Diversions continue cheating and misinforming taxpayers

By Faith Chatham - DFWRC - May 13, 2010
DFWRCC consistently opposes diversions from dedicated funds and refusal of the Legislature to appropriate of full amount dedicated to specific sectors of the state budget when there are appropriate needs for such services. Slush funds do not benefit the citizens or the Governor to veto scuh appropriations.

Some examples of costs to the citizens from such diversions include:
- Toll Roads costing citizens more to travel per mile than on non-tolled roads while part of the premises for "justification" of financing by tolls is based on lack of funds. Transportation dollars have been spent on advertising, lobbying, travel for promotion of other departments, and transfers into the General Fund in years when the General Fund showed a surplus (violating the balanced budget laws of the state).

- Lack of funding for services by departments and non-profit organizations participating in the vanity license plate program. Organizations ranging from animal spay and neutering to state parks and children's groups such as the Boy Scouts were hindered in their mission by the refusal of the state to appropriate and release funds to them collected by the state through the vanity license plate program where individuals elected to pay additional dollars to the state in behalf of those departments or non-profit organizations. During the Rick Perry Administration this practice, in our opinion, has misled the public and defrauded citizens of dollars they were led to believe they were contributing to specific purposes. If private citizens conducted business in the same manner, they would be subject to arrest for fraud. The Legislature has acted to end some of these diversions but corrective action does not erase the dishonest actions of the Governor and many in the Legislature.

- The State Park budget has been a political field of misrepresentation, misappropriation and under-appropriation while maintenance and services suffered.

- During a period when the number of oil and gas production sites, storage sites and pipeline construction sites and miles of pipeline to be inspected and enforced by the Railroad Commission and TCEQ increased by 300% the number of inspectors and budget for staffing has consistently been reduced for the past decade. Currently fines and fees paid by the industry to these agencies goes into the General Fund instead of being paid to adequately fund field inspections and air quality and water quality testing/monitoring by these agencies. It is dishonest to show a "surplus" in the General Fund when funds paid for specific purposes are not spent to adequately protect the citizens of Texas.

- Employment Insurance Fund:

Below is a post from Bill White about how Rick Perry diverted payroll taxes into his Texas Enterprise Fund and failed to plan ahead for the Unemployment Insurance Trust Fund. His actions resulted in a massive tax increase on small businesses, the engine of job growth in our state.

Download this white paper, How do payroll taxes and the Texas Enterprise Fund work?, to learn more about payroll taxes, Rick Perry's slush fund, and what can be done about the problem.


Job growth in the private sector, especially in small businesses, is the key to economic recovery. Yet this year Texas nearly doubled the payroll taxes on our businesses. This massive tax increase on Texas jobs was caused in part by the diversion of $161.5 million which Gov. Perry used to subsidize companies he selected and publicized at numerous press conferences.

A sharp increase in payroll taxes hurts job growth.

Employers know better how to manage job growth than a politician does. You can see that from the track record of the Enterprise Fund. Failed subprime lenders Countrywide and Washington Mutual received $35 million. Another $35 million was paid to struggling biotech firm Lexicon Genetics, so it could give mouse stem cells to a non-profit affiliated with Texas A&M. Rick Perry announced this project would create 5,000 new jobs. Instead of adding jobs, Lexicon laid off much of its workforce, and lost more than $500 million.

Before the Perry Administration, all payroll taxes were used to fund the Unemployment Insurance Trust Fund and workforce development activities. The Trust Fund is now empty. More than $52 million was diverted from payroll taxes last year alone, when demands on the Trust Fund were rising. Almost every month, these tax dollars are given to various favored companies, including some associated with Perry's campaign contributors. Meanwhile, Perry will have borrowed more than $2 billion from the federal government to plug its holes, without a plan for paying it back.

Three simple reforms can help avoid further hikes in state payroll taxes, establish public accountability and avoid this type of tax increase during a recession in the future.

Restore diverted funds. The Enterprise Fund should pay into the Unemployment Insurance Trust Fund the full $161.5 million diverted from Texas' payroll taxes. The governor previously vetoed a bipartisan bill to limit these diversions, but there is no excuse for keeping this money in the TEF now that the Unemployment Fund is broke. When these funds are returned to the Trust Fund, all employers will benefit from the reduced tax burden and the employers--not a politician--can decide how best to allocate payroll dollars to strengthen business and expand employment.

Audit the Enterprise Fund. There should be an independent audit of tax dollars used for subsidies. The auditors should report on: (1) whether the Governor conducted sufficient and independent analysis of each application before awarding a subsidy; (2) whether each subsidy recipient fulfilled every promise made; (3) whether these dollars were necessary to accomplish the intended purposes; (4) whether there was any political influence used or lobbyist paid to influence these decisions; and (5) whether the subsidized firms competed with other Texas businesses not receiving a subsidy.

Disclose the plan for repaying borrowed federal stimulus funds. Gov. Perry declined federal grants to strengthen the Unemployment Insurance Trust Fund, but has accepted federal loans under the stimulus legislation. No family or business or governmental entity should borrow money without a plan to repay, but in April the chair of the Texas Workforce Commission did not have a plan in place on how and when to repay these amounts. A repayment plan should be made public immediately.

In prior years Gov. Perry took credit for the beneficial effects of modest decreases in employer payroll taxes. Because of lack of planning during economic growth and the diversion of payroll taxes, payroll taxes have almost doubled for many Texas businesses. Obviously this hurts employment, at a time when the number of Texans unemployed is near a record level. Texas must put all payroll taxes into the Trust Fund to reduce further tax increases, the Legislature must have an independent audit of the use of TEF funds, and taxpayers should not have to wait until after an election to find out how the massive borrowings will be repaid.

Mountain Creek Lake Bridge After Dallas Bomb Squad Detonates Incendiary Device

By Faith Chatham - DFWRCC - May 12, 2010
NTTA issued the following statement:

DALLAS – The North Texas Tollway Authority (NTTA) has re-opened the Mountain Creek Lake Bridge following this afternoon’s bomb scare in which an incendiary device was found submerged under water about 20-to-25 feet away from the bridge structure by a Dallas Police Department (DPD) dive team conducting training exercises.

The device was detonated by a DPD bomb squad just before 5 p.m. To ensure the safety of motorists and NTTA personnel, the bridge remained closed while DPD inspected the bridge structure and surrounding area. No devices were found near or around the bridge and the bridge was re-opened just before 6 p.m.

The incident remains under investigation by the Dallas Police Department.

Earlier in the afternoon they had issued this media advisory:

DALLAS – The North Texas Tollway Authority’s (NTTA) Mountain Creek Lake Bridge (MCLB), located in Dallas, will remain closed until about 8 p.m. tonight following this afternoon’s bomb scare in which an incendiary device was found submerged under water about 20-to-25 feet away from the bridge structure by a Dallas Police Department (DPD) dive team conducting dive drills.

The device was detonated by a DPD bomb squad just before 5 p.m. To ensure the safety of motorists and NTTA personnel, the bridge will remain closed while DPD inspects the bridge structure and surrounding area. The bridge will re-open once it has been determined safe to do so.

DFW Household transportation cost

TRANSPORTATION SOLUTIONS FOR TEXAS NEWS

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For Immediate Release:
2010-03-17

For More Information:
Melissa Cubria
512-479-7287

March 17th Marks “Transportation Freedom Day” for Dallas -Ft. Worth

On March 17th, Dallas residents celebrate Transportation Freedom Day, the date a typical area household has earned enough to cover its annual transportation costs.

“Transportation Freedom Day is an eye opener,” said Representative Rafael Anchia (D-Dallas). “It shows the need for greater investments in more efficient ways to get around, such as public transit. When government makes the right kind of transportation investments, citizens save a lot of money.”

Americans on average spend an astounding 17 percent of their annual income on transportation, far more than they pay for food, clothing, entertainment, income taxes or even health care. New findings released by the Texas Public Interest Research Group (TexPIRG) show that a typical Dallas-Ft.Worth household shells out the equivalent of 21 percent income to pay for transportation, or 76 days to pay for annual transportation costs.

In more walkable communities with better transit systems households spend less. In the Oak Lawn neighborhood between Cole and Lemon station, for instance, residents spend less of their income on transportation than other surrounding places. A typical area household could expect to spend 13 percent of their income on transportation if they lived there, the equivalent of about 4 fewer weeks of income to get around.

“People may not recognize how much they pay for transportation. Our research and these numbers show that we need long-term solutions that make it easier for Texans to drive less and to get around more efficiently,” said Melissa Cubria of TexPIRG.

Here in Dallas-Ft.Worth, Transportation Freedom Days in the region ranged from February 17th in Oak Lawn Neighborhood around Cole and Lemon Station (i.e., 13% of income), compared to April 4th in Aubrey (i.e. 25.5% of income). Averaged across the region as a whole, Transportation Freedom Day lands on March 17th.

The average American household spent more than $8,000 per year on its vehicles in 2008 according to the U.S. Department of Transportation. Americans who live in areas with good access to public transit generally spend less on transportation than those who are fully dependent on cars. Residents in transit-friendly areas tend to attain “Transportation Freedom” earlier in the year. By highlighting these dates, TexPIRG seeks to raise awareness about how access to public transportation is a crucial for saving Americans money.

“Shortchanging public transportation is a classic case of being pennywise and pound foolish,” added Cubria. “Now more than ever, public officials must make trains and buses a top priority.”

Transportation Freedom Day is the day of the year in which a median-income household has earned enough money to pay for their transportation expenditures for the year. It is based on Census data includes gas, repairs, parking, vehicle depreciation and transit fares.

The findings illustrated in Transportation Freedom Day confirm other data showing that an individual commuter switching from driving from the suburbs to using public transportation in 2010 could expect to save $8,756 in 2010, according to the American Public Transit Association.

Transportation Freedom Day data comes from the Center for Neighborhood Technology in Chicago, which is a leader in statistically based analysis of transportation and housing. Transportation costs are controlled for differences of income, family size, and number of working individuals in a household. Transportation demand is modeled using the most recent census data, and costs are calculated to include car ownership, maintenance, gas, and transit fares. A detailed description of their transportation cost methodology can be found at: http://htaindex.cnt.org/model_summary.

Arlington considers tigher rules for gas-drilling

BY ROBERT CADWALLADER - Special to the Star-Telegram - April 13, 2010

ARLINGTON -- With natural-gas drilling on the rise, the Planning and Zoning Commission will look at higher road-damage fees, tighter time limits and other measures to buffer the industry's impact on the city.

The commission meets in a 4 p.m. work session today at City Hall, 101 W. Abram St., to consider what would be the third major revision of the 2003 gas well ordinance.

The commission plans to vote next week on final recommendations to the City Council.

"This is one of the main drilling hubs in the Barnett Shale," Mayor Robert Cluck said.

"There is more urban drilling now. We're closer to structures -- homes, churches -- than we ever have been."

The city has received 210 permit applications since 2006, when its first seven wells were drilled. The city so far has approved permits for 163 wells, of which about 130 have been drilled, said Darren Groth, Arlington's gas well inspector. The increase in drilling points to the need for further strengthening of the ordinance, he said.

Suggested changes include:

Charging more to cover most costs for road damage caused by heavy trucks of drilling and pipeline companies. The city used to charge about $200 per well but has gradually increased that to $480. That's still far short of the minimum $5,000 charged by the city of Mansfield, Groth said.

Limiting the time that companies can drill at a site after receiving a specific-use permit. Currently, they have up to one year to drill the first well but no limits on drilling subsequent wells.

Notifying more people when gas-drilling companies apply for permits. For a specific-use permit, the city mails notices to people living within 200 feet of the site. But in the next stage -- the drilling permit application, in which remaining details are addressed before the council -- notices are mailed to residents within 600 feet.

That means a lot more people are hearing about the project after the drilling basically has been approved. However, Cluck said that's not too late to voice concerns to the council, which can deny a drilling permit even if it meets city requirements.

In written statements to city staff, several energy companies voiced concerns about some recommendations. For example, they said limiting the time for drilling subsequent wells on the same site -- an effort to speed up drilling -- could have the opposite effect if a company misses a deadline and has to go back through the permitting process.

Councilwoman Sheri Capehart said she got an earful of gas-drilling concerns at a town hall meeting she hosted last week.

Many residents said the city needs to do more to monitor compliance with landscaping, trucking hours, noise limits and other stipulations in drilling permits. They noted that the city has only one gas well inspector.

Others suggested increasing the percentage of property owners who must sign waivers before a company can drill within 600 feet of residences. They also want fines for well-related violations raised beyond the standard $2,000 for most ordinance infractions.

"I just want us to do this right," Capehart said. "I'm not anti-gas wells, because I think a lot of people benefit. But I want us to do it appropriately and with a vision of what this means to our future."

Read more: http://www.star-telegram.com/2010/04/13/2112329/arlington-considers-tighter-rules.html#ixzz0l62S3VDd

Despite Legal Assaults Roy LaVerne Brooks stays on ballot in Tarrant County

By Faith Chatham - Feb. 25, 2010
Former Texas State Democratic Vice Chair Roy LaVerne Brooks wins second round of strategic legal assault by financier Dick Abrams. Unable to get County Chair Steve Maxwell to remove Ms. Brooks from the Tarrant County Democratic Primary Ballot so that he could run unopposed for Justice of the Peace, Pct. 6, Democratic donor and bundler, Dick Abrams brought suit in District Court. Abrams' suit against Roy LaVerne Brooks and Tarrant County Democratic Chair Steve Maxwell was dismissed with prejudice Friday. (aka - don't refile this case)

The contrast between the two candidates is stark. Abrams, former C.E.O. / C.O.B. of failed Surety Bank and Surety Holding, engendered support of Democratic incumbents and some Democratic "want-a-be's" by writing substantial checks to most incumbents and Democratic Clubs, creating a buzz about him being a "viable candidate." Simple Google searches bring up numerous Federal S.E.C. and Comptroller of the Currency documents chronicling Abrams less than stellar performance at the helm of Surety Bank and its holding company. Those touting how "viable" avoid mentioning that Abrams was barred from banking for failure to comply with Federal Banking laws! He settled with the Comptroller of the Currency by agreeing not to participate in any capacity in any federal funded housing, federal loans, banks, or savings and loans because of fiduciary irregularities, misrepresentation of fact on Federal Reports, and failure to follow Federal Law, and the use of bank premises for “for profit endeavors by board members and members of the family of board members.” However, because he can write max allowable checks to high profile candidates some think that he deserved to be the nominee.

In contrast, a Google search on Roy LaVerne Brooks profiles a Democratic Party activist, community servant and civic leader who was named the "Outstanding Woman Citizen of Fort Worth" and inducted into the "Texas Hall of Fame" for 30 years of civic leadership and consistent service to her hometown and the State of Texas. Brooks, a graduate of Prairie View A&M, with M.A. in Divinity from Southwestern, has chaired the handicap transportation authority (MI.T.S.A.C) in Fort Worth and served as Vice-Chair of the Fort Worth "T". Conservative with her finances, Ms. Brooks does not have as deep pockets as her opponent. The contrast between a social workers' salary and the check-writing resources of her opponent are substantial.
Abrams' lawsuit drained much of Brooks "Get out the Vote" resources. None of the newspapers or television stations are mentioning that Texas or Federal Law does not prohibit individuals who are barred from banking for violations of Federal Law from running for (and possibly winning) judicial seats in Texas, or election as State Representatives and State Senators.

Contributions to the Brooks Campaign can be made on-line at WWW.BROOKSFORJP6.ORG. $35.00 can reach half of the registered voters in the precinct by robocall. The primary is March 2nd. Act now if you want to support a qualified woman candidate for public office. The Court ruled that the people have the right to decide who their nominee should be. Money will determine whether the voters get to learn about the differences in the two candidates.

I am not pretending to be unbiased. I know Roy LaVerne Brooks and admire and respect her for her lifetime of service, incredible leadership skills, and understanding of the challenges facing individuals who come before the bench in that Justice of the Peace Precinct. If Mr. Abrams had chosen to campaign to win rather than to use the courts to remove his opponent, this race would probably have avoided my radar. As I examined the court documents, signatures on the petitions, candidate’s credentials, and the needs of the precinct, sharp contrast between the candidates convinced me that Roy LaVerne Brooks is the candidate who can truly best serve the people as Justice of the Peace. The way to build the party is to bring honor to it by fielding and electing people whose life reflects consistent integrity, service and honor. Roy LaVerne Brooks is a woman of integrity, and possesses a heart for the people and the intellect and discernment to do the job.

Does the gas industry threaten your health?

Does the gas industry threaten your health?

Find out at the DISH, TX public meeting: 10/12 at 7pm

Public can discuss new study showing toxic air threats from gas compressor stations

Dear Sharon,

Come to DISH, TX
On Monday, October 12th at 7pm the Town of DISH will hold a public meeting to discuss the findings of recent air quality study commissioned by the Town.

Please attend and spread the word to your friends and neighbors. We need you to show your support for local government and citizens addressing toxic emissions in their community!

Town of DISH public meeting October 12th at 7 pm 5413 Tim Donald Road DISH, Texas 76247

Learn about the health risks of gas facilities in your community
The results of DISH's air study revealed high concentrations of carcinogenic and neurotoxin compounds near and on residential properties near the megaplex of compressors stations operating at the corner of Tim Donald and Strader Roads in DISH.

These compressors have multiple engines and support equipment, such as condensate tanks, that emit fugitive toxic emissions. The report also indicated that many of the compounds in the air exceeded the Short-term and Long-term Effects Screening Levels according to the Texas Commission on Environmental Quality regulations.

We need your help to support science, public health
Public health and safety may be best served by immediately shutting down these compressors until they can be operated safely with emission controls. However, The Town of DISH is taking tremendous heat from the oil and gas industry, who like Big Tobacco and other industries, are simply belittling valid concerns and studies as "bad science."

We need you to turn out to this meeting and support the efforts of local government and citizens to gather emissions data and hold companies accountable for health impacts!

Thanks,
Jennifer Goldman, EARTHWORKS' Oil & Gas Accountability Project

For More Information:

• Read the study
• Read an EARTHWORKS analysis of the study
• Fill out the Town of DISH's health survey form

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Food Stamp Plight Highlights Perry’s Failure To Lead, Gilbert Says

Food Stamp Plight Highlights Perry’s Failure To Lead, Gilbert Says

Posted using ShareThis

Food Stamp Plight Highlights Perry’s Failure To Lead, Gilbert Says

Food Stamp Plight Highlights Perry’s Failure To Lead, Gilbert Says

Posted using ShareThis

Co-Founder of T.U.R.F. declares candidacy for Governor

Hank Gilbert interview:

Taxpayers get shafted in toll deal with Spanish company

By Terri Hall - San Antonio Transportation Policy Examiner - September 10, 2009
Is there ANY elected official looking out for the taxpayers anymore? So much for taxpayer protections and oversight from Texas Attorney General, Greg Abbott. Even after Abbott held-up several controversial comprehensive development agreements (CDAs, also known as public private partnerships, PPPs) for months declaring them unconstitutional, he recently gave final approval to allow a contract with Spanish toll operator, Cintra, to takeover parts of the LBJ freeway, I-635, in Dallas. The deal will use Dallas Police and Fire Pension System and will charge 75 cents PER MILE to use toll lanes, and even worse, a half a billion in gas taxes will subsidize the deal with Cintra, in a massive DOUBLE TAX scheme.

It's the hefty amount of public money in the deal that caused Abbott to deem it unconstitutional - to have one Legislature bind a future Legislature with its obligations. Wasn't this a major objection to the Wall Street bailouts? Privatizing profits and socializing losses?

Governor Rick Perry, who has grown fond of criticizing Washington, has taken a page out of their playbook and applied it to Texas toll roads. There's a reason these deals are called public private partnerships. The private operators come in and milk the taxpayers by exploiting the government powers of eminent domain and raiding public money to subsidize toll roads that aren't viable otherwise, and they walk away with the profits for a half-century at a time.

CDAs are sweetheart deals that guarantee congestion on free routes through the use of non-compete agreements (which prohibit expanding or building free routes without paying penalties), guarantee 12-19% annual profits, lower the speed limits on surrounding free routes (to drive more traffic to the toll road), and cash-in on taxpayer-backed low interest loans.

The authorization to enter into CDAs expired last week. The grassroots saw to it that such deals were squashed in Perry's special session that attempted re-authorize the contracts that sunset August 31. Many lawmakers took offensive to being called back to Austin for to extend sweetheart deals for private industry.

However, Perry and some sold-out legislators made certain that about a dozen CDAs were excepted out of a moratorium passed in 2007 to allow many CDAs to move forward until 2011, including the LBJ project, I-820 in Tarrant County, Loop 9 in North Texas, the Grand Parkway in Houston area, and both Trans Texas Corridor contracts among others.

As the details of these remaining CDAs are made public, the taxpayers must remain vigilant to require the Attorney General to do his job and protect taxpayers from billions in risky leveraged debt that prices 90% of motorists off our public freeways. The race for the next Governor, Attorney General, and state legislature must keep these CDAs and toll road policies front and center. In every public forum, ask each and every candidate his/her stand on privatized toll roads, the Trans Texas Corridor, and how he/she plans to address transportation funding in the next session.
Read more on San Antonio Policy Examiner

Southwest Parkway Funding

By Faith Chatham - DFWRCC - August 29, 2009
Funding of Southwest Parkway is still an issues in Texas. Planning for the freeway began in the 1960ies. By the 1990ies it was fully funded. Construction was delayed as some state and county "leaders" "identified it as a good candidate for tolling." As some in Austin began to dream of "creating revenue streams" from some of our public tax-payer financed infrastructure, the citizens of Fort Worth got shafted. A necessary freeway to serve that section of Tarrant county was planned, funded, affordable as a non-toll state highway. With George Bush and Rick Perry in charge, construction was delayed. Local leaders were shown that the only way to get necessary maintenance and expansion of state highways was as private public partnership toll roads. Road maintenance was delayed. Designated highway funds were transferred to other uses in the state budget. Dedicated funds in highway accounts were kept in the state treasury and not appropriated, showing false surpluses while roads all over Texas deteriorated. A crisis in road construction, congestion and air quality was created by planners and elected officials who were "sold on the advantages" of private investments in toll projects. The state and federal highway administration literally turned off the faucet on funding for road and highway and bridge projects to convince local leaders and citizens that there was a crisis in infrastructure maintenance and construction.

Now in 2009 funding of the Southwest Freeway is still being discussed (er red-stamped). Citizens in Fort Worth who paid for the right-of-way with tax money, who paid for the planning with tax money, who paid with their homes, land and businesses and suffered the strain of relocation, will have opportunity to use the Southwest Freeway...that is when they pay a toll.

Yes, it is good that it is nearing completion. It is a crime that those entrusted with the public good chose to rip off the residents of Fort Worth by delaying construction on a fully-funded non-tolled highway because it was "a good candidate for tolling!"

Toll Projects (continued from Minutes of Texas Transportation Commission, Aug. 27, 2009)
b. Tarrant County – Consider the approval of funds to pay certain construction and
right-of-way costs related to the crossing of the Southwest Parkway, a toll project
from I-30 to Altamesa Boulevard in the City of Fort Worth, over the Union Pacific
Railroad’s Davidson Rail Yard in Tarrant County, and to pay a portion of the costs
of a traffic and revenue study prepared for the Southwest Parkway (MO)
By Minute Order 111557 dated October 30, 2008, the commission approved a term sheet authorizing NTTA to develop the Southwest Parkway, subject to NTTA establishing its feasibility. By Minute Order 111889 dated July 30, 2009, the commission approved NTTA’s application for a toll equity grant of $49.87 million to be used to pay for a portion of the right of way and other costs to obtain access to the Davidson Rail Yard. The current order concerns three matters. The first is approval of $45.13 million to be used to pay the balance of the right of way and other costs to obtain access to the Davidson Rail Yard. The payment would be made if NTTA elects not to develop the Southwest Parkway. The second is approval of an amount not to exceed $40 million for the initial construction phase (as provided for in the Formal Agreement of January 2009 with the Union Pacific Railroad) of bridges crossing the Davidson Rail Yard, construction of retaining walls and other structures. The payment would be made provided the department develops the Southwest Parkway. The third is directing the executive director to enter into an agreement with NTTA under which the parties share equally in the costs of the preparation of a traffic and revenue study for Southwest Parkway.

Where to find public notices of Trans Texas Corridor

If you have been looking for public notices regarding the Trans Texas Corridor in the Texas Register as was prescribed by State Law, you probably had a hard time finding them. Those notices, under the Perry Administration, were sometimes posted on the Secretary of State's website. Now the law has been changed to comply with practice since practice did not comply with the law.

From the Minutes of the Texas Transportation Commission, August 27, 2009
Chapter 1 – Management and Chapter 24 – Trans-Texas Corridor (MO)
Amendments to §1.82, Statutory Advisory Committee Operations and
Procedures, §1.84, Statutory Advisory Committees, and §1.85, DepartmentAdvisory Committees (Advisory Committees); and Amendments to §24.13, Corridor Planning and Development (Development of Facilities) The Secretary of State currently publishes open meeting notices on the Secretary's website rather than in the Texas Register. The amendments conform the rules to the Secretary's practice. Due to recent legislation, the amendments also change the composition and selection of the public transportation advisory committee. Finally, the amendments change the rules governing advisory committees to extend committee sunset dates for committees under Chapter 1 and to provide for committee sunset dates for corridor segment committees under Chapter 24.

Despite dire warnings Texas remains attractive to investors

By Faith Chatham - DFW RCC - August 29, 2009
Repeatedly we heard elected officials warn us that refusal to accept Cintra's bid of SH121 would scare off other investors and cripple the Texas economy. This week's report from the Comptroller of Public Accounts shows that Texas, despite the recession, fires and other natural (and unnatural) disasters, remains attractive to investors.

Combs Says Short-Term Note Sale Is Best In Texas History

(AUSTIN) — Texas Comptroller Susan Combs announced that Texas’ highly anticipated sale of $5.5 billion in Tax and Revenue Anticipation Notes (TRANs) achieved an interest rate of 0.48 percent — the lowest rate the state has ever received on its annual sale of short-term notes.

“We had an impressive sale and an excellent interest rate — the best Texas has ever had,” Combs said. “Buyers bid more than $28 billion to obtain a portion of the $5.5 billion in notes Texas offered for sale Tuesday. That is more than five times the amount available for purchase. The high demand for Texas’ high-quality notes drove the interest rate down to its historic low.”

Texas will use the proceeds of the TRAN sale to distribute state funding to public schools early in the upcoming fiscal year and manage its cash flow between the start of the fiscal year and the arrival of tax revenues later in the year.

“The bond rating firms gave our TRANs the highest possible ratings,” Combs said. “The sale shows the financial community’s utmost confidence that Texas is a great investment, and our state government continues to be fiscally responsible by spending taxpayer dollars wisely.”

The TRAN notes sold Tuesday will be repaid Aug. 31, 2010.
By Allen Spelce or R.J. DeSilva - Office of the Comptroller of Public Accounts

Ted Houghton says I-69 does not connect with Mexico!

By Faith Chatham - DFWRCC - Aug. 27, 2009
I'm posting this UTube clip of Texas Transportation Commissioner Ted Houghton stating that I-69 does not connect to Mexico. I had missed seeing this until this morning. It illustrates how dishonest TxDot and the Texas Transportation Commission has been in the entire process since Gov. Rick Perry and GWB decided to push through the Trans Texas Corridor and private public partnership CD model for highway/public infrastructure construction and operation.

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.”
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