MINUTES 
                                            
                             SENATE COMMITTEE ON FINANCE 
                             Wednesday, January 31, 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 Wednesday, January  
     31, 2001, in the Capitol Extension, Room E1.036, at Austin, Texas. 
      
                                        ***** 
                                            
     MEMBERS PRESENT:                            MEMBERS ABSENT: 
     Senator Rodney Ellis                        Senator John Whitmire 
     Senator Chris Harris                         
     Senator Gonzalo Barrientos 
     Senator Robert Duncan 
     Senator Troy Fraser 
     Senator Tom Haywood 
     Senator Mike Jackson 
     Senator Jon Lindsay 
     Senator Eddie Lucio, Jr. 
     Senator Steve Ogden 
     Senator Carlos Truan 
     Senator Judith Zaffirini 
                                            
                                        ***** 
                                            
     The chair called the meeting to order at 8:01 a.m.  There being a quorum  
     present, the following business was transacted:   
      
     The Chair recognized the following  witnesses to provide testimony  
     regarding  Legislative Budget Board (LBB) recommendations: 
      
          Office of the Governor 
          Zelma Smith, LBB Budget Analyst 
          Barry McBee, Executive Asst. 
              Introduced staff in attendance.  Spoke to the proposed budget and  
              the one additional rider they are asking for.  Answered  
              questions. 
          Richard Nedelkoff, Director, Criminal Justice 
               Answered questions about plans for the use of the monies that  
     will be funded in the budget for the  
               Criminal Justice Division. 
      
               Registering, but not testifying: 
               Paul Gulick, Director, Support Services 
               William M. Hale, Executive Director 
               Jerry Tucker, Director of Finance 
               Donna White, Director, Administration 
           
          Secretary of State 
          Stanton Korn, LBB Budget Analyst 
          Henry Cuellar, Secretary of the State 
              Spoke to the proposed budget and the two exceptional items they  
              are requesting.  Answered questions regarding the Secretary of  
              State's responsibilities to Colonials, along with many other  
              questions. 
  
          Ann McGeehan, Director, Elections Division 
               Answered questions regarding pay raises for primary election  
     poll workers. 
      
               Registering, but not testifying: 
               Jim Beck, Director, Administrative Services 
      
          Juneteenth Commission 
          Al Edwards, State Representative 
               Answered questions. 
      
     Senator Lindsay assumed Chair. 
      
          Commission on Human Rights 
          Tom Lambert, LBB Budget Analyst 
          William M.. Hale, Executive Director 
              Gave information on the duties of the Commission.  Spoke to the  
              exceptional items; Texas Star Program, EEO Training Academy, and  
              Information Resources technology in proposed budget.  Answered  
              questions. 
          Laura Ayoub Keith, Chairman 
              Introduced other members of the Commission in attendance.  Spoke  
              to the request for a salary increase for the Executive Director.   
              Answered questions. 
           
               Registering, but not testifying: 
              C.G. Madin, Commissioner 
      
          Texas Incentive and Productivity Commission 
          Jess Calvert, LBB Budget Analyst 
          Ed Bloom, Executive Director 
              Gave an overview of the past biennium.   Spoke to exceptional  
              items in proposed budget. Answered questions. 
          Craig Pedersen, Commissioner, Executive Administrator, TWDB 
               Spoke to the salary increase for Executive Director. 
          Steve Robinson, Commissioner, Executive Director, TYC   
              Spoke to the thought process that goes into the suggestions made  
              by state employees and how worthwhile the program is. 
      
          Department of Information Resources 
          Stanton Korn, LBB Budget Analyst  
          Carolyn Purcell, Executive Director 
              Gave an overview of the past biennium.  Spoke to the exceptional  
              items in proposed budget.  Answered questions. 
         Carole Greisdorf, Board Member 
               Made a brief statement and praised Ms. Purcell and her work. 
      
     At 10:43 a.m. Senator Lindsay moved that the committee stand recessed  
     until 45 minutes after adjournment of the Senate; without objection, it  
     was so ordered.  
       
     At 1:00 p.m. the committee reconvened with Senator Zaffirini in the chair.   
      
          Texas Historical Commission 
          Sarah Foster, LBB Budget Analyst 
          John L. Nau, III, Vice-Chair of Commission 
  
              Introduced other Commissioners in attendance.  Gave an  
              explanation of what the duties of the Texas Historical Commission  
              are and an overview of the last biennium. 
          Lawerence Oaks, Executive Director 
              Spoke of ways to empower people at the local level to help save  
              our history and the importance of   the public being made aware  
              of how vital their participation is.  Spoke to the exceptional  
              items in proposed budget.   
      
     Senator Truan assumed the chair. 
      
          Texas State Library and Archives Commission 
          Sarah Foster, LBB Budget Analyst    
          Sandra Pickett, Commissioner 
               Brief overview.  Answered questions. 
          Peggy D. Rudd, Executive Director 
               Spoke to exceptional items in proposed budget. 
      
               Public Testimony: 
              Patrick Heath, Former Commissioner, Mayor of Boerne 
               Janice Weber, Director, Laredo Public Library 
               Steven L. Brown, Director, North Richland Hills Public Library 
      
               Registering, but not testifying: 
               Edward Seidenberg, Deputy Director, Texas State Library 
               Eileen Shocket Altmiller, Librarian 
               Gloria Maraz, Director of Communications, Texas Library  
     Association 
               Julie B. Todaro, President, Texas Library Association 
               Pat Tuohy, Librarian 
      
          State Pension Review Board 
          Stephanie Coates, LBB Budget Analyst     
          Shari Shivers, Chairman of Board 
               Spoke to the LBB major items not included in recommendations. 
          Joe Walraven, Sunset Commission 
      
               Registering, but not testifying: 
               Rita Hornitz, Executive Director 
      
          State Preservation Board 
          Jeff Scarpelli, LBB Budget Analyst  
          Rick Crawford, Executive Director 
              Spoke to item #1 under Major Items Not Included in  
              Recommendations.  He also talked about the exceptional items in  
              proposed budget.  Answered questions. 
      
               Registering, but not testifying: 
               Brian Ragland, Director of Finance and Administration 
      
     Senator Ellis assumed chair. 
                
          Texas Veterans Commission 
          Jess Calvert, LBB Budget Analyst 
          Alexander Vernon, Vice-Chairman 
               Introduced other Commissioners and staff. 
          James E. Nier, Executive Director 
              Gave an overview of accomplishments in past biennium.  Addressed  
              the exceptional items in the proposed budget.  Answered  
              questions. 
          James S. Breden, III, Commissioner 
  
               Spoke to the number of exceptional items presented. 
          James S. Duncan, Commissioner 
               Read a letter from a disabled veteran who had received help from  
     the Texas Veterans Commission. 
      
     Senator Barrientos recognized Manuel Castillo, a disabled veteran of WW II  
     and a recipient of a purple heart.  
      
               Public Testimony: 
               Manuel Castille, WW II Veteran 
               Betty S. Zuspann, Veterans Health Care liaison 
               John David Freye, Self 
      
          Office of State Federal Relations 
          Jeff Scarpelli, LBB Budget Analyst 
          Laurie M. Rich, Executive Director 
               Gave a brief overview.  Answered questions.  
                
          Employees Retirement System 
          Stephanie Coates 
          Sheila W. Beckett, Executive Director 
              Introduced Chairman. Spoke to the exceptional items in proposed  
              budget and the hugh increases in all medical costs.  Answered  
              many questions. 
          Bill Barton, Chairman of the Board  
               Spoke to the request to re-establish the insurance contingency  
     reserve fund. 
         Gary Anderson, Executive Director, Texas Public Employees Association 
              Spoke in support of the ERS budget request. 
      
               Registering, but not testifying: 
              Philip S. Dial, Consulting actuary 
               Darrell Leslie, Director of Finance, ERS 
               Ann Waterman, Director of Operations, ERS 
      
     There being no further business, at 4:49 p.m. Senator Ellis moved that the  
     Committee stand recessed until 7:00 p.m., Wednesday, January 31, 2001.   
     Without objection, it was so ordered.   
      
     ______________________ 
     Senator Rodney Ellis, Chair 
      
     ______________________ 
     Myra  J. Schmitt, Clerk