Issue 14: Week of May 14, 2007

That Was Then…

Hurry Up and Wait

Deliberations of the budget conference committee continue, but nothing has been announced and precious little disclosed. The education workgroup has yet to finalize any of its spending recommendations or reveal how much money is available to spend.

Members were dealing with public education as of Tuesday, still slogging their way through the almost 90 public ed riders (special instructions). Higher ed did not come up until Wednesday when the workgroup considered issues involving the Texas Higher Education Coordinating Board (THECB). The board and its riders commanded members’ attention into the evening, but no major decisions were made. There was extensive discussion of Higher Education Group Insurance (HEGI), including the possibility of funding it at 95 percent for all of higher ed. Apparently there were no discussions about the health-related or general academic institutions (HRIs, GAIs), however, although the entire Legislative Budget Board (LBB) education team was present. Special items are to be taken up last.

The full committee met Friday on adjournment to consider Public Safety and Criminal Justice (Article 5) and Business and Economic Development (Article 7).

Two key workgroup members – Sen. Robert Duncan (Lubbock) and Rep. Lois Kolkhorst (Brenham) – were to be out of town on Saturday. They were to meet with and discuss their public ed decisions Sunday evening with the committee co-chairs, Rep. Warren Chisum (Pampa) and Sen. Steve Ogden (Bryan).

Thursday remains the target for completing all decisions for all 10 articles of HB 1.

An overview of the two houses’ proposed budgets follows:

The UT System Controller’s Office has prepared a side-by-side comparison of the House and Senate versions of House Bill 1, as well as summaries of the House and Senate general revenue appropriations for UT institutions and System Administration.
View side-by-side comparison. View UT GR summaries: House Senate

Budget documents now available online
Senate version:
• SCSHB 1 [note: 17 MB file]
• LBB summary
• Controller’s higher ed overview
• Frew amendment summary

House version:
• CSHB 1 [note: 18 MB file]
• LBB summary

House supplemental appropriations bill, HB 15

Fiscal Nuts and Budget Bolts

The budget-writing committees’ regular meeting times and places, clerks and phone numbers are:

House Appropriations – 8 a.m. Mondays (and upon House adjournment as needed) E1.030 (HAC Hearing Room, Capitol Extension 1st floor) Cristina Self, 463-1091

Senate Finance – 9 a.m. Mondays (and upon Senate adjournment as needed) E1.036 (SFC Hearing Room, Capitol Extension 1st floor) Amy Jeter, 463-0370

From session to session, the two houses alternate writing the initial version of the appropriations bill. The starting point this session has been HB 1, but both Finance and Appropriations, or their workgroups and subcommittees, respectively, have met almost daily. Now that the House and Senate each have approved spending plans, and the legislative leadership has appointed a 10-member conference committee, that group is meeting to reconcile the differences in the two proposed budgets. The committee will present a compromise bill to both houses for approval.

Higher Ed Highlights

Once More, With Feeling

Two Senate panels last week advanced a proposal to revive the state’s college savings program.

The Senate Higher Education Subcommittee and the Senate Education Committee both approved HB 3900 by Morrison/Shapiro creating the Texas Tomorrow Fund II (TTF2), a trust fund outside the State Treasury. The program would sell prepaid tuition contracts that could be used at private, independent and out-of-state higher ed institutions, in addition to Texas public colleges and universities. Investors purchasing 100 “units,” equal to 100 percent of costs, would be guaranteed to have tuition paid in full upon redemption. They would have to make up the difference, however, if they purchased fewer than 100 units or purchased units for a lesser of one of the three tiers of institutions. Investors also could “cash out” unused units.

Institutions would receive the original purchase price plus the return on investment (ROI), up to 101 percent of tuition and mandatory fees. They would have to make up any difference between tuition and fees at the time of redemption and the value of 100 units if costs have risen faster than the ROI on the purchased units. If tuition and fees have increased at rates less than the rate of return, on the other hand, schools actually could keep the 1 percent, with the additional ROI going back into the fund.

The goal is to restore more certainty and predictability to families’ college financial planning, said the bill’s chief architect, Harrison Keller of the Speaker’s Office. The state’s current program, the Texas Tomorrow Fund, has been closed to new investors since 2003, when it was deemed actuarially unsound. The state remains obligated to honor existing contracts for tuition and fees at public colleges and universities, however.

During the subcommittee hearing last Monday, Keller said the new plan was patterned after those in Tennessee and Washington state, as well as TIAA CREF’s 529 plan. He said it was discussed with officials at several Texas institutions, especially UT Austin. Unit prices – currently $8,000 for a year’s tuition at UT Austin – would be adjusted over time and set by the Prepaid Higher Education Tuition Board, of which Keller is a member. If the new fund were to be terminated, Keller said, the state would guarantee only those contracts for students within three years of high school graduation.

Keller acknowledged that TTF2 shifts risk to the institutions and links it to tuition rates. “It brings some market forces on tuition in a different way,” he observed.

Some schools wanted an ROI floor that would guarantee them a minimum percentage, not the actual amount earned on purchased units, Keller said. When asked whether schools might raise tuition rates to pay for plan participants, Keller said it would hinge on the number of participants (more investors, less pressure) and state higher education funding levels.

Higher Education Commissioner Raymund Paredes endorsed the proposal. Don Baylor of the Center for Public Policy Priorities urged senators to include incentives to attract low-to-moderate income investors, such as matching deposits or a free introductory period. He said the program should be aligned with the goals of the state’s Closing the Gaps higher ed master plan.

Keller said he had not seen a proposed amendment to the bill, which is on today’s Senate Intent Calendar.

Watch the video [beg. 18:55]

 

Moving Right Along

The Senate last week approved a major change in the way the state settles lawsuits. CSSB 2031 by Ogden requires legislative consent for attorney general (AG) settlements of $5 million or more or for courses of action costing at least $10 million. As amended, the new limitations would apply only to monetary amounts but not to tax refunds. The bill also requires annual AG settlement reports to the Legislature.

If SB 1045 by Wentworth becomes law, performance evaluations of the higher education commissioner, university system chancellors, and university presidents would become confidential. The contents, however, would be accessible to lawmakers.

Other bills of interest passed last week by the Senate include:
• SB 1847 (Duncan) – raising the active Employee Retirement System members’ contribution rate from 6 percent to 6.4 percent (same as the Teacher Retirement System) for actuarial soundness

• CSSB 1802 (Uresti) – requiring publishers to make computerized material available to blind, visually impaired and dyslexic students

• CSHB 1270 (Eissler/Van De Putte) – intensive reading and language intervention pilot program ($1 million maximum)

• CSSB 1095 (Uresti) – feasibility study by entities at UT San Antonio and UTHSC-SA on allocating portions of physicians’ licensing fees for medical residencies

• HB 1491 (Woolley/Williams) – disclosure of relationships between local government officers and vendors

• CSHB 522 (Woolley/Duncan) – implementing a pilot project for health benefit plan ID cards

• CSSB 420 (Lucio) – permitting a medical school and health science center in conjunction with the Regional Academic Health Center in Brownsville, amended to spread some responsibilities to UT Brownsville and UT Pan American

• SB 107 (Ellis) – three-day sales tax holiday for school backpacks

• CSHB 564 (Hartnett/Wentworth) – administration and operation of certain trusts and other property interests held for the benefit of another

• HB 2176 (Deshotel/West) – adding parenting and paternity awareness to the high school health curriculum

The House last week authorized performance incentive funding for institutions of higher education of more than $350 million a year; all but $50 million would have to be appropriated separately, however. Based on a governor’s reform proposal, HB 3828 by Morrison would establish separate point-based incentive programs administered by the Texas Higher Education Coordinating Board (THECB) for general academics, community colleges, and medical and dental schools. Additional points could be earned for successful milestone accomplishments by "at-risk" students or in critical fields. The bill would repeal incentive and special initiative funding. As amended, the bill would prohibit the use of standardized testing or exit exams for graduation, to qualify for program awards, or to measure the quality of degrees or certificates. The bill as amended would allow medical and dental units to participate through licensing and post-graduate exams. Critics said the bill would spend more on incentives than the THECB recommended for two-year schools. When asked why not simply give higher ed the extra money, Rep. Geanie Morrison (Victoria) said she wanted to target outcomes, not just provide more inputs.

The House also agreed to reorganize the Texas Cancer Council into the Cancer Prevention and Research Institute of Texas, which would award bond-funded grants under the oversight of two newly created committees. The House passed HB 14 Friday afternoon, on the eve of Mother’s Day weekend. After the vote, Rep. Fred Hill (Richardson) observed, "Mr. Speaker, we just spent $300 million a year for the next ten years on a vote of 68-24. We need to adjourn."

Other bills of interest passed last week by the House include:
• HB 3443 by D. Howard – creating the Texas Hospital-Based Nursing Education Partnership Grant Program

• HB 2225 by Giddings – mandating student representation on the THECB and some of its advisory committees

• HB 2608 by Hughes – requiring the THECB to use available appropriations to support applied research at one or more eligible institutions for the development, construction, and operation of a clean-coal energy project

• HB 1431 by Alonzo – allowing the establishment of the Sustainable Water Supply Research Center at UT Arlington

• HB 2702 by Truitt – clarifying the exemption from tuition and fees at public institutions of higher education for students adopted from foster care

Among the bills the House Higher Education Committee reported favorably last week were:
• SB 1325 (West/McCall) – prohibiting close relatives of regents from receiving most institutional scholarships, and prescribing penalties for violations of the law

• SB 276 (Wentworth/Rose) – modifying the student regent selection process

• SB 285 (Shapiro/Hill) – authorizing transportation, student services and athletics fees at UT Dallas, subject to student approval by referenda (students had rejected the athletics fee)

• SB 138 (Nelson/S. King) – promoting the retention and graduation of professional nursing students

• SB 289 (Nelson/Morrison) – using professional nursing shortage reduction program grants to encourage clinical nursing instruction by part-time faculty at public or private institutions of higher education

• SB 139 (Nelson/Kolkhorst) – studying improving the curricula of professional and vocational nursing education programs

• SB 201 (Nelson/Morrison) – tuition exemptions at public institutions of higher education for professional nursing program preceptors and their children

• CSSB 1231 (Zaffirini/Morrison) – refunding tuition and mandatory fees at institutions of higher education for dropped courses and student withdrawals

• SB 1232 (Zaffirini/Morrison) – modifying payment arrangements for tuition and fees and the repayment of emergency student loans

View last week's agenda ll Watch the video

Last week the Senate Higher Education Subcommittee reported favorably:
• HB 868 (Haggerty) – authorizing a student recreational facility fee at UT El Paso

• HB 1157 (West) – authorizing a student services building fee at UT Permian Basin.

• HB 86 (Branch) – authorizing tuition rebates provided by general academic teaching institutions to students participating in the Reserve Officers' Training Corps

Still pending is the performance incentive funding bill, SB 1029 by Shapiro (see “If It’s Monday …” below).

View last week's agenda
Watch/listen to video/audio: Monday ll Wednesday

Among the bills the Senate Education Committee approved last week were:
• HCR 159 (Morrison/Shapleigh) – requesting the governor, lieutenant governor, and speaker appoint a select commission on higher education and global competitiveness

• HB 741 (T. King/Zaffirini) – tuition and fee exemptions at public institutions of higher education for children of volunteer peace officers killed or disabled in the line of duty

• HB 125 (Delisi et al./Van de Putte) – tuition and fee exemptions at public institutions of higher education for children of totally disabled veterans

View agendas: Tuesday ll Thursday
Watch videos: Tuesday Thursday Part 1 ll Part 2

 

Miscellany

Lending an Ear
On Wednesday, even as the UT Board of Regents heard a report on the matter in executive session on Thursday, Sen. Eliot Shapleigh (El Paso) called for a legislative investigation into conflicts of interest in the state’s student loan industry.

Shapleigh proposed at a press conference that the Senate Higher Education Subcommittee conduct hearings, contrasting public testimony with the regents’ “closed-door” session. Lawrence W. Burt, associate vice president and director of student financial services at The University of Texas at Austin, was dismissed today following an investigation into allegations of impropriety in his office.

Shapleigh predicted that the scandal would widen beyond what is currently known, citing a news account that SLM Corp. (aka Sallie Mae) had offered Indiana University $3 million for student loans if it dropped the less expensive direct loan program.

In other developments, the Washington Post reported that the head of the U.S. Education Department's student loan office announced her resignation Tuesday amid mounting criticism of the agency's oversight of the student loan industry. Congress is pushing legislation requiring colleges to adopt codes of conduct governing their relationships with student-loan companies. New York Attorney General Andrew Cuomo, who is leading the investigation, has developed a code agreed to by 22 schools to date.

Appearing with Shapleigh were two students, one a UT Austin undergrad, who claimed to have had their trust betrayed by loan officers and institutions. They said that tuition increases and the high cost of living led them to take out a few loans. They called the borrowing process complex and the news about loan officers’ practices worrisome and “scary.”

At UT Austin, according to Shapleigh, 80 percent of student loans are made by the 20 companies on its preferred lender list. He said questions have arisen about how they got on the list. Shapleigh noted that some of the lowest-cost options are not listed while some of the more expensive ones are, claiming that students are being steered to those vendors.

The Legislature must do something this session to restore students’ trust, he said. Shapleigh and two other senators each have filed reform bills to prevent self-dealing by student loan officials and tighten procedures for lender listings at Texas colleges (see also “If It’s Monday…” below). He indicated that he might try to amend his bill onto legislation that’s moving, given that the regular session ends in two weeks.

"Students deserve an objective assessment of what loan plan is best for them," said Shapleigh, "not the lender."

It’s Official
On Friday the Senate confirmed the appointment of UT Regent Colleen McHugh, who has been serving on the board for about 18 months. The Senate Nominations Committee recommended the Corpus Christi attorney unanimously in a hastily arranged hearing called primarily to expedite installation of new regents at beleaguered Texas Southern University; otherwise, degrees could not have been conferred this past weekend. Also confirmed was Texas A&M Regent Ida Clement Steen of San Antonio.

McHugh was well received and roundly praised by committee members who raised only one issue with her. Sen. Eliot Shapleigh (El Paso) asked how she would boost enrollment with tuition rising and graduation rates low, especially at UT El Paso. She replied that UTEP exemplifies how cities and colleges need to work together to recruit and retain students, especially those deemed at risk of not completing their education. She also noted that community colleges may be a possible solution to the tuition “dilemma,” a long-term issue that she pledged to work on.

Without elaborating, McHugh called for more collaboration among Texas universities in general.

…This Is Now

 

If It’s Monday, It’s Higher Ed

The Senate Higher Education Subcommittee focuses today on addressing issues arising from the nationwide student financial aid investigation (see also “Miscellany” above). Three bills are set for hearing that target potential conflicts of interest between student lenders and public and private higher education institutions.

SB 2048 by Shapleigh prohibits a student financial aid employee from owning stock or holding another ownership interest in a student loan lender. The bill also prohibits the employee from soliciting or accepting any gift from a student loan lender. SB 2049 by Zaffirini would prohibit loan companies from sharing any revenue generated from student loans with higher education institutions. The bill also would prohibit loan lenders from giving gifts or employees of institutions from accepting gifts in exchange for loan information. It would prohibit lenders from compensating higher education institution officials for serving on lender advisory boards.

In addition to the bans on gifts, revenue sharing and paid board service, SB 2047 by West prohibits an employee, representative, or agent of a student loan lender from acting as a member of the staff of a financial aid office of a higher education institution. The bill requires institutions providing preferred lender lists to disclose how the lenders were chosen. It also prohibits high-risk student loan agreements and sets forth various disclosure requirements for student loan information and financing options. Lenders are subject to civil penalties of up to $50,000 per violation of the statute.

Subcommittee Chair Judith Zaffirini (Laredo) said last week that she wants a comprehensive bill significantly strengthening Texas’s student lending practices.

Also posted for today is SB 1029 by Shapiro that would create a framework, based on the model in the Governor's Higher Education Reform Proposal, for distributing performance incentive funding to institutions of higher education. Sen. Kip Averitt (Waco) has been preparing an amendment requiring schools to use historical data to establish performance baselines to which rewards for improvement would be tied.

Also on the subcommittee’s agenda are:
• HB 120 (F. Brown) – authorizing discounted tuition at UT Austin et al. for off-peak hours course offerings

• HB 2198 (Flores) -- authorizing four public junior colleges to offer baccalaureate degree programs in applied science and technology

• HB 2639 (Smithee/Duncan) – requiring risk management training for fraternities and other student organizations at public and private post-secondary educational institutions

View the agenda ll Watch the hearing

The House Higher Education Committee meets twice this week. On Monday, it takes up the automatic admissions (“top 10 percent law”) bill. SB 101 by Shapiro/Morrison would allow public universities to cap the number of entering students admitted by virtue of graduating in the top 10 percent of their high school classes at 60 percent. The first 50 percent would be admitted automatically as they are now. The next 10 percent would be subject to holistic review, however, as would the remaining applicants. Under the bill, schools would also exempt top 10-percenters from paying statutory tuition and fees.

Among the other bills set for hearing are:

MONDAY
• SB 523 (Seliger) – authorizing student services building fees at UT Permian Basin

• SB 963 (Shapleigh) – authorizing a student recreational facility fee at UT El Paso

• SB 1007 (West) – mandating student representation on the Texas Higher Education Coordinating Board (THECB)

• SB 1046 (Wentworth) – shortening the length of required advance notice to institutions of higher education of THECB meetings and allowing telephone conference meetings

• SB 1050 (Zaffirini) – administering the work-study student mentorship program by the THECB

• SB 1051 (Zaffirini) – waiving U.S./Texas history/government courses for students enrolled in joint degree programs between general academic teaching institutions and foreign universities

• SB 1053 (Zaffirini) – assessing the quality and effectiveness of academic advising services at public institutions of higher education

• SB 1146 ( Shapiro) – requiring the THECB to maintain online performance reports for public institutions of higher education


TUESDAY
• SB 1138 (Duncan) – requiring risk management programs for all registered student organizations at public and private post-secondary educational institutions and a study of fraternities’ insurance requirements

• SB 1446 (Duncan) – removing indirect cost recovery fees from Educational and General Funds budget listings by institutions of higher education

• SB 1496 (Zaffirini) – allowing partial forgiveness of Texas B-On-time loans for qualifying graduates of four-year public and private institutions of higher education

• SB 1601 (West) – operation of and admission to the Joint Admission Medical Program

• SB 1699 (Shapiro) – conforming all aspects of student financial aid programs to the biennial general appropriations act

• SB 1045 (Wentworth) – providing that a performance evaluation of the commissioner of higher education or of a chancellor or university president is confidential

• SJR 61 (Duncan) – Proposing a constitutional amendment increasing available funding for major repair or rehabilitation projects from the Higher Education Assistance Fund by repealing the cutoff provision for annual automatic appropriations

View the agendas: Monday ll Tuesday ll Watch the hearings

The Senate Education Committee meets Tuesday to consider six bills pertaining to public elementary and secondary schools. Among them are HB 2504 by Eissler, which would establish an Intensive Mathematics and Algebra Intervention Program.

View the agenda ll Watch the hearing

 

St. Elsewhere

Other committees hearing bills of interest this week include:
[click on committee name to view agenda]

HOUSE
Government Reform
• SB 704 (Lucio) – small contractor participation assistance program for certain state construction projects

Public Health
• SB 33 (Nelson) – setting criteria for mandatory hepatitis B vaccination of health care students

• SB 1095 (Uresti) – studying how to increase the number of medical residency programs, medical residents, and specialists

Pensions and Investments
• SB 1846 (Duncan) – funding for and benefits provided under the Teacher Retirement System of Texas

• SB 1847 (Duncan) – Employees Retirement System of Texas collection of member contributions


SENATE
State Affairs
• HB 2248 (Van Arsdale/Williams) – allowing governmental bodies under the public information law to request re-determinations from the attorney general on dismissal of litigation relating to the same issue

Government Organization
• HB 1297 (Delisi/Nelson) – creating a state employee wellness program
• HB 1788 (Pitts/Hegar) – planning, reporting, and review of the state's information resources
• HB 1789 (Pitts/Hegar) – management and oversight of information resources projects
• HB 2173 (B. Cook/Brimer) – continuation and functions of the Prepaid Higher Education Tuition Board

Health and Human Services
• HB 1373 (Guillen/Zaffirini) – creating the Chronic Kidney Disease Task Force

International Relations & Trade
• HB 2235 (Guillen/Zaffirini) – creating a technology center grant program for rural counties.

 

Your Hit Parade

Bills of interest scheduled for full House consideration include:

MONDAY
• SB 12 (Averitt/Bonnen) – programs enhancing air quality, including energy efficiency initiatives, and setting penalties

• SB 1031 (Shapiro/Eissler) – administration of certain assessment instruments in public schools and setting a criminal penalty

• SB 1615 (Averitt/Isett) – collecting delinquent obligations owed the state


TUESDAY
• SB 247 (Ellis/McClendon) – prohibiting the investment of state funds in certain private business entities doing business in Sudan

Access House calendars

Bills of interest eligible for full Senate consideration include:
• SJR 57 (Williams) – proposing a constitutional amendment authorizing issuance of general obligation bonds to finance student educational loans and related bond enhancement agreements

• SB 1597 (Janek) – adopting the Revised Uniform Anatomical Gift Act and setting criminal penalties

• HB 741 (T. King/Zaffirini) – tuition and fee exemptions at public institutions of higher education for children of volunteer peace officers disabled or killed in the line of duty

• HB 3900 (Morrison/Shapiro) – creating the Texas Tomorrow Fund II prepaid tuition unit undergraduate education program

Access Senate agendas

Session Snapshot

 

Week	19
Days Remaining	15
Bills/Joint Resolutions Filed*	6,361
Bills/Joint Resolutions Passed**
>House	1,335
>Senate	967
Bills Enacted*	238
Legislation Tracked	1,903
High Priority Bills	370

*Incl. SCR 20 (constl. spending limit)
**By each house

The bill filing deadline was March 9, the 60th day of the session. To file a bill now requires a four-fifths vote of the members present in either house, and several bills have been introduced this way. As of last week, the Senate has joined the House in meeting on Fridays. Committee hearings are subsiding as floor action becomes crucial to moving bills through the process, and most committees now are hearing bills primarily from the other house. The last day for House committees to report House bills and the last day the House could pass non-consent House bills both were last week. Friday is the last day the House may consider local bills; it’s also the first day the Senate may consider bills on the same day they appear on the Intent Calendar. Other legislative deadlines and important dates may be found at Key Legislative Dates.

House Committees’ permanent meeting schedules

Senate Committees’ permanent meeting schedules

 

Duly Noted

During the presentation Wednesday by Sen. Mario Gallegos (Houston) of a resolution honoring Houston fire fighters, Sen. Kim Brimer (Fort Worth), who was presiding at the time, asked, “If Sen. (John) Whitmire (Houston) was on fire, would you put him out?”

“Mr. President, I’m retired,” replied Gallegos, a close friend of Whitmire and a former fire fighter himself.