.4 billion in economic loss.
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As States Ban Payday Loans, Big Banks Move in to Help Lenders
To date, 15 states have outlawed payday loans, which can come with astronomical interest rates (some as high as 500%). The restrictions have led the lenders to set up online operations in other states or overseas locations.
Bill White says Texas lagging in skilled jobs
Former Houston Mayor Bill White, defeated by Republican Rick Perry in a 2010 bid for governor of Texas, said the state is falling behind in preparing workers who can meet the demands of a resurgent U.S. energy industry.
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GOP legislator supports gas tax hike
“I’m going to be brave and say yes,” state Rep. Rep. Jimmie Don Aycock said during a public forum at Rice University. State Sen. Kevin Eltife has floated a proposal to raise the gas tax, which hasn’t changed in 22 years. Across Texas, transportation officials estimate they need an additional $3 billion for new construction and $1 billion for maintenance.
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Spending cuts could hamper border security and trade
The automatic cuts in federal spending set to go into effect at the end of this week could result in “the equivalent” of thousands of border agents and customs officers being cut, according to the White House.
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Texas slips among top regions where venture capitalists invest
Texas may have a growing reputation as an economic hotspot, but it’s declined in recent rankings of U.S. regions where the most venture capital is invested in startup businesses. And that troubles some lawmakers.
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Tommy Williams: Fix Medicaid before you expand it
On the surface, Medicaid expansion sounds worthy, as it would provide health care to an estimated 1.8 million additional Texans and $100 billion in federal funding over 10 years to Texas while the state puts up approximately $15 billion. But pouring all that money into an inefficient and broken system makes absolutely no sense.
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Perry’s Texas Cancer Fund Mired in Pay-to-Play Claims
Now, after the Cancer Prevention and Research Institute of Texas spent $836 million with no major advances to show, its research has been halted by allegations of favoritism toward people that contributed to Perry and other leaders. A district attorney, lawmakers and the attorney general are investigating.
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Restoring Family Planning Services Through Primary Care
The fight to restore family planning financing that was cut from the Texas budget in the last legislative session has taken a turn toward primary care. Republican state senators have proposed adding $100 million to a state-run primary care program specifically for women’s health services, an effort that would help avoid a political fight over subsidizing specialty family planning clinics.
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Texas Senate budget panel adds twist to Medicaid bill
The powerful Senate Finance Committee on Tuesday tacked on a provision that would require lawmakers to approve another bill that would reverse a nearly $2 billion deferral in education spending that budget-slashing lawmakers passed in 2011.
Lawmakers Seeing Possibilities on Medicaid Expansion
Gov. Rick Perry has adamantly said that Texas will not expand Medicaid, one of the key provisions of the federal Affordable Care Act. But as other previously opposed Republican-led states have started seeking common ground with the Obama administration, state health leaders are laying the foundation for such compromise in Texas.
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GOP Lawmakers to Stick With Perry on Medicaid Expansion
Rep. John Zerwas and Sen. Charles Schwertner both spoke against expanding Medicaid, which they called a “broken system.” But they left the door open to working with the Obama administration if it provides more flexibility to let Texas operate the program as it sees fit.
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Will the Legislature Restore Cuts to Women’s Health?
The Legislature slashed two thirds—or $73 million—from the state’s family planning budget during the 2011 session. These cuts led to the closure of 53 women’s health clinics, leaving some 147,000 low-income women without care.
Cancer gets grants ready for Legislature’s OK
Despite identifying a problem with another of its grant awards, the state’s embattled cancer agency prepared Monday to move $182 million in grants out of politically imposed limbo.
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Senate Panel Approves More Money for Public Schools
A panel of senators voted to put $1.5 billion in additional funding for public education in the two-year state budget on Thursday — including $40 million for pre-kindergarten programs, $20 million for the state’s Virtual School Network and $4 million to support Teach for America.
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Big school reforms should be the goal, Jeb Bush says
Often mentioned as a Republican presidential candidate, Bush testified before the Texas Senate Education Committee and said overhauling public schools is a bipartisan issue, with supporters and detractors from both parties. “I would advocate that when you have a chance to reform, it ought to be big,” he said. “Be big or go home.”
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Testimony on four-year fixed tuition details good and bad for two UT campuses
University administrators who have experimented with four-year fixed tuition at their colleges testified Wednesday on the pros and cons of a statewide implementation.
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Lawmakers Slam Disclosure Bill and Freshman Carrying It
Members of a powerful legislative committee on Wednesday rebuked freshman Rep. Giovanni Capriglione, R-Southlake, over a transparency bill he filed that would require legislators to disclose government contracts with businesses in which they or their family own at least a 50 percent stake.
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Sen. Patrick Asks For Moratorium On Certain Tests
Meanwhile Patrick wants to expand a different kind of test in high school, the SAT. Patrick says every high school student should take the college entrance exam.
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Testing in Texas has gone too far, say key insiders
Four of the state’s past education commissioners, now free from political backlash, agreed Monday that Texas needs less high-stakes testing in its public schools, an increasingly common theme among parents, educators and some lawmakers.
Are House members smarter than a 5th grader?
Gene Wu, a Democrat from Houston, sent a letter to all House lawmakers and staff last week that included sample STAAR questions provided by the Texas Education Agency hoping to exemplify the frustration that students and parents have expressed to him about the cloudiness and confusing wording of the test.
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Hunter pushes seawater desalination study in Texas House
While Hunter said it is his idea to establish the committee, the study suggests that overtures of a public-private partnership between local government and industry may be more than a pipe dream as the 83rd Legislature works to establish a multibillion dollar, revolving mechanism by which local entities can borrow public money to build water-related projects.
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Perry holds firm against texting-while-driving ban
Just hours after a tear-laden House committee hearing Tuesday on a proposed texting-while-driving ban, a spokeswoman for Gov. Rick Perry said that Perry continues to see education rather than regulation as the solution for the increasingly widespread but dangerous practice.
Senate may reject Texas insurance commissioner
Eleanor Kitzman was appointed by Texas Gov. Rick Perry in 2011 between legislative sessions. She faces a formal confirmation process starting with the Senate’s Nominations Committee next month, before a vote of the full Senate in which she will need two-thirds support. Several Democrats have questioned her leadership and her past ties to the insurance industry, the Austin American-Statesman reported. At least one Republican, Sen. Bob Deuell of Greenville, suggested that Kitzman “has ignored a lot of rules.”
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