ORDER N0.28432 RESOLUTION OPPOSING UNFUNDED MANDATES On this the 24th day of November 2003 upon motion made by Commissioner Williams, Seconded by Commissioner Nicholson, the Court unanimously approved by a vote of 4- 0-0 to approve a Resolution opposing unfounded mandates and authorizing referendum concerning same to be placed on March, 2004, primary election ballot. ~3 ~~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Pat Tinley OFFICE: County Judge"' MEETING DATE: November 24, 2003 TIlVIE PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Consider and discuss approval of Resolution opposing unfunded mandates and authorizing referendum concerning same to be placed on March, 2004, primary election ballots. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT County Judge ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. County of ~ '~~ State of Texas Resolution WHEREAS, / 1 ~ ~ ~-' County is responsible for the operation and management of many and various governmental programs as required or authorized by law; and WHEREAS, some county government programs are fully or partially supported with funds disbursed by the state of Texas pursuant to the state appropriations process; and WHEREAS, the state of Texas, acting through the Texas Legislature or through a state agency or executive order, may enact laws or promulgate rules that have the effect of imposing mandatory financial obligations upon Texas counties; and WHEREAS, the state of Texas, through the Texas Legislature or through a state agency or executive order, mandates that counties implement certain governmental programs or perform certain duties and obligations including financial commitments by a county to expend county funds in connection therewith; and WHERF_.AS, during each regular session of the Texas Legislature, all state funds that support county programs are reviewed through the state appropriation process and by other state budgetary review systems; and WHEREAS, the aforementioned review process may result in a reduction, or cessation, of state financial support of county government programs causing an unforeseeable disruption and reduction of the county budget and operations; and WHEREAS, Texas counties cannot achieve reliable financial planning and the necessary bond ratings sufficient to support county related obligations when the state mandates a new program that is not fully funded or under conditions where the state reduces or fully withdraws prior funding and disbursement for county government programs. NOW, THEREFORE, the County of l~ ~ ~ - ~'' does hereby resolve that for the foregoing reasons, it is in the best interests of Texas counties and their taxpayers to support and favor the passage of legislation, including an amendment to the Constitution of the State of Texas, that would expressly prohibit the imposition of a mandatory governmental program on Texas counties, whether by an act of the Texas Legislature or a state agency or by executive order, unless the state of Texas has fully funded and disbursed all necessary funds to enable Texas counties to operate said governmental program. / ADOPTED THE ~~`( DAY OF ~i/;' ~'r= ,'~ ~~~ r' 20Q ~ . SIGNED AND ENTERED ON THE ABOVE DATE BY THE FOLLOWING MEMBERS OF THE COMMISSIONERS COURT ~~~~,,~~~ County Judge ~ ~,~- J[Y _ w~~ County Commissioner County Commissioner Precinct No. Commissioner No. 3 Precinct No. 2 County Commissioner Precinct No. 4 2 FOR IMMEDIATE RELEASE [FILL IN DATE OF RELEASE] CONTACT: [NAME] [PHONE AND/OR E-MAIL] LOCAL COUNTY OFFICIAL SEES TO PROTECT TAXPAYERS FROM UNFUNDED MANDATES [Full name and title] supports allowing voters to decide if unfunded mandates from the state to counties should be reined in to protect taxpayers from being saddled with higher property taxes. [Last name] joins county officials from across Texas in seeking a constitutional amendment that would limit state actions which mandate counties to spend additional funds, unless the state pays for its mandates. "Our property taxpayers currently have no protection against state actions that force counties to raise taxes," [Last name] said. "We believe a constitutional amendment would curtail many of the unfunded mandates. The mandates are often unintended consequences of legislative action or state administrative action. While legislators and state executives do not willingly intend to cause local tax increases, their actions too often result in tax hikes because they do not include statewide funding mechanisms to pay for the directives to counties." To initiate the effort, the Subcommittee on Unfunded Mandates of the Policy Analysis Group (PAG) met recently at the Texas Association of Counties (TAC) in Austin. The subcommittee decided to seek a referendum in both the Republican and Democratic Party primary elections next spring. The referendum was proposed by Bee County Tax Assessor-Collector Andrea Gibbud and quickly approved by other members of the subcommittee who were present, including its Chairman and Brazoria County Commissioner Jack Hams, Fort Bend County Tax Assessor-Collector Marsha Gaines, Dallas County Commissioner Jim Jackson and Gibbud. The referendum would give primary voters the opportunity to express their feelings on better protecting local taxpayers from state mandates through a proposed constitutional amendment. The referendum states: "For or against a constitutional amendment protecting taxpayers by prohibiting state mandates that require local property tax increases." The constitutional amendment will be presented to the Legislature at its next session. Subcommittee members noted that legislative budget actions during tough financial times often have a direct impact on counties and properly taxpayers, even when legislators do not intend such a burden. During the 78~` session that ended earlier this year, examples include cuts to health care, mental health and the Children's Health Insurance Program (CHIP) that have resulted in counties being forced to assume additional costs. Under-funded or unfunded mandates from previous legislatures have included the 1985 Indigent Health Care Act and the 2001 law mandating indigent criminal defense services. TAC is composed of local elected officials from all Texas' 254 counties. The PAG was formed in 1997, and its members selected issues upon which to focus, including unfunded mandates. -30- [For additional background information, contact Elea Christopher at 1-8()Q456-5974 or elnac@county.org.] Unfunded Mandates from the 78a` Legislative Session HB 401 relating to the testing of certain public safety personnel for accidental exposure to hepatitis B or hepatitis C. Requires the employer of EMS personnel, firefighters, peace officers or first responders to pay the cast of a Hepatitis B and Hepatitis C test on the patient who received services from the EMS personnel, firefighter, peace officer or first responder, if there is a belief of exposure to one of the providers. This would also apply to volunteers who are rendering assistance. While such services aze essential to the well being of emergency personnel and should be rendered, the state elected not to help counties pay for the program. HB 1 relating to the appropriations of money for the 2004-2005 Biennium. Article I Historical Commission-Courthouse Preservation, loss of $5 million for the biennium Article II Health Department-Indigent Health Caze Program, loss of $22,965,580 for the biennium Other areas of concern under Article II, possible fiscal impacts to counties. • The CHIP Program keeps eligibility at 200% of the poverty level, but adds an asset limit to CHIP and eliminates most income disregards. Additionally, there are additional changes to the program which reduce benefits as follows: (1) a 90-day waiting period for enrollment, (2) reducing continuous eligibility to 6 months (from the current 12 months), and (3} requiring higher co-payments and premiums from clients. According to the Center for Public Policy Priorities these changes are projected to reduce the number of children enrolled by 169,295 below projected enrollment in 2005 (or, 166,897 below May 2003 enrollment). These kids will no longer be treated for acute caze and will be treated in the emergency room of a hospital at a much higher cost. This will be in a public hospital or a hospital district, both of which are supported to a substantial extent by county tax dollars. • Due to the cuts in Medicaid services such as mental health services and podiatry services the costs of these services will be shifted to the county either by using a public funded hospital or by using the county jail as the mental health facility. It is not possible to quantify the amount; however, county leaders expect the costs will be substantial. Article IV Office of Court Administration, Texas Judicial Council Information Technology, loss of $1,072,168 for the biennium Assistance to administrative judicial regions, loss of $52,756 for the biennium Rider 5-Information services for trial courts, reduced by $288,344 Judiciary Section, Comptroller's Department Visiting retired judges, (regions) loss of $5,499,934 for the biennium Witness expenses, loss of $1 million for the biennium 2 Statutory court judge GR supplement, loss of $140,000 for the biennium Felony prosecutors travel, loss of $23,500 Prosecutors expenses, loss of $213,924 for the biennium Article V As listed in the 2004-2005 State Appropriations Budget, counties will lose funding under the Challenge Grant and Non-Residential Program funding under the Juvenile Probation Commission's budget (funding for both programs was cut for fiscal yeazs 2004 and 2005). • The Challenge Grant Program assisted 24 counties (Bexaz, Brazoria, Brazos, Comal, Dallas, El Paso, Gray, Guadalupe, Hale, Hams, Hidalgo, Jefferson, Lubbock, Montgomery, Nueces, Randall, San Patricio, Smith, Tarrant, Taylor, Tom Green, Travis, Van Zandt, Williamson) and was budgeted at $677,721.00 in 2002-2003. • The Non-Residential Program assisted 11 counties (Coke, Dewitt, Hale, Hazrison, Houston, Karnes, Kaufman, Lampasas, Milani, Polk, Rockwall) and was budgeted at $250,000.00 in 2002-2003. Another area of concern under Article V, is the elimination of the Criminal Justice Policy Council. The Council served as great resowce for counties when looking at jail overcrowding issues. The statistical data generated by the Policy Council that assisted counties in making financial projections and construction plans (jail contracts and personnel) is no longer available. It is not possible to estimate or quantify this loss to counties. However, the elimination of the Policy Council will most asswedly result in substantial financial adversities to counties, including inefficiencies and waste attributable to incarceration emergencies and jail inmate contingencies that were previously predictable. Article VII Texas Department of Transportation, Rider 18: Road Materials. A fiscal appropriation for counties is now transferred into a physical appropriation of road maintenance materials. Whereas Rider 22 of the 2002-2003 biennium provided for counties to receive a portion ($4.1 million in calendar 2002) of Gross Weight and Axle Weight fees collected by the state (Transportation Code 621.353), Rider 18 of the 2004-2005 biennium provides for disbursement of double the amount of road materials, but no fiscal appropriations. 2 Ezamples of Unfunded 1Viandates from Past Legislative Sessions Unfunded mandates aze not a new creation. They did not begin with the most recent legislative session but have occurred in years past. Two glaring examples stem from 1985 and 2001 respectively: • Prior to the enactment of the Indigent Health Care Act (Health & Safety Code), counties had a general obligation to care for paupers. The Act, passed in 1985, established 138 counties and all public hospitals as the payer of last resort and statutorily set out specific duties and responsibilities. The mostly unfunded state mandate provided for a county spending limit of 530,000.00 per person and statutory list of mandated health care services and medication regimen. The state did provide for a reimbursement threshold for funds expended by a county on indigent health care in excess of 10% of the county budget (since been lowered to 8%). However, the reimbursement is limited and subject to funds being available. • County governments continue to wrestle with the fiscal impacts of Senate Bi117 from the 77a' Legislature. The law, passed in 2001, requires counties to provide criminal defense services to indigent defendants but was only partially fimded by state lawmakers. Its continuing impact on county budgets showed up in a resolution passed by the County Judges and Commissioners Associarion of Texas at its annual conference in October 2003. Resolution No. 13: Indigent Criminal Defense asked that the 78~' Legislature address the issue in any upcoming special session and states: WHEREAS, Senate Bi117 has required additional county taxpayer expense to provide indigent criminal defense services; and WHEREAS, Senate Bill 7 has added administrative duties and reporting requirements to county offices; and WHEREAS, the current appropriation is insufficient to reimburse counties for these mandated costs; now THEREFORE, BE IT RESOLVED that the County Judges and Commissioners Association of Texas urges the Legislature, during special session, to revise the provisions of Senate Bi117 to simplify the administrative and reporting requirements and improve the efficiency of the indigent criminal defense program; and BE IT FURTHER RESOLVED that the Legislature, during special session, either 1) authorize sufficient funds to commensurate counties for the full costs of implementing the mandates of the indigent criminal defense program or 2) repeal the mandatory, unfunded andlor underfunded provisions of Senate Bill 7. i:~'1I+'UNDED MANDATES GENERAL TALHING POINTS Definition of Unfunded Mandates (UFM): Financial burdens placed upon county governments by state actions, often resulting in increased property taxes at the local level. Such state actions include: • directives to counties without providing the necessary funding to carry out the directives; • withdrawal of or cuts in state funding to carry out existing directives; and • changes in state operations which inadvertently result in county expenses and inefficiencies. County government is an arm of state government and carries out the state's directives. However, it is important to remember that the burden of paving for unfunded state directives falls squarel~pon local progeny tpxp~ygrs. Unfunded mandates are often an unintended consequence of legislative action or state administrative action. In other words, legislators and state executives do not willingly intend to cause increases in local property tax rates, but their directives result in local tax hikes because they do not put in place statewide mechanisms to pay for their directives and administrative changes. The problem of unfunded mandates did not begin with the most recent legislative session. Past legislatures and state agencies have done the same thing to counties and taxpayers. It is an on-going dilemma and will continue to be so, especially in times of economic stress for the state. This is not a partisan issue. It cuts across both political parties, and no one political party is to blame. Currently, the financial circumstances and economic climate in the state are not that wholesome, and the projections for recovery may not be as sound as some would have us believe. There is the worry that the state will resort to even more severe cuts in existing programs that will keep counties in a state of financial uncertainty, materially interfere with meeting budgetary essentials and cause a loss in bond ratings. Local properly taxpayers often do not understand the subtleties of the way our governments are organized. Hence, when their property taxes rise due to unfunded mandates, taxpayers know only to blame their local elected officials, whose hands are tied by state government. It is crucial to educate the public so they will understand the workings of unfunded mandates and make their concerns known to their legislators. A SAMPLING OF REPORTS & EDITORIAL COLUNINS FROM TEXAS NEWSPAPERS "Across Texas, local governments saddled with state-mandated costs have had to raise taxes... Counties were hit particulazly hazd by a state budget that sloughed obligations onto them Locally, our county faces pressing needs like juvenile justice, overburdened courts and jails." John Young, Opinion Page Editor Waco Tribune Herald, Oct. 1, 2003 "[State budget cuts) will shrink government, but they will do nothing to stanch demand driven by current need and burgeoning population. Nor will the proposed cuts prevent county governments from raising local taxes to make up the difference and, down the road, pick up the tab for added strain on emergency and trauma care centers, crisis services for patients with uncontrolled mental illness, and county-run operations, like jails and probation programs, because of the problems that festered... "'The pain will fall squazely on the county's shoulders to do more with even less funding from outside,' Hams County Commissioner El Franco Lee says... Lee is a Democrat, but the budget concerns cut across party lines. Hams County Constable Bill Bailey, a Republican, is president of TAC... The group also is working to pass a resolution for a constitutional amendment, HJR91, that would require the state to fund all mandates it prescribes for local governments." Houston Chronicle Editorial Board May 9, 2003 "Government is like water, says Hunt County Judge Joe Bobbitt. It all runs downhill. In Texas, county governments aze at the bottom of that hill... "...reductions in programs like Medicaid and the Children's Health Insurance Program will roll down the hill toward counties and force them to face their own tough questions... " William McKenzie, Editorial Columnist Dallas Morning News Apri129, 2003 "To the state of Texas: Don't send El Paso any mandates you can't fund. Following that common-sense advice would go a long way toward making El Paso a participant in, rather than a victim of, the state's budget process." El Paso Times Editorial Board Apri129, 2003 "Here's another economic lesson that taxpayers should understand: The need for health care and the delivery of it in crisis circwnstances for the working poor will not end when the Legislature leaves Austin... No, the burden will shift to the John Peter Smiths (public hospitals) of Texas - and when the money runs out there, the Tarrant County Commissioners Court will have to step up. And you do know that increased taxes from the county show up on the property tax bill, don't you?" Fort Worth Star-Telegram Editorial Board May 10, 2003 "An `unfunded mandate' is a law passed from a higher branch of government down to a lower one with no means provided to pay for it. In many states, the practice is illegal. In Texas, counties have tried without success for years to get funding provided for all new laws. Comal County officials have long lamented unfunded state and federal mandates." Ron Maloney, Reporter New Braunfels Herald-Zeitung August 14, 2003 "The Texas Legislature effectively pulled the plug Friday on visiting judges, leaving one felony court in Smith County with no judge and courts at law preparing to juggle increasing criminal dockets with civil tort trials expected to last for several months...(GeorgeGowart, ofl`ice manager for the First Judicial District) said dealing with unexpected court matters and crowded dockets without relying on visiting judges will be a first in Texas. `We're trying to be as creative as possible to keep the wheels of justice from falling apart' Cowart said." Anne Wright, Reporter Tyler Morning Telegraph August 30, 2003 "For example, it's the state that requires (El Paso's) Thomason Hospital to provide emergency medical services to anyone who walks in the door. Yet, Thomason... is not allowed to ascertain citizenship... More poor people will seek treatment in Thomason's emergency room. Simple infections that could be treated for a few dollars will cost hundreds, possibly thousands, to treat in the ER. Who will pay for this? You, the local taxpayer." Bernadette Self, Editorial Columnist EI Paso Times May 9, 2003 "...the county gets stuck prosecuting many federal drug cases, and paying to hold these inmates in the county jail. Local taxpayers are footing the bill, to the tune of millions of dollars, for state and federal responsibilities." Bernadette Self, Editorial Columnist El Paso Times May 9, 2003 Referendum for Republican & Democratic Primary Ballots Mach 9, 2004 Primary Election "For or against a constitutional amendment protecting taxpayers by prohibiting state mandates that require local property tax increases." Kerr Countv Judae/Commissioners' Court From: "Elna Christopher" Sent: Thursday, November 13, 200311:00 AM Subject: Unfunded Mandates Initiative The Subcommittee on Unfunded Mandates of the Policy Analysis Group (PAG) recently supported action regarding counties' need for a constitutional amendment to prohibit unfunded mandates by the state. Unfunded mandates impose costs on Texas counties and their taxpayers exceeding millions of dollars statewide and can force counties to increase property tax rates to pay for unfunded or under-funded directives passed by the state. Subcommittee members aze seeking the assistance of all county officials in Texas to support the proposed amendment leading up to and during the 79th legislative session in 2005. First, the members request that counties pass resolutions supporting the unfunded mandate amendment and issue news releases explaining and supporting the amendment. Resolutions passed by commissioners courts should be faxed to 512-478-3573. Second, the subcommittee members will seek placement of anon-binding referendum on both the Republican and Democratic primary ballots on March 9, 2004. The referendum will demonstrate voter support of the constitutional amendment. Third, the subcommittee members urge all county officials to raise public awazeness regarding the problem of unfunded mandates, including contacting their local news media and community leaders. Subcommittee members aze Brazoria County Commissioner Jack Harris, subcommittee chairman; Dallas County Commissioner Jim Jackson; Fort Bend County Tax Assessor-Collector Marsha Gaines; Bee County Tax Assessor-Collector Andrea Gibbud; BeII County District Attorney Henry Garza; and Wichita County Auditor Deborah Stevens. The members have requested that documents relating to unfunded mandates be distributed to all county officials. Pursuant to their request, the documents aze available on the TAC Web site at The informational package includes: * a resolution for consideration by county commissioners courts; * a news release for local media; * examples of newspaper editorial comments on the issue; * a proposed referendum for the Republican and Democratic primary elections on March 9, 2004; * general talking points; * examples of unfunded mandates stemming from the 78th Legislature; 11/13/2003 ~l.ly, ~. U:: ~. * examples of unfunded mandates stemming from previous sessions of the Legislature. County officials may download the documents from the above link and print them to use as needed. If you need additional information, contact the TAC Legislative Department at 1-800-456-5974. 11/13/2003