MINUTES
SENATE COMMITTEE ON FINANCE
Monday, January 22, 2001
8:00 a.m.
Capitol Extension, Room E1.036
*****
Pursuant to a notice posted in accordance with Senate Rule 11.18, a public
hearing of the Senate Committee on Finance was held on Monday, January 22,
2001, in the Capitol Extension, Room E1.036, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Rodney Ellis Senator Chris Harris
Senator Troy Fraser
Senator Mike Jackson
Senator Eddie Lucio, Jr.
Senator Steve Ogden
Senator Carlos Truan
Senator Judith Zaffirini
*****
The chair called the meeting to order at 8:04 a.m. There being a quorum
present, the following business was transacted:
The following members arrived after the roll was called:
Senator Gonzalo Barrientos
Senator Robert Duncan
Senator Tom Haywood
Senator Jon Lindsay
Senator John Whitmire
The Chair recognized the following witnesses to provide testimony
regarding Budget Board (LBB) recommendations:
Texas Workers' Compensation Commission
Kymberley Maddox, LBB Budget Analyst
Joe "Burt" Terrill, Chairman
Gave a brief overview and introduced the Executive Director.
Answered questions from the Committee.
Len Riley, Executive Director
Gave presentation on the progress of the agency and the problems
with their information services data system. Answered questions
from the Committee.
Research and Oversight Council on Workers Compensation
Kymberley Maddox, LBB Budget Analyst
Scott Mc Anally, Executive Director
Gave presentation and overview of Council's proposed budget
request. Answered questions from Committee.
State Office of Risk Management
Jess Calvert, LBB Budget Analyst
Gerald M. Lavey, Chairman of the Board
Gave an overview of what the State Office of Risk Management's
duties included. Answered questions from the Committee.
Ron Josselet, Executive Director
Spoke to the exceptional items in proposed budget. Gave very
detailed report on some of the problems and needs of the state
office. Answered questions.
Stuart B. Cargile, Fund Accounting Manager
Answered questions from the Committee.
Registering but not testifying:
Jonathan D. Bow, General Counsel
Texas Department of Insurance
Daniel Estrada, LBB Budget Analyst
Jose Montemayor, Commissioner
Gave an overview of the department. He highlighted several items
of their proposed budget. They are not requesting any
exceptional items in proposed budget. Answered questions.
Karen Phillips, CFO (Chief Financial Officer)
Answered questions from the Committee.
The Chair called Bob Brewer, Board Member of the Texas Department of
Housing and Community Affairs out of order. This was to accommodate Mr.
Brewer's flight schedule. The Texas Department of Housing and Community
Affairs will be called later in the day for their testimony.
Credit Union Department
Daniel Estrada, LBB Budget Analyst
Hal Thomas, Board Member
Gave an overview of the Credit Union Department. Spoke about the
high rate of employee turnover. Spoke to the exceptional item in
proposed budget. Answered questions from the Committee.
Harold E. Feeney, Commissioner
Answered questions from the Committee
Registering but not testifying:
Anne Boatright, CEO/President Capitol Credit Union, Texas Credit
Union League
Ken Condry, President, Texas Credit Union League
Richard Ensweiler, Texas Credit Union League (Letter attached)
Kay Rankin, President, Ward County Teachers Credit Union, Texas
Credit Union League
Finance Commission
Daniel Estrada, LBB Budget Analyst
John Snider, Board Member
Gave an overview of what has happened to the Commission.
Answered questions from Committee.
Jenny Makay, Sunset Review
Answered questions from the Committee.
At 11:50 a.m., Senator Ellis moved that the committee stand recessed until
30 minutes after adjournment of the Senate; without objection, it was so
ordered.
The Chair reconvened the Committee at 1:35
Department of Banking
Daniel Estrada, LBB Budget Analyst
Randall S. James, Banking Commissioner
Gave an overview of the department. He spoke to the high
employee turnover rate in the past three years and to the other
needs expressed in their proposed budget. Answered questions from
the Committee.
Vernon Bryant, Commission Member & President /CEO Texas Bank,
Weatherford, TX.
Spoke to several of the issues being faced by the Commission.
John Snider, Commission Member & President, State Savings Bank
Spoke to the employee shortage and high turnover rate.
Public Testimony:
Rick Smith, President of Texas Bankers Association
Spoke briefly to the Texas Bankers Associations concerns.
Answered questions from Committee.
Written testimony only:
Karen M. Neely, General Counsel, Independent Bankers Association of
Texas
Office of Consumer Credit Commissioner
Daniel Estrada, LBB Budget Analyst
Leslie L. Pettijohn, Commissioner
Overview of duties, proposed budget and exceptional item.
Answered questions from Committee.
Texas Savings and Loan Commission
Daniel Estrada, LBB Budget Analyst
Jim Pledger, Commissioner
Gave an overview of the Commission and the continued need for
employees. Spoke to the exceptional item in proposed budget.
Supports salary increases Commissioner James, Banking
Commissioner spoke of.
The Chair recognized the following testimony out of order:
Carole Keeton Rylander, Comptroller of Public Accounts.
Comptroller Rylander spoke to the Performance Review of the Texas
Department of Transportation (Paving the Way) that the
Comptroller's office performed. Answered questions from the
Committee.
Clint Winters, Policy Analyst
Answered questions from the Committee.
Augustin Redwine, Research Analyst
Answered questions from the Committee.
Chair recognized Senator Brown who had come to be available during
testimony from the Texas Aerospace Commission.
Texas Aerospace Commission
Rick Travis, LBB Budget Analyst
Ed Robertson, LBB Budget Analyst
Walter Cunningham, Chairman
Answered questions from the Committee. Introduced the new
Executive Director and spoke to the exceptional items in proposed
budget. Talked about the potential development of a Spaceport in
Texas.
William F. Looke, Executive Director
Gave an overview of the duties of the Commission and spoke to
proposed budget. Answered questions from the Committee.
Ray Covey, President, South Texas Spaceport Consortium
Talked about what the Consortium has been doing and supports what
the Texas Aerospace Commission is trying to do with regard to the
Spaceport.
The Chair recognized Senator Brown who talked about the potential for
Texas if we get the Spaceport project.
Registering but not testifying:
Ford Welch, Gulf Coast Regional Spaceport (Written testimony
attached)
Fred Johnson, AA to Executive Director, Texas Aerospace Commission
Tom Moser, Space Access, LLC
Senator Zaffirini in the Chair.
Texas Department of Housing and Community Affairs
Ed Robertson, LBB Budget Analyst
John Hawkins, Sunset Commission
Nicole J. Merridth-Marrero, Project Manager, SAO (Office of the State
Auditor)
Valerie D. Hill, Audit Manager, SAO (Office of the State Auditor)
Joey Longley, Director, Sunset Commission
Answered specific questions asked by the Committee
Daisy Stiner, Executive Director
Spoke to some of the findings by the Office of the State Auditor.
Explained some of the requests in their proposed budget.
Answered questions asked by Committee.
Ruth Cedillo, Deputy Executive Director
Explained some of the findings by the SAO. Answered questions
from Committee.
Registering but not testifying:
Peggy Colvin, Social Worker
Senator Ellis resumes the Chair.
Texas Lottery Commission
Rick Travis, LBB Budget Analyst
C. Tom Clowe, Jr., Chairman
Brief overview of Commission and budget requests.
Linda Cloud, Executive Director
Overview of budget request and what requests they are
withdrawing. Gave information about plans for an upgraded
security system, re-introduction of games and other future plans.
Answered questions.
Billy Atkins, Director, Charitable Bingo Division
Answered specific questions from Committee.
Bart Sanchez, Financial Director
Answered specific questions from Committee
Registering but not testifying:
Patsy Henry, Deputy Executive Director
Texas Department of Transportation
Mark Wiles, LBB Budget Analyst
Wes Heald, Executive Director
Answered questions from the Committee. Spoke to the requests in
the proposed budget. Gave the departments view on the cuts
recommended by LBB.
John W. Johnson, Chairman
Answered questions from the Committee. Gave a general overview
of the department and the proposed budget requests.
James Bass, Director, Finance Division
Answered questions from the Committee dealing with bonds. Gave
information dealing with the spending process of the department.
Spoke to questions on State Highway Fund No. 006.
Texas Department of Economic Development
Ed Robertson, LBB Budget Analyst
Jennifer Jones, Sunset Commission
Nick Villalpando, SOA (Office of the State Auditor)
Jeff Moseley, Executive Director
Gave an overview of the budget request. Answered questions from
the Committee.
Tracye McDaniel, Deputy Executive Director
Answered question from the Committee.
Registering but not testifying:
Robin Abbott, General Counsel
Rance G. "Randy" Sweeton
Lesley C. Wade, Director, Internal Audit
Daniel E. Martin, Division Director, Smart Jobs Fund Program
Aaron Demerson, Admin. Director
Gene Richards, Division Director
There being no further business, Senator Ellis moved that the Committee
stand recessed subject to the call of the chair. Without objection, it
was so ordered.
______________________
Senator Rodney Ellis, Chair
______________________
Myra J. Schmitt, Clerk