WE WISH YOU A MERRY CHRISTMAS AND A HAPPY, HEALTHY NEW YEAR!

Note: Rep. Brown's office will be closed for the holidays.
The next Austin Update will be sent January 9th.


In Tough Times, Texas has Economic Edge

The following article was co-authored by Governor Rick Perry, Lieutenant Governor David Dewhurst, and Speaker of the House Tom Craddick.

Over the past several weeks, the news has been dominated by the worldwide financial crisis and the federal government's response, best described as wildly throwing borrowed money at problems, piling debt on top of debt. In the midst of this turmoil stands Texas, a state with a remarkably durable economy that has led the nation in exports for six years, is home to more Fortune 500 companies than any other and created half the new jobs in the U.S. over a recent 12-month period.

Inquiring minds that want to know how we got here need look no further than the team approach we have taken to creating a fertile climate for economic development in Texas. When contemplating where to locate a company (and the jobs and investment that go with it), business owners are increasingly drawn to our state's low taxes, sensible regulatory climate and a legal system that protects them from frivolous lawsuits.

Imagine the financial situation our country would be in had the federal government applied the same principles that have made Texas the envy of the nation. America's current circumstances are not unlike those Texas faced in 2003 when we had to solve a $10 billion deficit. Rather than raise taxes or ask for a handout, we balanced the state budget the same way any family or business must: by bringing spending in line with income. Our common-sense solution was certainly unpopular in some quarters, but our willingness to choose the tougher course of action has clearly paid dividends with respect to our state's economic strength.

The unique spirit of teamwork among our three offices has extended through the years into other successful efforts, including overhauling our state's workers' compensation system, implementing innovative job creation vehicles like the Texas Enterprise Fund and investing in research and innovation through the Texas Emerging Technology Fund. In the months to come, we are committed to exploring the full range of options for funding our state's growing infrastructure needs. As teammates, we're not averse to butting heads, but we do so from a place of honest respect in the interest of improving the state we love so much.

The upcoming legislative session provides another opportunity to build on the foundations we established in past years and continue improving the quality of life in Texas. Surely, we face many challenges along the way, including unnecessary meddling by the federal government and costly mandates imposed by Congress. Our plan is to keep working together.

In the upcoming legislative session, we will remain focused on keeping the wheels of the Texas economy turning and Texans working. That includes greater efforts to ensure more deserving young people can afford college and that their education prepared them for an increasingly high-tech workplace. We must also explore ways to further streamline our regulatory environment so we don't kill off companies already weakened by these tough times.

Our state's future economic viability also depends on our ability to provide Texas families, businesses, churches and schools the energy they need. We will strengthen our state's position as an energy leader with an all-of-the-above approach including nuclear, fossil fuels, wind, solar, and more. These deliberate steps, shaped by careful planning, spirited debate and a shared passion for our state, will keep Texas moving forward.

We firmly believe our state's number one resource is Texans. Our job is to provide them an environment that encourages their success then get out of their way so they wan do what Texans do best: work hard, take risks and create jobs. As leaders, but more importantly as Texas, we remain united in our efforts to maintain our economic edge and enhance the future prosperity of our great state.

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In 2007, nature decided to welcome the 80th Legislative with a marvelous ice storm. Although Austin traffic skidded to a halt and the outdoor Inauguration festivities were cancelled, the session proceeded on at a furious pace.

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State Housing Agency makes $360,000 Investment in Terrell through Home Repair Assistance Funds

The Texas Department of Housing and Community Affairs
released the following article on Thursday, announcing Terrell as the recipient of home repair assistance funds.

(AUSTIN) - Knowing that maintaining and improving the existing housing stock in rural Texas helps maintain homeownership and the viability of entire communities, the Texas Department of Housing and Community Affairs (TDHCA) has announced an award to the City of Terrell that will help fund home repairs for low income residents and provide financial benefits to both the local construction industry and government coffers.

TDHCA awarded $360,000 in home repair assistance funds to the city which will help rehabilitate six homes owned and lived in by income eligible residents.

"These awards will have a dramatic and positive impact in the lives of these homeowners, most of whom are elderly persons in serious need of help," said State Representative Betty Brown. "These are among our state's most vulnerable residents; they don't have the funds to make the necessary repairs themselves, and rural communities so often don't have the resources to help. I commend TDHCA for this award and their commitment to small town Texas."

"Repairing substandard housing is a critical mission of the Department, as it helps preserve homeownership and brings stability to entire neighborhoods," said Michael Gerber, TDHCA Executive Director. "TDHCA is confident that our home repair funds will have a lasting impact on these six families, and we're proud to help contribute to an improved quality of life for area residents. In addition, the local economy will also benefit from the infusion of construction payroll funds and increased taxes and other fees to local governments."

TDHCA awards home repair funds to qualifying applicants through the Department's HOME Investment Partnerships (HOME) Program, which helps repair or replace homes owned and lived in by income eligible homeowners. Assistance may include roof repair or replacement, as well as repairs to the electrical and plumbing systems. If a home has deteriorated to the point it no longer is cost effective to repair, it may be demolished and replaced either by a traditional "site built" home or a manufactured home.

Qualifying applicants include eligible units of local government, public housing authorities, Community Housing Development Organizations and other nonprofit groups, and certain for-profit organizations.

The U.S. Department of Housing and Urban Development is the funding source for the HOME Program. The program serves households earning no more than 80 percent of the area median family income, which for Terrell and Kaufman County equals an annual income of $53,200 for a family for four.

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Downtown Austin comes alive at Christmas time, aglow with festive lights and holiday decorations. The print depicts the Congress Avenue view of the State Capitol, complete with the Austin Armadillo trolley in the foreground. Visit the Capitol Gallery online to view more of Ray Spivey's images of the Texas Capitol.

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Comptroller Susan Combs Urges Action on Work Force Training Gap

In a press release on Wednesday, December 17, Comptroller Combs highlighted the demand for skilled workers in Texas.
(AUSTIN) — There is a widening gap between the demand for skilled workers in Texas and the state’s ability to supply them, Texas Comptroller Susan Combs said today.

“Texas’ secondary and postsecondary education system is not meeting the demands of the current workplace,” Combs said. “Employers tell us that good paying jobs are going unfilled because they cannot find qualified workers. And we’re hearing from students about the value to them of programs at
community and technical colleges. For Texas to remain an economic powerhouse, our education system needs added focus on career and technical training to fill available jobs.”

Today, Combs issued a new report, Texas Works, which examines the changing Texas job market and the growing shortage of workers with the technical skills required for many of the fastest growing jobs. The report recommends establishing a fund to help with startup costs for new technical training programs and eliminating obstacles that discourage students from pursuing career-technical education (CTE).

Texas has many community and technical colleges offering state-of-the-art training facilities and employment opportunities after just one or two years. But state funding of community and technical colleges has declined, not keeping pace with inflation and hampering schools’ ability to train the next
generation of Texas workers. CTE courses can be expensive for a college, often requiring state-of-the-art technology and equipment, but the state does not provide funding for startup costs. To address this concern, Combs’ report makes two recommendations:
• Establish a $25 million Jobs and Education for Texas (JET) fund to provide support for postsecondary CTE courses, including startup funding for new programs.
• Link any incentive funding to measurable results to ensure the state receives a positive return on its investments.

Increasing state funding for community and technical colleges will not help the state achieve its goals if students don’t take advantage of these educational resources. Combs’ report says far too many Texas high school students fail to pursue postsecondary education. Texas Works has some recommendations to meet this challenge:
• Make more parents and students aware of all postsecondary educational options and the availability of financial assistance.
• As part of this effort, use data on education and employment to measure the benefits of CTE and publicize the results to make more people aware of its value.
• Ensure state graduation requirements and grade point average (GPA) calculation standards do not prevent or discourage high school students from enrolling in career and technology courses.

Combs’ report recommends greater flexibility in the state’s new “four-by-four” graduation requirements, which require all high school students take four years each of math, science, social studies and language arts. Many CTE courses do not count toward the “four-by-four” requirements, and grades in many CTE courses will not count toward students’ GPAs under a proposed uniform statewide grade point calculation system.

“Texas should ensure high school students have multiple pathways to graduation, preparing them for a variety of education and training options after high school,” Combs said. “While the state has done a good job of encouraging more students to pursue college degrees, it is critical that we do not discourage students who will not go to a four year college from attaining valuable training that will raise their standard of living and will have substantial economic benefits to Texas.”

In 2007, more than 80 percent of all Texas jobs did not require a bachelor’s degree. Neither did nearly 44 percent of the jobs paying wages above the state average. The U.S. Department of Education estimates that about 80 percent of the fastest growing occupations in the near future will require some
postsecondary training, but not a bachelor’s degree.

The cost to obtain career training is relatively low. Two years of tuition and fees at a Texas community college cost an average of $3,800, compared to more than $26,000 for four years at a public university. A student who achieves an associate degree will earn an average of $340,000 more over a working lifetime than someone with just a high school diploma.

For Texas, the economic impact from the earnings of all workers with associate degrees and postsecondary technical certificates is estimated at $10.1 billion annually. Combs said the state’s economic strength depends on making the future success of every Texan a top priority.

“If we sacrifice the future productivity of a large number of our young people, we risk jeopardizing Texas’ economic future,” Combs said. “Without an adequate supply of skilled workers, Texas’ ability to attract and retain new businesses will suffer — meaning fewer companies to employ a growing
population, lower economic output, lower personal income and poorer performance on other measures of economic health.”

Texas Works is available on the Comptroller’s Web site at http://www.window.state.tx.us/specialrpt/workforce.

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"The Legislature shall meet every two years at such time as may be provided by law... No Regular Session shall be of longer duration than one hundred and forty (140) days." This painting by Ray Spivey recognizes the long hours of work by legislators, staff, and other citizens each 140-day Legislative Session. 140 Nights features the northern view of the State Capitol Building . Visit the Capitol Gallery online to view other capitol images.

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Caterpillar Moving Primary Manufacturing Facility To Texas

Governor Perry announced on Thursday that this project will create 1,400 jobs in Seguin and is the second largest job creation project this biennium in Texas.

AUSTIN – Gov. Rick Perry, Lt. Gov. David Dewhurst and Speaker Tom Craddick today announced that Caterpillar Inc., a Fortune 50 company, will move one of its primary global assembly, test & paint facilities to Texas, creating more than 1,400 jobs. The state will invest $10 million through the Texas Enterprise Fund (TEF) in the company as a deal-closing incentive for the consolidation and movement of its manufacturing and testing facilities to Seguin, which will generate $169.7 million in capital investment. The project is the second largest in terms of job creation and investment this biennium. Texas was in competition with South Carolina and Mexico for this facility.
“In these uncertain economic times, companies across the country are looking to Texas as the place to grow their business thanks to a reasonable regulatory environment, educated workforce, and economic incentives that bolster Texas’ capital and competition in a global marketplace,” Gov. Perry said. “This investment in Caterpillar will not only create high paying jobs for Texans, but will strengthen our state’s overall economic situation and further diversify our state’s economic makeup.”
Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and medium and high speed diesel engines. The company has several operating locations across the state, including Amarillo, Channelview, Coppell, Dallas, De Soto, El Paso, Fort Worth, Garland, Houston, Laredo, Mabank, McAllen, McKinney, Midland, Sherman, Waco, and Waskom.
“Caterpillar's decision to invest and create jobs in Texas is proof that our efforts to attract businesses and grow our economy are working, even in the face of a troubled U.S. economy,” Lt. Governor Dewhurst said. “By keeping taxes low, removing roadblocks to growth and business, and maintaining a skilled workforce through our commitment to education, we will keep Texas moving forward as a national and global economic leader.”
“Companies around the nation are taking notice of the great climate for business we have in Texas,” Speaker Tom Craddick said. “By holding the line on taxes and promoting growth, we've created an economic climate that is the envy of America. Because of our strong economy, state government has a budget surplus at a time when most other states have a shortfall. This did not happen overnight, and it did not happen by chance. I congratulate the people of Seguin and South Central Texas on this great news.”
With this investment, Caterpillar will consolidate and relocate its assembly, paint and testing operations from Illinois and South Carolina to Seguin. The facility will provide engines for Caterpillar machines and electric power generation, as well as petroleum, marine, and industrial customers.

“The incentive package assembled to recruit Caterpillar Inc. was by far the largest and most aggressive the community has ever developed,” said Seguin Mayor Betty Ann Matthies. “Given the capital investment and the number of jobs committed, Seguin, in coordination with the state, delivered the most attractive incentive package to complement the area’s strategic location and excellent workforce. Without our regional and state partners, we would not have been as competitive.”
At Gov. Perry’s request, the legislature created the TEF in 2003 and re-appropriated funding in 2005 and 2007 to help ensure the growth of Texas businesses and create more jobs throughout the state. The fund has since become one of the state’s most competitive tools to recruit and bolster business. To date, the TEF has invested more than $365 million and closed the deal on projects generating over 52,000 new jobs and $13.7 billion in capital investment in the state.

For more information on the Texas Enterprise Fund, please visit http://www.governor.state.tx.us.

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First elected in 1998, Representative Betty Brown is currently serving her sixth (two year) term in the Texas House of Representatives, representing Henderson and Kaufman Counties. She is a Kaufman County native. Representative Brown serves as Vice Chair of the Redistricting Committee and was also appointed to the Local and Consent Calendars Committee. She also serves as Chairman of Budget Oversight for the Agriculture & Livestock Committee, a position which places her on the Appropriations Committee. She is also a member of the General Government Subcommittee for the Appropriations Committee. Her leadership roles include serving on the Legislative Reference Library Board, the Agriculture Policy Board, and the Republican Caucus Policy Committee.