Great Texas ExPerryment: No Debate, Discussion or Amendments

The House Appropriations Committee approved a bone crushing budget that decimates public education and health/human services over the next two years.  The plan passed on party lines with no discussion or debate.  Representative Drew Darby sits on the Appropriations Committee.  Darby's staff weighed in via e-mail:

Appropriations Committee members have until Monday to file amendments to HB1. Trent Thomas, chief of staff for San Angelo's state Rep. Drew Darby, who serves on the committee and chairs one of its subcommittees, said in an e-mail that Darby doesn't plan to file any amendments "at this time."

The last time I saw Rep. Darby he remarked the budget had "nearly all his constituents mad at him."  His defense, "No one wants to pay more taxes,"  was challenged by an ASU professor.  Her "I will" negated Darby's assertion.

The Standard Times reported:

The House plan reduces reimbursement rates to nursing homes and other Medicaid providers, a change that could jeopardize 45,000 residents in the state's 550 nursing homes that depend on Medicaid, experts said.

The Medicaid reimbursement rate cut is only a quarter of the hit providers will take.  Over half of the funding loss is due to the federal government no longer picking up a greater share.  Under stimulus spending the federal share rose from 60% to 78%, but it's reverting back to the 60% level.  Texas legislators complain about this "cost shift."

Nursing home advocates say the true cut to nursing homes is closer to 33 percent because of recent changes in the federal-state funding formula.

Many nursing homes stated they will need to cut services, even close.  Area hospitals will need to cut staff and services, while continuing to shift Medicaid related costs to other payors.

Other groups walking away from health care coverage include the City of San Angelo, which dropped nearly 200 insureds January 1.  SAISD will eliminate 75 positions over a two year period, jobs that formerly provided health care coverage.  The school system plans to pass a greater share of the premium to employees, like the City recently did.  How many SAISD employees and dependents will lose coverage?

With nursing homes closed and up for sale, area hospitals will have difficulty transferring patients.  Sick patients could stack up in hospitals, with fewer sub-acute care resources in the area.

Hospitals will lose more money per Medicaid patient, the "cost shift" Texas legislators avoid discussing.  Physician practices could restrict access for Medicaid patients, leaving Esperanza Clinic and area emergency rooms as their avenue for treatment.  Esperanza is yet to share the impact of Medicaid cuts, but Shannon and Community could together lose over $25 million in funding.

With crisis comes opportunity.  Nursing home closures could provide The Carlyle Group, a frequent benefactor of Governor Perry's largess, an opportunity to purchase nursing homes at fire sale prices.  While it might not be part of a plan, it could benefit the super rich, who have the chops to ensure "no new taxes."

We'll know how the "Great Texas ExPerryment" worked in three years.  My prediction is lots of pain, physical and economic.  How will the silent "yes voting" legislators pay for their draconian cuts to health care and education?  That remains to be seen.

Tom Green County Courthouse Evacuated

Security personnel evacuated the Tom Green County Courthouse at roughly 11:00 am.  When potential jurors left the grounds, nary a police car was in sight.  When jurors checked back at noon, as instructed, they found San Angelo police officers.  Jurors were instructed to return at 1:00 pm.

Public buildings can be evacuated for safety reasons, fire alarms, bomb threats and terror threats.  It's not clear which reason caused today's evacuation.

Update:  Standard Times cited the cause, bomb threat.  After a bomb sniffing dog cleared the building, jury selection restarted at 2:00 pm.  Judge Weatherby said the probation office in the basement received the threatening call.

SAISD to Contribute to San Angelo's Uninsureds

San Angelo Independent School District cut 30 positions in this year's budget and plans to drop 45 more.  That's 75 positions that once provided health insurance.  In addition, SAISD employees will have to contribute more to the district's self-funded health insurance program. 

The City of San Angelo sent 192 people onto the rolls of the uninsured with their premium changes.  How many SAISD employees will drop individual or family coverage as a result of premium increases or eliminated positions?  It remains to be seen.

San Angelo's City Council added another burden to employees and dependents who dropped health coverage due to inaffordability.  They increased the deposit to be seen at the Employee Health Clinic from $10 to $65.  Nearly 200 more uninsured employees and dependents will have to pony up $55 more per visit for primary care. 

President Obama's Business in Brazil

USA Today reported:

Obama also offered U.S. help on infrastructure needed to bolster the host country's two major upcoming projects: the 2014 World Cup, to be conducted across the country, and the 2016 Summer Olympics, to be centered in Rio.

As usual the President pushed American branded global corporations.

Executives from a number of American corporations, including International Paper, Cargill, Citigroup and Coca-Cola, participated in the CEO session.

No word on whether Peter Orszag made the trip.  Citigroup hired Orszag as Vice Chair of Global Banking. What kind of infrastructure will the U.S. help Brazil develop?  Maybe a berth at a Brazilian port for Utopia, an ultra luxury cruise ship.  The Utopia plans to take in Carnival, the Olympics and maybe the World Cup.  Carlyle's Chairman Emeritus Frank Carlucci is both a Utopia investor and luxury resident owner.

Carlyle Group already invested some of $1.5 billion slated for Brazil.  Carlyle purchased a majority stake in CVC, Latin America's largest tour operator. The 2014 World Cup and 2016 Summer Olympics should provide major demand for CVC.  Carlyle also purchased a Brazilian health insurer, lingerie maker, and is interested in other Brazilian hot properties. 

Carlyle co-founder David Rubenstein knew how to garner President Obama's stimulus funding.  Will he do likewise with Brazilian infrastructure money?  I detect stimulation and corporafornication. 

News reports had President Obama calling Brazil a "model of democracy."  In America corporations have the same free speech rights as citizens.

"It was an historic speech," said Eduardo Eugenio Gouvea Viera, who represents FIRJAN, Brazil's leading industry federation.

"The message he gave was that the most worthy value to Brazilians and Americans is freedom," Viera told Brazil's official Agencia Brasil.

CNN stated:

A group of protesters were barred from holding an anti-American and anti-Guantanamo rally, Brazil's official news agency reported.

Brazil may be a quick study.

Texas Revenue Streams Up for Sale?

Senator Robert Duncan will chair the Subcommittee on Fiscal Matters, charged with finding $5 billion of nontax revenue to help balance Texas' multibillion-dollar budget shortfall.  Duncan said:

"We're not looking for new taxes. If you look at the budget, you'll see there are a lot of revenue streams in the budget that are not used efficiently or for the purpose that they were originally created for, and so you don't' have to raise taxes or increase fees," he said.

Inefficient revenue streams are usually eliminated.  However, Texas badly needs revenue. Does "inefficient" mean "sold or leased to the private sector."  Toll roads, parking, ports, the Texas Lottery and even water could be up on the sale/lease block.  Billions in infrastructure funds stand ready and waiting for public-private partnerships (P3).  Uncle Sam stands ready and willing to lever them.  The question is how cheap they will go and what monopoly protections might the state or feds provide?

Texas is in the P3 crosshairs.

US P3 Key Market Watch: Texas

Two storied Texas law firms have experience with P3's, BakerBotts and Vincent & Elkins.  I expect their business to boom after this legislative session.

It will be interesting to hear what Senator Duncan's committee finds.  I know where they can find $7 million plus interest over the coming biennium.  The state could hold Vought Aircraft Industries to their original Texas Enterprise Fund commitment.  Perry doesn't have to answer for changing the deal.  Why am I not surprised?

Update 3-20-11:  Traffic cameras could be in Texas' revenue generating future.

Update 3-30-11:  So could gambling.

Update 4-1-11:   The setup for toll roads.

Ezra Missed the Bayh Sign

WaPo's Ezra Klein was crestfallen by Senator Evan Bayh's post-retirement decisions.  Why would Ezra believe Evan's retirement schmaltz, like working for a university, charity or helping grow jobs?  Instead, Evan took batting practice in the major leagues.  It took little time for Bayh to sharpen his skills.

Evan Bayh smacked three straight out of Coporafornication Park.  He advises Apollo Global Management-a private equity underwriter (PEU) ready to go public.  McGuire Woods hired Bayh to serve national and international corporate clients and Fox News employed Evan for commentary.

"I'm pleased to offer analysis of public policy and politics to the millions of Americans who get their news from Fox."

Evan Bayh had a clear track record in the Senate, backing private equity and sovereign wealth funds.  PEU's crashed the Forbes richest list in 2007.  Bayh's lifetime donor list includes The Carlyle Group, once as high as #3.  Carlyle had a remarkable run during Evan's public service. 

Knowledge is prediction.  PEUReport wrote last year:

Political officials know PEGCC well. Their best friends are PEU's and many hope for high paying employment after public service. Watch where Peter Orszag, Evan Bayh and Chris Dodd land..

Like Tom Daschle and others before him, Bayh landed at Apollo.  

Let's revisit Bayh's retirement contemplation, i.e. where he planned to spend time by::

"creating jobs by helping grow a business, helping guide an institution of higher learning, or helping run a worthy charitable endeavor."

Evan Bayh went "0 for 3" on those.  He didn't retire, Evan monetized his brand in the global capital ecosystem.  McGuire Woods cited Bayh's role as:

Strategic advisor to many of the firm's most significant clients, particularly those whose business goals are impacted by the actions of Congress, the executive branch, or by governors and legislators across the country.

Bayh is a franchisee for "Oligarchs R Us," but then again that was much of his Senate service.  Evan started early with his vote for Gramm-Leach-Bliley.  In between he carried water for PEU's, SWF's and for-profit health insurers.  He contemplated a Presidential run in 2006, which lasted but weeks.  Most recently, health reform sent millions in taxpayer dollars to pharmaceutical companies with wife Susan on the board of directors.

Update 3-21-11:  Bayh's Apollo Global Management reached a $125 million settlement with CalPERS regarding future management fee discounts.  This came as a result of an investigation into placement agents and pension fund operations.

Apollo has agreed to reduce its management and other fees on funds it manages solely for CalPERS by $125 million over the course of the next five years, or as close a period as required to provide CalPERS with that benefit, and may include both existing and new investments that Apollo manages solely for CaIPERS.

Update 3-26-11:  Apollo Global Management had assets of $57.8 billion as of Sept. 30, 2010.  By December 31, 2010 the number had grown to $67.6 billion.  Forty six Apollo subsidiaries are based in The Cayman Islands.  Bayh jumped on a money cruise ship, just as it approaches port in George Town.

Update 1-29-14:  Ezra will join Vox to offer his new blog.  I suggest it be called Wankerblog.

Texas Budget: "The Great ExPerryment"

The Texas Legislature and Governor Rick Perry stared down state programs.  Rick's six shooter wasn't filled with blanks, but hollow points capable of obliterating funds for current services, as much as 30%.  The gang headed for the Concho Valley, where most anything's a target.

Perry spied a Medicaid cost shift on San Angelo's Main Street.  Blam!  Health & Human Services took a hit of $206 million.  The Governor shouted, "Take that Feds," but the dastardly cost shift didn't disappear.  It grew exponentially for hospitals, physicians nursing homes and community based care programs.   They'll need to gouge other payors to make up Medicaid's shortfall.

But Perry's Gang warn't close to done. Education's got to git leaner.  Blam!  The legislature gang shot a $50 million hole in the budget for school districts, Howard College and Angelo State University. 

Dang if the gang didn't run across a probationer.  Blam!  The frightened man scampered back toward the jail house.  Perry bragged, "That'll git his sorry behind back to where it belongs."  The gang guffawed for their leader.

Perry shouted to the growing crowd, "Y'all got any folks not in their right mind?"  A local replied, "They might be hiding, what with all the ruckus."  One of Perry's boys cold cocked the man.  A boy ran to the fallen man's aid, saying only one word to his stunned father, "Jackasses."

The gang rode hard in a circle, stirring up a mighty dust.  Their pistols shot a $260 million hole in the Concho Valley's already leaking economy.  Rick took a big draw from his whiskey bottle, then hooted loudly.  "Welcome to the Great ExPerryment!  Let's ride, boys."  They headed east toward Austin, away from the mess they'd made..

The Concho Valley will know how it worked after its done.  Want to bet the perpetrators will be long gone?  When the jury's ready to judge his work, Governor Perry may well have taken the coach to Washington, D.C.

Update 3-18-11:  Tom Green County could lose $1.5 million in funding for various programs.   Add $1 million for surrounding county governments and the "take away" reaches $262.5 million.

Update 3-22-11:  SACMC CEO Brad Holland and Esperanza CEO Mike Campbell asked City Council to pass a resolution opposing drastic health care cuts.  The City expressed interest in rewording the resolution to include Angelo State University and SAISD.

Update 8-20-11:  The Standard Times reported Texas is losing its grip on jobs as the new state budget year approaches.  "The 9,400 government jobs lost last month was the sharpest monthly drop since September, with Central Texas taking the brunt of those losses."