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The House Committee on Appropriations met to take up HB 1, the budget bill, and SB 500, the supplemental appropriations bill.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

HB 1 (Zerwas) General Appropriations Bill.

Committee substitute laid out

  • $114.6 billion from GR under the $199 billion comptroller estimate
  • $2 billion from ESF
  • $9 billion for FSP
  • Howard – update requested on what remains under spending limit and pay as you go?
    • $500 million under pay as you go and $2.3 billion under spending limit
  • Gonzalez – asked about how much money are they leaving on the table
    • Noted $500 million under pay as you go

 

Tim Lee, Executive Director for TRS

  • Supports the bill
  • Munoz – what he supports?
    • appreciates maintaining and believes there is upcoming discussion as well
    • If don’t raise base contributions for TRS care, it will destabilize
    • Support ongoing discussion, see this as a process
  • Toth – what would it take for teachers to see costs actually go down?
    • Increase contribution to about 2% of payroll, if contributions are not increased it will destabilize
  • Howard – to those hear representing state employees, have heard these requests before but they are making steps forward on ERS and TRS which they will hear when they get to the supplemental

 

Joan Parrish, retiree

  • Member of Texas State Employees Union
  • Neutral on the bill, support many parts not sure if 2.8% increase remained for state employees
  • Would like to see increase for state employees
  • Staffing is very low at HHSC and its low mainly because of the pay, 19% turnover rate
  • Had mandatory overtime and no leave request approved when she left
  • Would request state university employees be included
  • Was hoping to see ERS get attention this session

 

Joanne Day, Texas State Employee Union and self

  • Bill language currently provides some targeted raises and 2.8% employee
  • Language in bill leaves out university employees and retirees
  • Pay is slipping behind private sector jobs
  • 18 years since ERS pension increase
  • Hard to recruit and keep qualified employees, turnover at 19%
  • Request to include $6k across the board pay raise including University workers
  • Increase ERS and TRS to give a cost of living increase

 

Ann Lewis, self

  • Senior lecturer at University at Austin, wanted to add to understanding of university workers
  • Speaks to deregulation of tuition and impacts to salary – time for them to get an across the board raise and not on the backs of the students

 

Cyrus Reed, Sierra Club

  • Thinks budget before them is a good one
  • Appreciates more inspectors at TCEQ and RRC
  • Speaks on TERP, be aware of compliance deadline from EPA telling Houston, Dallas and Bexar county
  • Smaller ticket items in term of ozone planning also included in his written comments
  • Opportunities in TPWD to acquire more land and develop the land they have
  • Bell – there is a bill that would address some of the TERP questions

 

Samantha Fuchs, graduate student

  • Member of Texas State Employee Union
  • Graduate students not paid as essential as their role is, many graduate students are just one emergency payment away from going into debt
  • Request increase cost of graduate student stipends along with other state employees

 

Adrian Shelly, Public Citizen

  • On HB 1
  • Appreciate work go into the budget pleased with TCEQ and RRC inspectors, and funds for mobile air monitoring program on the cost
  • $154 million for TERP sounds like a lot but it is down over 22%, $1.8 billion in corpus in TERP account
  • TERP most cost effective program to reduce air pollution

 

Talmage Heflin, TPPF

  • On the bill
  • Advocating for passing a conservative Texas budget, increase should be no more than 8%
  • Asking to subtract out Harvey funding before looking at the limit

 

George Gooch, Texas Health Services Authority

  • On the bill
  • PULSE, patient access in emergency situations, requested
  • Need $300k in supplemental budget to be used as a 10% match to draw down funding from CMS for infrastructure

 

Dan Butler, Texas School for the Blind Instructor   

  • For the bill
  • Employed for 8 years and current pay is under $12 an hour
  • Member of Texas State Employees Union
  • Request a $6k across the board pay increase
  • Guaranteed cost of living pay increase of 3%built in

 

Evelyn Merz, Conservation Chapter of Lone Star Sierra Club

  • On the bill
  • 2 riders pertaining to TPWD, currently in Art XI (Rider 49 funding for three state parks to be opened to the public and Rider 50 permissive authority to expand boundaries of existing parks)

 

Lisa Dawn Fisher, Texas State Teachers Assoc.

  • On the bill
  • Texas Teachers are paid $7,600 less than national avg and teachers get additional jobs to make ends meet
  • Discussed health care cost as cost driver
  • No permanent cost of living adjustments in the budget – unacceptable

 

Closing Comments

  • Schaefer – regarding TERP discussion, how much are we relying on GRD accounts for certifications?
    • We are relying on them for budget certifications

 

HB 1 as substituted was reported favorably – 25 ayes, 1 nay (Rep. Schaefer)

 

SB 500 (Nelson) Relating to making supplemental appropriations and reductions in appropriations and giving direction, including direction regarding reimbursement, and adjustment authority regarding appropriations.

House Committee Substitute laid out

  • Includes $2.7 billion in ESF in Harvey expenses
  • $1.5 billion in reduced property values
  • $150 million in GR to fund increase in ERS, funding to TRS includes 13th check
  • $2.1 billion for Medicaid shortfall

 

Legislative Budget Board

 

Zerwas – Review of Special Session: HB 30 in special session transferred HHSC funding, $353 million was appropriated to TEA, etc

  • Transfer added to already shortfall and is included in SB 500

 

HHSC – Medicaid Shortfall & TRS

Courtney Phillips, Commissioner of HHSC

Trey Wood, CFO of HHSC

  • Looking at cashflow position of the agency, predicting will run out at end of May
  • Updating based on updating supplemental need
  • Phillips – appreciate them looking at bill
  • Zerwas – there are cash flow needs at agency, which are being referred to here

 

Brian Guthrie, TRS

  • Schaefer – timing on when TRS will be financially sound
    • Founding period went from 35 years to 87 years
    • Funding period is now at 99 years
    • Schaefer – because performance was flat
    • Yes, sir
  • Schaefer – if looking at 2 year period, gives actuary something to work on
    • Yes and provisions on what rate would be moving forward
  • Schaefer – for biennium we are writing the bill, how much additional funding would be needed to make the fund actuarily sound?
    • If not phasing it in, under current law would need a rate increase 1.95% about a total of $1.8 billion
  • Schaefer – how much additional funding above current law in SB 500
    • CS SB 500 is funding for $1.3 billion but it also includes 13th check
    • Provision that would raise contribution is in HB 9 (Bonnen)
  • Schaefer – if do phase in plan, which is not the bill before them, it would allow them to change their actuarial assumptions?
    • Yes
  • Schaefer – regarding a one time cost of living payment, can you put in a one time lump sum payment that sustains itself?
    • You can as long as the plan is actuarily sound at the time of the action
    • Every 1% of COLA cost around $1 billion
  • Schaefer – asked about 13th check
    • One time payment, no ongoing cost

Public Testimony

Tim Lee, Executive Director for TRS

  • In Favor of committee sub
  • Big difference in the sub, most important to put in a funding plan which is done by tying this bill to Dr. Bonnen’s legislation
  • 13th check gives lump sum check immediately but does not address like a COLA which would be a true cost of living raise, ensure solvency of the fund puts that option on the table

 

Paula Everett, self

  • Member of Texas State Employee Union
  • It has been 18 years since any type of increase but cost of living is going up 30%
  • Howard – thanks her for taking time to come speak to the committee

 

Nim Kidd, Division of Emergency Management

  • On bill
  • Wilson – thanks him for all he does for Texas

 

Larry Gonzales, Autism Speaks

  • For bill
  • Therapy they will get in the bill is life changing
  • Cortez – believes bill is big victory for children

 

Kevin Crowe, NEC

  • For bill
  • Under school safety – would request to add technology

 

Ashley McKoney

  • Appreciates effort of shoring up pension fund

 

Cyrus Reed, Sierra Club

  • Support $46 million to natural areas after Harvey
  • $200 million for Army Corps of Engineers projects, they are still being studied so not sure if all the money is needed, amount subject to change

 

Talmage Heflin, TPPF

  • On bill
  • Ask members to stay within population and inflation numbers – $3.6 billion in state and $4.4 billion in All Funds, but against notes they can subtract Harvey funds before applying the limitation

 

SB 500, as substituted voted out favorably – 24 ayes and 3 absent

 

Closing comments

  1. Bell– explains why he was not there for HB 1 since they were voting out his bill in a different committee today

Zerwas – thanks all those involved, reception tonight at Moonshine at 5p