issue 12: APRIL 18, 2005
What's Passed....
Five on Five
March Madness gives way to April Angst as the appropriations process becomes a more intramural affair. The pro forma contest is joined now that both houses' fiscal all-stars are suiting up for the conference committee. All 10 are members of each house's budget-writing committees. As usual, four seats are filled by the panels' presiding officers. The remaining six, to extend the sports metaphor into this context, are a blend of seasoned veterans and relative newcomers.
As it has from the outset, the Senate went first last week in naming its conferees. On Monday, Lt. Gov. David Dewhurst appointed Steve Ogden (R-College Station); Robert Duncan (R-Lubbock); Judith Zaffirini (D-Laredo); Senate Dean John Whitmire (D-Houston); and Kip Averitt (R-Waco). Ogden chairs the Finance Committee and will also chair the Senate conferees; Zaffirini is vice-chair; and Duncan chaired its education workgroup. Whitmire chairs the Criminal Justice Committee and chaired the corresponding SFC workgroup. Averitt is vice-chair of the Business and Commerce Committee. This is his first time on budget conference as a senator.
On Wednesday, Speaker Tom Craddick (R-Midland) appointed the House conferees: Appropriations Committee Chair Jim Pitts (R-Waxahachie), who will chair the House members; Vice-chair Vilma Luna (D-Corpus Christi); Rep. Lois Kolkhorst (R-Brenham), who chaired the committee's Education Subcommitee; Speaker Pro Tempore Sylvester Turner (D-Houston) who chaired an appropriations criminal justice workgroup; and Dan Gattis (R-Georgetown). Kolkhorst and Gattis both are first-time players on this roster. The Conference Committee on SB1 is meeting in E1.036 (the Senate Finance hearing room) at 8 am daily.
The House rejected a proposal to instruct its conferees to add money to SB 1 for a teacher pay raise. During the brief debate, in response to a parliamentary inquiry, Speaker Craddick answered that instructions to budget conferees are binding. Later in the day, Democratic leader Jim Dunnam of Waco pointed out that Craddick twice declared during a 2003 special session that such instructions were not binding. Craddick accepted Dunnam's documentation, noting that the parliamentarian was preparing background material on precedents.
While that generic mini-drama simmers below the surface in the House, the Senate team brings an interesting dynamic into play for higher education funding. Ogden and a majority of the SFC twice have voted to limit designated tuition increases, but most recently Zaffirini and Averitt were opposed (see discussion below). The House, led by Kolkhorst, beat back two attempts to add tuition caps during floor debate on its version of the budget (CSSB 1).
A Seat at the Table?
After a spirited discussion that ranged from the purely political to the somewhat philosophical, the Senate Finance Committee (SFC) Monday lent its impetus to tuition "re-reg." In approving SB 1484 by an 8-4 vote (three absent), the committee apparently affirmed Sen. Tommy Williams' oft-repeated intention merely to give the Legislature "a seat at the table" when regents set their schools' discretionary tuition rates. Lawmakers set rates for statutory tuition, currently at $48 per semester credit hour (SCH) and due to rise to $50. Regents set tuition rates above the statutory rates.
The bill repeals the current prohibition in the Education Code against reducing general revenue (GR) appropriations to an institution of higher education relative to designated tuition revenue. Doing so is necessary to validate the rider (special budget instruction) the SFC adopted previously. That rider would reduce GR dollar for dollar for designated tuition above a cap of $94 per SCH. SB 1484 would permit a broader limitation on the flexibility granted in the 78th Legislative session through tuition deregulation. The rider, however, currently would affect only UT-Austin because all other schools are below the cap rate.
Although other senators demonstrated that the combined effect of the bill and rider would be felt only on the Forty Acres, Williams insisted that he is not singling out UT-Austin, where two of his sons attend. Recounting the Senate's debate over tuition deregulation in 2003, Williams (R-The Woodlands) asserted that it never envisioned any restriction on legislative control over appropriations.
"We're talking about $878 million in FY06 and $923 million in 07 and, with this language in the Education Code, what we're saying is that the Legislature cannot take into account almost $2 billion of money that is going to be collected by these state institutions," Williams said. "And I think that's incredibly bad public policy, and I don't believe that it was an intentional part of what we did when we debated HB 3015."
Williams argued that his measures are not that different from what the Senate originally passed in 2003, only to have a cap and accountability provisions removed in conference committee. SFC Chair Steve Ogden also argued that Williams' bill and rider affect UT-Austin only because no other schools are close to its designated tuition level.
In his school's defense, President Larry Faulkner emphasized UT-Austin's publicly vetted approach. For example, he noted:
- Based on the only comparable numbers reported to the Higher Education Coordinating Board, tuition and mandatory fees, UT-Austin's overall cost is less than at least three other schools. Only UT-Austin reports total academic costs to the board, and it supports fuller reporting to allow true comparisons.
- UT-Austin effectively has frozen fees and put all increases into tuition. Doing so reduces complexity for students, provides more revenue for financial aid (the 20 percent set aside does not apply to fees), and allows more spending flexibility because fee revenue is restricted.
- In order to reduce the effect of tuition increases on both low-income and middle-class students, UT set aside 28 percent for financial aid and limited the applicability of tuition increases to students from families with less than $80,000 annual income.
Faulkner also alluded to the rider's adverse impact on flat-rate tuition, which UT-Austin is implementing. By expressing the cap in terms of SCH, it inhibits flat-rate tuition which is not SCH-based.
Sen. Bob Deuell claimed that he and others were misled that UT-Austin would not increase tuition more than 15 percent. He noted that the bill was aimed only at tuition, not overall costs. Faulkner countered that overall costs have risen by about that much, and that tuition went up to about the same maximum that the Senate originally approved.
Ogden (R-College Station) speculated that the statute SB 1484 would repeal may be unique to higher education in state law. The bill would address what Ogden characterized as a "huge waiver" of spending authority that he later couched in terms of determining equitable funding between the haves (UT and A&M) and the have-nots (the other 33 schools). But, as the hearing wound down, he also posed a big-picture question: "What is the appropriate level of general revenue funding to an institution of higher education when each institution is free to charge at whatever level they believe is appropriate?"
Faulkner suggested a shared responsibility among institutions, legislatures, executive branches of state government, and students and parents that would target college pricing at a well-defined fraction of the state median family income. "We haven't developed the right techniques for that, but I am working on that technique," he told Ogden. "We're going to look at what our data look like expressed in those terms, and then I'm going to come see you about it."
Faulkner said his visit would not be until after the session, when SB 1484 had met its fate. It has been set on the Senate Intent Calendar and is eligible for consideration, at Lt. Gov. David Dewhurst's discretion, as early as Tuesday. Under Senate rules, 21 votes (two-thirds of the membership) are required to bring it up.
View the entire hearing (SB 1484 beg. at 2:06:55 on tape; Faulkner at 2:43:20).
From session to session, the two houses alternate writing the initial version of the appropriations bill. The Senate Finance Committee began with SB 1, but House Appropriations produced its own spending plan as well. Now that the Senate and House leadership have appointed a 10-member conference committee, it will begin meeting to reconcile differences in the proposed budgets and negotiate a consensus bill for each house's approval. The budget conferees tentatively are scheduled to meet daily, 8-10 a.m., starting Tuesday. Technically, the panel is two separate committees meeting together. The House has suspended the necessary rules for the conferees to meet while the House is in session, a suspension necessary for the conferees to be excused from floor debate to attend meetings of the conference committee that conflict with the busy floor schedule during the last weeks of the session. Whether the conference committee will divide into workgroups remains undecided.
Higher Ed Highlights Reel
The Senate Education Committee voted out two significant bills last week, one on the top 10 percent law and another on accountability. SB 333 (West) would add an advanced / recommended high school curriculum requirement to the automatic admissions criteria. This should have minimal impact on enrollments, however, because public schools are implementing this policy in the fall of 2005. SB 1228 (Shapiro) would allow tuition "freezes" if universities do not meet performance standards to be set by the Coordinating Board. The bill likely would require institutions to comply with board requests for information, some of which will relate to their use of available funds, appropriated or not.
View the hearing (part 1, part 2).
The House Higher Education Committee heard top 10 percent bills last week but voted out none. Testimony was similar to that presented to the Senate Hi-Ed Sub on March 30. View the hearing (part 1, part 2).
The tuition revenue bond (TRB) bills heard Tuesday by House Hi-Ed also were left pending. Aside from the institutions' testimony there was very little discussion on the TRB bills.
In addition, HB 3001 (Morrison) dealing with the increase and reallocation of the Higher Education Fund also was left pending. UTPA and UTB are the two System institutions that benefit from the HEF. HB 3001's companion, SB 1695 (Duncan), has been referred to the Senate Finance Committee but not been set for hearing. Along with the current $350 million HEF appropriation in SB 1, Senate budget Article 11 includes an additional $175 million for HEF; House Article 11 includes an additional $100 million.
A bill that originally would have required regents and other appointed officials to undergo open meetings and records training within 30 days of appointment, and every two years thereafter, met unexpected opposition in the Senate last week. SB 286 (Wentworth) also applies to all elected officials, including legislators. Some senators argued Wednesday during floor debate that the training requirement was an unfair mandate on local officeholders and an unnecessary waste of their time. The Austin American-Statesman quoted one as remarking, "When we sent it to subcommittee, it was supposed to stay there." Wentworth pulled the committee substitute, only to return Thursday with a version more palatable to his colleagues. It allows legislators to have staff attend open records training. The amended bill also exempts senators from open meetings training because the Senate operates under many of its own open meetings rules. The 30-day deadline has been changed to 90 days, and the two-year refresher course requirement is gone. A final vote is expected this week.
...Is Prologue
It's a Monday, Monday
More than 75 bills affecting various facets of UTS administration and business affairs are scheduled to be heard Monday by various committees. Some of the more noteworthy bills involve IT decision-making (HB 2699), contracts management (HB 2247), Legislative Budget Board functions (HB 2753), overpayment audits (SB 1569), Public Utility Commission sunset (SB 409), financial aid (SB 1227), and several insurance and Texas Enterprise Fund bills. Click on the bill numbers or see the committee calendar for details.
Tuesday's child(ren)
The appropriations conference committee holds its initial meeting Tuesday at 8 a.m. On the formal agenda are a general discussion and an overview by Legislative Budget Board staff. Of note, the Senate version of the FY06-07 budget is bigger overall than the House's and spends more on hi-ed. The Senate phases in use of the new funding formula, while the House uses the existing matrix. Both fully fund outstanding TRBs but not new ones. The Senate funds some exceptional items, whereas the House put them all in the unfunded "wish list." Also on Tuesday, the enabling legislation (SB 1484) for the Senate tuition cap rider becomes eligible for Senate consideration (see details above). Numerous hi-ed bills could be a vehicle for it as an amendment.
Works in progress
Negotiations continue on bills requiring disclosure of public trust investment portfolio information (SB 121 - Duncan), which would affect UTIMCo and could reduce the Permanent University Fund's bottom line, and on allowing litigation over the willed body program at UTMB (SCR 14 - Wentworth), which could subject the school to liability for a former employee's actions. SB 121 has been heard and left pending in committee, and SCR 14 has been recommended for the Senate local and uncontested calendar.
Session Snapshot
| Week |
15
|
| Days Remaining |
42
|
| Bills/Joint Resolutions Filed | 5,455 |
| Bills/Joint Resolutions Passed* |
595
|
| >House |
299
|
| >Senate |
296
|
| Bills Enacted | 5 |
| Bills Tracked |
2,075
|
| Priority Bills |
400
|
With the session now past the halfway point, either house could start meeting on Fridays (the Senate will meet on Friday, April 22). Key dates on the legislative calendar may be found online.
SB 252 is the first bill passed by the 79th Legislature to be enacted. Gov. Rick Perry signed it into law Tuesday at an Austin ceremony attended by Senate author Craig Estes (R-Wichita Falls) and House sponsor Dianne Delisi (R-Temple). The new statute allows local officials to spend a portion of sales tax revenue collected in their communities on projects that enhance the value of military installations.
House committees' regular meeting schedules
(note: some hearing room numbers had not been posted as of Friday).
There are 43 days left in this session, and 5,554 combined total bills and JRs have been filed to date. As of today, 299 measures have passed through the House, 296 the Senate, but only 5 have been enacted into law.
Duly Noted
"I guess the frustration I feel at this point is the ability to deal with the UT System in talking about these issues is like a flea on the top of a charging rhino. You have no ability to talk to them."
Sen. Eliot Shapleigh (D-El Paso)
Referring to tuition rate-setting during Monday's Senate Finance Committee hearing on the tuition cap bill (SB 1484 by Williams)
April 11, 2005
About the Legislative Update
The Legislative Update is an e-communication service provided by The University of Texas System Office of Governmental Relations. With the Legislative session upon us, it is critical to keep information flowing as quickly as possible. Every week, we will deliver timely news about the status of our most important issues and legislation, key committee actions, the state budget, and upcoming calendar items. Contributors to the Legislative Update will be the UT System's offices of Governmental Relations and Public Affairs. We welcome your comments. Please feel free to contact Pat Graves, research analyst, at 512/499-4711, or Anthony de Bruyn, assistant director for public affairs, at 512/499-4363. Paula Bales is the web designer.
79th legislature
Information Resources
Legislative Update Home (archive of past issues)
NEW! Post-session Bill Summary - The House Research Organization will publish a post-session bill summary in a few weeks titled, "Major Issues of the 79th Legislature." It will be available online at HRO.
From the Chancellor - Quarterly e-newsletter from Chancellor Yudof (have you seen the new Spring 2005 issue?)
Chairman Huffines and Chancellor Yudof held a press conference on Wednesday, June 1, to discuss the session.
Read Chairman Huffines prepared remarks
Read Chancellor Yudof's prepared remarks
See the appropriations handouts (GR v. FTSEs)
This Week
Monday, May 30
Adjournment sine die!
Up & Coming ...
Jun 19:
Last day Governor may sign/veto bills passed in final 10 days
On the Horizon
Aug 29:
Effective date of bills enacted without specific effective dates, other than appropriations bills and others effective immediately
Aug 31:
End of FY 2005
Sep 1:
Beginning of FY 2006
Dates to Remember
Aug 29:
Bills (without specific date) become law
Helpful Resources
Post-session Bill Summary - The House Research Organization will publish a post-session bill summary in a few weeks titled, "Major Issues of the 79th Legislature." It will be available online at HRO.
Legislative Staff Directory - Need to reach a Capitol staffer or committee clerk? The directory also contains several useful Capitol and legislative agency phone numbers.
Texas Legislative Council - Now that bills have been passed, refresh your memory on how to read one and peruse other useful legislative publications on the TLC's website.
LBB's Financing Higher Education Legislative Primer
Legislative Budget Board - For online versions of the baseline budget bill (SB 1), staff performance reports, legislative budget estimates and agency appropriations requests, and all things fiscal, check out the Legislative Budget Board's website.
Legislative Reference Library - For all things legislative, including intent and historical data, contact the LRL's helpful staff. (Capitol, 2nd floor), 512-463-1252
News Media - A list of Texas and national news media outlets. The list includes links to major daily newspapers, broadcast news, and campus newspapers.
Accountability Report - Official source for numbers and data
Statistical Handbook - A reference document with basic student, faculty, staff, degree, semester credit hour and financial information
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