MINUTES

 

SENATE COMMITTEE ON NOMINATIONS

Wednesday, March 25, 2009

1:00 p.m. or thirty minutes upon adjournment

Senate Chamber

 

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Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Nominations was held on Wednesday, March 25, 2009, in the Senate Chamber.

 

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MEMBERS PRESENT:

 

MEMBERS ABSENT:

Senator Mike Jackson

Senator Kevin Eltife

Senator Glenn Hegar

Senator Jane Nelson

Senator Robert Nichols

Senator Eliot Shapleigh

Senator Kirk Watson

 

None

 

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The chair called the meeting to order at 3:06 p.m.  There being a quorum present, the following business was transacted:

 

The following members arrived after the roll was called:  Senator Hegar, Senator Nichols, Senator Shapleigh. 

 

Senator Nelson moved adoption of the minutes from the previous hearings held on March 18, 2009, and March 19, 2009; without objection, it was so ordered. 

 

Chairman Jackson called to the table James Dannenbaum, Paul Foster, Printice Gary, Steven Hicks, James Huffines, Janiece Longoria, Gene Powell, and Robert Stillwell, nominees to the University of Texas System Board of Regents.

 

Chairman Jackson recognized Senator Whitmire to introduce Janiece Longoria.  Senator Whitmire briefly detailed the career and accomplishments of Longoria, and recommended her to the committee.

 

Chairman Jackson recognized Senator Wentworth to introduce Gene Powell.  Senator Wentworth briefly detailed the career and accomplishments of Powell, and recommended him to the committee.

 

Chairman Jackson recognized Senator Patrick to introduce Robert Stillwell.  Senator Patrick briefly detailed the career and accomplishments of Stillwell, and recommended him to the committee.

 

Chairman Jackson recognized Senator Watson to introduce James Huffines and Steven Hicks.  Senator Watson briefly detailed the career and accomplishments of Huffines, and recommended him wholeheartedly to the committee.  Senator Watson briefly detailed the career and accomplishments of Hicks, and recommended him to the committee.

 

Chairman Jackson recognized Senator Whitmire to introduce James Dannenbaum.  Senator Whitmire highly recommended Dannenbaum to the committee.

 

Chairman Jackson recognized Senator Nelson for a comment.  Senator Nelson recognized Dannenbaum as an excellent choice for the Board of Regents.

 

Chairman Jackson recognized Senator Ellis to speak on behalf of James Dannenbaum.  Senator Ellis briefly detailed the career and accomplishments of Dannenbaum, and recommended him to the committee.

 

Chairman Jackson recognized Senator Nichols for a comment.  Senator Nichols expressed his appreciation for Dannenbaum's service to the state.

 

Chairman Jackson recognized Senator Watson to introduce Paul Foster on behalf of Senator Shapleigh.  Senator Watson briefly detailed the career and accomplishments of Foster, and highly recommended him to the committee.

 

Chairman Jackson recognized Senator Zaffirini to participate in the committee at the Senator's discretion.   

 

Chairman Jackson recognized Senator Shapiro to introduce Printice Gary.  Senator Shapiro briefly detailed the career and accomplishments of Gary, and recommended him to the committee.

 

Chairman Jackson recognized Senator Nelson for a comment.  Senator Nelson thanked the nominees for their willingness to serve.

 

Chairman Jackson commented on the 10% admissions rule for Texas universities, and the reconstruction of the University of Texas Medical Branch (UTMB) in Galveston. 

 

The chair asked Huffines to comment on tuition deregulation.

Huffines responded that the board encourages individual campuses to offer creative proposals to improve on-time graduations.   Huffines cited on-time graduation as the easiest way to control higher education costs for students and their families.  Huffines emphasized the board's dedication to containing tuition costs.

 

The chair recognized Senator Eltife for a comment.

 

Senator Eltife stressed the importance of the Legislature's role in containing higher education costs.  Senator Eltife expressed his desire to work with the Board of Regents to ensure that tuition is kept under control.

 

Huffines commented on the effective system of accountability that has been implemented at the University of Texas.

 

Chairman Jackson asked the nominees to comment on the restoration process of UTMB Galveston.

 

Longoria responded that the Board of Regents unanimously voted to rebuild UTMB in Galveston with the assistance of federal, state, and private funds.

 

Foster commented on the uncertainty of the plan as it stands now, though he expressed confidence that all parties involved are fully committed to the project.

 

Chairman Jackson thanked the nominees for taking the time to travel to Galveston to discuss the restoration project of UTMB with local citizens.

 

Chairman Jackson recognized Senator Shapiro for a comment.

 

Hicks commented on the importance of rebuilding UTMB in Galveston to its previous condition.

 

The chair recognized Senator Shapleigh for questions.  Senator Shapleigh emphasized the importance of the University of Texas System meeting the goals of the "Closing the Gaps" initiative. 

 

Senator Shapleigh asked the nominees to comment on the progress of their efforts to increase graduation rates.

 

Huffines responded that there has been significant progress made in the effort to increase graduations rates, but there is still a lot of work to do.  Huffines stressed that improving graduation rates is the best way to solve accessibility and affordability in higher education.

 

Senator Shapleigh asked Huffines to describe how the regents measure progress in the effort to achieve a 50% graduation rate by the year 2015.

 

Huffines responded that each campus gives the board quarterly updates to describe the actions they are taking to improve graduation rates.  Huffines mentioned that many of the institutions are ahead of their goals.

 

Senator Shapleigh thanked Foster for his generosity in endowing the UTEP Medical School.  Senator Shapleigh asked Foster to share any ideas for long-term sources of revenue that would allow Texas to fund its universities in a manner consistent with tier-one universities.

 

Foster responded that there needs to be an effort to continue to work towards commercialization of the research being done on campuses.  Foster mentioned the possibility of obtaining federal and private dollars for research grants.

 

Senator Shapleigh detailed the difference in state funding of the University of Iowa compared to Texas Tech University.

 

Senator Shapleigh asked the other nominees to comment on state appropriations for higher education.

 

The nominees stressed the potential of commercialization of intellectual property and research as a source of funding.  The nominees also emphasized the need for a collaborative effort between the universities, the Legislature, and the people of Texas in establishing more tier-one schools in the state.

 

Senator Shapleigh asked the nominees how the state can get to the determining moment where its universities are financed like tier-one universities.

 

Dannenbaum responded that Texas' relative economic strength right now provides it with the opportunity to outcompete other states for elite faculty.

 

Senator Shapleigh commented that he looks forward to working with the Board of Regents to ensure that Texas makes higher education one of its highest priorities.

 

The chair recognized Senator Watson for a comment.   Senator Watson asked that the nominees put set aside political ideology and serve as advocates for higher education during their time on the Board of Regents.  Senator Watson thanked the nominees for their willingness to serve, and noted the difficulty of the job.

 

Chairman Jackson recognized Senator Lucio for a comment and questions.  Senator Lucio asked the nominees to comment on the future of higher education in medicine in the Rio Grande Valley.

 

Longoria and Dannenbaum responded that higher education in medicine in the Rio Grande Valley is an important priority for the board, and will be a pressing concern as the population in the area grows.

 

Senator Lucio congratulated the nominees and thanked them for their service.

 

Senator Watson moved that the committee vote to approve the nominations of James Dannenbaum, Paul Foster, Printice Gary, Steven Hicks, James Huffines, Janiece Longoria, Gene Powell, and Robert Stillwell to the University of Texas System Board of Regents.  At 4:22 p.m., by a vote of 5 ayes and 0 nays (Senator Nelson submitted a voting form to be shown voting aye), the committee voted to recommend the nominees to the full Senate for confirmation.

 

Chairman Jackson called to the table Fred Heldenfels, Brenda Pejovich, and Robert Wingo, nominated to the Texas Higher Education Coordinating Board.

 

The chair recognized Senator Shapiro to introduce Brenda Pejovich.  Senator Shapiro briefly detailed the career and accomplishments of Pejovich, and highly recommended her to the committee.

 

The chair recognized Senator Watson to introduce Fred Heldenfels.  Senator Watson briefly detailed the career and accomplishments of Heldenfels, and recommended him to the committee.

 

The chair recognized Senator Williams to introduce Darby Byrd, nominated to the Finance Commission of Texas.  Senator Williams briefly detailed the career and accomplishments of Byrd, and recommend him to the committee.  Senator Williams also highly recommended Heldenfels.

 

The chair recognized Senator Shapiro to introduce Riley Couch, nominated to the Finance Commission of Texas.  Senator Shapiro briefly detailed the career and accomplishments of Couch, and recommended him to the committee.

 

The chair recognized Senator Eltife to introduce Robert Wingo.  Senator Eltife highly recommended Wingo to the committee.

 

Chairman Jackson asked the Texas Higher Education Coordinating Board nominees to update the committee on the progress being made with the "Closing the Gaps" program

 

Heldenfels responded with details of the progress the program has made at its halfway point.   Heldenfels mentioned that the participation goal of the program still requires about 350,000 additional student enrollments by 2015.

 

Chairman Jackson asked the nominees if they have noticed any trends in the statewide enrollment numbers given the downturn in the economy. 

 

Heldenfels responded that an economic downturn can be a double-edged sword for students and enrollment.  Heldenfels mentioned that an economic downturn can drive people back to school, but it can also make it more difficult for part-time and working students to afford tuition.  

 

Heldenfels confirmed that there was an increase of around 45,000 new enrollments last fall.

 

Chairman Jackson recognized Senator Shapleigh to introduce Robert Wingo.  Senator Shapleigh briefly detailed the career and accomplishments of Wingo, and highly recommended him to the committee.  Senator Shapleigh thanked Wingo for his service.

 

The chair recognized Senator Eltife for a comment.  Senator Eltife thanked the nominees and requested that the board continue to make strong recommendations to the Legislature.

 

The chair recognized Senator Watson for a comment.  Senator Watson thanked the nominees and stressed the importance of strong leadership on the board.

 

The chair recognized Senator Nichols for questions.  Senator Nichols confirmed with Heldenfels that there was an increase in student enrollment last fall.

 

Wingo stressed the importance of ensuring a well-rounded education for all Texas students.

 

Senator Nichols asked the nominees to comment on the quality of developmental education in Texas.

 

Heldenfels responded that Texas does not do a very good job in that area.  Heldenfels mentioned that the board has requested greater funding to improve developmental education.  Heldenfels stated that only twenty percent of high school graduates are college ready.

 

Senator Nichols asked if there is a way to track, by high school, the production of college-ready graduates .

 

Heldenfels responded that the board does know what areas of the state are stronger and weaker in producing college-ready high school graduates.  Heldenfels continued to say that there are current projects examining the factors that determine college readiness and success.  Heldenfels cited a new study that shows a student's advancement beyond Algebra 2 in high school as a good indicator of college readiness.

 

Senator Nichols requested that the board, at its convenience, provide data on what high schools are producing the most and least college-ready students.

 

The chair recognized Senator Shapleigh for questions.   Senator Shapleigh asked if the Board has a specific funding request before the Legislature for the "Closing the Gaps" program.

 

Heldenfels detailed the funding recommendations made by the board to the Legislature.

 

Senator Shapleigh confirmed with the nominees that about $86 million of the $367 million requested by the board has been funded in the current Senate budget.

Senator Shapleigh asked the nominees if the program's participation goal for 2010 will be met.

 

Heldenfels responded that they believe it is possible to achieve the readjusted goals for 2015.

 

Chairman Jackson asked the nominees if the Board has a specific process for upgrading a two-year university to a four-year university.  Chairman Jackson referenced the University of Houston-Clearlake as an example.

 

Pejovich and Heldenfels listed a variety of issues that would require resolution to make that transition.

 

Chairman Jackson asked the nominees if they have noticed any trends in the demand for more diversified training programs at the community college level to meet new demands in the workforce.

 

Heldenfels responded that there has been an increase in industry and technology training programs both at the community college and high school levels.

 

Chairman Jackson emphasized the importance of these programs.

 

Seantor Eltife moved that the committee vote to approve the nominations of Fred Heldenfels, Brenda Pejovich, and Robert Wingo to the Texas Higher Education Coordinating Board.  At 5:08 p.m., by a vote of 6 ayes and 0 nays (Senator Nelson submitted a voting form to be shown voting aye), the committee voted to recommend the nominees to the full Senate for confirmation.

 

Chairman Jackson called to the table the nominees to the Finance Commission of Texas.  Chairman Jackson announced that Darby Byrd was unable to appear before the committee due to a family obligation.

 

The chair recognized Senator Watson to introduce Paul Plunket to the committee.  Senator Watson briefly detailed the career and accomplishments of Plunket, and recommended him to the committee. 

 

Chairman Jackson introduced Stacy London to the committee.

 

The chair recognized Stacy London to address the committee.  London thanked the committee and briefly detailed her career.

 

Chairman Jackson asked the nominees to comment on the current state of the banking system in Texas, as indicated in their upcoming review.

 

Plunket gave an overview of the Finance Commission and the current status of Texas depository institutions.  Plunket described a modest downtrend in the industry, primarily in metropolitan areas.  Plunket stressed that the banking system in Texas is generally stronger than the rest of the country.

 

Plunket commented on the Commission's request before the Legislature to increase the salaries of their examiners to prevent from losing them to the federal government.

 

Chairman Jackson inquired as to the number of employees currently staffed at the Commission.

 

Plunket estimated that there are less than four hundred employees.

 

Senator Eltife commented on the necessity of competitive pay for state finance examiners.

 

Chairman Jackson asked the nominees to elaborate on the issue of examiner salaries. 

 

Plunket and Couch detailed the issue further and emphasized the importance of properly funding the regulatory process in the current economy.

 

Chairman Jackson asked the nominees to comment on the reasons for the disparity between the weaker performance of metropolitan banks compared to rural banks.

 

Couch responded that metropolitan banks are more dependant on the performance of commercial and residential real estate. 

 

The chair recognized Senator Nichols for questions.  Senator Nichols asked the nominees if they have noticed any unusual trends related to consumer credit in the last six months.

 

Plunket responded that there has been an uptrend in the number of consumer hotline calls to the Consumer Credit Commission.  Plunket mentioned that it is hard to determine specifically the cause of the uptrend.

 

Senator Nichols asked the nominees to comment on the changes made to FDIC insurance amounts, and the resulting fee hikes for smaller banks.

 

Plunket responded that the expectation is that large, national banks will bear most of the costs of the increased fees, though smaller banks will be affected as well. 

 

Senator Nichols commented on the difficulty smaller banks are having in paying for the increased FDIC insurance costs.

 

Senator Nichols asked if the problem areas for subprime mortgages have been identified.

 

London responded that there are ongoing studies that map out the problem areas where subprime mortgages are most prevalent.  London commented that the properties that are being foreclosed upon are selling relatively quickly once they return to the market.

 

Senator Nichols moved that the committee vote to approve the nominations of Darby Byrd, Riley Couch, Stacy London, and Paul Plunket to the Finance Commission of Texas.  At 5:34 p.m., by a vote of 5 ayes and 0 nays (Senator Nelson submitted a voting form to be shown voting aye), the committee voted to recommend the nominations to the full Senate for confirmation.

 

Senator Hegar moved that the committee vote to approve the nominations of the individuals nominated to the following entities: Texas Commission of Licensing and Regulation, Texas Municipal Retirement System Board of Trustees, North Texas Tollway Authority Board of Directors, Executive Council of Physical Therapy and Occupational Therapy Examiners, Texas State Board of Podiatric Medical Examiners, Alamo Regional Mobility Authority, Cameron County Regional Mobility Authority, Camino Real Regional Mobility Authority, Grayson County Regional Mobility Authority, Hidalgo County Regional Mobility Authority, Northeast Texas Regional Mobility Authority, Sulphur River Regional Mobility Authority, David Herrmann of the School Land Board, State Employee Charitable Campaign Policy Committee, State Securities Board, Board of Tax Professional Examiners, and the State Board of Veterinary Medical Examiners.  At 5:35 p.m., by a vote of 5 ayes and 0 nays (Senator Nelson submitted a voting form to be shown voting aye), the committee voted to recommend the nominations to the full Senate for confirmation.

 

At 5:36 p.m. Senator Jackson moved that the committee stand recessed subject to the call of the chair; without objection, it was so ordered. 

 

 

 

 

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Senator Mike Jackson, Chair

 

 

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Brian Carey, Clerk