SENATE COMMITTEE ON FINANCE 
                               Monday, February 5, 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,  
       February 5, 2001, in the Capitol Extension, Room E1.036, at Austin,  
       MEMBERS PRESENT:                          MEMBERS ABSENT: 
       Senator Rodney Ellis                       
       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 John Whitmire 
       Senator Judith Zaffirini 
       The chair called the meeting to order at 8:05 a.m.  There being a  
       quorum present, the following business was transacted:   
       Chair Recognized the following witnesses to testify on Legislative  
       Budget Board (LBB) recommendations: 
            Harry Montgomery, Budget Analyst - Higher Education 
            Debbie Baisden, Performance Analyst - Higher Education 
       The Chair announced that lunch was being brought in so the Committee  
       could continue to work and not recess until 12:45 p.m. before going  
       into session at 1:00 p.m. 
            University of Houston 
            Dr. Gary Rosenthal,  Chairman, Board of Regents 
            Dr, Arthur K. Smith, Chancellor, UH System & President, University  
       of Houston  
              Spoke to the entire University Administrative System.   
              Introduced  President's of all campus' are in attendance to  
              answer any questions.  Gave an overview of the University of  
              Houston.  Spoke to the need for increased  funding to recruit  
              and keep qualified faculty and to the exceptional items in  
              purposed budget.  Answered questions.    
            Dr. Max Castillo, President of University of Houston - Downtown 
                 Answered questions. 
         Dr. William A. Staples, President of University of Houston - Clear  
                 Answered questions. 
            Dr. Karen Hayes, President of University of Houston - Victoria 
                 Answered questions. 
                 Registering, but not testimony: 
                 Randy J. Harris, Vice Chancellor/Vice President Finance &  
                 Dr. James Wilkerson, Interim President, UT Health Science  
       The Chair recessed at 10:49 a.m. for a 10 minute break.  Reconvened at  
       11:00 a.m. 
            University of Texas System Administration 
            Patrick Oxford, Member of the Board of Regents 
              Introduced Dan Burck, Chancellor of University of Texas.  Spoke  
              to importance of the University and it's goals of; access,  
              success, excellence, and research. 
            R. D. Burck, Chancellor, the University of Texas System  
              Gave overview of the U.T. System and progress report.  Spoke to  
              the key legislative issues affecting the U.T. System. 
            Ed Sharpe, Executive Vice-Chancellor 
                 Answered questions. 
            Larry Faulkner, President U.T. at Arlington 
              Answered questions. 
            David H. Russ, Managing Director - Public Market Management &  
                 Answered questions. 
            Tom Scott, Vice Chancellor 
              Answered questions      
            Charles Mullins, Executive Vice-Chancellor of U.T. System 
                 Answered questions.  Spoke briefly to UTMB funding. 
            Jack Stobo, President UTMB 
              Out of the 254 counties in Texas UTMB serves the indigent from  
              250 of those .  counties.  The were the first and are still the  
              only state owned general hospital in the State of Texas.   
              Answered questions. 
                 Registering, but not testifying: 
              Thomas F. Burks, Ph.D., Ex. Vice President, UT Health Science  
              Center -  Houston 
                 Franklin G. Jenifer, President, University of Texas at Dallas 
                 Dr. John Mendelsohn, President, University of Texas M..D.  
       Anderson Cancer Center 
                 Kern Wildenthal, MD, University of Texas Southwestern Medical  
       At 12:45 p.m. Senator Barrientos moved that the committee stand  
       recessed until 45 minutes after adjournment of the Senate; without  
       objection, it was so ordered.   
       At 2:00 p.m. the committee reconvened. 
            Texas State University System 
          Dionicio "Don"  Flores, Vice Chair, Board of Regents 
              Gave an overview of the Texas State University System, the  
              exceptional items and the emergency riders in the proposed  
            Lamar G. Urbanovsky, Chancellor 
                 Answered questions. 
            R. Vic Morgan, President, Sul Ross State University 
              Spoke briefly to the Dolph Briscoe Institute for Local  
              Government.  It provides opportunity  for continuing education  
              and professional development  to many public officials  
              throughout the middle Rio grande region. 
                 Registering, but not testifying: 
                 Bobby K. Marks, President, Sam Houston State University 
                 J. Michael Shahan, President, Lamar State College - Orange 
                 Robert D. Krienke, President, Lamar Institute of Technology 
                 Jerome H. Supple, President, Southwest Texas State University 
                 W. Sam Monroe, President, Lamar State College - Port Arthur 
                 James M. Simmons, President, Lamar University - Beaumont 
                 E. James Hindman, President, Angelo State University 
                 Ted Melina Raab, Legislative Director, Texas State Employee  
            Midwestern State University 
            Henry Moon, President          
              Gave an overview of the past biennium.  Spoke of transition from  
              past president to himself.  Spoke to proposed budget and one  
              exceptional item.   
            Valarie Maxwell, Budget Director 
                 Answered questions. 
                 Registering, but not testifying: 
                 Jesse W. Rogers, Vice President for Academic Affairs 
            Texas Women's University  
            Kay Williams Goodman, Chairman,  Board of Regents  
                 Answered questions.  Spoke to the initiatives; recruitment,  
       enrollment and retention. 
            Dr. Ann Stuart, Chancellor 
              Gave brief overview of what has happened since she joined the  
              University.  Spoke to the needs in proposed budget, tuition  
              revenue bonds and exceptional items. 
            Dr. Brenda L. Floyd, Vice President, Finance & Administration 
                 Answered question. 
                 Registering, but not testifying: 
              Dr. Charles Zucker, Executive Director, Texas Faculty  
       There being no further business, at 3:00 p.m. Senator Ellis moved that  
       the Committee stand recessed until 8:00 a.m., Tuesday, February 6,  
       2001.   Without objection, it was so ordered.   
       Senator Rodney Ellis, Chair 
       Myra  J. Schmitt, Clerk