Legislative Report-Mid-Oct-2017

Legislative Report-Mid-Oct-2017

B O B T U R N E R R U R A L I S S U E S C O N S U L T I N G - Voss, TX cell text 325 669 1717 Austin, TX

State economics might be viewed through varying “optics”. First – note that Texas State Comptroller – Glenn Hegar – recently released a revised economic forecast – showing more expected revenue than his original one. This is definitely good news – and can alleviate some of the economic woes brought on by Hurricane Harvey. Some of this improvement - of course - was brought about by the upswing of the oil and gas industry in the state.

It is difficult to comprehend all the various facets of our economy that were impacted by the tremendous cost of this devastating storm. The ripple effect is difficult to get your arms around. Things like restoration of public schools - in that area of the state. Public facilities - - such as hundreds of state and municipal buildings - which will have to be either repaired – or rebuilt. This doesn’t take into consideration things that we take for granted – such as highway road surface damage – loss of necessary roadway signage and state owned vehicles and equipment that were lost.

How can the legislature and state leadership shuffle existing assets and funding to meet at least the most pressing of these needs. This must be done above and beyond the day to day operations of the state./0 A number of hearings have beenscheduled - and are being conducted to evaluate the possibilities of covering these horrible short-falls. Most of these hearings have rightfully been conducted in Houston and the gulf coast areas of the state.

Questions – like – will funds need be moved out of the agencies that we count on daily to help plug these needs and budget deficiencies?Will local public school districts lose necessary funds in this shuffle of state funds to these areas which are in dire financial straits?

In my opinion- many Texans never give a thought to the expenditures which state agencies simply have to eat in such disasters. This sort of event brings about huge expenditure far above the allocations of their state approved and funded budget. Agencies such as: Extension Service -Texas Forest Service and Texas Parks and Wildlife have stretched their budgets beyond their limit. Texas Department of Agriculture and Texas Animal HealthCommission have spent millions in dealing with animal losses – feed for impacted animals (of all sorts) – disposal of the carnage of dead carcasses etc. The state’s law enforcement assets and capabilities have been stretched beyond their capability. These are all issues which must be considered in the process of dealing with the over-all situation. Financial losses to south Texas agriculture have reached astronomical levels. This event coming right at harvest time multiplied the losses. Just for one example - cotton crops are completely gone – huge modules in some instances were completely covered by – or floating in the flood waters.

Now – we have not talked about private businesses which have been totally destroyed – thus eliminating thousands of jobs.Many of these business will probably never be able to resume operation. What then happens to the earning power of those citizens and their employees. Not only did many of these people lose their livelihood – they also lost all their personal possessions – ie: homes – cars – etc.

Insurance providers are being stretched far beyond their capability. These companies traditionally reinsure to cover such unusual losses and to assist in their ability to make prompt payment of claims. However - this level of loss far exceeded most expectations. Federal assistance – to some degree – is promised and will be coming. It often takes those federal agencies – such as FEMA – months to actually solve most of this level ofchallenge. These financial gaps then become a fiduciary responsibility of state and local government.

As a result of facing up to dealing with the above listed financial needs – let’s think about what preparation for the next two year budgetcycle will look like. The state legislature will convene for the 86th Legislature in January 2019.My observation is that asking for any new or special funding is definitely not an option. So – what will state agencies be required to do – to meet theneeds of an ever growing state population? This covers a vast array of needs: public and higher education –transportation maintenance - rebuilding infrastructure and health and human service requirements. Based on years of observation – it is my speculation that every state agency will be required to implement sizeable cuts in their new budget requests.

I realize that you have seen and read all this in the media. However – I also realize that too often we think of this sort of thing affecting Florida – California – or “someone else” – not us – our families – or all Texans. The ripple effect of this disaster will impact all Texans – whether you live in Amarillo – Brownwood – Rockport – or Houston. The impact will be substantial to all Texans.

In closing – let me remind you that on November 7th – we will be voting on 7 proposals to change the Texas State Constitution. Information is available from a number of sources. One such site is the League of Women Voters -found at ------lwvtexas.org ----- on the internet. Early voting begins October 23rd(TODAY) – and ends November 3rd. There are 7 propositions shown on the ballot. I urge you to go vote. Your vote has more impact in your future than anything else you might do. Demonstrations do not hold a candle in degree of success – to you registering – going to the poll and actually voting. A side note – which I think you will find interesting – is the fact that very few Texans actually go out to vote on these proposed constitutional changes. To save you from embarrassment – I have decided not to ask which of you voted in most recent elections and which did not exert the effort required to do so.

Of 670 proposed amendments – over the years – 491 have been approved and 179 have been defeated. SO – your “excuse” that they are all going to pass anyway is not suitable rationale for not voting. The records prove this is not a true assumption.