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The House Appropriations Subcommittee on Fiscal Review and Federal Relief Funds met on December 8to consider various agency reviews and hear public testimony on the Texas: Juvenile Justice Department, Commission on Law Enforcement, Commission on Environmental Quality, Low-Level Radioactive Waste Disposal Compact Commission, State Soil and Water Conservation Board, and Water Development Board, Public Utility Commission of Texas, Office of Public Utility Counsel, and the Board of Veterinary Medical Examiners. An archive of the hearing can be found here.

 

This report is intended to give you an overview and highlight of the various topics taken up. It is not a verbatim transcript of the discussions 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.

 

Item 1: Opening Comments

Chair Bell

  • Would like Sunset and LBB to testify for each review

 

Item 2: Texas Juvenile Justice Department

Steven Ogle, Sunset Advisory Commission

  • First sunset since creation; functions still necessary but agency struggles with crisis and instability with repeat controversy and leadership changes
  • Turnover rate is highest among large state agencies and key driver of problems, TJJ only has 66% of JOC needed to supervise youth; understaffing forced lockdown and decreases access to treatment
  • Not been able to focus on maximizing benefits of Lege reform designed to keep youth out in first place
  • Recommend increased funding for construction of two state facilities; location will depend on salary levels and proximity to other facilities; TJJ will suggest potential locations by Jan 6
  • Enhance regionalization effort to divert use by treating and housing at county level
  • Increased funding for JDD and increase state dollars for county juvenile beds
  • $22 M by next biennium recommended
  • Sweeping TJJD existing board and revamping oversite procedures; adjusting sentencing and serving requirements for youth; sunset review at end of biennium
  • Schaefer- Grossly underpaid; starting pay of $35,000 won’t bring in people to come work; concerned we will spend a bunch of money buying land and facilities and will still need more money to pay people
    • Recommend smaller facilities to focus on targeted approaches such as mental and behavioral health
  • Schaefer- People without construction background doing these projects and inappropriate costs so big concern going forward
    • Agency can provide more detail on projects
  • Chair Bell- Recommendation for additional function under the exceptional item be funded?
    • Yes

 

Kelsey Vela, Legislative Budget Board

  • Four notable items including staffing and retention and aging case management systems
  • Staffing is agency’s most significant issue; staff working overtime and fueling burnout
  • Local JPD refunds should be put into diversion initiatives, ineffective IT systems
  • Schaefer- What is the population right now?
    • Anticipate increasing slightly as courts work way through pandemic cases
  • Schaefer- Population decreasing but asking to build new facilities while number one issue is staffing; how much is request?
    • $120 M request for three facilities; agency believes that facilities would only have 48-56 beds and in more urban areas so easier to staff; agency can speak to exceptional item request better
    • Ogle- Expected to increase to 960 children in 2024 and marked increase from what it is today

Emily Anderson, TJJD

  • Thought behind exceptional item is smaller facilities can be staffed better and able to shrink population in current facilities to staff those better as well
  • Schaefer- How many facilities now?
    • 5, will have 7; feasibility ongoing to determine location
  • Schaefer- Have you looked at county correctional facilities to see if state can contract with them?
    • County facing same issues we are
  • Schaefer- Questions strategy and thinks there should be more partnerships rather than building new facilities
  • Report addresses short term solutions such as increasing salary; mid term to provide additional resources to county to keep kids in communities; and long-term building out new facilities
  • Schaefer- What is price tag on midterm?
    • LAR is about $74 M with all items including request for regional post adjudication center in larger county
  • Toth- What is staffing level percentage?
    • Sunset says 66%
  • Toth- As you go to smaller units, need still exist and will exacerbate problem; seems like what agency is doing will make the problem worse
    • LAR ask was very thoughtful in addressing range of solutions; new salary increases addressed first
  • Toth- Would rather address salary and see if that takes care of problems; what are additional asks
    • Asking for additional funding to enhance data system
  • Toth- What do we have now?
    • Not entirely sure what type of system
  • Juvenile case system needs funding on complete rebuild

 

Item 3: Texas Commission on Law Enforcement (TCOLE)

Andrew McConnell, Sunset Advisory Commission

  • Recommendations didn’t pass 87th; TCOLE has little authority to set and enforce standards of conduct; done by local agencies leading; recommend continue for two years and create 15 person blue ribbon panel
  • Schaefer- Anything in administrative recommendation that might benefit small departments?
    • Increase in digital submissions and background check digital share program allows more thorough and effective background checks
  • Shaefer- Where do we stand with software needs?
    • Better but still identified gaps
  • Schaefer- 15 member panel commission would have to be done by statute?
    • Yes
  • Toth- When a complaint is filed against law enforcement what does that have to do with TCOLE?
    • Mainly licensing and hiring issues are handled by them not misconduct on the job
  • Toth- What does TCLE do to maintain anonymity of investigation?
    • Agency would be better able to answer; agency doesn’t have authority to protect info and recommend that they receive that authority
  • John Beecham, TCOLE– Confidentiality of complainant done by filing letter of request to AG and raise law enforcement privilege to maintain confidentiality
  • Toth- Frustrating so much coming down on law enforcement; issue of leaking to press disturbing
    • Try to maintain confidentiality of investigation; suspension or revocation of license at end of case is public knowledge

 

Hailey Ewing, Legislative Budget Board

  • Depletion of GRD account 116; purchase of TCLETS finalized; issues with agency staffing
  • Chair Bell- On finding 1 funding to deplete in 2030; what are revenue streams identified to replace?
    • Revenue streams are court fees and professional fees; have been depleting
  • Chair Bell- Are we looking at how to replace those funds?
    • Katie Fallon-Brown, LBB- Awareness of this issue and ongoing conversation
  • Chair Bell- Sounds like at some point we are talking about GR
  • Schaefer- Long term court costs not a stable source of funding; need GR source and hope to lower court costs if we do that
  • Chair Bell- Problem of turn over; how do we fix?
    • McConnell- Salary survey for Texas peace officers median non-supervised is $42,500 which is $5,000 below nonsupervisory; for supervisory is $52,500 and $10,000 below median national salary for supervisory
    • Need to get TCOLE peace officer salary on par with other state police officers
  • Bell- What does it cost us as Texans?
    • $4.4 M for retention and recruitment

 

Item 4: Texas Commission on Environmental Quality and Low-Level Radioactive Waste Disposal Compact Commission

Robert Romig, Sunset Advisory Commission

  • TCEQ faces challenges but performs well and recommend agency be continued; confusion about TCEQ’s role and authority and need to necessitate more clear information on role
  • Should update enforcement practices to focus on riskiest actors
  • Recommend TCEQ improve its website and availability of public information including posting permit applications; could require additional resources
  • Recommend update on enforcement compliance history rating and online permit holder system to notify of TCEQ annual actions; cost depends on utilization of current systems
  • Increased statutory maximum on certain penalties to $40,000
  • Recommendation to create enforcement diversion program could negatively impact
  • Lege advisory group should biennial state work plan; previously appropriate funds to study river basin flows and could increase cost
  • LLRWDCC performs functions as intended; recommend keeping under review by extending sunset date for 12 years; no fiscal impact to state

 

Daniel Knapp, Legislative Budget Board

  • TERP trust fund; balance of general revenue account is declining and projected to be depleted by 2025; could increase percentage of solid waste disposal fee; state and local entities becoming increasingly reliant on agency to provide emergency response
  • If current private vendor running waste disposal facility leaves then there are few companies and agencies that could operate facility; could expand allowable use of funds to fund facility operations
  • Could consider adding rider in bill considering duties
  • Lapsed significant amount of appropriations; could consider rider granting authority to carry forward unspent allowances
  • Schaefer- Why is money not being spent?
    • Lowered appropriations in last biennium; agency better able to speak to that
    • Romig Not anticipating to lapse currently
  • Chair Bell- What are appropriated funds being lapsed?
    • Appropriated for operations
  • Chair Bell- So not as costly as anticipated?
    • Believe that is correct line of thinking for what happened in 2021; appropriations reduced in 22 and 23 and not seeing lapses

 

Jene Bearse, TCEQ

  • Chair Bell- Question about tipping fee; Wasn’t the amount decreased?
    • Believe so
  • Chair Bell- Says lege could consider increasing tipping fee; If back to original amount that was in effect prior to reduction would that solve problem we have?
    • Can run those numbers and give to you
  • Chair Bell- Prior to reallocation there was tremendous amount of money in tipping fee; would like to see what it would look like if we went back to fee; reallocation might have put on situation of declining fund balance
  • Chair Bell- Can you run volume of solid waste disposal? Would assume it is increasing
    • Yes

 

Item 5: Texas State Soil and Water Conservation Board

Lauren Ames, Sunset Advisory Commission

  • Recommend continuing agency for 12 years; still lack clear goals and policies to work on structural dam program; need to demonstrate decisions for prioritizing certain dam projects
  • Found Texas invasive species coordinating committee continues to be needed; recommend continue for 12 years
  • Recommend additional info about funding activities and programs
  • No fiscal impact but may take staff time to complete

 

Rachel Stegall, Legislative Budget Board

  • Option to add rider to produce biennial report for funding; expand authority for flood projects

 

John Foster, TSSWCB

  • Schaefer- Dam repair part of mission; What is program for?
    • Structure built by federal authorizations that are under responsibility of local soil and water conversation district; 2,039 that meet that criteria that we focus on; approaching 10,000 structures that aren’t part of this and under TCEQ jurisdiction
  • Schaefer- Need to know who has jurisdiction and how dams are being inspected?
    • Should allow TCEQ to answer
  • Schaefer- Ultimately comes back on state to help small towns; seems like dam safety is something that Lege needs to pay more attention to and look at funding and timelines to make repairs
    • TWDB AND TCEQ and agency collaborate and field questions about structures to other agencies; haven’t focused on identifying who would be resource for specific types of damns
  • Schaefer- Is there a priority risk analysis?
    • Probably a question for TCEQ; our agency has an idea of which structures are high risk
  • Thompson- In finding 2 with two cancelled dam projects what would cause them to be cancelled?
    • Number of reasons; could be a land rights issues or not having ability to come up with match funding for the program
  • Thompson- Still a problem with a dam even if can’t come up with funding match
    • Sunset should look at local entities that are owners of the dams to do a local match; level of match requiring for program isn’t that much money so if we did away with that program would be a small amount of work that would have to be postponed into the future
  • Thompson- Some communities have very slim funding; don’t want inability to come up with match money to lead to a dam failing; should be conversation around this
    • Agency just filed proposed rule change to eliminate match funding
  • Schaefer- Should have some kind of stoplight chart that gives holistic view of where we are with critical dam needs in state and quantify based on risk

 

Item 6: Texas Water Development Board

Darren McDivitt, Sunset Advisory Commission

  • Not subject to abolishment by sunset act; found board is well run however has experienced significant growth; amount of money flowing through notable; challenges ability to administer finances efficiently
  • Increase efficiency of project review process by requiring risk-based approach to review projects and management plans
  • Require agency to evaluate and analyze financial assistance efforts; could use data to improve programs and make sure they meet customer needs
  • Should authorize regional planning to use more severe baseline that worst drought
  • Fiscal impact of recommendations can’t be fully estimated; recommendation for feasibility review would require outside expertise; impact would be accounted for with fiscal note
  • Agency submitted exceptional items in LAR asking for additional resources in staffing

 

AJ Lionberger, Legislative Budget Board

  • Agency maintains several financial assistance programs; 3 dormant programs that haven’t been accessed recently; funding for flood infrastructure fund is being expended; IIJA funding would be administered through existing clean water program; EDAP applications will have new priority process for applications
  • Chair Bell- what is value of IIJA program?
    • Should be close to $3 B over 5-year period

 

TWDB Staff

  • One time funding for preparing state flood plan and flood maps; where are we at in that?
    • Target date of 2024 to be completely finished
  • Chair Bell- Change with new FEMA risk factor 2.0 anticipated by agency and what effect on mapping?
    • Knew it was coming working on adapting to that; don’t know exact impact but still incorporated in our 2024
  • Chair Bell- Will it cause problems for state maps and how closely it will align with FEMA?
    • Working under knowledge of those changes with target date of 2024 and on time to make target date
  • Chair Bell- Give us an idea of funds and grants for projects
    • Started in December of 2020 with first commitment to projects; have category 1 through 4 projects that go through planning to types of infrastructure being built
    • $793 M allocated to administration and projects and at the end of list; tomorrow is day for last applications; estimation is we will be about $24 M short of funding needed
  • Bell- Heard a lot of projects won’t be able to be done because funds aren’t available for them
    • Have LAR for additional $375 M plus FTEs to replenish funding for flood infrastructure fund; in regional flood planning process right now and identified $37 B in need
    • $37 B in need is from regional flood planning groups; IIJA funds for bigger flood projects; another FEMA program that is getting more money on annual basis that can help with buyouts and raising house; manage funds for that
  • Thompson- Issues in county of private landowners diverting water and damming water; nothing that can be done about that but can effect plans? Any regulatory ability?
    • No authority but any project funded through WD flood programs ahs to prove they are not effecting upstream and downstream; review and confirm this finding

 

Item 7: Public Utility Commission of Texas and the Office of Public Utility Counsel

Emily Johnson, Project Manager from Sunset Commission

  • Report includes 6 issues (5 to PUC and 1 for OPUC)
  • Recommend continuing agency for 6 years
  • Review focused on operation needs and set up agency for successful future
  • Additional resources are key need
  • Small staff limits proactivity
  • Lacks resources to analyze data to make fully informed recommendations
  • $2.1M for data analytics team is in issue 1
  • Issue 3 focused on water and wastewater
  • Johnson continued to walk through recommendations in Sunset Report
  • Commission has not yet voted on staff recommendations which occurs Jan 11
  • Schaefer – Appreciated reference to smaller systems, there are small water and wastewater systems that need a how to or regulatory handbook in laymen term to make administrative rules and regulations clear to read
  • Schaefer – Some of these smaller systems have headquarters in another state (example of HQ in AZ on Canadian stock exchange), and appreciates new leader at OPUC
  • Thompson – People may think they are in city but not
  • Schaefer – Some are granted a legal monopoly in Texas and only answer for residents is OPUC
  • Chair Bell – Doesn’t want to leave false impression, there are bad actors but overall very good water and wastewater systems in Texas

Jeff Bell, LBB

  • Reviewed findings in strategic fiscal review
  • Thompson – Finding 4 question, asked Legislature to consider voice providers to pay an assessment, internet service plans and wants to know what does recommendation look like – assess like a regular land line or would it be a smaller fee
    • LBB – Language broad and open to will of intent for legislature
  • Thompson – Rural Texas is probably more dependent on these land lines
    • LBB – Again says language is broad and gives two examples of how that could look

Hayley Hall, Chief Administrative Officer PUC

  • Looking to legislature for guidance, leave it up to providers to determine how much data and voice is truly voice
  • Thompson – Can talk off-line, land line is easy to establish vs voice over internet
  • Providers telling us what percentage is voice
  • Thompson – As broadband continues to grow…has a lot more questions than what time is available… will continue questions offline

Item 8: Board of Veterinary Medical Examiners

LBB does not have a strategic fiscal review report

Steven Ogle, Sunset Advisory Commission

  • Unique review, 3rd review in 6 years
  • Current review was to evaluate implementation of data system, they have never succeeded in purchasing a database
  • Without a contract, failure to address data management and adhere to contracting standards
  • Until agency has a centralized database system, they will struggle
  • Sunset Commission adopted motion to help develop options to address systemic issues and will be presented prior to concluding of January meeting

Brittany Sharkey, Executive Director of Texas Board of Veterinary Medical Examiners 

  • Had the job just over three months
  • Schaefer – Can you respond to what staff said?
  • Historically have trouble to get a system in place, attempted to procure two additional database systems but looking back do not see proper procedures were followed
  • First time ever asked for appropriations to fund the new database
  • Schaefer – Value of contracts executed?
    • $108k
    • Confirms systems not adequate but it does have a license system that is functional
  • Chair Bell – Legacy challenges hearing about, time to fix it
  • 14 of 16 agencies on this software they have identified a need for

Item 9: Public Testimony

Luis Soberon, Texas 2036 Policy Advisory

  • Testimony regarding TCOLE
  • Texas Law enforcement data landscape is report they worked on with findings and recommendations
  • They support request for TCOLE exceptional items
    • Continuing beefing up data infrastructure, data officer, etc.
    • Agrees need, there are data quality problems in traffic stops
    • Exceptional items 2 and 4, COLA for employees and support staff
  • Vastly underfunding TCOLE
  • Thompson- Number of licenses question, should funding be tied to additional licenses being overseen
    • TCOLE is number one law enforcement and we have 4x number of agencies than some other states
    • 65 FTEs to audit but don’t have specifics on number to recommend
    • Thompson – A huge burden to audit so many agencies
    • Agrees legislature should find a way to address need for expanding number of agencies

Committee adjournsÂ