April 2005
Editor’s Note: Much like daylight savings time,
MALC is jumping one month ahead and sending you April’s
newsletter rather than March’s. MALC compiles
the news for the previous month and publishes those
articles and profiles during the first days of the
following month. Readers have asked if we are running
behind and while we are not, it is understandable
how readers may think that when a March newsletter
comes out at the end of the month. We hope this clarifies
any confusion we may have caused. Thank you for your
readership and look forward to continuing our service
of providing you with the latest MALC News.
CONTENTS
House
Votes on H.B. 2 and Sends H.B 2 to the Senate
On Wednesday, March 9, the Texas House of Representatives
passed school finance reform legislation, House Bill
(H.B.) 2. Teacher groups, administrators, and school
districts opposed the House bill, but it passed 76
to 71. The controversial bill restructures the funding
formulas for Texas’ public school system and
makes changes to the state’s accountability
system.
The bill ensures that the wealthiest students (only
10% of the Texas public school population) receive
significantly more funding above the education funding
they already receive. The remaining 90% of Texas school
kids will receive only a minimal increase in funding.
This inequality further widens the gap between rich
and poor in our public school system.
For the Latino community, another of H.B. 2’s
failures is the inadequate program funding. During
the MALC/NALEO Hispanic Legislative Issues Conference
in January, Texas State Demographer Steve Murdock
highlighted the growing need for Latino-specific services
such as bilingual education. Statistics show that
Texas’ population growth comes largely from
an increase in the Latino community’s size;
H.B. 2 should reflect a larger investment in our growing
community. However, H.B. 2 falls short of matching
the adequate funding level set forth in the state’s
own adequacy study. H.B. provides an increase of $500
per student, an increase of $63 from the current $437—far
short of the study’s recommended level of $1248
per student.
Thirty-nine MALC members voted against the bill,
one voted in favor, and one member was absent but
indicated their vote would have been “no”.
New Taxes
for Texans: House Bill 3 also heads to Senate
House Bill (H.B.) 3 provides how Texas will raise
the money that H.B. 2 will spend on schools.
At the beginning of session, House leaders promised
to fund public schools while lowering the property
tax burden. H.B. 3 lowers property taxes, but it does
so by increasing sales tax from 8.25% to 9.25%--the
highest state sales tax rate in the nation.
Latinos are the state’s largest consumer base,
and an increase in the state sales tax promises to
disproportionately affect the Latino community.
H.B. 3 also imposes a new payroll tax, hitting the
Texas business community where it hurts the most.
Payroll taxes discourage economic growth and hurt
employers who increase their workforce. Larger, more
established businesses may be able to handle this
increased cost, but new and small businesses may not.
The Senate could reverse some of H.B. 3’s provisions.
One provision the Senate may change is H.B. 3’s
tax on car repairs. Currently, Texans who get their
car fixed only pay tax on the parts, not the labor.
Senate leaders, including Senate Education Committee
Chair Florence Shapiro, have expressed dismay at the
tax package passed by the Republican House.
One thing is for certain: H.B. 3 has created some
strange coalitions, uniting Democrats and Republicans
against H.B. 3’s provisions. The Young Conservatives
of Texas have launched aggressive campaign against
H.B. 3. Link here to read the commentary from YCT
members:
http://www.yct.org/art-gimble.htm
http://www.yct.org/art-HB3.htm
The Senate is expected to pass a different version
of H.B. 3. If the versions are different, H.B. 3 will
go to a conference committee of members from both
chambers who will work out the differences and produce
a final version.
As for MALC, not a single member of the Caucus voted
in favor of H.B. 3 on third reading.
House
Appropriations Committee Writes Two-Year Budget: $139
Billion
This month the House Appropriations Committee finished
number-crunching a $139 billion budget for the next
biennium. According to early press reports, the committee
is expected to vote on the bill later this month and
bring it to the House floor in April.
Committee members are currently preparing the bill
for review by Texas Comptroller Carole Keeton Strayhorn,
who must certify the proposed budget before it can
go to the full House.
The bill restores some service cuts made during the
last legislative session. The bill includes:
- $330 million for Texas’ Child Protective
Services—an agency under great scrutiny for
failing to protect the most vulnerable children
in Texas;
- $200 million to help school districts pay for
bond packages, plus $4 billion for expected enrollment
growth in Texas’ public schools—a funding
number that critics say barely meets the demands
of inflation, let alone enrollment growth; and
- No additional spending for the state’s criminal
justice system. It instead instructs the state to
use existing resources more efficiently.
Other revenue generating ideas are still being discussed,
such as expanding gambling and dedicating gaming earnings
to public education. Increases in cigarette taxes
and new taxes on some consumer goods are also in the
pipeline. MALC News will provide a thorough assessment
of the budget when a final version is printed and
distributed to members.
MALC
Member Armando “Mando” Martinez can keep
fighting fires
Representatives earn only $7,200 per year, plus
a daily allowance during legislative session. Their
jobs at home are critical to their livelihood and
their families.
MALC member Armando “Mando” Martínez
is a City of Weslaco fire fighter and had to resolve
whether or not he could hold his fire fighter job
while serving in the legislature. This month, Judge
Rose Guerra Reyna held that his status as a city employee
does not prevent him from holding public office; Rep.
Martinez is eligible to work as a firefighter while
serving in the legislature.
Generally, the law prohibits public employees who
derive financial benefits from a municipality from
holding legislative office. Martinez claimed before
the judge that he is simply an employee of the city
and not an officer, and therefore not barred from
holding public office.
MALC
Member Profiles
Pat Haggerty
Elected to the Texas House of Representatives in
1989, Representative Pat Haggerty’s political
career spans over 26 years. He first served as a City
Councilman in El Paso from 1979 to 1987 and as the
Mayor Pro-Tem from 1983 to 1987. Haggerty hails from
Rochester, MN, a long way from the desert southwest
where he makes a living as a real estate broker.
Representative Haggerty attended seminary school
both in San Antonio and Denver. He holds a B.A. in
English and a Master’s degree from the University
of Texas at El Paso. In El Paso, Haggerty has a prolific
list of organizations to which he belongs, including:
Northeast Businessmen’s Group; Transmountain
Optimist Club; Veterans of Foreign Wars Post 8919;
El Paso Community Justice Council; Southern Legislative
Conference Committee on Human Services and Public
Safety; ASI Criminal Justice Committee; Council of
State Governments’ Corrections and Public Safety
Task Force; MALC’s Public School Finance Task
Force; and, an honorary membership of the Associated
Security Services and Investigators of the State of
Texas.
In the Texas House, Haggerty holds seats on the powerful
Appropriations Committee and the Corrections Committee,
where he is the Chairman of Budget & Oversight.
In previous sessions, Haggerty has served on the Licensing
and Administrative Procedures, Pensions & Investments,
and Land and Resource Management Committees
Member Birthdays
MALC News wishes the following members a “Happy
Birthday!” in March:
Dora Olivo, March 6th
José Menéndez, March 11th
René Oliveira, March 14th
Pat Haggerty, March 17th (Saint Patrick’s Day!)
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