MINUTES 
                                           
                           Committee on Veteran Affairs & 
                               Military Installations 
                                           
                            Wednesday, February 19, 2003 
            1:30 p.m. (or upon adjournment of the Senate--whichever is  
                                       later) 
                             Betty King Committee Room 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Texas Senate Committee on Veteran  
         Affairs and Military Installations was held on Wednesday,  
         February 19, 2003, in the Betty King Committee Room (2E.20) of  
         the State Capitol Building, behind the Senate Chamber, at  
         Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Leticia Van de Putte, Chair     Senator Troy Fraser 
         Senator Craig Estes, Vice Chair         Senator Frank Madla 
         Senator Eliot Shapleigh                 (Fraser arrived later) 
                                           
                                       ***** 
                                           
         The Chair called the hearing to order at 2:36 p.m.  The Clerk  
         called the roll.  There being a quorum present, the following  
         business was transacted: 
          
         The Chair laid before the Committee the proposed Rules of the  
         Committee.  On motion of Senator Estes, seconded by Senator  
         Shapleigh, the Rules of the Committee were adopted. 
          
         The Chair made a statement relative to prohibiting the use of  
         cellular telephones during the hearing. 
          
         The Chair introduced to the Committee, and to the audience, the  
         staff of the Committee. 
          
         Senator Fraser now present (2:40 p.m.) 
          
         The Chair laid before the Committee the minutes of the hearing  
         of Wednesday, February 12, 2003, and moved that they be  
         approved.  Senator Shapleigh seconded the motion, and those  
         minutes were approved. 
          
         General Eugene Habiger President & CEO of the San Antonio Water  
         System (SAWS), presented to the Chair a commemorative gavel.   
         The Chair expressed her gratitude and accepted the gift. 
          
         Senator Shapleigh, Chair of the Standing Subcommittee on Base  
  
         Realignment and Closure (BRAC), spoke of legislation relative to  
         base realignment and closure.  He expressed his procedural  
         intentions that the full Committee hear verbal testimony and  
         receive documentation, so that verbal testimony and  
         documentation need not be duplicated by going first through the  
         Subcommittee and then through the full Committee.  The Chair  
         agreed that having verbal testimony and documentation presented  
         to the full Committee would be an appropriate course of action. 
          
         The Vice Chair requested clarification from Senator Shapleigh.   
         Senator Shapleigh clarified for the Vice Chair the anticipated  
         procedure proposed and expected to be followed relative to BRAC  
         legislation requiring action by the Subcommittee and by the full  
         Committee. 
          
         Senator Shapleigh introduced to the Committee, and to the  
         audience, his staff present at today's hearing. 
          
         Senator Estes introduced to the Committee, and to the audience,  
         his staff present at today's hearing. 
          
         The Chair noted the importance of reliable, talented,  
         experienced staff.  The Chair noted that Senators will have the  
         need to temporarily leave committee hearings in order to further  
         legislative activities occurring elsewhere--and that doing so  
         should not be misconstrued as disrespectful.  The Chair noted  
         that the hearings are public and are transmitted via television  
         and other means. 
          
         Major General Wayne D. Marty, Adjutant General of the Texas  
         National Guard, presented invited testimony to the Committee  
         relative to recent mobilization and activation of the Texas  
         National Guard.  He spoke also of legislation, pre-dating the  
         78th Legislature, relative to education tuition assistance for  
         members of the military forces.  He expressed concern that  
         funding to implement that prior legislation is in jeopardy and  
         is ranked as a low priority during the current 78th Legislature.   
         He noted that failure to fund that program will result in  
         difficulty retaining and in recruiting men and women into Texas  
         National Guard. 
          
         Brigadier General Bill Goodwin, Assistant Adjutant General for  
         Army, presented invited testimony to the Committee likewise  
         relative to recent mobilization and activation of the Texas  
         National Guard.  His testimony was accompanied by a slide  
         presentation.  A hand-out was presented to the Committee and was  
         distributed to its members. 
         Brigadier General Allen Dehnert, Assistant Adjutant General for  
         Air, presented invited testimony to the Committee likewise  
         relative to recent mobilization and activation of the Texas  
         National Guard.  His testimony was accompanied by a slide  
         presentation.  He noted that the recent Space Shuttle Columbia  
         explosion and gubernatorial inaugural make 2003 already an  
         unusually active year for them. 
          
         The Chair expressed the gratitude of the public, and local  
         officials, for the fine work of the Texas National Guard at the  
         space shuttle tragedy over Eastern Texas.  She noted also the  
         cost implications of the Texas National Guard's mission. 
          
         Mr. James E. Nier, Executive Director, Texas Veterans Commission  
         (TVC), presented testimony to the Committee relative to the  
         budget of that Commission and to the administrative activities  
         of that Commission.  He noted that the TVC recently filed more  
         than 60,000 U.S. Department of Veteran's Affairs (VA) benefits  
         claims during Fiscal Year 2002 on behalf of some of the  
         estimated 1.7 million Texas veterans and their families.  He  
         asserted that the active caseload for veterans, widows and  
         orphans, was in excess of 113,400.  He pointed out that TVC was  
         able--on behalf of those veterans and family members--to recover  
         from the VA some $885 million in benefits payments of which $594  
         million was paid to service-connected veterans, $181 million was  
         paid to widows and orphans of veterans, and $110 million was  
         paid to totally-disabled/impoverished war-time veterans.  He  
         asserted that TVC provided training to 232 veterans county  
         service officers.  He stated that TVC met 100% of its key  
         performance objectives, as audited, as set out in the  
         Appropriations Act.  He noted the devastating effects of a 12.5%  
         budget reduction to TVC for the next biennium.  He asserted that  
         at an 87.5% budget level, the TVC would have to close offices,  
         lay-off eleven counselors and support personnel, terminate the  
         veterans hotline, and severely curtail training.  He maintained  
         that some 26,000 new original claims would not be filed during  
         the biennium and that an estimated $260 million would be lost to  
         the Texas economy because TVC would not be able to represent  
         veterans in their claims against the VA.  He requested that  
         current funding levels be continued during the upcoming fiscal  
         biennium.  A hand-out was presented to the Committee and was  
         distributed to its members. 
          
         The Vice Chair and the Chair made statements sympathetic to the  
         needs of veterans and their families, but noted that the  
         budgetary realities facing the 78th Legislature will necessitate  
         cuts in the TVC's appropriations. 
          
         Mr. Jim Duncan, Chairman, Texas Veterans Commission, presented  
         testimony to the Committee likewise relative to the budget of  
         that Commission.  He pointed out that the TVC actually provides  
         to state government, and to the Texas economy, a very  
         significant return-on-investment.  He noted that 3.46% of the  
         average Texas family's income goes back into the economy and,  
         therefore, the state government coffers.  He noted that $22  
         million in sales tax revenue came into the state coffers during  
         1998 as a result of spending by veterans and their families. 
          
         The Vice Chair and the Chair noted the importance of the  
         information and testimony provided by the TVC.  The Chair  
         thanked the TVC for its assistance in the Military Recognition  
         Day on Wednesday, February 12, 2003, and noted her forthcoming  
         visit on Friday, February 21, 2003, to Fredericksburg, Texas,  
  
                                                                    Minutes 
                                               Wednesday, February 19, 2003 
                                                                      page   4 
                                                                            
         for a tour of the Nimitz Museum and for the unveiling there of a  
         replica of the bronze sculpture of the Iwo Jima memorial--the  
         original of  which is situated in the Washington, D.C. area. 
          
         Mr. Ed P rez, Executive Director, Texas Office of State-Federal  
         Relations (OSFR), presented testimony to the Committee relative  
         to national defense and base realignment and closure (BRAC) and  
         activities of the OSFR on the subject of BRAC.  He noted that  
         OSFR has worked cooperatively with the U.S. Department of  
         Defense, the Texas Congressional Delegation, and the executive  
         branch Administration, to bridge the information gap between  
         Washington, D.C., Austin, and local communities.  He noted that  
         OSFR provided alerts, and conducted meetings, at regular  
         intervals, to apprise interested parties of relevant happenings,  
         and pledged that same shall continue. 
          
         The Vice Chair noted the value of having the OSFR in Washington,  
         D.C. 
          
         The Chair expressed concern about the Texas Congressional  
         Delegation and whether or not they were in strategic legislative  
         circumstances to defend Texas' interests with respect to the  
         BRAC process. 
          
         Mr. P rez promised to send to the Committee a listing of the  
         Texas Congressional Delegation's committee assignments, and  
         other relevant information. 
          
         On motion of the Vice Chair, the Chair, at 3:50 p.m., recessed  
         the Committee subject to the call of the Chair. 
          
         _____________________________________________ 
         LETICIA VAN DE PUTTE, R.Ph., Chair 
          
         ______________________________________________ 
         GREGORY D. WATSON, Committee Clerk