Showing posts with label Warren Chisum. Show all posts
Showing posts with label Warren Chisum. Show all posts

Wednesday, August 5, 2009

State lawmakers diverting funds from dedicated accounts to general fund

By Peggy Fikac - Houston Chronicle Austin Bureau - Sunday, August 2, 2009
Dedicated funds diverted to state budget

The billions in levies originally were collected for specific programs

AUSTIN — Nearly $3.7 billion in levies collected for everything from fighting air pollution to helping low-income people with their electric bills to funding trauma care will instead help balance the state's upcoming two-year budget.

The money, for the most part, is collected through fees and fines that legally are dedicated for a particular purpose. If lawmakers do not spend the money on the dedicated purposes, however, the balances become available to spend on other programs.

“It's kind of like having your (household) budget laid out and spending part of your food money on entertainment, or vice versa,” said Dale Craymer, chief economist of the Texas Taxpayers and Research Association, who has worked for a state comptroller, two governors and as the Texas House fiscal analyst. “It's a backdoor way to undedicate the money.”


In some cases, unspent balances in dedicated accounts have grown to hundreds of millions of dollars over years.

For example, the System Benefit Fund has accrued more than $670 million. The program imposes a fee on electricity customers in competitive retail markets, including Houston, Dallas-Fort Worth and most of the Rio Grande Valley, to provide a May-September discount for low-income customers.

Other unspent balances include $331.3 million in the account that reimburses hospitals for uncompensated trauma care. The account is financed by extra fines on drivers for driving while intoxicated and other offenses. A total of $150 million will be allocated during the next two years from the fund, despite hospitals reporting about $225 million in uncompensated trauma care in fiscal 2009 alone.

“I would say it's very important to us that we get that funding, considering the post-hurricane period,” said Jim Parisi, Memorial Hermann's chief business development officer for the southwest market. “If you look at the increased demand for trauma at our Level 1 trauma center, our volumes are dramatically higher. From my perspective, the more money that the Legislature puts into the system, the more likely we'll have more hospitals participating in trauma care.”


An even larger $515.3 million balance will be held in the Texas Emissions Reduction Plan account after $271.7 million is spent on the program in the next two years.

The program, financed in part with a vehicle title fee, funds grants in targeted counties, including Harris and Bexar, to address polluting heavy vehicles and equipment. In the current two-year budget, the Texas Commission on Environmental Quality did not have the money to fund about 570 applications asking for $40 million for emissions reductions.

“We're generating funds for a good purpose. We're diverting the funds, without telling people, for general purposes. And then we say we're not taxing. Well, government is lying,” said Rep. Sylvester Turner, D-Houston, who called such levies amount to “a tax by misrepresentation.”


Criticism and defense

When it comes to the System Benefit Fund for low-income electric customers, the state will spend $258.9 million during the next two years, according to the state comptroller. It will be an increase from current spending, but Turner said it will be far from enough.

“It's just a sinister way of keeping money intended for the poor in the budget to certify the budget. It is a tax on the poor. And we are doing it because these are individuals that can't afford lobbyists and consultants,” Turner said.


Senate Finance Committee Chairman Steve Ogden, R-Bryan, said he understands the argument, but “if you are going to criticize that, then go tell me what other parts of the budget I'm supposed to cut. … The choice to complain about it is just hot air.”

Alternatives, he said, would be raising general taxes or dipping into the state savings account known as the rainy day fund, which budget-writers expect to need in the future.

“The long and short of it is, we have to do this in order to balance the budget,” Ogden said. “I guess this was the least objectionable of the four alternatives.”


The situation points up a major public policy issue, he said.

“Our tax and revenue system is pretty messed up, and a case can certainly be made for a major overhaul of our tax structure,” Ogden said.


Apart from the general revenue funds, lawmakers did make headway on reducing diversions from a separate account, the gasoline-tax-fueled highway fund — although $1.2 billion still will be diverted from road building.

Progress on the highway fund was among pluses cited by a spokeswoman for Gov. Rick Perry, who signed the budget into law and has spoken for spending dedicated fees for their intended purpose or eliminating them.

Rep. Warren Chisum, R-Pampa, former House Appropriations Committee chairman, described the unspent accounts as “kind of a safety net” to ensure the state comptroller can certify the budget as balanced.

“I think it's fiscally responsible. … It's not always prudent to spend all your money just because you collected it,” Chisum said. “It is a shell game, but you know, life's a shell game. We just can't deficit spend.”
Read more in the Houston Chronicle

Friday, August 24, 2007

Road campaign draws criticism and praise from lawmakers

By PEGGY FIKAC - Austin Bureau The Houston Chronicle - Aug. 20, 2007
Houston Chronicle
AUSTIN — The Texas Department of Transportation, which complains about chronic underfunding, has launched a multimillion-dollar campaign that promotes the divisive Trans-Texas Corridor plan and toll roads.

The campaign is anticipated to cost $7 million to $9 million, according to a memo titled "Keep Texas Moving: Tolling and Trans-Texas Corridor Outreach" sent to transportation officials by Coby Chase, director of the agency's government and public affairs division.

Such use of state highway-fund dollars is drawing questions, but the department says it's an important effort to educate and engage Texans.

"It's a waste of money," said Rep. Warren Chisum, chairman of the budget-writing House Appropriations Committee, "and they have no business out there trying to get public opinion to be in their favor."

The money would be better spent fixing roads, said Chisum, R-Pampa.

But Rep. Mike Krusee, House Transportation Committee chairman, said the campaign addresses lawmakers' concerns by explaining new financing methods.

"The Legislature has been beating TxDOT over the head for two years, telling them they need to explain what the Trans-Texas Corridor is and why it is necessary to the public. They've been telling TxDOT they are moving too fast — they are moving before the public and the Legislature has the chance to understand what they are doing and why," said Krusee, R-Round Rock.

If the outreach is effective, Krusee said, it could save money in the long run.

"Texas is losing money for roads by the hundreds of millions of dollars every year simply due to delay because the Legislature and the public don't understand the need to move to a new finance method. And so an expenditure of a few million dollars could literally save hundreds of millions of dollars per year," Krusee said.

The agency's budget is more than $7 billion for fiscal year 2007 and more than $8 billion for fiscal year 2008.

The Trans-Texas Corridor and toll roads have been championed by GOP Gov. Rick Perry and others as necessary in the face of congestion and gas-tax revenues that can't keep up with huge transportation needs.

But the initiative has drawn widespread criticism over the potential route and state proposals to partner with private companies to run toll roads. Lawmakers this year sought to rein in new private toll projects.

The new campaign, as outlined in the memo obtained by the Houston Chronicle, started June 1 with TV, radio, print, billboard and Internet advertising meant to push people to the Keep Texas Moving site (www.keeptexasmoving.com).

Rep. Lois Kolkhorst, R-Brenham, who fought for a moratorium on privately run toll roads, said the initiative needs a hard look.

"TxDOT is consistently telling us we have no money to build highways, yet they seem to be spending a lot of money on internal audits and also ad campaigns. That's something that the Legislature needs to look at," she said. "I don't know that we would approve any other agency to do a $7 (million) to $9 million campaign on an initiative as controversial as the Trans-Texas Corridor and tolled roads."

She added that the cost "is a lot of money, and I would hope since it's taxpayer dollars they would approach it with a balanced approach to tell the pros and the cons of toll roads and the Trans-Texas Corridor."

TxDOT spokesman Chris Lippincott defended the campaign. "The clearest and most-often repeated criticism of the department during the legislative session was that we needed to do a better job of engaging the public," he said. "We heard that message loud and clear, and we're acting on it."
Read more

Wednesday, August 22, 2007

State spending millions to push Trans-Texas plan - Road campaign draws criticism and praise from lawmakers

By PEGGY FIKAC - Copyright 2007 Houston Chronicle Austin Bureau - Aug. 20, 2007
AUSTIN — The Texas Department of Transportation, which complains about chronic underfunding, has launched a multimillion-dollar campaign that promotes the divisive Trans-Texas Corridor plan and toll roads.

The campaign is anticipated to cost $7 million to $9 million, according to a memo titled "Keep Texas Moving: Tolling and Trans-Texas Corridor Outreach" sent to transportation officials by Coby Chase, director of the agency's government and public affairs division.

Such use of state highway-fund dollars is drawing questions, but the department says it's an important effort to educate and engage Texans.

"It's a waste of money," said Rep. Warren Chisum, chairman of the budget-writing House Appropriations Committee, "and they have no business out there trying to get public opinion to be in their favor."

The money would be better spent fixing roads, said Chisum, R-Pampa.

But Rep. Mike Krusee, House Transportation Committee chairman, said the campaign addresses lawmakers' concerns by explaining new financing methods.

"The Legislature has been beating TxDOT over the head for two years, telling them they need to explain what the Trans-Texas Corridor is and why it is necessary to the public. They've been telling TxDOT they are moving too fast — they are moving before the public and the Legislature has the chance to understand what they are doing and why," said Krusee, R-Round Rock.

If the outreach is effective, Krusee said, it could save money in the long run.

"Texas is losing money for roads by the hundreds of millions of dollars every year simply due to delay because the Legislature and the public don't understand the need to move to a new finance method. And so an expenditure of a few million dollars could literally save hundreds of millions of dollars per year," Krusee said.

The agency's budget is more than $7 billion for fiscal year 2007 and more than $8 billion for fiscal year 2008.

The Trans-Texas Corridor and toll roads have been championed by GOP Gov. Rick Perry and others as necessary in the face of congestion and gas-tax revenues that can't keep up with huge transportation needs.

But the initiative has drawn widespread criticism over the potential route and state proposals to partner with private companies to run toll roads. Lawmakers this year sought to rein in new private toll projects.

The new campaign, as outlined in the memo obtained by the Houston Chronicle, started June 1 with TV, radio, print, billboard and Internet advertising meant to push people to the Keep Texas Moving site (www.keeptexasmoving.com).

Rep. Lois Kolkhorst, R-Brenham, who fought for a moratorium on privately run toll roads, said the initiative needs a hard look.

"TxDOT is consistently telling us we have no money to build highways, yet they seem to be spending a lot of money on internal audits and also ad campaigns. That's something that the Legislature needs to look at," she said. "I don't know that we would approve any other agency to do a $7 (million) to $9 million campaign on an initiative as controversial as the Trans-Texas Corridor and tolled roads."

She added that the cost "is a lot of money, and I would hope since it's taxpayer dollars they would approach it with a balanced approach to tell the pros and the cons of toll roads and the Trans-Texas Corridor."

TxDOT spokesman Chris Lippincott defended the campaign. "The clearest and most-often repeated criticism of the department during the legislative session was that we needed to do a better job of engaging the public," he said. "We heard that message loud and clear, and we're acting on it."

Read more in the Houston Chronicle

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