Lois W. Kolkhorst

March 29, 2011

A MESSAGE FROM LOIS W. KOLKHORST

As we enter the midway point of the 82nd Legislature, I'd like to take a few moments to personally update you on a few key issues happening in Austin.

Most importantly, I need your feedback about some big decisions that are on the horizon next week. We have many irons in the fire, as the old saying goes, and the pace is picking up. Many bills I've written or co-written are moving along smoothly, and I'll do my best to give you more updates soon.

Last week, the House debated the "Voter ID bill," Senate Bill 14, on the House floor. This important bill will protect the integrity of our elections, one of our most sacred rights as citizens. Back in 2005, I filed House Bill 1402, which was among the very first bills to propose the idea of requiring an ID to vote. This needs to be done to fight voter fraud and make sure only Texas citizens take part in a Texas election. That was six years ago, a stark reminder of just how slow the law-making process can move sometimes.

As the Chair of the House Committee on Public Health, I've been searching for more efficient ways to deliver health care to all Texans. Many of you have voiced concerns about the federal Patient Protection and Affordable Care Act (also known as Obamacare). Simply put, we cannot afford it. Unless we do things differently, Texas cannot afford to add over two million new people to our Texas Medicaid rolls. Doing so will add a $27 billion price tag to the state budget (also known as taxpayers).

The commissioner of our state's Health and Human Services Commission (HHSC) said we'll need $10 billion new dollars in 2013 on top of the shortfall we are already dealing with for the upcoming biennium, just for Medicaid.

We have a national debt of over $14 trillion, and when local municipal bonds are included, our total debt load is now more than the total national economy. This weekend, I tried to describe the concept of a trillion dollars to my two young children, Lois Kate and Jake. That's one-thousand billion, I explained, so that means we are 14,000 billion dollars in the red. That's a far cry from the strong nation I grew up in.

The massive debt we're passing on to our kids and grandkids is wrong. That's why I filed House Bill 5. Traditionally, a low-level bill number signifies importance from the Speaker of the House, and I'm appreciative that Speaker Straus' team shares my passion on the issue. The bill examines how Texans receive health care, and how we can deliver care more efficiently to all segments of our population.

With medical costs rising faster than inflation, we should replace Washington's big government solutions with market competition and more choices. Simply put, HB 5 would allow Texas to join other states in forming an interstate compact. If given the chance, we'd return the control of health care to individual states, and let Texas create its own Medicaid and Medicare solutions.

Envisioned by our Founding Fathers, an interstate compact is found in Article I, Section 8 of the U.S. Constitution. In fact, Texas already belongs to 24 compacts with other states. The idea with the bill is for Congress to return our tax-dollars to us by providing a "block grant" of funding. This way, we'd decide for ourselves in Texas how to take care of our health needs. Keep in mind, even though our state picks up part of the tab for Medicaid, the federal government makes most of the rules.

Over a dozen states are considering bills similar to HB 5, commonly referred to as "A Healthcare Compact." I think Texans could better decide how to prioritize Medicaid and Medicare dollars than lawmakers from California, New York, Wisconsin, and so on. You'd have a bigger say in how these health dollars are spent. Invariably, a government closer to the people is government more responsive to the people. Read the bill for yourself at: http://www.legis.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB5 and tell me what you think.

Now, I also need your help on our state's budget, which will be debated on the House Floor in the days ahead. The budget I'm asked to consider appropriates $77.6 billion in general revenue (GR) and $164.5 billion in total, known as "all funds." Those totals amount to a reduction over the current biennium (the past two years) of $4.5 billion in GR and nearly $23 billion in "all funds." Keep in mind that "all funds" is a total that includes other sources such as one-time federal dollars we may receive.

The biggest cost drivers in the budget -- education and health and human services -- are set to be cut significantly. Remember, this House version of the budget is the first bite at the apple, so to speak, and is likely to change many times.

The Foundation School Program, the main source for state funding of public schools, is reduced by almost $7.8 billion. I'm in contact with our local schools, and most educators I talk to seem to agree that some reductions are possible. Hopefully, Texas schools will examine the 1:1 ratio of teachers to non-teachers. The fact is that only half of Texas school employees are teachers. According to the Texas Education Agency's own statistics, the number of kids in public schools has increased 7% since 2004 but the number of support and administrative personnel not in the classroom has risen 20%. If Texas' 1,035 school districts were a single corporation, it'd be the fifth largest employer on the planet. So it's only fair to give our school districts the leeway they need to tighten the belt in this tough economic climate.

Our state's Medicaid program would be cut by $6 billion. In the current budget, we're looking at a 10 percent across-the-board rate cut for health care providers in the Medicaid and CHIP programs. This equates to a 37 percent cut to nursing homes and home health, because of the loss of Federal matching funds. The current budget could cut the Texas Department of Criminal Justice over $500 million (over 10 percent) as they manage our state's prison and parole. Then there is the Texas Historical Commission, set to be cut by over 70 percent over the next two years.

As we debate these cuts to the Appropriations Bill, what do you think? The House is proposing to tap $3.1 billion of the $9.3 billion Rainy Day fund to cover the shortfall in the current budget, which is set to end on August 31, 2011. That measure can be found in House Bill 275, and you can read its analysis online at http://www.legis.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB275

The House has already demanded that nearly all state agencies cut over 5 percent in the current budget (found in House Bill 4). To be clear, Blinn College and Sam Houston State University as well as TDCJ and the Brenham State Supported Living Center are cut in this year's ongoing budget. However, our state's public schools were not asked to cut in the current fiscal year. Read HB 4 and its analysis online at http://www.legis.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB4

Please give me your take on our state budget, or anything else you're following during the ongoing legislative session. This is a difficult time for many people, but as Teddy Roosevelt said, "Do whatever you can, with what you have, wherever you are."

Remember that it's your government, your tax-dollars, and your voice counts. Thanks for placing your trust in me. It's an honor to be your public servant in Austin.