Day 2 – Wednesday –January 23, 2013

Ms. Carolyn Brittin reiterated the need for water planning for Texas as it relates to population growth and recent droughts.  Her office works off information formed during the time period “drought of record”.  The Water Board was formed in 1950 after the drought of record.  This office must plan for adequate water supply for the growing population – oversee the construction of reservoirs.  Two cities literally ran out of water this last year.  That got people’s attention.  Local and regional planning was implemented.  It is most difficult to plan and allocate to satisfy agriculture farming and watering of livestock – the public municipalities – environment – business – river authorities – electrical power plants – manufacturing – mining of sand, gravel – oil and gas exploration, recovery, and delivery.  Ground water management must take in existing rules and laws.  Ag has historically used over half the water but for the first time the increase in urbanization drove the public water use to equal agriculture.  We are about to post another drought of record – worse than the one in 1950.  The drought has severely cut our water supply.  And yet we are looking to double our population so planning must be immediate – innovative – implementable.  Action must be taken to add new surface water supplies (reservoirs) – add ground water sources – municipal conservation – treat waste water for reuse (run through wet lands before putting in water supply) – desalination of brackish water or salt water – aquifer storage (pumping ground water back into the aquifer).  San Antonio is leading the way in conservation – using the same water as it did 20 years ago.  The greatest lesson from the 2011 drought was that we need more than one source of water.  53 billion dollars will be needed over the next 60 years to meet the needs and implement plans – that number does not take into account all the infrastructure needs.  It is important to use the dry years and drought of record to make projections.  Water is the most critical issue before us all.

Representative John Raney gave us a good overview of some of the budget dynamics.  Texas is in a very good fiscal position.  The oil and gas industry and good retail sales have contributed to that healthy position.  Although the media has reported a surplus – Texas worked a little math magic in 2012 – postponing some payments that now have to be paid back.  So we are actually right on budget.  Our constitution requires a balanced budget.  What a novel idea!!  Hats off to Texas!!  We should be so proud of our State.

Besides water, our State must face public education and health care issues.  Right now 31% of our budget is marked for Medicaid and that does not address The Affordable Care Act.  Public education will require additional funding to meet population growth.  There is a real need for vocational training to be added to our educational process to meet the needs in welding and other oil field related skill sets.

Ms. Ashley Kaden went over some of the responsibilities of the Speaker’s office.  One of the most important responsibilities is to set the “calendars”.  A bill has to be put on the calendar – scheduled – before anything can even begin to happen.  It is vital that they listen to the public in deciding what the priorities are before finalizing the calendar.

The budget is worked on 1 year before it is presented.  Our legislature comes in every other year for our budget so our budget has to work for two years.  The Legislative appropriation requests must also come in.  These requests are gone over line by line.  And questions must be answered as to why money was spent the way it was.  Funding must be justified.  Right now funding for education is under the gun because there are lawsuits against the State saying the funding is not currently equitable.  Funding decisions are delayed waiting on court rulings.   But all are in agreement that career tech education must be added.

Of course, there is a bill referencing guns – HB553 is being presented to say that it is a crime to expand gun laws since that would be in violation of our 2^nd amendment rights.  Texas succession was also mentioned.  We were informed that we should read petitions carefully and know the law before we sign.  Texas is required to send in 51% of our collected taxes to the Federal government and even if we succeed, that money is still required.  My guess is that Texas is the cash cow – no pun intended – and succession is not in the Federal government’s best interest.

Our photo op with Governor Perry was most impressive – he is most impressive!!  He took the time to talk with us – making connections with families in our group – reflecting on his rural Texas.  This man studies Texas – knows Texas – loves Texas.  He wants to do the right thing – the honorable thing by all Texans.  He took valuable time with us – talked of honesty and ethics.

Mr. Mike Morrisey followed with responsibilities and duties of the Governor’s office on budget, planning and policy.  Our governor is our chief executive.  His traditional role is to work with the legislature to shape bills.  Governor Perry does not like vetoes so he works productively all year to know the components of the bills and the people involved so he does not get drawn into a veto position.  Governor Perry has worked fiercely on the State’s economic development.  He is not afraid to shake things up.  His position is strong on emerging technology – increased jobs.  The Governor has power. 1) Veto.  2) Bully pulpit – he draws attention when he goes about the state talking to people about issues – conversing with local people – being the eyes and ears of the State.  Naturally the media will cover his speeches – his very presence at an event.  That coverage gets the Governor’s message out.  3) State appointments.

Governor Perry has a set of principles that he has in writing and he hands this out to all who work with him.  He is not ashamed of his principles.  Governor Perry is a hard worker.  He reads every bill.  He is always trying to find better ways to do things.  Even though Texas is set up for a strong legislature – not a strong Governor – the governor’s office is what you make of it.  Our Governor believes that all our elected representatives that we have entrusted should be open and transparent – there should be truth in budgeting.  Texas still wants limited government.  There are even proposed tax cuts.  The issue is where we cut – where would you cut? – voice your opinion to your representative – he is listening!!

Ms. Linda Ryan then showed us a video of TALL XII’s trip to India.  So informative – well done!!

Representative Ryan Guillen was elected in 2002 with his biggest area in Laredo until the recent redistricting which expanded his district to 10 counties up to Bexar.  He feels that he faces typical rural challenges.  He is the Tourism and Recreation Chairman which oversees Texas Parks and Wildlife.  One of his biggest concerns is the need for better roads in the Eagle Ford

Shale area.  He has submitted a bill to repair the roads damaged by heavy equipment and expanded traffic.    He has also become very involved in the education issues.  He believes in vouchers.  He believes parents should have the right to send their children where ever they want to have them educated.  The voucher has no impact on the curriculum of a private school.   The voucher goes to the parent – not the school.  This is currently an issue being discussed. 

Mr. Barry Smitherman is our Texas State Railroad Commissioner.  He calls our current energy status the Texas energy revolution.  Texas is producing 1.6 million barrels of crude oil a day.  Just a few years ago, it was only 600-700 barrels.  By 2020 we could double the 1.6 million.  He credits this to new techniques in drilling – horizontal drilling that started in the gas industry – those same techniques are being applied to the oil industry.  In 2012 – 22,479 permits were issued.   This industry has contributed 297.5 billion to the Texas economy.  The oil and gas industry has provided 1,982,140 jobs in Texas.  Salaries range from $47,610 to $112,707 – a truck driver that can pass a drug test and get his CDL can make $80,000 a year.

How much oil and gas produced depends on commodity prices.  Right now 80% of America’s oil is being produced in the Permian Basin.  And we don’t want to dismiss the 12.4 trillion TCF gas recovered in the Barnett Shale.  Texas currently has 366,274 miles of pipeline in Texas.

But having said all that – this was the most impressive tidbit of information:

If you ranked all the petroleum imports to the US – TEXAS WOULD RANK 3^RD!!

It would be:  Canada – Persian Gulf – TEXAS – Mexico – Venezuela – Russia – Nigeria

Our day ended at a fabulous reception at the Austin Club.  It was a great time to have a chance to really talk to some of the great people we had met earlier and to meet new faces supporting agriculture.  Just a few of our speakers were Dr. Mark Hussey (Vice Chancellor and Dean for Agriculture and Life Sciences) – Jim Schwertner (Texas A&M Regent and President CEO Capitol Land & Livestock) – John Sharp ( Chancellor Texas A&M ) – Todd Staples (Texas Commissioner of Agriculture).  Truly a great evening!!