University News, 8/23/10-8/30/10

8/23/10, State regent appointees have donated $5.8 million to Perry campaigns

8/24/10, 'No movement' on job for state senator at Texas A&M System

8/25/10, UTMB criticized for turning away charity cases

8/29/10, UT might not reach 2014 goal of raising $3 billion

State regent appointees have donated $5.8 million to Perry campaigns

Fort Worth Star Telegram

August 23, 2010

Matt Stiles and Brian Thevenot

During the decade that he has served as Texas governor, the men and women whom Gov. Rick Perry selected as regents of state universities have given his campaigns at least $5.8 million, according to an analysis by The Texas Tribune.

About half of the governor's appointed regents gave to his campaign. Of those who gave, the average total given was about $64,000.

The top giver, University of Texas System Regent Paul Foster, gave nearly $400,000.

Perry, a Republican and the longest-serving governor in state history, is running for an unprecedented third full term.

In total, he has collected nearly $90 million in donations over the past decade. At least $10 million has come from appointees to various boards and commissions -- and more than half of that money has come from regents, who earn no salary but can be reimbursed for travel and other fees incurred for official business.

They also collect perks ranging from reserved parking to free tickets to football games, though the latter has itself been a cause of some controversy over the years.

The Perry campaign denies any connection between the donations and the appointments.

"The governor appoints people to boards and agencies based on their qualifications and nothing more," said Catherine Frazier, a spokeswoman for the Perry campaign. "It's their right to contribute to his campaign based on what they think of his leadership."

Perry's 10 top regent-donors -- almost all from the University of Texas, Texas A&M and Texas Tech systems -- together have exercised that right to the tune of nearly $3 million in the last decade.

None responded to calls seeking an explanation of their generosity.

One of the top 10 -- former UT Regent Robert Rowling -- has been listed on Forbes' ranking of the world's billionaires.

He owns TRT Holdings, which controls Gold's Gym and Omni Hotels, among other entities.

Democratic gubernatorial candidate Bill White has criticized Perry for using appointments to reward campaign donors.

"It's clear that, for Rick Perry, appointments aren't about serving Texans but about building his own self-serving partisan political machine," said Katy Bacon, a White campaign spokeswoman.

White himself recently came in for some criticism when a Texas Tribune analysis of the appointments he made as mayor of Houston showed that he collected about $2 million in donations from the people he appointed.

'No movement' on job for state senator at Texas A&M System

Chancellor all but offered a high-level position to Jeff Wentworth last month, records show.

Austin American Statesman

August 24, 2010

The chancellor of the Texas A&M University System all but offered a high-level position to state Sen. Jeff Wentworth last month, according to correspondence obtained by the American-Statesman through an open records request.

Wentworth, R-San Antonio , writing on his Senate stationery, told Chancellor Mike McKinney a few days later that he would like to be named a vice chancellor at an annual salary of $235,000 — which he said would be $5,000 less than any other vice chancellor makes — for a minimum of 36 months. Wentworth issued a separate statement at that time saying that discussions about a position with the A&M System were under way, adding "stay tuned and gig 'em."

Weeks later, it appears that the senator might not be in line for a job in Aggieland after all — at least for now.

"There's been no movement on such a position," university spokesman Jason Cook said Tuesday. He declined to elaborate.

Wentworth confirmed that there has been no movement and said there would not be until after the Nov. 2 election.

"I have no assurance that the job offer he made in July will still be there in November," the senator said. "I'm hesitant to speculate."

Wentworth, who is running for re-election, said he decided against resigning from his Senate seat, which he has held since 1993, in advance of the election because that would allow Republican Party officials to select a candidate.

"I think the voters ought to select their senator," he said.

Resigning before the election also would allow Democrats to field an opponent, Wentworth said. Democrats currently have no candidate running for the seat.

This is Wentworth's second stab at landing a high-level public university position in recent months.

The Texas State University System's Board of Regents named Brian McCall sole finalist for chancellor in March and firmed up the appointment in April. Wentworth, who had also applied for the position, later fired off a letter to the regents' chairman, Ron Blatchley , scolding the board for its decision to hire McCall, who had been a Republican member of the state House from Plano.

In his July 8 letter to Wentworth, McKinney noted that he had written a letter of recommendation for Wentworth to serve as Texas State chancellor.

"While that specific opportunity did not work out, their loss may very well be the A&M System's gain!" wrote McKinney, who served in the Texas House with Wentworth about 20 years ago.

The chancellor told Wentworth that his talents and passions match A&M System needs regarding its San Antonio campus, the Legislature and the legal profession.

"I would expect that you will need to commit to the next 2 to 3 years in this endeavor, and in return we should be able to structure a financial package commensurate with a senior level position," McKinney wrote. "We are eager to get you on board at your earliest convenience."

"Vital aspects of my resigning from the Senate to join you" include salary, title and term of office, Wentworth replied in a July 14 letter. "There are other matters about which I'd like to visit with you, such as location of office and administrative support, but we can get to those once the above three matters are agreed to."

Wentworth told McKinney in the letter that he anticipated resigning from the Senate on Thursday of this week and reporting for duty at A&M immediately thereafter. But he said Tuesday that he reconsidered that timing. If he resigned after the November election, a special election probably would be held for Senate District 25, which includes Hays County and part of southern Travis County.

Wentworth, his father and his son graduated from A&M.

rhaurwitz@statesman.com; 445-3604

UTMB criticized for turning away charity cases

Houston Chronicle

August 25, 2010

Harvey Rice

GALVESTON — The University of Texas Medical Branch, an institution with a long history of taking care of indigent patients, is drawing condemnation for dramatically reducing its level of charity care and putting increasing pressure on nonprofits that help the uninsured.

Officials who urged the Legislature last year to reverse the UT Board of Regents' policy and halt the dismantling of UTMB after Hurricane Ike cited the medical school's traditional role of taking care of indigent patients as one of their reasons.

But UTMB has been edging out of the charity care business for nearly a decade and last year devoted the smallest portion of its resources to charity in memory, dropping to 2.6 percent of patient services. Charity care is a money loser, and UTMB officials say the Legislature wants it to make money, not lose it as it was doing for at least a decade before Ike struck in 2008.

"In recent years UTMB has carved back and carved back to the extent that if they were taking care of the indigent it was through the counties," said Anne Dunkelberg, associate director of the Center for Public Policy Priorities in Austin.

'It is a different world'

The decline in spending on charity care fell from 20.6 percent of total patient services in 1999 to 2.6 percent last year, according to a chart prepared by Dr. Merle Lenihan based on UTMB's annual financial reports. Lenihan is the author of a report by the Galveston County Cancer Coa lition on the county's lack of charity policies.

UTMB filled a vital role in Texas by caring for the indigent since the 19th century. Those days are gone, said Dr. Ben Raimer, UTMB senior vice president.

"I think it is a different world for UTMB, but it is a world of accountability," Raimer said.

He said UTMB has not abandoned indigent care, but has been forced to cut back because the Legislature is requiring the medical school to pay its way.

UTMB has treated 8,000 indigent patients this year, according to Raimer, although 85 percent of those patients came through the emergency room where the law prevents denial of treatment if the condition is serious enough.

Acute problem on island

In fiscal year 2006, UTMB cared for uninsured patients from 160 of Texas' 254 counties. By 2009 that number had dropped to 83 counties.

That trend has consequences for social service agencies like Jesse Tree, based in Galveston.

The organization has seen a 75 percent increase in people seeking health care since Hurricane Ike, executive director Ted Hanley said. The agency is enrolling 1,000 applicants a month seeking everything from primary care to cancer treatment, Hanley said.

"We're coming apart at the seams," he said.

Hanley said the problem is acute because half of Galveston County's 250,000 population is uninsured.

"I don't have an X-ray machine, I don't have staff, I don't have enough telephone lines to care for all the people who are turned away from UTMB," said A.J. Halvorsen, clinical liaison for St. Vincent's House in Galveston. She said the number of clients has doubled since Hurricane Ike to between 450 and 500 a month.

"I have people with holes in their mouths from oral cancer, these horrible … breast masses oozing out, people with cancer that has eaten away their face," Halvorsen said.

'Historic' responsibility

Thomas Taboada, 53, is a Jesse Tree client living in Galveston. UTMB performed a free checkup and told him he needed laser surgery on his eyes to keep from going blind. But UTMB wanted $9,000.

Taboada, who makes his living providing yard care, was forced to rely on help from friends and relatives to raise $1,400 to get the surgery in Mexico. His problem now is that he needs repeated surgeries and he can't raise the money.

"If I had the money, I would get it again," he said about the surgery.

UTMB is drawing criticism for avoiding people like Taboada to increase its bottom line.

"It is their responsibility, that is a historic one, for UTMB to provide services for those that are economically disadvantaged," said Joe Compian, a member of the Archdiocese of Galveston-Houston Campaign for Human Development's local board. "It is a state institution. It is a local institution, as well, and that means it belongs to the people of Texas and let's do right for the people of Texas."

"I think it's a travesty," Galveston County Judge Jim Yarbrough said. "It should be an integral part of their mission. They are the state indigent care facility, and they have patients coming from all over the state."

Yarbrough is irked that Galveston County rode to UTMB's rescue last year, but now it can't even get a contract with the medical school to care for the county's poor. State law allows counties to spend $30,000 per patient, but UTMB wants twice that.

Major rebuilding effort

To meet a condition set by the Legislature for a state bailout of UTMB, the county raised taxes by 6 cents last year to pay for indigent medical care other than checkups, such as care for diabetes or cancer.

Devastated by Ike, the medical school was drowning in red ink, and the University of Texas Board of Regents was set to dismantle it.

Fortified with new legislative appropriations, UTMB has embarked on a $1 billion reconstruction effort, has plans for a new surgical tower and other buildings, and reportedly expects to finish this fiscal year in the black.

harvey.rice@chron.com

UT might not reach 2014 goal of raising $3 billion

Sluggish economy affecting variety of initiatives, from scholarships to computer science complex

Austin American Statesman

August 28, 2010

Ralph K.M. Haurwitz

It's not exactly the most auspicious economy in which to be raising $150 million for 300 full-ride scholarships to the University of Texas, but Jim Boon is undeterred.

"If we end up with 60 of these scholarships or 300, it's more than we had before," said Boon, executive director of the Ex-Students' Association, also known as the Texas Exes.

The Exes' initiative is one element of a campuswide fundraising drive, known as the Campaign for Texas, that seeks to raise $3 billion for construction projects, research, faculty pay, graduate student stipends, undergraduate scholarships and athletics by Aug. 31, 2014. And, like the Exes' portion, the overall effort hasn't advanced as far as officials might have hoped.

A total of $1.2 billion has been donated so far. And at the current pace, the university will fall short of its goal. The figure includes cash, securities, pledges and bequests.

"We're aware of the 2014 date, and if we have to extend it we will," said David Onion, associate vice president for development. "The goal of the campaign is not necessarily to fit into an artificial timeline but to elevate the university."

Fundraising for the current budget year, which concludes at the end of this month, is expected to total about $295 million, Onion said. That's about 3.5 percent more than the $285 million donated in the previous year.

The sluggish economy has led to a reduction in larger gifts, which typically are given in the form of stock for brick-and-mortar projects, Onion said. Some sizable gifts are nevertheless in the works, and officials are pleased with the breadth of participation in the campaign.

About 90,000, or nearly 23 percent, of UT's 400,000 living alumni have made a donation, said Carolyn Connerat , executive director for development and manager of the campaign. Nearly 84,000 non-alumni have donated.

Still, the university has had to make adjustments in what its president, William Powers Jr., described earlier this year as "a difficult fundraising environment."

In May, for example, the UT System Board of Regents reduced the price tag for a computer science complex and added $38.5 million in bond funding to allow construction to proceed after the campus failed to receive a penny of $60 million in hoped-for gifts on top of previous pledges of $30 million by the Bill & Melinda Gates Foundation and $10 million by the Michael & Susan Dell Foundation.

Although no additional gifts for the complex have been firmed up yet, "we have several significant foundation proposals out there and some corporate proposals as well that look very promising," Onion said.

The Texas Exes group is also making headway. About $16 million was raised by January, when the Exes went public after more than a year of quiet fundraising. Since then, the needle has moved to $29.9 million.

Boon will have more time to drum up donations come January, when he will shed his current title and become executive director of the Texas Exes Scholarship Foundation. Boon, 63, has led the Ex-Students' Association for 16 years and has committed to serving at least three years in the new job.

The 40 Acres Scholars Program is a merit-based program that will cover tuition, fees, books, living expenses, priority housing in honors residence halls and funding for summer activities such as internships, study abroad and public service. The first 10 scholarships will be awarded in fall 2011. The program is modeled after similar ones at the University of Virginia and the University of North Carolina at Chapel Hill.

Some civic, business and higher education leaders question merit-based aid, noting that there is considerable unmet financial need amid the growing numbers of low-income students in Texas.

"I wouldn't make any apologies for us wanting to attract the best students," Boon said during an interview this week at his office in the association's quarters on San Jacinto Boulevard, across the street from Royal-Memorial Stadium.

The Exes already dole out about $2 million a year in financial aid, split about evenly on the basis of need and merit, he said. That program, which involves more than 700 scholarships, will continue.

Promotional materials distributed by the Exes offer another argument for ramping up academic recruiting: "The Longhorns always aim to get the top recruits in sports — it's time to do the same in academics."

rhaurwitz@statesman.com; 445-3604