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August 6, 2008      4:58 PM

GOVERNOR'S COMPETITIVENESS COUNCIL RELEASES REPORTS ON HOW TO BOOST TEXAS' STANDING IN GLOBAL MARKETPLACE

Many of the recommendations hearken back to many of Governor's closely held policy priorities.

Today’s twin reports from the Governor’s Competitiveness Council make a lot of the anticipated conclusions on the need to improve the public educational system and the need to ensure a diverse energy mix in the future. But something else struck Buzz Central at today’s rollout for the ad hoc committee’s conclusions on how to make Texas more competitive in the global marketplace.
Here’s a sampling of some selected recommendations:
The CDA recommendation might be the big giveaway but it would appear on cursory reading that the Council’s work is at least in part about repackaging and resuscitating the Governor’s biggest public policy initiatives.
So are these conclusions designed to serve as a platform for a legislative agenda or another run for the Governor’s Mansion? Time will tell.
Those interested in reading the Competitiveness Council’s reports can click here for the Energy Report and here for the Council’s Report to the Governor.

ã Copyright August 6, 2008 by Harvey Kronberg, www.quorumreport.com, All rights are reserved

August 5, 2008      2:18 PM

Sen. Van de Putte sounds warning on pace of Frew settlement implementation

A negotiator of last year's settlement, the Senator said she fears takeover of Medicaid system by judge; HHSC says it's taken significant steps toward greater access for Medicaid children.

One of the key negotiators in last year’s Frew settlement talks has criticized what she called a lack of urgency on the part of the Health and Human Services Commission in implementing a portion of that settlement.
 
Sen. Leticia Van de Putte (D-San Antonio) told QR yesterday that she feared that the HHSC’s pace in allocating money from a $150 million fund set up for initiatives to improve medical access for poor children in rural or hard to reach areas is setting up the state for further judicial interventions.
 
She sketched out a worst-case scenario in which the federal judge in charge of the case, William Wayne Justice, takes over control of the state’s Medicaid system. The judge is perhaps most well known for his intervention in the operation of the state’s prison system in the 1980s. Most recently, he’s ordered the state to make changes to its bilingual education programs.
 
“Everybody is well meaning (at HHSC). I just don’t think they have a fire lit under them,” Van de Putte said. “I don’t want to get to April of next year and we’re not showing much improvement and the judge says game over.”
 
“If the judge puts us in ‘time out’,” she added, “it’s a ‘time out’ that affects the budget.”
 
HHSC spokeswoman Stephanie Goodman said that discussion over the allocation of the $150 million has overshadowed the steps already taken to improve health care for poor children in Texas. She notes that $1.3 billion of a larger Medicaid payment rate increase was tied specifically to pediatric services.
 
The agency has allocated $58 million so far this biennium from the $150 million strategic initiatives fund for projects that have either already been implemented or are close to launch. The biennium will be halfway finished at the end of the month.
 
That figure will increase as an advisory committee continues to meet and recommend new proposals for final approval by the Legislative Budget Board and the Governor’s Office. The advisory committee’s next meeting is set for October when they are expected to consider a set of targeted rate increases to encourage more pediatric doctors who specialize in fields like neurology, ophthalmology or urology to treat Medicaid clients.
 
The approval of those targeted rate increases could significantly boost the amount of money allocated toward those strategic initiatives. Goodman pointed to the work of the advisory committee and the use of focus groups in evaluating new initiatives. She said that the agency has moved deliberately in order to avoid wasting taxpayer dollars.
 
Funding initiatives without drawing on the expertise of the advisory committee or consulting with families who would be impacted could lead to waste, she said. “We don’t think that’s a wise use of dollars.”
 
Van de Putte said that she felt a sense of urgency during negotiations last legislative session because the feeling among lawmakers was that the judge was poised to give the Frew plaintiffs anything they wanted.
 
The settlement was a way for the state to keep control of its own destiny. And while she understands that the HHSC has to create a mechanism to control the allocation of money from the settlement fund, Van de Putte said that her conversations with agency representatives have led her to believe that the agency doesn’t understand the consequences of inaction.
 

“I hear them say, ‘We have a process,’” she said. “But if they’re so wedded to a process that gets a judge to take over the Medicaid system, nobody’s going to be patting them on the back.”

ã Copyright August 5, 2008 by Harvey Kronberg, www.quorumreport.com, All rights are reserved

August 4, 2008      5:19 PM

CONTROVERSIAL GRANTS AWARDED TODAY BY TEA

Much of first round went to schools, but critics worry the program may be voucher-lite

The Texas Education Agency has announced 22 recipients – the majority of them public school districts -- for an initial round of dropout recovery grants that many in the public education community have deemed to be potential school vouchers.

Given the high level of speculation about the grants – and whether they might be used to spur parents to remove their children from public schools – TEA has been more careful than usual in the drafting and review process: tightening the guidelines and hiring outside reviewers to score the applications.

That doesn’t mean, however, that the grants won’t be going to non-profit entities and private schools. The private schools, in particular, will raise a red flag among the education groups that have promised a legal challenge over the grants. Most have refrained from comment until they review the full list of recipients.

The grants went to two non-profit organizations: Christian Fellowship of San Antonio and Community Action Inc. of Hays, Caldwell and Blanco counties. Christian Fellowship operates the Faith Family Academy. A private school in San Antonio that caters to parenting teens and at-risk students, Healy-Murphy Center, also was awarded a start-up grant by the agency.

All but one of the grant recipients will start with an initial $150,000 in startup money, said TEA’s Jan Lindsey in the Education Initiatives Department. That could cover anything from software to track dropout students to additional staff for evening classes or case management to, in some cases, program operational costs.

The recipients must agree to serve up to 12 students in the first year, Lindsey said. Most programs have committed to serving at least 20. Additional performance-based funding will be available as students complete various academic goals.

The question raised by lawmakers – outside the voucher question – is how these grants will be different from existing programs. During the recent House Public Education Hearing, for instance, Rep. Scott Hochberg (D-Houston) noted that his flexible scheduling bill would cover many of the programs and additions that were suggested as possibilities for the dropout recovery grant.

Of course, current state funding covers the cost of flexible day programs. The dropout recovery grants are both over and above the current state funding and aimed at students who may have dropped out of high school years ago.

In the case of the first round of the grant funding, the majority of recipients are school districts, which means that much of the money will underwrite additional services in existing programs or extend the functions of current programs, from prevention to recovery.

The private and non-profit programs are taking some of the more non-traditional measures under the grants. For instance, Community Action will pair educational services with its existing social service programming. And Healy-Murphy will be enrolling students in remedial college courses in order to address college readiness.

Public school district recipients of the grants included Alief, Arlington, Birdville, Clear Creek, Dallas, El Paso, Galveston, Grand Prairie, Harlandale, Lewisville, Pasadena, Pharr-San Juan-Alamo, Round Rock and San Antonio.

Charter school recipients included American Youthworks and Winfree Academy Charter School. Institutions of higher education included Austin Community College and Dallas Community College District. And the Harris County Department of Education also was awarded a grant.

ã Copyright August 4, 2008 by Harvey Kronberg, www.quorumreport.com, All rights are reserved

August 2, 2008      3:46 PM

FIFTEEN MONTHS AFTER FREW SETTLEMENT FUNDING APPROPRIATED, HHSC STILL WORKING OUT HOW TO FULFILL COURT SETTLEMENT

Money collecting dust says attorney; rushing to spend money without an appropriate plan would be irresponsible counters HHSC

The Health and Human Services Commission has maintained a consistent approach toward spending the money allocated by lawmakers last year to settle the 15-year-old Frew v. Hawkins lawsuit.

That approach was almost a mantra at yesterday’s meeting of an advisory committee set up to help implement the Frew settlement: the state says it is not looking for the fastest way to spend the settlement money but the best way.

That deliberate approach has been met, though, with increasing impatience by the plaintiffs’ lead attorney Susan Zinn. Zinn repeatedly emphasized at yesterday’s meeting the need to spend as much of the $150 million this biennium.

Talking to QR during a break in the proceedings, Zinn said that the money is supposed to provide services that help vulnerable populations across the state. “If the money is just sitting there collecting dust, it’s not doing what it’s supposed to do.”

She said yesterday that while it was not her preferred option, she left open the possibility of going back to the court for further relief if the state doesn’t make good progress. “The plaintiffs are examining the options available,” she said.

HHSC spokeswoman Stephanie Goodman said, “It would be irresponsible to use a process that makes spending the money as fast as possible a higher priority than funding well designed projects.”

HHSC sources tell QR that the agency has allocated $58 million so far this biennium for projects that either have already been started or are close to implementation. The biennium will be halfway completed at month’s end.

That $58 million is likely to change, though, as more projects make it through the review process. The agency has created a multi-step process for approving the dispersal of the Frew settlement money. Ultimately, the Legislative Budget Board and Governor’s Office must approve all expenditures made from the settlement fund.

The logic underlying the approach is certainly understandable. HHSC has a large pot of money -- $150 million – to spend on several initiatives to improve health care for the Medicaid children who make up the plaintiffs in the Frew case. Spending too quickly could well lead to wasteful spending on projects that don’t get the results that the plaintiffs sued for.

That said, it appears that the state would be hard pressed to use the entire Frew appropriation this biennium. Goodman indicated that spending the entire allotment shouldn’t be the main focus. “We're not OK with spending taxpayer dollars just because we have them,” she said. “We need to spend the money wisely for projects that can reasonably be expected to increase the percentage of children who get regular checkups.”

In addition, the state needs to address why many children on Medicaid don’t regularly see a doctor. “So why don't more families use that coverage to make sure their children get regular checkups?” she said. “That's the question the strategic initiatives need to address.”

Zinn said yesterday that she was placing a priority on increasing payment rates for pediatricians who have a further specialization in fields such as neurology or urology. The state is experiencing a severe shortage of these pediatric sub-specialists and the thinking is that increasing those payment rates would induce more of them to take more Medicaid clients.

From Zinn’s perspective, the targeted rate increases would have the added advantage of dispersing a larger share of the Frew settlement money than other approaches being considered. The advisory committee considered holding a meeting next month to specifically address the targeted rate increases but decided instead to discuss the matter at the regular October meeting after being told that another committee that must also evaluate a rate increase would not meet before October or November.

The committee was also told that HHSC was planning to designate Frew spending in the next biennium as an exceptional budget item, meaning that the agency does not plan to roll expenditures to fund the Frew settlement into its baseline budget.

It was not clear, though, whether some Frew initiatives that have been implemented, such as creating a first dental home for children to receive primary dental care, might be included in the agency’s baseline budget request. The committee was told that remains a “gray area.”

ã Copyright August 2, 2008 by Harvey Kronberg, www.quorumreport.com, All rights are reserved

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