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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.
* * * * *
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.
* * * * *
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.
* * * * *

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.
* * * * *
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.
* * * * *

"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.
* * * * *
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.
* * * * *
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.
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