TOMORROW: TPPF hosts “At the Crossroads: Energy & Climate Policy Summit” Featuring Gov. Rick Perry and Sen. Dan Patrick

AUSTIN – The Texas Public Policy Foundation will host “At the Crossroads: Energy & Climate Policy Summit,” on Thursday and Friday, September 25-26, 2014 at the Hyatt Regency in Houston. This summit will bring together the brightest and most eminent minds on energy and climate change to discuss the path forward from the crossroads between the transformative energy...

Press Release September 24, 2014

Federal Pre-K Dollars Wrong for Texas

Yesterday the San Antonio Express-News ran a story on Texas’ potential participation in President Obama’s Preschool for All Program, which would draw an estimated $308 million in grants to Texas to expand access to pre-kindergarten in the state. To say nothing of the dangers that come with accepting any form of federal funding (nothing, after all, is ever really free), what should be examined is whether this is something Texas needs in the first place. How much of what we learn at an exceptionally young age truly travels with us through life? Late last year, the Texas Public Policy Foundation released a study on San Antonio’s pre-k proposed expansion, highlighting the “fade-out effect.” The fade-out effect shows that in many cases, any academic benefits of pre-kindergarten are no longer do not carry past the 3rdgrade. As much makes any substantial state investment in pre-kindergarten questionable at best. Fortunately, Governor Perry is approaching these grant monies with appropriate caution. Per the linked story, his office responded to the potential grants as follows: “Gov. Perry continues to believe that Texas knows best how to educate our children, and we will not sacrifice our standards or local control for one-size-fits-all federal mandates,” the spokesman, Josh Havens, said. Further, it should be noted that pre-kindergarten is widely available in Texas already.  More money, especially federal money, is not going drastically change the Texas education landscape. In fact, more money is the only thing we have really tried over the last several decades, without results. Again, nothing is ever really free. Texas doesn’t need more money for pre-kindergarten, and it certainly doesn’t need money covered in Washington, D.C.’s red tape.

Press Release September 23, 2014

Rainy Day Fund Battle Heats Up

During the 83rd Texas Legislative session, lawmakers approved a constitutional amendment to authorize the expenditure of $2 billion from the state’s Economic Stabilization Fund, or rainy day fund, on water infrastructure projects. The cost of meeting long-term state water needs is estimated to be $53 billion, $27 billion of which are state financial assistance. Moreover, the cost of inaction is estimated to be “$116 billion in lost income by the year 2060.” The measure, which is presently awaiting voter ratification in November 2013, has been consistently challenged by conservatives. Conservative opposition to the financing is forming along lines similar to that contingent which lobbied against the bill in the legislature. Groups resistant to the measure include Grassroots America, Texans for Fiscal Responsibility, Empower Texans, and the North Texans Citizens Lobby. These challengers have argued that traditional state coffers are sufficiently flush with new revenues that the rainy day funds ought to remain in the savings account. The Foundation rejects the use of this capital because the significant increase in session-to-session spending for the 83rdlegislative session illustrates the existence of ample funding to support water infrastructure. In this way, the state ought to better prioritize its use of discretionary capital rather than merely dipping into the state’s savings. Moreover, this transfer of funds skirts the totaling of the state’s spending cap, which the Legislature has ardently protected. While the cause is noble, the current funding mechanism for the project is not.

Press Release September 23, 2014

BILL ALERT: HB 1600 – Public Utility Commission Sunset Bill

For the most part, HB 1600, the Public Utility Commission (PUC) Sunset bill, is non-controversial.  The largest portion of the bill deals with moving the authority over water rates from the Texas Commission on Environmental Quality to the PUC. However, the granting of emergency cease and desist authority in Section 1.03 of this bill is a major problem. Section 1.03 would give the PUC the authority to issue a cease and desist order on its own authority without going to district court. The PUC could also issue a cease and desist order without providing notice to the company or without providing the company an opportunity for a hearing. Only if “practicable” would a company have an opportunity for notice or a hearing.  The Foundation objects to granting emergency cease and desist authority to the PUC—and to HB 1600 unless this provision is removed. For a full treatment of the problems the Foundation sees with this provision, please see the Center’s bill analysis on HB 1600. The short version is that granting emergency cease and desist authority to the PUC is completely unjustified given the facts. There is zero evidence of any substantive violations or problems in the Texas electricity market to justify this increased intervention in the market. This provision is particularly worrisome at a time when the primary challenge facing state policymakers is maintaining reliability in the face of government intervention in the Texas electricity market. Amendments have been filed by Reps. David Simpson (p. 24), Matt Krause (p. 25), and Jodie Laubenberg (p. 26) to eliminate this provision.  TPPF urges the adoption of any of these amendments. Reps. Simpson (p. 27) and Scott Sanford (p. 28) have filed amendments that would limit the PUC’s cease and desist authority, but not eliminate it. While we appreciate these efforts to reduce the unjustified authority granted in the bill, the House’s best course of action would be to repeal such authority altogether.   The Foundation also issues recommendations regarding several other floor amendments (click links to see related TPPF research):  OPPOSE:  Amendment by Sylvester Turner, p. 22 – The level of fines at the PUC should not be increased; there are no problems in the market to justify this   OPPOSE:  Amendment by Sylvester Turner, p. 29 – This would expand the PUC’s cease and desist authority OPPOSE:  Amendment by Vo, p. 42 – Terms of service should be decided between the customer and the provider, not by the PUC OPPOSE:  Amendment by Strama, p. 47 – Renewable energy subsidies harm consumers, increase energy prices, and reduce reliability in the Texas electricity market SUPPORT:  Amendment by Sylvester Turner, p. 55 – The Foundation supports a reduction in the Universal Service Fund OPPOSE: Amendment by Yvonne Davis, p. 57 – This would largely re-regulate the Texas electricity market

Press Release September 23, 2014

Coalition Releases Guiding Principles for Local Debt Transparency, Accountability & Election Reforms

AUSTIN – The Texas Public Policy Foundation and a coalition of allies called on local elected officials to voluntarily adopt much-need guiding principles to advance and enhance local debt transparency, accountability, and election reform. The coalition is made up of the Texas Public Policy Foundation, Texas Public Policy Action, Empower Texans, Grassroots America: We the People,...

Press Release September 22, 2014

TPPF releases “Growing the Economy without Growing Government: Eliminating Taxpayer-Funded Corporate Subsidies”

AUSTIN – Today the Texas Public Policy Foundation released Growing the Economy without Growing Government: Eliminating Taxpayer-funded Corporate Subsidies.  The paper, written by Vice President for Research & Planning and Center for Economic Freedom Director Bill Peacock, shows that the rapid growth of the Texas economy is due to free market policies, not government-run economic development...

Press Release September 19, 2014

TPPF Announces Governor Perry to Deliver Keynote Remarks for At the Crossroads: Energy and Climate Policy Summit

AUSTIN – The Texas Public Policy Foundation today announced that Governor Rick Perry will deliver the keynote remarks for “At the Crossroads: Energy & Climate Policy Summit” on Thursday, September 25, 2014. The Summit, a world-class gathering of the most prominent scholars on energy and climate change, will be held at the Hyatt Regency Houston...

Press Release September 19, 2014

MONDAY: Media Conference Call on Appeal to Local Government for Transparency & Fair Elections

AUSTIN – The Texas Public Policy Foundation will host a media conference-call briefing Monday, September 22, at 11:00 a.m. Central Time to discuss the coalition of allies’ call on local elected officials to voluntarily adopt guiding principles to advance and enhance local debt transparency, accountability, and election reform. The conservative coalition consists of the Texas Public Policy...

Press Release September 19, 2014