Attorney writes lawmakers about some ‘turmoil’ for Mexia State School workers

Mexia Daily News

June 06, 2008 10:56 am

By Bob Wright-Editor

Local attorney Jeff Stuver, who has frequently represented Mexia State School employees, is calling attention to what he describes as “...the constant state of turmoil” which he says “exists among those employees and the state school’s residents.”


Stuver alludes to some conditions in letters which he wrote and mailed to state lawmakers who represent the House District 8. Among recipients of the letters, faxed and also sent by regular mail, are Texas State Senator Steve Ogden and to Governor Rick Perry. He also made available a copy of the letter to The Mexia Daily News, and to District 8 State Representative Byron Cook.


The attorney, who has practiced law here for 14 years, was the Precinct 4 Limestone County Commissioner for 12 years. He also was employed at Mexia State School from 1975 through 1980, and in contacting the newspaper, emphasized, “Over the past 33 years, I have seen how important the Mexia State School facility is to the residents who live there, to the employees who work there, and to the economy of Limestone County, as well as to the surrounding counties.


“It is with genuine concern over the welfare of all of the above that I hope to call attention to the plight of an overwhelming number of employees of the Mexia State School...”


Stuver’s letter, made available to the Press, followed on the heels of a television station’s story which noted that “about one-fourth of more than 800 employees suspended or fired for mistreatment at 13 state facilities for the mentally and developmentally disabled worked at either the Lubbock or Denton state schools.” This, from The Associated Press.


According to The Associated Press, “The records also show that nearly 58 percent of the 822 firings or suspensions since fiscal 2004 for abuse, neglect or exploitation of residents came from four of the 13 state schools - Mexia, Lubbock, San Angelo and Denton.”


The report also says that “Since fiscal year 2004, 120 employees have either been fired or suspended from the Mexia State School for abuse, neglect or exploitation of residents.”


The Associated Press obtained the figures through an open records request to the Department of Aging and Disability Services, which oversees the state schools.


In representing many of the dismissed employees from the local facility, Stuver says, “In 14 years of practicing law, I have never seen such a gross miscarriage of justice. That is the reason I feel compelled to write this letter.”


He continued, “I have frequently represented employees of the Mexia State School at grievance hearings to which they are entitled when they have been terminated, suspended or are faced with the loss of a property right, i.e. their jobs. At these grievance hearings, employees are faced with defending themselves against allegations of abuse or neglect of a state school resident without being able to subpoena witnesses; where the rules of evidence don’t apply; where the state’s evidence is in large part based on a written hearsay summary of an investigation prepared by one person who works for the Department of Family and Protective Services (DFPS) (i.e. not the Mexia State School or the Department of Aging and Disability Services (DADS).


“Unfortunately for the employee,” continues Stuver in his message to lawmakers, “The person who actually performed the investigation and reaches his or her conclusion, can’t even be compelled to come to the hearing to testify.” Stuver said he has represented employees in approximately 100 grievance hearings, “And a representative from the DFPS has actually appeared only two times.”


Stuver, given past cases in which he has been involved, and relating to some cases in which he did not participate, believes that many of the hearings are “...grossly inadequate.”


The longtime attorney says, “On a daily basis, I now receive calls from employees who have been terminated on the thinnest of evidence. Many of these employees have worked at the Mexia State School for 10 and 15, even for 20 years or more. The ‘evidence’ or circumstances upon which they are being terminated is frequently laughable if it were not for the fact that their lives and reputations are being devastated after years of faithful employment. Quite frankly, it is sickening.”


Stuver says it’s his understanding that right now, there are about 50 employees on administrative leave. He said that “Most non-direct care staff are on call to ‘come in to work’ due to staffing deficiencies.”
Stuver makes it clear that he wants “the residents of the state school to be protected from abuse, and I certainly don’t condone any abuse or wilful neglect of those residents,” but also emphasized, “I don’t believe that the basic rights of those unjustly accused employees should be taken away by the system as it now exists.”


He further tells state officials: “Based on an illogical, ill-reasoned ‘zero tolerance’ policy announced by Health and Human Services Community (HHSC) bureaucrats, virtually no distinction is being made between intentional abuse cases and alleged negligent conduct. All are terminated. No common sense is used, and the local administrators are in reality eliminated from the decision-making process.”
In conclusion, Stuver had this to say: “...a state of unbelievable and unconscionable turmoil exists at the Mexia State School which is having a detrimental effect on residents of the state school, residents who desperately need a stable living environment.


State's new tax on firms 'a miss'
$4.2 billion collected falls well short of the early estimates

 

Houston Chronicle

June 25, 2008

By PEGGY FIKAC
Copyright 2008 Houston Chronicle Austin Bureau

AUSTIN — Texas' new business tax has brought in $4.2 billion so far, raising questions about whether it will hit the $5.9 billion in collections projected for this fiscal year.

State Comptroller Susan Combs' office, which Wednesday announced the total collected since the June 16 deadline, cautioned final figures won't be available until November since businesses could file for an extension.

"I guess for a brand-new tax ... that's pretty good," said Rep. Jim Keffer, R-Eastland, chairman of the tax-writing House Ways and Means Committee. "It's pretty well on target."

But Dale Craymer, chief economist for the Texas Taxpayers and Research Association who has worked for a comptroller, two governors and the Texas House, said, "I think it's unlikely we're going to hit the first-year target of $5.9 billion. It's too early to say how big a miss it is."

Still, Craymer said, Texas has billions unspent so even if the new tax is a bit short, "the state still has plenty of money to cover its needs." He predicted problems would be smoothed over as the tax is in place longer.

500,000 returns filed

The expanded business tax was approved in 2006 as part of a package that also lowered local school property tax rates. It just came due this year.

 

The new tax closed provisions in the former franchise tax that allowed many businesses to avoid paying it, increasing those that must file from 700,000 to 900,000. A number will still pay no taxes if they fit certain criteria.

 

An estimated 500,000 returns have been filed so far, Combs spokesman R.J. DeSilva said. Some returns cover groups of businesses, so it's unclear how many entities are represented by the returns, he said.

Of those that filed, 133,000 made payments, including 46,000 that made a required payment in asking for an extension to pay whatever else they may owe.

 

Small businesses in particular have said changes in the tax mean skyrocketing bills for many who paid the former franchise tax all along. Under the previous franchise tax, businesses that didn't organize in a way to avoid the levy paid the greater of 0.25 percent tax on taxable capital or a 4.5 percent tax on earned surplus net income plus compensation of officers and directors.

Uncertain consequences

The expanded business tax is based on gross receipts either 1 percent or half a percent, depending on the type of business with deductions including cost of goods sold or employee benefits. Some businesses have noted with concern that they owe the tax whether or not they made a profit.

 

"The one thing this number doesn't change and the one thing we've been saying all along is we don't know what this figure means to the Texas economy," said Laura Stromberg of the National Federation of Independent Business/Texas. "We still don't know how many jobs will be lost, how many businesses will be shut down, how many business owners will take a pay cut, or how many will have to take out a loan at the bank to pay this tax."

 

Sen. Dan Patrick, R-Houston, wants the tax scrapped.

 

"I'd like to repeal it and have a discussion on the best way to move forward in bringing in the funding we need," said Patrick, who suggested looking for savings in the budget and then increasing the sales tax, an idea many oppose, if more money is needed.

An income tax?

He said the tax "looks like an income tax." A provision in the state constitution requires a referendum before a tax is imposed "on the net incomes of natural persons, including a person's share of partnership and unincorporated association income."

 

"My guess is someone will challenge it in court," Patrick said.

 

Supporters of the tax have disagreed with the idea that it amounts to an income tax.

 

Some lawmakers noted that state leaders, including GOP Gov. Rick Perry, said they expected the expanded business tax to bring in more money than projected, an idea they said appears unlikely given the numbers released Wednesday.

 

"They were telling us what they wanted people to believe so they wouldn't get upset about a massive cut in the amount of money available to fund the schools and other state priorities," said Rep. Scott Hochberg, D-Houston.

School property tax

He and others expressed particular concern since the money needed to subsidize the cut in local school property tax rates is far more than the amount that will be brought in by the expanded business tax and a higher cigarette tax, both meant to help offset property tax relief.

 

Lawmakers last year approved a $14.2 billion property-tax relief package. About $8.3 billion of that was to be covered by new state taxes, leaving about $6 billion to be covered by other funds in the budget. Of the $5.9 billion that's been projected to be brought in by the expanded business tax in fiscal year 2008, which ends Aug. 31, $2.8 billion is projected to go this year for general revenue and $3.1 billion to offset local school property tax relief.


 

State overseer of child protection agency retiring

Carey Cockerell, commissioner over department that seized hundreds of children from Eldorado ranch, to leave Aug. 31.

 

Austin American Statesman
Saturday, June 28, 2008

Corrie MacLaggen

The commissioner who oversaw the controversial removal of more than 400 children from an Eldorado ranch owned by a polygamous sect will retire Aug. 31, he announced Friday.

Carey Cockerell, 61, of the Texas Department of Family and Protective Services, told his staff in a memo that he has been considering retirement since late last year.

"I am about to become a grandfather for the first time and I am ready to spend some quality time with my family after a career that has spanned four decades," wrote Cockerell, whose agency oversees Child Protective Services.

By leaving this summer, Cockerell will avoid facing state lawmakers during the legislative session that begins in January.

Lawmakers will have "all eyes on Child Protective Services" because of Eldorado, said state Rep. Elliott Naishtat, D-Austin, a member of a Texas House committee that monitors CPS.

Department spokesman Patrick Crimmins said, "There is no connection between his retirement and Eldorado."

Cockerell, a former director of juvenile services for Tarrant County, took the helm at the department in 2005. That was just months after state reports found that CPS failed to provide needed services for children living in potentially dangerous situations and that Adult Protective Services caseworkers were not adequately trained.

"At a time when there were reports of cases being closed too quickly and children and the elderly being left in dangerous conditions, Carey helped our state refocus protective services to its vital mission — protecting Texas' most vulnerable," Gov. Rick Perry said in a statement.

Cockerell oversaw major changes at CPS, including a $248 million effort that lawmakers ordered in 2005 to add caseworkers and improve training and technology.

"Carey took on one of the most difficult jobs in state government and achieved significant improvements in just a few short years," Texas Health and Human Services Executive Commissioner Albert Hawkins said.

Lately, the agency has been in the national spotlight for something that Cockerell's 467-word memo didn't mention: seizing the children from the Yearning for Zion Ranch in April and placing them in foster care around the state.

In a rebuke to CPS, which said its investigators discovered a pattern of teenage sexual abuse, the Texas Supreme Court ordered the state to return the children to their parents.

"Under the guise of protecting children, (CPS has) done a great injury to these children," said

Attorney says allegations against former Lufkin State School employee are false


The Lufkin Daily News

Wednesday, June 25, 2008



The attorney of a former Lufkin State School employee arrested Monday on charges of beating up a blind resident said the allegations are false.

 

Angelina County investigators arrested Toby Falcon, 33, late Monday and charged him with injury to disabled — a third degree felony offense.

 

He is accused of injuring a man he cared for at the state school by allegedly dragging the man into his room and punching him in the face, an arrest affidavit stated. The incident reportedly happened March 11, not November 2007 as the arrest affidavit mistakenly stated, Falcon's attorney Ryan Deaton said.

 

Deaton said there is more to the story.

 

"The investigation done was not handled thoroughly," Deaton said. "There are credible witnesses out there that weren't considered."

 

Deaton declined to elaborate, saying he did not want to jeopardize his case.

 

Falcon was fired after an investigation was done by the state's protective services department, said a spokesman for the Texas Department of Aging and Disability Services on Tuesday.

 

He was being held in Angelina County Jail late Wednesday afternoon on a $12,500 bond, according to a jailer.

 


Man charged with injuring disabled state school resident


Lufkin Daily News

June 25, 2008



A former Lufkin State School employee has been charged with abusing a disabled resident who is blind.

Angelina County investigators arrested Toby Falcon, 33, late Monday and charged him with injury to disabled — a third degree felony offense.

 

Falcon is accused of allegedly pushing the man — who was in his care — to the ground and dragging him into his room where he punched the man in the face, an arrest affidavit stated. Falcon allegedly took off his ring before punching the man, the report also stated. The incident reportedly happened in November 2007.

 

A spokesman for the Texas Department of Aging and Disability Services said Falcon was fired after an investigation was done by the state's protective services department.

 

Falcon was immediately removed from direct care while the investigation was conducted, aid Cecilia Fedorov, public information officer for DADS.

 

The allegation was reported to the state by the school and then referred to the Texas Department of Family and Protective Services. There was no immediate information on the outcome of the state's investigation. Falcon, who remained behind bars without bond Tuesday evening, has not yet hired an attorney.

 

Day-care owner charged in injury to toddler

 

Austin American Statesman

June 29, 2008

A Brazos County home day-care owner is free on bail after being accused of causing a severe head injury to a toddler earlier this year.

Dana Rene Munyon, 45, surrendered early Friday and posted $25,000 bail. She was charged with injury to a child causing a serious bodily injury, a first-degree felony punishable by up to life in prison and a fine of up to $10,000.

The district attorney's office declined to comment on the case, which is expected to go before a grand jury soon.

"This is too early for people to be judging the merits of this case," Munyon's attorney Craig Greaves said in the Bryan-College Station Eagle on Saturday. "It's very emotional, and I just hope people wait and hear all the facts before drawing a conclusion."

Court documents show that Tiffany Verzal left her 14-month-old daughter, Alexis, at Munyon's house on April 3. Thirty-five minutes later, Verzal said, she received a phone call from Munyon, saying "something had happened to Alexis. She went limp. I've called 911. I need you guys to get here."

Verzal told police that Munyon told her she had put her daughter in a time-out but that the child kept getting off a blanket. Verzal said Munyon told her that she turned to look at several boys in her care. She said Alexis stopped crying, so Munyon thought she was asleep. When Munyon went to check on Alexis, she didn't respond, so Munyon called 911, according to Verzal's statement.

A physician who examined Alexis on April 3 said tests showed that she suffered from a traumatic brain injury and from retinal hemorrhages in her eyes, according to a document filed by Brazos County Sheriff's Department investigator John Pollock.

The toddler was suffering from partial paralysis on her right side and her vision was affected by the injury. Doctors told Pollock that Alexis could have some effects of the injury for the rest of her life.

After 25 days at Scott & White Hospital in Temple, Tiffany Verzal and her husband, Brandon, took Alexis to Madonna Rehabilitation Hospital in Lincoln, Neb., to be closer to family and to receive treatment at a facility known for having an extensive brain injury program.

Brandon Verzal came to College Station to work as director of Texas A&M's 12th Man Productions. He met his wife while both worked as student aides in the University of Nebraska athletic department. They eventually followed Texas A&M athletic director Bill Byrne and other former University of Nebraska staffers to Texas A&M.

Munyon, who kept children in her home for almost 20 years, had other parents who worked for the Texas A&M athletic department among her clients. She voluntarily stopped taking children after Alexis' injury.

The home was not a licensed day care, according to the Texas Department of Family and Protective Services. Marissa Gonzalez, a spokeswoman for child care licensing for Texas, said the state requires anyone who baby-sits three or more unrelated children for a consistent period to have a license and to be inspected regularly by the state. Penalties for such a violation are administrative, not criminal, she said.

At least one of the parents interviewed by authorities described Munyon as an excellent child care provider.


.

No support for child support

Lubbock Avalanche Journal

June 22, 2008

By Marlena Hartz

 

Two sides can be clearly seen in the shiny, instant photos, shot years ago and tucked in a thick stack of court documents.

 

In one photo, there's a young Melissia Martin, her bangs teased and hair-sprayed, her then 6-year-old son, Brandon, sitting on her lap.

 

In another, stapled on the opposite side of the document, there's Billy Shackelford, alone, leaning forward in a faded T-shirt.

 

Twelve years ago, a Lubbock judge legally linked the three.

 

Shackelford, 38, is Brandon's biological father, a paternity test confirmed with 99.9 percent positivity. The judge ordered him to pay $25 per month in child support, court documents show. But he never did, at least not consistently. He and Martin have been in and out of courts ever since, and he now owes the Wolfforth mother more than $27,000, documents show.

 

In Martin's quest to pry money from him (which continues although Brandon is an adult), Martin got entangled with something else - an industry she said is preying on vulnerable, single parents, mostly mothers.

 

Not just Martin, but hundreds of parents have complained about the private child support collection industry, according to records from two state agencies assigned to handle child support issues. But those agencies, the Texas Department of Banking and the Texas Attorney General's office, rarely impose penalties against the companies as a result, records The Avalanche-Journal obtained through the Texas Public Information Act show, leaving several local mothers to feel their pleas are being ignored.

The agencies have received approximately 500 documented complaints against the companies since 2002, or an average of 100 per year, their records show.

 

Industry and state officials said the number of complaints is not alarming considering the number of people the industry serves.

 

"We do receive some complaints, but we know we are doing a good job for thousands and thousands of people," said Eric Rosenkoetter, a spokesperson for Supportkids, the largest private child support collection company in the nation.

 

The Austin-based company has been around since 1991 and has 40,000 clients, he said. It's one of 13 child support collection companies the state banking department has registered to operate in Texas. The department does not keep track of how many clients each company serves, a spokeswoman said.

Some clients, though, have begged for help, copies of complaints filed with the consumer protection division of the attorney general's office show.

 

Most often, mothers complain the companies refuse to or make it difficult to terminate contracts with the companies, which generally obligate them to remain clients until non-custodial parents satisfy their debts, while guaranteeing the companies more than 30 percent of child support collected on their behalf. About 150 people have complained to the state banking department and the attorney general's office about contractual issues in the past five years, records show.

 

"They take advantage (of) people in what is already a hard situation for everyone involved. I don't make a lot of money and cannot afford a lawyer. Please, I need help. I just want them to terminate my service," a mother in Georgia complained to the division this year.

 

Mothers with custody of their children aren't the only ones blasting the industry. About 50 non-custodial parents who owe child support in the past five years have complained the private companies harassed or intimidated them to get them to pay or misrepresented themselves as government agencies, records show. Many more argue they don't owe any child support.

 

"They are not efficient or thorough enough to do their job professionally or ethically. They are a collection agency, period. And the fact that they take a child's support money to fund their business is just sick," complained a father from Oregon.

 

The complaints don't go unanswered, state officials said. Unhappy parents are listened to and their complaints are recorded and reviewed, they said.

 

The consumer protection division of the attorney general's office and the banking department have validated a small percentage of the complaints they've received since 2002. The division has awarded roughly $5,000 to a dozen aggrieved custodial and non-custodial parents. But they've not ordered a monetary settlement since 2003, records show.

 

The banking department has awarded about $4,300 to complainants since 2002, according to officials.

Ultimately, it's up to lawmakers to decide if more enforcement is needed, a department of banking spokeswoman, Wendy Buitron, said.

 

"With any industry, you are going to have complaints," she said.

 

Her department's oversight of the companies is limited, she said.

 

In 2001, state lawmakers designated that the banking department regulate the industry, but the department's authority does not extend much beyond licensing the companies.

 

The department has never revoked a child support collection company license or determined a child support collection company to be in violation of the chapter that oversees their operation, she said.

Nobody on her side'

 

Frustrated with the attorney general's office, which is assigned to enforce child support orders for the state, Martin turned last year to a private child-support collection agency, Texa$upport, Inc.

"I thought I finally had someone on my side," she said.

 

But she said the company, which used to operate in Lubbock but recently moved to Levelland, disappointed her, too.

 

Employees, she said, dodged her phone calls. They claimed 33 percent of all payments they received, which is a sky-high fee, she said, because it diverts money from the mouths of the neediest children. She haggled for months to terminate her contract, which she finally did this spring by hand-delivering a termination letter, she said.

 

The owners of the Levelland business did not return A-J phone calls.

 

Another Texa$upport client, Angela Trevino of Lubbock, said the company has kept their promises.

"I'm happy with their services. ... I wasn't getting anything. Something is better than nothing," said the mother of two.

 

This hits at the industry's reason for being, said Rosenkoetter, the Supportkids spokesperson: the job of collecting child support from delinquent parents is simply too big for states to handle, he said. His company's average client has not received a child support payment in more than three years and is owed $25,000 in child support arrears, he said.

 

"No matter how much funding a state child support agency has or how well they do their job, they would never be able to collect for everybody," he said.

 

Their budgets, he said, are too small and their case loads too large.

 

A spokesperson for the attorney general's office, Thomas Kelley, declined to respond to Rosenkoetter's comments. The office collected $2.3 billion in child support in the last fiscal year, he did point out.

In Texas alone, Rosenkoetter said his company has 6,600 clients and has collected $98 million for custodial parents to date. A spokeswoman with the child support division of the Texas attorney general's office, Janece Rolfe, also said there is a place for the industry.

 

"We believe that parents deserve a choice. If they want to go to the private sector, that's their choice," she said.

 

Remedies

Custodial parents who do turn to the private industry should carefully read and make sure they understand the contracts they sign with the companies, state officials cautioned.

 

"A lot of people enter into contracts and they don't understand they are bound to (them). They can't just walk away and must seek legal counsel to break the contract," said Buitron, the banking department spokeswoman.

 

The department does not mediate contract disputes but does review contracts for clarity as part of the licensing process, she said.

 

A Lubbock mother of three, Joanne Shelton, hired a lawyer to end her contract with Supportkids. She filed a lawsuit against the company in 2005, claiming contract fraud. She sought more than $100,000 in monetary damages, court records show. But she and her lawyer settled the case for $400, she said. Her lawyer advised the settlement was the best they could do, she said.

 

"The (companies) should be illegal," Shelton said. "But if they are there, they're there for a reason," she said, referring to what she perceives as the state's failure to effectively handle child support violators.

 

Many non-custodial parents who complain of being harassed by the companies don't know state laws do give the companies the power to take child support violators to court, which can result in jail sentences. They also can seize property and tax returns to apply to child support arrears.

 

The penalties for not paying are laid out in the same house bill, No. 1365, that gives the banking department licensing power over the industry.

 

Supportkids rarely goes to the lengths permitted by law; often, liens are enough to spark payments, Rosenkoetter said.

 

Non-custodial parents who think they are being harassed by a child support collection company or who know a company is misrepresenting itself are advised to record the activity on a tape recorder or an answering machine as evidence, Buitron advised.

 

The banking department does have the authority to revoke a company's license for very specific, unethical practices, such as posing as a government agency or threatening physical retaliation against child support violators.

 

The companies also must pay start-up and annual fees to legally operate in the state.

 

Texas is one of 10 states with legislation that specifically addresses the private child support collection industry: Arkansas, Connecticut, Illinois, Louisiana, Maine, Oklahoma, Oregon, Washington and West Virginia also have laws, according to the National Conference on State Legislatures.

Each state's scope of regulation varies, and Texas' falls on the light side, according to information the national conference compiled in 2005.

 

In seven of the states - Arkansas, West Virginia, Oregon, Connecticut, Illinois, Indiana and Oklahoma - there are caps on the amount a company can siphon from child support collections.

 

Maine legislators made it illegal for companies to collect fees on future child support payments; companies are only permitted to collect portions on child support arrearage, according to the national conference.

 

"States try to respond in a way that makes sense to their constituents," said Stephanie Walton, a child policy expert with the Denver-based national conference.

 

"It's kind of one of those things," she said, "that time will tell how bad the problem is and how appropriate the state response is and if children in the state are being protected."

 


State closes day care for day over staffing shortage

Waco Tribune Herald

Wednesday, June 25, 2008

By Erin Quinn

 

State officials say they are conducting a routine investigation into the ABC Academy Learning Center in Hewitt for not having enough staff to care for the children and for not adequately training employees.

 

The investigation began earlier this month after the agency received reports that the 611 W. Spring Valley Road day care center often was understaffed, Marissa Gonzales, a Texas Department of Family and Protective Services spokeswoman, said Tuesday. Such investigations are not rare around the state, she said.

 

Gonzales said investigators visited the facility several times in the last few weeks.

 

Monday morning, state officials deemed the center too short-staffed to properly care for the children and closed the center for the day. Parents were called and told to pick up their children.

 

Officials visited the center early Tuesday and deemed it fit to open. The center is licensed to care for 50 children.

 

Gonzales said the investigation is ongoing and could lead to the center being placed on probation or its permit revoked.

 

Deputies come out in force against proposal to privatize the jail


Waco Tribune Herald

Wednesday, June 25, 2008

By Wendy Gragg

 

 

Uniformed county officers filled the seats and lined the walls of the small McLennan County Commissioners Court room Tuesday. They turned out in force to let commissioners know they are staunchly against privatizing the county jail on State Highway 6.

 

The county is weighing several options to stem overcrowding in its jail under pressure from state regulators. Building a new, larger jail on Highway 6 and privatizing its management is one idea on the table.

 

Officer Ricky Armstrong, one of roughly 60 officers at the meeting, listed his concerns, including public safety. County officers have had to respond to trouble at the privately run downtown jail before, he said. If the State Highway 6 jail also gets privatized, who will be there to step in and help the downtown jail when things get out of hand again, he asked.

 

Armstrong also questioned the hiring policies and background checks of the private company, Community Education Centers, which operates the downtown McLennan County Detention Center on Columbus Avenue. He cited an incident in 2001 where a former CEC (then, Civigenics) jail guard helped a convicted murderer escape.

 

The county’s contract with CEC runs out in October, and officials are considering whether to extend that contract or find another private manager.

 

Armstrong also voiced concern about officer pay and retirement. He said he is worried his pay would drop if he worked for a private company.

 

“With private companies, it’s all about making a profit,” he said.

 

Sgt. Mike Garrett, with the jail division for 14 years, told commissioners that news of the possible privatization of the jail had been “overwhelming.” Though the jail is short-staffed and overpopulated, the officers still work hard to keep order, he said.

 

“We strive to be the best of the best,” Garrett said.

 

Garrett left the commissioners with the message that 200-plus officers and civilian employees pray the court makes the right decision.

 

The Highway 6 jail, with 931 beds, has been teetering on its maximum capacity for several years and has been operating with variances from the Texas Commission on Jail Standards. In May, commissioners authorized the hiring of 12 new jailers to try to address the situation.

 

At the end of May, commissioners voted to seek proposals from private vendors to relieve overcrowding at the county jail.

 

“I’m on their side,” said Commissioner Joe Mashek after listening to the officers’ concerns. “I don’t want to see them lose their retirement or any of their benefits.”

 

It’s clear that a jail has to be built, Mashek said, but he doesn’t want to see a large tax increase to fund it. Mashek said he favors the county continuing to operate the State Highway 6 jail and letting a private entity come in and build a 1,000-bed jail on county property.

 

This is just one of the four possibilities the county is entertaining. A second option seeks proposals to operate and manage the downtown jail after the county’s lease with CEC to operate that 329-bed detention center expires Oct. 1.

 

Another option allows a private company to operate the downtown jail, as well as build and operate a new 1,000-bed jail on Highway 6.

The last option calls for a private company to take over all county detention duties except for booking, releasing and records. That would include operating the downtown and Highway 6 jails and building a new one.

 

The deadline for those proposals is July 8.

 

County Judge Jim Lewis said Tuesday’s testimony will be taken into account when commissioners make a decision about the jail issue.

 

“We appreciate them coming in, but it’s way too early to make any comments,” Lewis said.

 

Commissioner Lester Gibson said Armstrong and Garrett had legitimate concerns. Gibson said he isn’t leaning toward a specific option yet, but he said he thinks the options should be taken to voters to weigh in on.

 

State's business tax raised $4.2 billion so far


Associated Press Writer


The state's new business tax has so far generated $4.2 billion, Comptroller Susan Combs' office said Wednesday, releasing an estimate far short of the projection Texas has been banking on.

 

The tax was estimated to bring in $5.9 billion a year to help offset school property taxes. So far, about 133,000 payments have been received and about 46,000 businesses that requested a deadline extension have yet to pay their taxes, which were due to the state for the first time on June 16.

 

Small businesses have complained that the tax is hitting them especially hard and have formed a coalition to lobby the Legislature to overhaul the tax.

 

"We still don't know what this means: How many jobs will be lost, how many businesses will be shut down, how many businesses won't be able to expand," said Laura Stromberg, a spokeswoman for the National Federation of Independent Business Texas chapter. "There are a lot of unanswered questions about this tax and its effect on the Texas economy."

 

State budget writers have been anxiously eyeing the tax revenues, unsure if it would be enough to cushion an anticipated budget surplus or so low it cuts into revenue projections and planned spending. The business tax makes up about 15 percent of the state's total tax revenue, second only to the sales tax.

"It is still too early to tell what the final franchise tax revenue number will be for this fiscal year, as the first year of a revised tax can be somewhat unpredictable without a previous roadmap," Combs' office said in a statement. "We expect more revenue to be collected in August and November as extension filers settle up their reports."

 

Gov. Rick Perry has said he will propose using some of the state's surplus money — about $2 billion if you subtract funds already spoken for — for tax relief, either to homeowners through property tax cuts or to businesses through cuts to the new tax.

 

"We think that it's too early to make a final assessment," said Perry spokeswoman Krista Piferrer. "Governor Perry has always said that when we get the results of this tax, if it needs to be readjusted, then he's willing to go to the table and do just that."

 

Under the tax structure, companies are taxed at 1 percent — 0.5 percent for retailers — of gross receipts. Companies would deduct for cost of goods or employee benefits like salary and health care.

 

Texas small businesses earning less than $300,000 a year are exempt from the new tax and some businesses with higher earnings get stair-stepped discounts.

 

Small business interests were disappointed when lawmakers rejected a measure that would ease the tax in years that businesses are not profitable.

 

Lawmakers spent years trying to fix the loophole-ridden franchise tax. They stumbled over how to structure a new tax within legal constraints that would apply equally to different business structures.

The new business tax structure was passed in 2006 and implemented last year.

Projected state surplus still may not be enough

Lubbock Avalanche Journal

June 21, 2008

By Enrique Rangel | A-J AUSTIN BUREAU

 

Once again, the Texas Legislature has a problem other statehouses wish they had.

 

The Legislature expects it will have between a $10.5 and $15 billion surplus.

 

of the amount, come January when the 81st Legislature convenes, the lawmakers will have some money in the bank, just like they did last session when they had a $14 billion surplus - a sharp contrast to 2003 when they worked with a $10 billion deficit.

 

"When we're back in session we're gonna have a long line from the front of the Capitol to El Paso asking for more money," said Rep. Carl Isett, R-Lubbock, and a member of the House Appropriations Committee and chairman of the Sunset Advisory Commission.

 

The challenge for Texas lawmakers is to prioritize funding - even with a projected surplus there is not enough money to please everyone, Isett said.

 

One of those priorities is funding public schools.

 

"We know we have to put more money into education," Isett said. "The question is how much more?"

Educators like Wayne Havens, superintendent of the Lubbock Independent School District, don't know either but in their view it will have to be a lot more than what they are getting now.

 

Texas schools, Havens said, are still working with the budget the Legislature approved in a special session two years ago, when lawmakers were under court order to approve a school funding bill.

 

Since then, the cost of everything has gone up, Havens said. "I don't know of any business that can operate on a budget approved in 2006," he said. "Well, it's the same thing for us. The inflation factor is hurting us. Districts are coming up with deficit budgets, making reductions and taking other drastic measures.

 

"People may get bored, tired of hearing this but that's the real truth," he added. "We're not immune from those inflationary costs."

 

Former Rep. Talmadge Heflin, R-Houston, who was chairman of the Appropriations Committee in 2003 when the Legislature had the $10 billion shortfall, said the projected surplus will be closer to the higher end because sales taxes continue to grow.

 

Still, the Legislature needs to be careful how it spends it because it needs to keep at least $5 billion in the bank for leaner times, said Heflin, now the director at the Center for Fiscal Policy of the Texas Public Policy Foundation, an Austin-based think tank.

 

He suggests the Legislature spend part of the surplus to keep up with the costs triggered by inflation and the state's population growth.

 

Schools, he said, will get additional money just because of their enrollment growth.

 

"The Legislature will have to make a decision as to what they do with fuel costs, if they give them more for that," Heflin explained. "It's just like last week, we had one of the officials at the University of Texas saying how the University of Texas had to have more money from the state.

 

"Whatever the amount it is never enough," Heflin added. "I have never seen a school district, I've never seen a university that says oh, by the way, we've got enough, don't send us any more money.'"

For other Austin watchers, talk of surplus is counterproductive - it raises unrealistic expectations and there rarely is any extra money.

 

Dick Lavine, senior analyst at the Center for Public Policy Priorities, a think tank that advocates for needy Texans, argues that there is no such thing as a surplus.

 

"The $10.5 billion the comptroller says we have in the so-called surplus, $5.5 billion, more than half of it, is in the rainy day fund, which is for an emergency, one-time expenditure," Lavine explained.

 

"Another $3 billion of the so-called surplus is reserved for the property tax relief fund, money that they are going to need to replace the school property taxes that the school districts are no longer collecting because of the property tax cuts that the Legislature passed in 2005," he said. "And the remaining $2 billion is just a cash balance, that's just a tiny percentage of the total for the biennium," which in the last session was $152 billion.

 

And in Texas, as in the rest of the nation, the economic future doesn't look good and the projected revenues that the state expects now could fall far short, putting the Legislature in a difficult situation, Lavine said.

 

Despite some cloudy economic forecasts, Isett and other lawmakers are happy that, at least for now, there is a projected surplus, just like last year.

 

"Most states wish they had our problem," Isett said. "I was just with a group of legislators from other states and they were talking about the budget problems they have and asking me how we manage to have a surplus."

 


Head of agency that removed children from sect retiring

 

Houston Chronicle

June 28, 2008

By JANET ELLIOTT
Copyright 2008 Austin Bureau

AUSTIN  The head of the state agency that removed more than 400 children from a West Texas polygamist sect is retiring.

Carey Cockerell, commissioner of the Department of Family and Protective Services, will leave his post on Aug. 31. He joined the agency in January 2005.