Plano Chamber Public Policy Newsletter

ELECTIONS

Early Voting in Run-Offs and Special Election Extended – On May 11 th , Governor Greg Abbott issued a proclamation extending the early voting period for the July 14 th Run-off Elections. The early voting period will now be from June 29 – July 10, 2020. Governor Abbott has indicated that the early voting period for the November 3 rd General Election will also be extended. Special Election in Senate District 14 – May 14 th was the filing deadline for the special election in Senate District 14 to replace Senator Kirk Watson (D-Austin), who resigned effective April 30, 2020 to become Dean of the Hobby School of Public Affairs and University of Houston. The special election will be held on July 14 th , the same date as the Run-off Elections. The early voting period will be from June 29 – July 10, 2020. SOS Issues Health Protocols for Voters – On May 26 th , Texas Secretary of State Ruth Hughs issued minimum recommended health protocols for all voters in Texas. Individuals are encouraged to adopt additional protocols consistent with their specific needs and circumstances to help protect the health and safety of all Texans. Secretary Hughs said, “The virus that causes COVID-19 can be spread to others by infected persons who have few or no symptoms. To mitigate this threat, everyone should rigorously follow the practices specified in these protocols, all of which facilitate a safe and measured reopening of Texas. The virus that causes COVID-19 is still circulating in our communities. We should continue to undertake practices that protect our communities. Please note, public health guidance cannot anticipate every unique situation. Individuals should stay informed and take actions based on common sense and wise judgment that will protect health and support economic revitalization.” Health Protocols for Voters are: To the extent feasible, maintain at least six feet separation from other individuals at the polling location. In addition to practicing such distancing when feasible, other measures such as hand hygiene, cough etiquette, cleanliness, and sanitation should be rigorously practiced. Self-screen before going to a polling place for any new or worsening signs or symptoms of possible COVID-19 or known close contact with a person who is lab-confirmed to have COVID-19. Voters who exhibit any of the symptoms associated with COVID-19 when they arrive at a polling location may want to consider utilizing curbside voting, to the extent they meet the eligibility requirements, which is available at all polling locations. These voters should contact their county election office with questions about the curbside voting process in their county and the eligibility requirements. Voters should consider bringing their own marking instruments such as a pen, pencil with eraser, or stylus to use when checking-in to vote and for marking their ballot. Voters should contact their county election office to determine what type of marking devices are appropriate to use for the ballots in their county. Upon entering a polling place, wash or disinfect hands. Wash or disinfect hands after any interaction with election workers, poll watchers, or other individuals at the polling place and after using voting system equipment or marking a ballot. Voters should bring their own hand sanitizer into the polling location and should use hand sanitizer to disinfect their hands after leaving the polling location. Consistent with the actions taken by many individuals across the state, consider wearing cloth face coverings (over the nose and mouth) when entering the polling place, or when within six feet of another person who is not a member of the individual’s household. If available, individuals should consider wearing non-medical grade face masks. If the election judge is not able to determine the identity of a voter wearing a face covering, the voter should be prepared to lower or remove their face covering when checking-in at a polling place. After the voter’s identity has been confirmed, the voter should wear their face covering through the rest of the voting process. If a voter contracts COVID-19 (or other sickness or physical condition that prevents the voter from appearing at the polling place on election day without a likelihood of needing personal assistance or of injuring the voter’s health) after the deadline to submit an application for a ballot by mail, the voter should contact their county election officer for more details about submitting an Application for Emergency Early Voting Ballot Due to Sickness or Physical Disability. Individuals aged 65 or older are at a higher risk of COVID-19. To the extent possible, avoid contact within six feet with individuals aged 65 and older. Individuals aged 65 and older should stay at home as much as possible. Such individuals may consider submitting an Application for a Ballot by Mail to their county election officer so that they can receive a blank ballot and return their voter ballot by mail.  Health protocols for poll workers and polling places were also issued.

STATEWIDE

Hurricane Preparedness Week – On May 4 th , Governor Greg Abbott issued a proclamation declaring May 3-9, 2020 as Hurricane Preparedness Week in the state of Texas. The proclamation raises awareness about the dangers of hurricanes and the precautions Texans can take as hurricane season approaches. The governor is asking all Texans to take important steps to protect themselves and their loved ones from the danger and destruction that hurricanes can bring to communities, neighborhoods, and local economies. Governor Abbott said, "As hurricane season approaches, it is vital that Texans take the time to prepare for any devastating and powerful storms that may reach our shores. There are no substitutes for having emergency supplies and a well-prepared emergency plan to protect yourself, your family, and your property. As we enter this hurricane season, I encourage all Texans to remain mindful of the dangers presented by hurricanes, stay informed about potential threats, and take steps toward preparedness." FEMA COVID-19 Pandemic Operational Guidance for the 2020 Hurricane Season – On May 22 nd , the Federal Emergency Management Agency (FEMA) released the “ COVID-19 Pandemic Operational Guidance for the 2020 Hurricane Season ” t o help emergency managers and public health officials best prepare for disasters while continuing to respond to and recover from COVID-19. The guidance will also be used by private sector and non-governmental organizations to gain an understanding of the government’s posture, planning and readiness efforts. Here is the data for Texas:  Critical supplies delivered: 1.3 million N95 respirators, 2.0 million gloves, 390,647 face shields and 1.7 million surgical masks. As of May 21, FEMA has obligated $515.7 million in federal support to Texas. As of May 21, five Battelle N95 decontamination units are located in the Austin, Corpus Christi, Dallas, El Paso and Houston areas.

GOVERNOR

Governor’s Commission for Women – On May 4 th , Governor Greg Abbott reappointed Tina Yturria Buford, Starr Corbin, Karen Harris, Amy Henderson, Karen Manning, Nathali Parker, Rienke Radler, Jinous Rouhani, Catherine Susser, Patsy Wesson, and Laura Koenig Young to the Governor's Commission for Women for terms set to expire on December 31, 2021. Additionally, the governor named Harris as chairman and Parker as vice chairman. Governor Abbott is charging this commission with developing a strategy and implementation plan to help make Texas the number one state for women-owned businesses and to address the issue of human trafficking. Housed within the Office of the Governor, the Governor’s Commission for Women specializes in outreach, education, research, and referral services. Governor Abbott Sends State Resources, Activates National Guard and Declares a State of Disaster Related to Violent Protests – On May 30 th , Governor Greg Abbott sent state resources to the cities of Houston, Dallas, San Antonio and Austin to maintain public safety. The Department of Public Safety (DPS) sent more than 1,500 officers to assist local police departments. Governor Abbott said, “Texas and America mourn the senseless loss of George Floyd and the actions that led to his death are reprehensible and should be condemned in the strongest terms possible. As Texans exercise their 1 st Amendment rights, it is imperative that order is maintained and private property is protected.” Disaster Declaration – On May 31 st , Governor Greg Abbott declared a State of Disaster for all Texas counties in the midst of violent protests that endanger public safety and threaten property loss and damage. Under the declaration, the governor has the ability to designate federal agents to serve as Texas Peace Officers. Governor Abbott said, "Every Texan and every American has the right to protest and I encourage all Texans to exercise their First Amendment rights. However, violence against others and the destruction of property is unacceptable and counterproductive. As protests have turned violent in various areas across the state, it is crucial that we maintain order, uphold public safety, and protect against property damage or loss. By authorizing additional federal agents to serve as Texas Peace Officers we will help protect people’s safety while ensuring that peaceful protesters can continue to make their voices heard."

SENATE

Lt. Governor’s Texans Back to Work Task Force Report – On May 6 th , Lt. Governor Dan Patrick’s Texans Back to Work Task Force released its final report. Lt. Gov. Patrick said, “I want to thank Brint Ryan and the members of the Texans Back to Work Task Force for their outstanding work producing a blueprint for re-opening Texas 100 percent. The Governor has us off to a great start with the Open Texas Strike Force. This report will help leadership and business return Texas once again to be the number one job creator in the nation. It is a ‘bottom-up’ guide of best practices for businesses to follow as we re-open the Texas economy and prepare to rebuild after the severe damage from the long shutdown. During these enormously difficult times, businesses across Texas are looking for answers on how to rebuild and the Task Force has provided them. This report will help get Texans back to work and make our economy stronger than ever. I am very proud of what they have done.” The Texans Back to Work Task Force final report is a 113-page document that includes over 400 recommendations for employers, employees, state and local government and the public. The report includes immediate recommendations, recommendations for the next 100 days and long-term strategies for the future. Task Force Chair Brint Ryan said, “Using the knowledge gained since the pandemic began, the Task Force strongly believes that business owners can use their creativity and ingenuity not only to formulate safe and effective protocols for their businesses to stay open, but also to rebuild the economy that has been devastated by the pandemic.”

BUDGET

Senate Finance Chair Calls for Zero-Based Budget – In a May 8 th letter to Senator Bob Hall, Senate Finance Committee Chair Jane Nelson wrote, “You are correct that we will be facing significant budget shortfalls. While I am getting daily updates from LBB, the Comptroller’s office, TDEM, TWC, DSHS, HHSC, TEA, and other state agencies, we will have a much clearer picture when the Comptroller updates his Certification Revenue Estimate in July. In the meantime, both state and local governments should assume that we need to be “tightening our belts.” It is both reasonable and necessary for agencies to reduce their FY 20-21 spending - and to start immediately. The across-the-board reductions you suggest are not a call that can be made by the finance chair. In the past, we have not only had those, but also hiring freezes and other actions to curb agency costs. I absolutely remember the 2003 Governor’s budget with all zeros. And I remember the approach the House and Senate budget writers took in both 2003 and 2011 when we had to make serious reductions in state spending. When I was appointed chair of the Senate Finance Committee, I immediately put all agencies on notice that - when coming before our committee - they should not expect their budgets to start with current spending levels. The upcoming session will be the fourth consecutive time our agencies, on a rotating basis, will undergo a strategic fiscal review, Texas’ form of zero-based-budgeting. Because of the challenges we will be facing in the upcoming budget cycle, I plan to take that a step further. As I meet with each agency to review their appropriation requests, I will begin at ZERO. We will add restricted appropriations to that amount, and then examine each and every request before adding it to our base bill that I will file during session. The bill I file will adhere to both constitutional spending limits, as well as my depression-era parents’ philosophy of ‘If you don’t have it, you shouldn’t spend it.’ Fortunately, Texas is in a much stronger position than other states to meet the challenges ahead. I appreciate your prayers for strength and wisdom. I pray for the same. Thank you for all you do for your constituents and for Texas.” Governor, Lt. Governor and Speaker Ask State Agencies for Budget Cuts – On May 20 th , Governor Greg Abbott, Lt. Governor Dan Patrick, and Speaker Dennis Bonnen sent a letter to state agencies, judicial agencies and institutions of higher education asking them to engage in prudent fiscal management and institute immediate cost saving strategies submit a plan for a five percent budget cut to the Legislative Budget Board and the governor by June 15, 2020. The letter said, “As you have no doubt seen, there is significant economic uncertainty not only in this state but across the country and around the world. We are confident that Texas will get back to work and continue leading the nation in job growth, economic innovation, and business creation. However, it will take months until we know the true extent of the economic ramifications of COVID-19, and how combating this virus will impact state finances. To prepare for this economic shock, we must take action today to ensure that the state can continue providing the essential government services that Texans expect. To achieve that goal, every state agency and institution of higher education must engage in prudent fiscal management efforts. Savings achieved in the current biennium are not only necessary to offset current year revenue losses, the savings will provide for the smoothest path toward recovery as you provide necessary services to Texans. Some cost saving strategies that agencies should pursue that will not affect the state’s response to COVID-19 include: foregoing any capital expenditures that can be deferred, any avoidable travel expenditures, any administrative expenses that are not mission critical, and keeping unfilled any open positions that are not essential to the COVID-l9 response. These savings should be lapsed to the Treasury. Additionally, we request each state agency and institution of higher education to submit a plan identifying savings that will reduce your general and general revenue related appropriations by five percent for the 2020-2021 biennium. Please submit this plan to the Legislative Budget Board and the Office of the Governor by June 15, 2020. Given the importance of the state’s response to COVID-19 and the continuity of critical government functions, the following are excluded from the five percent reduction: Appropriations to the Texas Division of Emergency Management. the Texas Department of State Health Services, the Texas Workforce Commission, the Texas Military Department, and the Texas Department of Public Safety; Funding for debt service requirements and bond authorizations; Current law requirements for the Foundation School Program and school safety; Funding for Child Protective Services; Benefits and eligibility levels in Medicaid programs, the Children’s Health Insurance Program, the foster care program, the adoption subsidies program, the permanency care assistance program, and services for individuals with intellectual or developmental disabilities; funding for behavioral health service programs; Appropriations for Correctional Security Operations and Correctional Managed Health Care at the Texas Department of Criminal Justice; Appropriations to Health Related Institutions and Community Colleges; and Employer Contributions to the Teacher Retirement System and Employees Retirement System funds and to Social Security. In the coming weeks, the Legislative Budget Board and the Office of the Governor will issue instructions for the Legislative Appropriations Request that each state agency and institution of higher education will submit for the 2022-2023 biennium. While the exact final instructions are still being determined, every state agency and institution should prepare to submit reduced budget requests as well as strategies to achieve further savings. Furthermore, when the state revenue picture becomes clearer in the coming months, it may become necessary to make additional budget adjustments. Though state leaders will make difficult decisions in the future, please know that we will not impede your agency’s response to the coronavirus threat or take actions that will harm the public health of this state. As Texans recover from this pandemic, it is incumbent that state government continues to maintain mission critical services without placing a greater burden on taxpayers. Your assistance in achieving these goals is imperative. Our offices stand ready to assist you with any questions you have or any clarifications that may be necessary. Thanks again for your service to the state and her people. We will get through this time by helping our fellow neighbors and relying on them in turn.” State Revenue and Expenditure Tool – On May 29 th , Comptroller Glenn Hegar announced the release of an updated state revenue and expenditure tool on the agency’s website. Comptroller Hegar said, “It has never been more crucial to provide Texans with the tools they need to see how their tax dollars are spent and to provide lawmakers with the information they need to provide adequate oversight. My office has always been committed to giving taxpayers a user-friendly view into how government is treating their hard-earned tax dollars, and this newly refined tool is a continuation of that commitment. The new visualization tool gives users a daily look into state government finance and allows them to download state financial data for further analysis. Tabular data, charts and graphs can help taxpayers, researchers and policymakers search and explore vast amounts of government information with new perspectives, and easily compare various state agencies’ expenditures.” The tool provides viewing options including: Revenues – There are 25 state revenue categories on how funds are allocated by object code, agency and appropriation. Expenditures – There are 18 different state spending categories to compare how the state allocates money.

ECONOMIC DEVELOPMENT

A Playbook for Resiliency – On May 13 th , “ A Playbook for Resiliency: Creating Opportunity for All Texans” was jointly released by the University of Texas LBJ School of Public Affairs (Steven Pedico) and the University of Houston Hobby School of Public Affairs (Kirk Watson). The report outlines nine principles and associated actions for an inclusive and more resilient Texas. The introduction said, “How we approach the challenge of recovery from the COVID-19 pandemic will define the Texas that we live in going forward. We have a unique opportunity to take advantage of this moment in time and create a stronger Texas.” Here are the report’s nine principles and corresponding recommended actions:  Build Partnerships Instead of Rivalries - Collaboration is essential if Texas is to achieve lasting resiliency. Local leaders have an invaluable view on what is happening on the ground, while the state government offers a broader picture of Texas’ overall needs. Local governments can cooperate across regions, pooling their resources and sharing governance. Recommendations: A commitment of shared governance among local and state officials to guide the reopening and recovery of the Texas economy. Decision-making should be informed by a real-time health and economic dashboard. A simple approach would be for the state, in collaboration and agreement with local jurisdictions (through regional planning groups modeled after Councils of Government, Water Planning Districts, or Metropolitan Planning Organizations), to set goals and standards. Once established, local jurisdictions would have the authority to achieve the desired outcomes based on their individual assets, cultures, and needs. This would avoid a one-size-fits-all approach, while freeing up resources, playing to community strengths, identifying best practices, and improving how recovery grants and loans are deployed. When individual communities succeed, the whole state benefits. Creation of incentives and other tools by the Texas Legislature to encourage regionalism and cooperation among communities, including shared finances, governance, and planning approaches. This is already happening for infrastructure development, but the approach has been too ad hoc for other economic development efforts. Learn from our experience with prior disasters, such as wildfires, hurricanes, and floods. Texas has already shown that when we come together with a laser focus on recovery and outcomes - setting aside disputes and conflicts - we can set new standards for results-driven coalitions, achieve successes, and avoid perpetuating pre-disaster inefficiencies. Foster Resilience Through Economic Inclusion and Diversification - Texas’ business climate has made it an ideal place for investment. Let’s be innovative in how we grow our export sectors when we begin to reopen the state, while supporting the small and local businesses that bring character, creativity, and authenticity to Texas communities. Recommendations: The formation of a statewide taskforce comprised of government officials, economic development practitioners, and academic economists to study the use of incentives across the state and offer recommendations on how they can be deployed more effectively to ensure inclusive development, economic diversification, and investment in everyday Texans. A short-term redirect of incentive dollars for Texas-based companies looking to expand within the state, those outside the state who bring value to industry supply chains, companies making needed investment in the up-skilling of workers, and businesses that bring value by leading us into the future with new technologies and new industries. An evaluation of statewide industry supply chains for potential areas of investment. As the crisis resolves, we need to rebuild our broken supply chains domestically. A plan to support Texas entrepreneurs by investing in the technical support and training they need to scale their enterprises and potentially reach global markets, especially those tied to growth sectors. A recommitment among universities to play an active role in economic development across the state and its regional centers through improved technology transfer and local purchasing and employment. Appointment of a blue-ribbon committee to create a statewide action plan for increasing quality childcare options in Texas, including an assessment of best practices and new delivery and financing models. Increase Healthcare Investments for Economic Development - Texas’ hospitals are not just providers of healthcare and centers of advanced research - they are job creators and have the potential to become important community catalysts, powering our communities forward with innovations, job opportunities, and increased security stabilization. There is no doubt: we can strengthen Texas’ public health capabilities while fully leveraging their economic benefits. Recommendations: Investments in a better health ecosystem across the state, starting by accepting the federal dollars (i.e. the Medicaid expansion) that Texas has rejected for reasons that are arguably purely partisan. These dollars should be treated as economic development incentive dollars. For every dollar sent by Texas to the Federal Government, Texas gets back $1.62. This is determined by the federal medical assistance percentage, for which Texas' multiplier for federal fiscal year 2021 is 1.62.15 That money will be spent on businesses (hospitals, clinics), jobs (for doctors, nurses, other healthcare professionals), and economic productivity (keeping people healthy or getting them well so they can work). Complete the continuum of care by building and retrofitting the healthcare assets - hospitals, tele- and digital-health infrastructure, and modern long-term care facilities - so they can keep up with the state’s growing population. Expand the healthcare workforce pipeline and training programs to provide opportunities for Texans and increased capacity for its system, especially its ever-growing demand for nurses, technicians, and therapists. The new Dell Medical School at the University of Texas at Austin is pioneering this more expansive approach to healthcare, with a curriculum that focuses on clinical practice, career development, and community wellness. Invest in nontraditional healthcare solutions and providers (technology companies), utilizing the socioeconomic determinants of health as a driver of future investments. Lead the Energy Future - The demand for alternative energy across the U.S. and in Texas is growing. As the world’s leading knowledge and production center for energy, Texas must seize the opportunity to innovate and develop an ecosystem for the future. Recommendations: Statewide cluster initiatives to support the development and maturation of the state’s capabilities in the production of wind and solar energy, including appropriate incentive use, policies, regulation, and workforce initiatives. Encourage and incentivize Texas energy businesses to shift research and expertise to the development of competitive clean energy technologies. This does not mean that they should abandon oil - rather, that they should use their established expertise to expand their market share into this relatively virgin territory. Adopt ambitious statewide energy efficiency goals and incentives to achieve them. Beyond reducing the carbon footprint of cities, committing to energy efficiency fosters technological innovation and creates opportunities to export more energy. As it is said, efficiency is the cheapest energy source; Texas can also be a leader in this growing segment of the global energy industry. Incentivize the residential adoption of modern and efficient energy products to catalyze the creation of new companies/enterprises and workforce opportunities. Create appropriate workforce training programs and onramps across the industry, from the production of solar panels and wind turbines to their installation and maintenance. If the state’s shale patch feels prolonged pain, displaced oil industry workers may also need focused assistance and attention so they can integrate into new, growing sectors. Treat the alternative energy industry with the same respect provided to other Texas industries - as a source of jobs, revenue, and prosperity - and avoid the old debates or forced trade-offs of environment versus business. Protect Essential Workers to Protect Texas’ Resiliency and Future - The COVID-19 pandemic brought home the fact that frontline services workers are essential workers for Texas. They need access to affordable childcare, guaranteed healthcare, and family-supporting wages. Texas should lead with legislation to honor their service while addressing the longstanding inequalities in our communities. Recommendations: A commitment to evaluate the impact and implementation of a geographically indexed living wage across the state. Adoption of statewide legislation that provides all workers with appropriate safety nets, including paid sick leave. Continuation of state-subsidized childcare for essential service workers during statewide emergencies. A mechanism for triggering “hazard pay” benefits during statewide emergencies that pose public health risks. Promote the Growth of Rural Communities with State-Supported Investments - With a renewed focus, Texas’ rural communities can emerge as centers of entrepreneurship, improving the wellbeing of all Texans. The health of Texas’ overarching economy depends on the success of even its smallest rural communities, but they need focused investment. Recommendations: A suite of rural-targeted incentives, funding mechanisms, and planning tools to encourage greater regionalism among smaller Texas communities. A statewide cluster initiative to understand the viable export sectors (outside of hospitality and tourism), supply chains, and ecosystems in rural communities across Texas and to develop an appropriate action plan to achieve growth. Activate regional colleges and universities to support these efforts. Develop and expand talent initiatives that incentivize and encourage young Texans to return to smaller communities after receiving an associate or bachelor’s degree. Garner a philanthropic commitment to training and capacity building in the practice of municipal policy, economic development, and planning for local government and policy leaders, using Texas universities as the delivery mechanism. Continue investment in digital infrastructure in rural communities to provide access to essential services (health, wellness) and to enable them to promote themselves as livable communities for remote workers. Invest in the Skills of Texans - Having experienced a shock as enormous as the COVID19 pandemic, now is not the time to retreat on workforce development. It’s time to double down on our investments in the skills and pathways that expand economic opportunities for Texans, improving wellbeing across the board. Continued funding to ensure that students in economically distressed communities have access to best-in-class instructional and educational resources. The passage of HB 3 in 2019 provided more funding for economically disadvantaged children and children living in pockets of poverty. It was just a start. The creation of a statewide task force to develop a vision for the Texas workforce of the future, using data and business insights. Its recommendations should be delivered to the state and the Tri-Agencies (Texas Education Agency, Texas Higher Education Coordinating Board, and Texas Workforce Commission). Increased investment in workforce boards across the state to ensure an increase in training partners and wraparound services for displaced workers. Deployment of technology to triage, safely deliver, and scale workforce support services during the age of COVID-19. This will help reserve in-person services for those who are least able to self-serve. Improved alignment between economic development and workforce priorities for metropolitan areas and smaller communities. A fresh approach to community college and university training programs, both credit and non-credit, especially those serving emerging and transitioning sectors. Development and execution of a statewide campaign to promote non-traditional career pathways in trades, manufacturing, and health sciences. Provide incentives for companies that support and create these programs for their workforces. Leverage Texas Universities as Community Hubs and Accelerators for Talent and Thought Leadership - Working in the broadest capacity as beacons of community innovation, Texas universities can leverage local purchasing and procurement, accelerate cluster development, improve workforce readiness, and serve as laboratories for the development of practical solutions to intractable problems. Recommendations: Establishment of a blue-ribbon committee, appointed by the governor, to study ways to develop and sustain a university presence in public problem solving. Explore the power of local purchasing and procurement by universities - setting goals to procure goods/services from underserved businesses and measuring the results. MD Anderson has deployed one of the most effective local purchasing programs in the country, procuring nearly 9 percent of its needs ($93.1 million) from Historically Underutilized Business and Federal Small Businesses (HFSB). Formation of joint labs and studios to tackle pressing public policy and resiliency issues for clients ranging from economic development agencies and municipal governments to service-delivery non-profits. A commitment from colleges and universities to play a significant role in continuing education, beyond traditional workforce development, for local businesses, ensuring that enterprises and their employees are prepared for the future. Advance an Infrastructure that Supports the Orderly Growth of Metropolitan Texas - Transportation investments and increased broadband access are needed across Texas. As expensive as they are, digital and physical infrastructure projects can help to jumpstart the recovery by putting people to work, while laying the groundwork for a Texas that is not only more sustainable, but has a higher ceiling for growth. Recommendations: A commitment from state leaders to support, advocate, and lobby for federal investments in metropolitan infrastructure development, including public transit, commuter rail, and fiber/broadband. President Donald Trump has signaled his support for an infrastructure package, which is likely to include critical bonding programs. As a point of reference, the Build America Bond program as part of the American Recovery and Reinvestment Act of 2009, resulted in $181 billion in bonds sold to fund infrastructure in 15 months by state and local governments across the country.  Allow for more private capital to be utilized to build infrastructure through comprehensive development agreements (CDAs). Make greater use of the federal loan programs, such as the Transportation Infrastructure Finance and Innovation Act (TIFIA), that were created to help finance large regional infrastructure projects.  Activation of ready-planned and funded infrastructure projects to create employment opportunities for underemployed Texans with skills in construction and trades. Connect major regions with “non-congestible” means of transportation such as high-speed rail to allow for greater movement of people and goods. This could potentially allow students to attend more than one college in a region at the same time (for example, Alamo Community College in San Antonio and Austin Community College in Austin) so they can earn a degree more quickly.

HIGHER EDUCATION

THECB Texas Emergency Aid Grant Program – On May 18 th , the Texas Higher Education Coordinating Board, Texas Higher Education Foundation, Greater Texas Foundation, and Trellis Foundation announced that the Texas Emergency Aid Grant Program, launched in May, and has awarded  57 grants  to Texas higher education institutions. These include 29 community colleges, 16 public universities, and 12 independent, non-profit Texas institutions. The grants, totaling $710,000, support students across every region of the state during the COVID-19 crisis. Higher Education Commissioner Harrison Keller said, “I’m proud that together we are providing much-needed assistance to these Texas institutions and the more than 300,000 students they collectively serve across the state. Throughout this process, institutions have shared with us the struggles their students are facing as a result of the COVID-19 pandemic, with some seeing dramatic increases in student emergency aid requests. I am grateful to our partners, including Greater Texas Foundation and Trellis Foundation, for helping students stay on track to obtain high-value credentials. Looking ahead, we know that Texas graduates will play a critical role in the recovery of the Texas economy.” Grant applications were received from 124 higher education institutions across Texas, requesting assistance for a variety of needs including food, housing, and technology support to help with the transition to online learning. The Texas Higher Education Foundation serves as the fiscal agent for the Texas Emergency Aid Grant Program, working to identify additional sources of funds that may be used as a match to private philanthropic dollars, such as the anchor funding donations by GTF and Trellis of $500,000 and $200,000, respectively. Individuals may join this effort by   contributing online . Every additional dollar raised will help provide crucial resources to another institution and its students during this time of unprecedented need. The goal of this public-private partnership is to continue raising money to support the state’s two- and four-year institutions with block grants of $10,000 to $30,000, depending on the size and need of each institution and its student body. These grants are designed to expand existing emergency aid programs offered by Texas higher education institutions and complement the federal funds provided by the CARES Act by providing resources for capacity-building support of emergency aid programs or through direct emergency student aid. The Grantees so far are: Angelina College Angelo State University Central Texas College Cisco College Clarendon College Coastal Bend College Del Mar College East Texas Baptist University Grayson College Hill College Howard Payne University Huston-Tillotson University Jacksonville College Jarvis Christian College Kilgore College Lamar Institute of Technology Lamar State College Orange Lamar State College Port Arthur Lamar University Laredo College McLennan Community College McMurry University Midwestern State University Navarro College North Central Texas College Northeast Texas Community College Odessa College Panola College Paul Quinn College Sam Houston State University Schreiner University South Plains College Southwest Texas Junior College Southwestern Assemblies of God University Sul Ross State University Tarleton State University Temple College Texarkana College Texas A&M International University Texas A&M University-Central Texas Texas A&M University-Commerce Texas A&M University-Corpus Christi Texas A&M University-Kingsville Texas A&M University-Texarkana Texas Southmost College Texas State Technical College The University of Texas at Tyler The University of Texas Permian Basin Trinity Valley Community College University of Houston-Victoria University of Mary Hardin-Baylor Vernon College Victoria College Wayland Baptist University West Texas A&M University Wharton County Junior College Wiley College

PUBLIC EDUCATION

TPPF Recommendations to Ensure Access to Education During the COVID-19 Crisis – On April 7 th , the Texas Public Policy Foundation sent a letter to Education Commissioner Mike Morath and Governor Greg Abbott with recommendations for securing access to educational services through the Texas Virtual School Network during the COVID-19 crisis and its aftermath. The letter said, “Many Texas students are missing educational time that is key to their development as students, whether they are in their final year of high school preparing for college, or in the critical years of early literacy. The impact of this lost time for so many students may be felt for years to come if actions are not taken to ensure our children have the fullest possible access to educational material. Texans face a challenging task, and we are grateful for your tireless work and leadership. In a state the size of Texas, with more than a thousand individual school districts trying to do the right thing for their students and communities, addressing these problems will be bigger than just one solution. Empowering districts to weigh and meet the needs of their student communities will be critical. We believe that with decisive action, in keeping with the actions you have already taken, and a focus on ensuring every Texas student has access to high-quality education, the state of Texas can lead the way in reversing the negative effects of COVID-19 on our educational system.” The letter also includes 10 recommendations to help secure educational access for Texas students during school closures: Lift the current moratorium on districts’ establishment of new online schools within the Texas Virtual Schools Network (TxVSN). Allow funding to go to courses beyond the “three-course limit” on student access to the statewide course catalog. Open virtual resources to all grade levels. Currently only high school students have access to the course catalog, and K-2 students are barred. Waive the provision allowing districts to deny statewide catalog course enrollment if the district provides a “substantially similar” course. Waive ADA requirements as necessary to allow HB 3’s incentive for additional instructional days to cover students enrolling in virtual courses over the summer, up to the amount that would be provided for onsite courses. Revise the process by which courses are approved for the TxVSN. Place the responsibility for course approval in the hands of districts and/or approved third-party accreditors. Temporarily extend the timeline for required teacher professional development that could prohibit teachers from filling the gap in online course teachers. Direct a portion of available federal emergency education grant funding to modernize the TxVSN online systems. Waive the “prior-year public” requirement for full-time virtual education. Evaluate the course fee limit placed on Statewide Catalog courses and determine whether it is appropriately set for given subject areas (such as those that require lab kits, or other high-cost factors). Operation Connectivity – On May 8 th , Governor Greg Abbott, the Texas Education Agency (TEA), and Dallas Independent School District (DISD) launched Operation Connectivity, a statewide initiative to deliver internet connectivity and device solutions for school districts, families, and students in Texas. Operation Connectivity was originally started in Dallas to address the lack of high speed internet and/or home laptops for many DISD students which caused an interruption to their learning, as education in the classroom transitioned to at-home digital instruction due to COVID-19. This initiative now aims to provide internet connectivity to hundreds of thousands of students statewide. Governor Abbott said, "As Texas students continue their education at home through virtual instruction, it is essential that we provide them with the resources they need to connect and communicate online. I applaud Dr. Hinojosa and DISD for developing this innovative initiative for Dallas schools, and look forward to expanding Operation Connectivity statewide so that we can implement reliable and effective solutions that will close the digital divide for students across the Lone Star State." Education Commissioner Mike Morath added, "We are grateful for the work of Dr. Hinojosa and his leadership on this necessary undertaking in Dallas and are delighted to be working with the governor to take this effort statewide. With students learning remotely for the time being, it’s more important than ever for all our students to be able to access academic content at home. In order for that to happen, all students in Texas need access to computers and/or tablets, and internet outside of the classroom. Operation Connectivity is providing the right solutions to this big challenge."  Operation Connectivity Task Force - The statewide implementation of this initiative will be led by the Operation Connectivity Task Force. DISD Superintendent Dr. Michael Hinojosa and TEA Commissioner Morath will serve as co-chairs of the task force. Senator Larry Taylor, Chairman of the Committee on Education in the Texas Senate, and Representative Dan Huberty, Chairman of the Public Education Committee in the Texas House, will serve as members of the task force. The task force members will also include representatives from the following entities: Office of the Governor Local Education Agencies U.S. Department of Education Federal Communications Commission EducationSuperHighway Federal Reserve Bank of Dallas Department of Information Resources Texas Computer Education Association  Chief Technology Officer Council of Texas Duties - The Operation Connectivity Task Force will: gather critical information to determine which children in the state do not have internet access and/or home devices, document best practices, identify and secure technology solutions for broadband and devices, develop actionable playbooks for districts across the state, identify funding needs and help secure resources, demonstrate “lighthouse” examples, including at DISD, and push for federal and state-level policies that connect more students learning at home to available technology resources. Schedule of Task Force Activities - The task force will convene as a full group every month to review progress and resolve roadblocks, which will help to ensure the overall effort stays on-track. Working teams that support the larger task force will meet on a more regular basis to move forward on achieving milestones. A group of representatives from the Office of the Governor, TEA, and DISD, along with others, will be in regular communication to ensure rapid progress on this initiative. Senate Commitment to Maintaining Public Education Reforms – On May 26 th , the Texas Border Business publication ran an op-ed penned by Senators Jane Nelson (R-Flower Mound), chair of the Senate Finance Committee, and Juan “Chuy” Hinojosa (D-McAllen), vice-chair of the Senate Finance Committee reaffirming their commitment to public education and maintaining the reforms from the 2019 legislative session. They also suggested ways to leverage federal COVID-19 money for public education. The op-ed said, “Last session, the Texas Legislature passed HB 3 to invest more state dollars in our classrooms and give a much-needed salary increase to our teachers. With the coronavirus pandemic, we have learned to appreciate even more the role of our schools and teachers. Unfortunately, given the downturn in the economy due to this pandemic, we will face tough budget decisions next session. However, public education remains a priority and we are committed to not losing sight of our future – and that’s our children. We must continue working together to ensure they thrive and not let this current crisis become an everlasting obstacle in achieving their dreams.” The senators made recommendations for protecting education funding by maximizing the funding coming from the federal government. They said, “It is going to take full utilization of U.S. Department of Education, FEMA, USDA, and other sources of funding just to ensure that we have the funds necessary to continue to meet our responsibility to public education.” Elementary and Secondary School Emergency Relief Fund – “The Elementary and Secondary School Emergency Relief Fund (ESSERF) was established in the CARES Act. The ESSERF will provide Texas with nearly $1.3 billion for our schools and gives us the flexibility to have the funds we will need to fund public education during the next biennium. Texas Education Agency (TEA) Commissioner Mike Morath, presented superintendents across the state with the decision made by the governor and legislative budget-writing leaders to use ESSERF funds to cover current expenses in the Foundation School Program. This decision will both maintain full formula funding for schools this year and next, while simultaneously reducing the state’s obligation by approximately $1.1 billion. This savings now, will allow us to free up the funds to use again for public education as we begin drafting the state’s budget next session.” Coronavirus Relief Fund – “An additional piece of the funding puzzle is the Coronavirus Relief Fund (CRF). The CRF will provide the state with $11.24 billion that is split three ways: $3.2 billion for the twelve largest counties and 6 largest cities; $1.85 billion for the remaining 242 counties and cities; and, $6.18 billion for the state. These funds must be spent on coronavirus related expenses incurred March 1, 2020 through December 30, 2020. Using these funds to support school district coronavirus expenses is a permissible and encouraged use of the CRF. To help achieve our goal of preserving our commitment to public education, Commissioner Morath announced that the state will spend hundreds of millions of dollars from the state’s $6 billion CRF share to help cover part of coronavirus related expenses incurred by school districts this school year. This will provide much relief to our school districts who have incurred expenses for increased cleaning supplies, personal protective equipment, software licenses for online teaching, technology devices for distance learning, and other unanticipated costs due to COVID-19. While we are working at the state level to support public education, we still strongly encourage our school districts to also work with their city and county to help cover the school districts’ portion of current and future coronavirus-related expenses. It is our hope that local governments will sincerely consider partnering with their local school districts by providing them with monetary assistance from their Coronavirus Relief Funds.”

REDISTRICTING

Fastest-Growing Cities in the U.S. – On May 21 st , the U.S. Census Bureau issued a report on the fastest growing cities in the country. Six of the top 15 fastest-growing large U.S. cities are in Texas. Amel Toukabri, chief of the Local Government Estimates and Migration Processing Branch in the Census Bureau’s Population Division, said, “Frisco, Texas, tops the list of the fastest-growing large cities with a growth rate of 71.1 percent, increasing its population by more than half since April 1, 2010. With respect to numeric change, cities in Texas are among those that have added the most people this decade. Collectively, Houston, San Antonio, Austin, Fort Worth and Dallas increased by almost 933,600 people. This equals 39.5 percent of the roughly 2.4 million increase by the top 15 numeric gainers. Among the 15 U.S. cities or towns with populations of 50,000 or more as of April 1, 2010, that had the largest percentage increases since 2010, Texas cities took the first, third, fourth, seventh, ninth, and thirteenth slots. The 15 fastest-growing large cities between April 1, 2010 and July 1, 2019 (with populations of 50,000 or more on April 1, 2010) are: Frisco, Texas - 71.1% increase and 200,490 in population growth Buckeye City, Arizona - 56.5% increase and 79,620 in population growth New Braunfels, Texas – 56.4% increase and 90,209 in population growth McKinney, Texas – 51.9%           increase and 199.177 in population growth  South Jordan City, Utah – 51.8% increase and 76,598 in population growth Meridian City, Idaho – 48.3% increase and 114,161 in population growth  Cedar Park, Texas – 44.2% increase and 79,462 in population growth  Fort Myers, Florida – 39.8% increase and 87,103 in population growth  Conroe, Texas – 39.3% increase and 91,079 in population growth  Irvine, California – 35.5% increase and 287,401 in population growth Murfreesboro, Tennessee – 34.6% increase and 146,900 in population growth Mount Pleasant, South Carolina – 34.1% increase and 91,684 in population growth Round Rock, Texas – 33.3% increase and 133,372 in population growth  Goodyear City Arizona – 33.1% increase and 86,840 in population growth  Franklin City, Tennessee – 32.8% increase and 83,097 in population growth

TAX

Franchise Tax Reports Deadline Extended – On May 7 th , Comptroller Glenn Hegar reminded taxpayers that the due date for 2020 franchise tax reports was extended to July 15 th to be consistent with the Internal Revenue Service. The extended due date applies to all franchise taxpayers. It is automatic, and taxpayers do not need to file any additional forms. The original due date, May 15 th , was extended last month in response to the COVID-19 pandemic and to provide Texas businesses relief. Franchise taxpayers who need an extension beyond the July 15 th date have these options: Non-electronic funds transfer (non-EFT) taxpayers who cannot file by July 15th may file an extension request on or before July 15th and must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. Non-EFT taxpayers who request an extension have until January 15, 2021, to file their report and pay the remainder of the tax due. On or before July 15th, taxpayers who are mandatory electronic funds transfer (EFT) payers may request an extension of time to file to August 15th and must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request. On or before August 15th, EFT taxpayers may request a second extension of time to file their report and must pay the remainder of any tax due with their extension request. The August 15th extension request extends the report due date to January 15, 2021. Any payments made after August 15, 2020 will be subject to penalty and interest. CPPP/Every Texan’s Recommendations to Find State Revenue – On May 18 th , the Center for Public Policy Priorities (now Every Texan) released a report listing their recommendations on “Where the Texas Legislature Can Find Revenue.” The recommendations are: Introduction – “The COVID-19-induced crisis is reducing state revenue, while at the same time increasing the demand for health care, education, highways, and other necessary services. The Texas tax code contains many outdated or wasteful exemptions that the Legislature has added over the years.” Recommendations – “Here are a few ways the Texas legislature can generate revenue to provide services for the residents of our great state: Sales tax - Expanding the sales tax base to cover services, like lawyers and stock brokers, could have generated $3.9 billion in 2019 alone. Gasoline and Diesel Tax Rates - With gas prices at their lowest in years, now may be the best time to update motor fuels taxes to reflect inflation, raising money for highways and schools. Local Option Homestead Exemption - Most of the benefits of this homestead exemption from school property taxes go to wealthy Texans - only 200 Texas school districts make use of this provision. Eliminating this unfair exemption would increase property tax revenue received by school districts, reducing the pressure on state aid. Alcoholic beverage tax rates - Raising alcoholic beverages’ tax rates to track inflation since 1984 could have increased state revenue in 2019 by $340 million. Cigarette tax rates - The tax rate on cigarettes was last increased in 2007. Adjusting the tax rate for inflation would have brought in another $333 million in 2019. High-cost natural gas tax break - Phasing out this tax break instituted in 1989 would have generated about $35 million a year after five years, according to an April 2019 estimate. Conclusion: No single tax or revenue source is the silver bullet for addressing revenue shortages or the increased need for the public services we all need now more than ever. But by equitably updating the Tax Code across the board , the Legislature could prevent drastic budget cuts that would slow economic recovery.”  Center for Public Policy Priorities Becomes Every Texan – On May 27 th , the Center for Public Policy Priorities (CPPP) announced that it is changing its name to Every Texan to better reflect the organization's social justice values and commitment to expanding equity. The group’s mission remains the same - to make Texas the best state to live in, where Texans of all backgrounds have a fair opportunity to thrive. CPPP/Every Texan CEO Ann Beeson said, "The pandemic is showing us starkly how public policy can determine who survives and thrives. It's time to rewrite the rules and build a more just and equitable Texas for people of all backgrounds. Since its founding in 1985, Every Texan (formerly the Center for Public Policy Priorities – CPPP) has expanded opportunity and equity for Texans of all backgrounds. Every Texan is an organization pursuing social justice through public policy. Their dedicated team researches, analyzes, and advocates for public policies to expand equitable access to quality health care, food security, education, and good jobs.”  Governor Abbott Asks Local Jurisdictions to Limit Property Tax Increases – On May 19 th , Governor Greg Abbott responded to a letter from members of the Texas Democratic Congressional Delegation regarding tax burdens on Texans. In his letter, the governor voiced his support of lessening the tax burden on Texans but clarified that local governments - not the State of Texas - set the property tax rates. The governor disagreed with the members' support of raising taxes in times of economic prosperity. Governor Abbott said, "Property owners shouldn’t be saddled with rising property taxes while dealing with a pandemic. As a result, local governments, who set property tax rates, should find ways to reduce the tax burden on Texans. Whether we're facing times of challenge or times of prosperity - raising taxes on the people of Texas is never the answer." In his letter, the governor also urged the members to help pass legislation that protects business owners, healthcare facilities and employees, and first responders from being held liable for COVID-19 exposure claims when they adhere to public health guidelines and make good faith efforts to limit the risk of exposure and infection.  Local Sales Tax Sourcing Rule – On May 22 nd , Comptroller Glenn Hegar’s revised final version of Rule 3.334 was published in the Texas Register. This rule revision makes a significant change in the sourcing of intrastate sales of items ordered over the Internet. The new final rule sources intra-state Internet sales in the same way inter-state Internet sales are sourced as implementation of legislation relating to the collection of use taxes from out-of-state on-line sellers enabled by the U.S. Supreme Court’s Wayfair decision. The new rule makes the following changes: The definition of a “place of business” in 3.334(a)(16) now states that it does not include a “computer server, Internet protocol address, domain name, website, or software application.”  Effective October 1, 2021, 3.334(b)(5) provides that “orders not received by sales personnel, including orders received by a shopping website or shopping software application” are deemed to be “received at locations that are not places of business of the seller.” Regarding consummation of sale, 3.334(c)(2)(B)(i) states: “When an order is received at a location that is not a place of business of the seller in Texas and is fulfilled from a location in Texas that is not a place of business of the seller, the sale is consummated at the location in Texas to which the order is shipped or delivered, or at which the purchaser of the item takes possession.” Delayed Effective Date - In the rule’s preamble, the comptroller explained that delaying implementation of the sourcing change to October 1, 2021 was done to: allow adequate time for taxpayers to prepare for compliance, and afford “interested parties an opportunity to seek a legislative change.  Note: This summary was provided by Texas Taxpayers and Research Association .  Governor, Lt. Governor, and Speaker Support Liability Protections – On May 12 th , Governor Greg Abbott, Lieutenant Governor Dan Patrick, and House Speaker Dennis Bonnen sent a letter to congressional leaders asking them to support liability protections for Texas employers. In the letter, the three state leaders urged congress to support the inclusion of legal protections in the next phase of federal coronavirus relief legislation that would protect business owners, healthcare facilities and employees, and first responders from being held liable for COVID-19 exposure claims when they adhere to public health guidelines and make good faith efforts to limit the risk of exposure and infection. The letter said, "Facing record unemployment and an unprecedented financial crisis, we must take immediate and swift action to protect our state’s job creators and our healthcare industry from crippling litigation that would certainly delay the full recovery of our economy. Federal action is the swiftest course to provide liability protections, and we ask for your leadership and support for such measures in the next phase of COVID-19 recovery legislation. Because many Texas businesses and healthcare providers operate in multiple states or have multi-state supply chains, the United States Congress is uniquely positioned to deliver the appropriate nation-wide solution."

WORKFORCE

Extension of UI Payment Deadlines for Employers – On May 22 nd , Governor Greg Abbott announced that the Texas Workforce Commission (TWC) has extended payment deadlines for designated reimbursing employers that are required to pay a share of unemployment benefits. Designated reimbursing employers include non-profits, local governments, school districts and other qualifying employers who reimburse TWC for the full amount of unemployment benefits to be paid to eligible former employees. TWC’s action delays the due date for the June 1 st payment to December 31, 2020. The action also waives interest and penalty charges during the same time period, and does not reduce or eliminate this payment for reimbursing employers. Instead, it provides more time for these employers to secure resources to meet these and other liabilities as they deal with the implications of COVID-19. This extension also does not delay or prevent Texans who qualify for unemployment benefits from receiving these resources. Governor Abbott said, "The COVID-19 pandemic has caused unprecedented economic challenges, and the State of Texas is committed to helping both employers and Texans who have lost their jobs through this challenge. This payment extension will help these employers address financial setbacks due to COVID-19 and provide them more time to pay their share of unemployment benefits. As Texas continues to respond to COVID-19, we are committed to ensuring employers across the state have the resources they need to recover."

UPCOMING PUBLIC POLICY EVENTS

Plano Chamber Public Policy Committee Meeting Guest speaker: Plano Police Chief Drain Wednesday, June 24 8:00 am to 9:00 am Zoom The Zoom meeting link will be sent to all registered at 5:00 pm on Tuesday, June 23rd. Register HERE !

STATE WEBSITES

Additional information can be obtained via the Senate, House, and Capitol websites: www.senate.state.tx.us www.house.state.tx.us www.capitol.state.tx.us

Initiatives like these are made possible with support from:

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