They’ve got their work cut out for them

A governor vetoing legislation, university regents locked in power struggle with elected officials, threats of impeachment, all against the backdrop of a special session—sound familiar? You would be hard pressed to know whether it was the year 2013 or 1917.

Then

Our only Texas governor to be removed from office James “Pa” Ferguson (1915-1917) got into trouble because the board of regents at UT-Austin refused to remove particular faculty members whom he did not like. When the regents would not comply, the governor used his veto power (ability to reject legislation which requires two-thirds vote by both the Texas House and Senate) to remove most of the university’s appropriations.  In a special session called to address the appropriations issue, the House focused on and eventually impeached and then the Senate convicted “Pa” Ferguson who was removed from office.

Now

This time around, it is University of Texas Regent Wallace Hall that some legislators want to impeach during the special session for interference with the management of UT-Austin.   House Appropriations Chairman Jim Pitts (R-Waxahachie) has put forward a resolution to impeach Hall who has been locked in a power struggle to get information from UT-Austin administrators. Pitts has accused Hall of going on a “witch hunt” by continually requesting documents.

This is the latest in the battle between legislators, regents, and the governor.  Sen. Kel Seliger (R-Amarillo) was successful in getting a bill passed in regular session which placed restrictions and added training requirements for new regents. Gov. Rick Perry, who appoints the regents, vetoed the law.

So the last week of the special session is going to be the agenda clearing equivalent of a hot mess.   Trying to get through all of the agenda items and pass proposed legislation is never easy, but this is mission impossible.

Top priority was the final passage of the redistricting maps (the changed political boundaries) which resulted in extended lawsuits and a delayed primary process.   The House finally approved a map with minor revisions that basically “tweaked” the court ordered map put forward in 2012 by three federal judges. Now it just has to get past the three readings required under the state Constitution.

But wait, there’s more including the Governor’s proposal to divert half of all oil and gas revenue coming from severance taxes (fees charged to producers for extracting natural resources) to go to the state Highway Fund rather than to the Rainy Day Fund.  The proposal still requires a constitutional amendment—two-thirds vote by legislators which puts the measure forward for voter approval by majority vote.

And if they still have time the legislature will need to resolve whether teens should get mandatory life sentences with parole in capital cases and consider whether all abortions after 20 weeks can be prohibited.

Five days and counting.

Slap shot silence

You may remember that in October the Kountze School District had been slapped with a temporary injunction (an order which restrains a person from effecting a legal action or orders redress to an injured party) to prevent the display of banners with a Christian message. Public school high school cheerleaders had used their own money, made the banners off-campus, and unfurled the banners at football games.  The school district, concerned that the student-led Christian display was an Establishment Clause violation, had banned the cheerleaders from displaying the messages. The First Amendment prohibits the government from making any law “respecting an establishment of religion” and forbids the government from establishing an official religion and prohibits government favoring one religion over another.

Wednesday, a state district judge disagreed with the school district and held that the school could not prohibit such displays.  The school district will now have to appeal.

One legislator displayed his unhappiness with the Travis County District Attorney by criticizing one of its lead attorneys Rosemary Lehmberg who pled guilty to drunken driving in April and who is due for early release (serving less than your full sentence because of good behavior while incarcerated).   Rep. Phil King (R-Weatherford) called for District Attorney Lehmberg’s resignation and proposed HB 3153 to transfer the state’s public integrity unit (currently housed in the Travis County District Attorney’s office) to the Texas Attorney General’s office when the local District Attorney (like Lehmberg) is convicted of a crime.  King called it a “shot across the bow” to force Lehmberg to resign.

And speaking of cheap shots, the budget battle turned into a war of words when Rep. Sylvester Turner (D-Houston) went after Rep. Harvey Hilderbran (R-Kerrville) who authored HB 500—a bill giving $661 million in tax cuts to businesses including specific industries (e.g. insurance, hospitals, and oil and gas).

The two sparred over whether the tax cuts were at the expense of public education. Hildebran argued that strong business growth through tax incentives (reductions in taxes that businesses would have to otherwise pay) would fuel more taxes long-term into education. Turner challenged cutting the franchise tax because he favors restoring funding for over $5.4 billion in education cuts made last biennial session (two year legislative cycle).

At one point Turner accused Hildebran of not being truthful and questioned his competency by making a veiled reference to Hildebran’s public  statement that he is considering running for Comptroller of the Public Accounts (the chief of the state’s finances,  tax collections,  accounts, revenue estimations, and treasurer).

The quip caused the legislature to go to go unusually silent. Turner later apologized.

Governor Rick Perry is not apologizing for pushing hard to get HB 500 passed because it is a cornerstone of his legislative agenda this term.  He has threatened to call a special session (a short 30 day term called by the Governor to address specific issues) if legislators fail to pass “significant tax relief” this year.

Take that!

Water, guns, and lotto

What do all of these things have in common? Texans just can’t seem to get enough of them.

This week the U.S. Supreme Court heard oral arguments (a debate before appellate courts where both sides address legal and factual issues in the case) about a water rights compact (a voluntary arrangement between two or more states to solve common problems) between four states (Texas, Oklahoma, Arkansas, and Louisiana).  All states have water districts–local or regional government regulatory bodies–responsible for the provision of resources.  Here the instant row involves the Tarrant Regional Water District and the Oklahoma Water Resources Board which refused Texas access claiming that Oklahoma law restricts allocations of water, and it has enacted protectionist legislation (laws that serve the state’s interest, not necessarily the general welfare of other surrounding states).  Texas, thirsty for more water because of economic growth in the Dallas-Ft. Worth area claims we are entitled to 25% of the water and that Oklahoma cannot sell water that is part of the compact.  The Court decides in June, but there seemed to be some skepticism by the Justices about the ability of Oklahoma to charge for water.

And speaking of wanting more, after Sandy Hook in Connecticut, five states have passed restrictive legislation to limit gun access, but ten states have deregulated (weakened) restrictions on guns.  Texas wants to allow handguns on college campuses.  The last two legislative sessions, there have been “campus carry” provisions (allowing students, faculty, and staff over 21 to carry weapons on campus), but so far the efforts have been unsuccessful.  Arkansas recently passed a law allowing firearms in churches and on college campuses, and South Dakota law now allows school boards to arm teachers and volunteers. Whether the measure makes it is uncertain, and it may be destined for “dying in committee”.  So if it “dies” and never makes it out of committee, is there anything the Senate Criminal Justice Committee can do?  Not if the committee does not hold hearings, and so the bill may be unlucky this go round.

Are you feeling lucky punk? Surely the Texas Lotto Commission must feel that way today. After the first House vote on Tuesday, it seemed the agency, its profits, and bingo would all be abolished.   A second vote today, however, extended the organization’s life and $1.1 billion in monies for public education.   Most legislators opposed to gambling argued the lottery was a predatory or regressive tax–a tax on low-income persons–who disproportionately play the lottery.  At day’s end, the Commission was saved largely because of the revenues it brings in for public education and the Texas Veterans Commission.

So given that the U.S. Supreme Court seemed to question whether Oklahoma could charge Texas for water, that the “campus carry” provision seems dead for now, and that the lottery is still alive and well, Texans still get most of what they want.

Two out of three ain’t bad.

Opening the doors and shuttering the windows

Governor Rick Perry, acutely aware of time winding down on this biennial session (the 140 day period that Texas has to complete the passage of all legislation until 2015), has asked the legislature to open wider the doors to bring business to Texas.  Perry has proposed that the legislature find $1.6 billion in tax relief for businesses.  Two key components of that are: 1) limiting the franchise tax (the tax rate charged to corporations and other businesses as part of doing business in Texas) to five percent; and 2) making permanent a $1 million deduction for businesses that have up to $20 million in gross receipts.  Both measures are designed to make it more likely that businesses in another state close up shop and move here by giving tax incentive subsidies (tax breaks that are designed to encourage businesses to engage in certain types of behavior).   The Governor’s “open for business” call came after his return from another out-of-state-trip (to Illinois) to encourage businesses to re-locate to Texas. In a paid ad, the Governor suggested that the business climate in Illinois was collapsing because of “rising taxes and government interference”.

And speaking of closing up shop, 37 of Texas’ 47 abortion clinics may have to shut down depending on the votes of two key Democrats in the Senate regarding Senate Bill 537. Sens. Carlos Uresti (D-San Antonio) and Judith Zaffirini (D-Laredo) are opposing an abortion bill which would require abortion clinics to have additional equipment  and infrastructure (e.g. X-ray machines, anesthesia pipelines, larger rooms for post-operation recovery, etc.).  Opponents of the bill say it is trying to force abortion clinics out of business by increasing expenditures on unnecessary equipment.  Supporters of the law argue that they are trying to ensure the clinics have adequate medical facilities.

Senators Uresti and Zaffirini have broken ranks from fellow Democrats on party votes (voting the publicly stated position that your party has endorsed).  Last biennial session they voted with Republicans on one of the more controversial laws involving vaginal sonograms for women seeking abortions, but it remains to be seen whether they will do so again.

Right now the bill has 20 supporters (all 19 Republicans and 1 Democrat), but under the Senate rules, the chamber needs 21 votes or a supermajority (requirement that a proposal garner a vote specified at a greater level of support than a simple majority of 51%). Under Senate rules, 2/3^rd of the Senators must agree that a bill can be considered by the Senate. So if either of the 2 Democrats change their mind, then the bill can be voted on (where it is likely to pass because legislation only needs a 51% vote.

Get out while you still can seems to be the message of the week.

Pandering and porn

Pandering and porn

Texas was the recent subject of a New York Times investigative report questioning whether the Lone Star state is giving too much in tax subsidies and incentives to businesses to encourage them to relocate or expand certain enterprise sectors. The concern is that Texas is losing potential income at a time when of a record budget deficit (the annual amount when expenditures exceed tax income). The deficit caused the 2011 legislature to cut $15 billion in state spending (about $5.4 billion in school funding and $4.7 billion in health programs alone), and the 2013 Texas legislature will have to cover the shortfall for Medicaid (about $7 billion) by March and to come up with $15 billion for Medicaid by 2015.

Critics argue that the tax breaks for businesses are corporate welfare (financial assistance for businesses that may not be justified), while supporters argue that the monies have contributed to Texas’ number one status in job creation (adding 1.4 million in jobs over the past 10 years-over 3 times more than any other state).  Texas lawmakers countered that the expose’ (investigative report which questions government behavior) doesn’t highlight that Texas’ has been below the national average for 70 consecutive months. They are concerned that it unfairly represents what Texas has done and points out that we may be victims of our own transparency.  Indeed most states don’t provide the kind of detailed reporting mechanisms that Texas provides, and so comparable data on other states is just not possible.  This isn’t pandering to businesses, supporters say, this is making sure that Texas is open for business.

There’s one group that government is trying to stop from being in business—child pornographers.  Last week President Obama signed legislation which increases sentences for persons who traffic in child porn.  The Child Protection Act of 2012  backed by two Texas lawmakers (U.S. Senator John Cornyn and U.S. House Representative Lamar Smith) authorizes courts to issue protective orders (court decrees to stop harassment of victims), increases funding for internet criminal investigations, and makes it easier to obtain subpoenas.  The tough law comes at a time when internet child pornography is becoming one of the fasting growing areas of criminal activity. One criticism about the new law’s “lock-the-door-and-throw-away-the-key-approach” is that it does not do enough for supervision, rehabilitation, and treatment.  A 2010 survey by federal judges highlighted that about 70 percent of the sentences were too high for child pornographers because what is needed is supervision and treatment.

No wonder the origins of the word “pander” refer to a “go-between whose motives don’t seem entirely pure.”

Pander away.

Shop ’til you drop

This last weekend many of you may have taken advantage of Texas’ “Tax Free Weekend” to encourage those getting ready for back-to-school to spend and boost the Texas economy.   Tax free spending days—periods when states allow purchases on specific items to avoid sales tax—have become more popular around the country (at least 18 different states have tax-free holidays).

Texas established the program in 1999 allowing shoppers to avoid the 8.25% sales tax on certain items (clothing, backpacks, and school supplies under $100). In 2011, Texas consumers saved $64 million in taxes. Even though it decreases state revenues, lawmakers hope it pumps money into the economy.  Since 2008, Texas also allows tax exemptions for certain energy efficient products—appliances which help reduce overall utility consumption.

Yet with the state budget facing substantial shortfalls, you might wonder whether having the tax free weekend is really worthwhile given that actual spending seemed to be substantially down. Why would Texas allow that when the budget situation lawmakers will face when they come back into session in January 2013 will be grim?  Doesn’t government need all the tax revenues they can get?

Government uses carrot-and-stick policies to promote or to discourage types of behavior within the population.  The phrase comes from an old practice of getting carrier animals (e.g. horses and donkeys) to do what you want.  If you want the animal to move, you have two choices. You can dangle a carrot in front of its nose to get it to move forward, or you could hit it with a stick to move it.  Government can issue tax penalties (monetary fines if you do not pay taxes or commit tax fraud) or else to provide tax incentives (monetary rewards for engaging in certain types of behavior like spending on certain items).

Even though tax-free weekends cost the state money, it increases revenues for businesses.  This last week the State Comptroller (the person who manages the financial accounts) Susan Combs released a report that the economic outlook for Texas  is better than the national average, providing some hope for the idea that we are pulling out of the latest economic recession (period of economic sluggishness when unemployment increases and consumer spending decreases).

Let’s hope so because Combs’ report was cautiously optimistic—while overall Texas is doing well, so much depends on how well the national and international economy is doing in the next budget cycle.