#TXLEGE: Whitmire's "Audit TRS" proposal LONG overdue

"Shepherd the flock of God which is among you, serving as overseers, not by compulsion but willingly, not for dishonest gain but eagerly;"
1 Peter 5:2

Wasn't expecting this:

A state senator on Thursday has called for an audit into real estate investments and partnerships involving the Teacher Retirement System of Texas after revelations its officials had signed off on renting space at an office skyscraper at a minimum monthly rate of $326,000.

With a completion date of March 2021, the 36-story office tower at 200 West 6th St. is pricey even by the standards of downtown Austin that has seen soaring rent costs amid brisk municipal growth. Teacher Retirement System of Texas officials had cited space constraints at its current 816 Congress Ave. location, as KXAN reported. Backlash partially fueled by media scrutiny from the Austin American-Statesman and others over the lavish rent space prompted officials to reverse course and look into expanding its existing space instead.

But the repercussions of having even considered signing a lease have seemingly just begun given a request for an audit by State Sen. John Whitmire (D-Houston), the longest-serving current member of the Texas State Senate who has represented District 14 since 1983.

[Note: We're not going to blockquote it in full, but we do recommend reading the whole linked article.]

Some thoughts:

• Even without the current scandal, this should be done every 3 to 7 years as part of routine fund maintenance.

• Considering that the fund has a $46 Billion unfunded liability, this can only help put it on more solid footing.

• Whitmire's proposal comes on the heels of Paul Bettencourt's the other day.  It certainly appears that the Senate is serious about addressing this issue (or that they're at least better at creating that impression).  This stands in marked contrast to the caterwauling phoniness we've seen from the house.

• Any serious audit really ought to take into consideration all of the other prime real estate in Downtown Austin owned by the fund.

Bottom Line: It's a shame that it took a scandal for this discussion to occur, but this should absolutely happen.

Thoughts on (#TROXROX) Local Government Accountability Day (#TROXROX) in the Texas Senate (#TROXROX)

"Through wisdom a house is built,
And by understanding it is established;"
Proverbs 24:3

We've been in a holding pattern for several hours as the Senate debates the privacy act; this seems like as good a time as any to post our thoughts on this hearings this morning about property taxes, ridesharing, and short-term rentals in the Texas Senate:

[Author's Note: Points about property taxes will be listed in blue; points about Ridesharing and STR's will be listed in green.]

• We've never seen a day when this many issues related to local government accountability were heard in a day; this is new.

• In terms of obvious storms on the macroeconomic horizion, the property tax system in Texas (alongside local government debt) is the equivalent of the national debt in term of predictable problems on the short to medium term horizon.  Texans currently pay the highest property taxes of any state without an income tax.  This is a high priority mess that needs to be addressed before it bites us in the backside.

• On the TNC issue, Don Huffines' bill (SB 113) is the only bill up today that will pre-empt the next round of regulatory challenges related to ground transportation and new technology.  That's why we testified in favor of it.  Nevertheless, we can count votes and Charles Schwertner's bill represents a significant step forward from the status quo.

• Additionally, the property tax system as it currently exists is the mother's milk that feeds all sorts of other corruption in the legislature.

• As we have previously discussed; Senator Bettencourt confessed to several good reasons why SB 2 (the property tax relief bill) doesn't go nearly far enough.  Under questioning from other Senators, he repeatedly admitted that the bill does not amount to a revenue cap, and he also admits local jurisdictions will still be able to raise taxes close to 10% without an election.  Nevertheless, this is a significant step in the right direction and see our previous comment about counting votes.

• Bettencourt's bill would rename the effective tax rate the "no new taxes" rate; this can only simplify things for the average taxpayer.

• Bettencourt -- Taxpayers in Harris county often pay 10 taxing jurisdictions at a time.

• Bettencourt too frequently talks in policy wonk language and goes over people's heads.

• Actually, Bettencourt straight up talks too much.

• Paul Bettencourt: We love you, and we agree with you, but shut up.

• Ann Kitchen plugs "new" Austin TNC's while ignoring last Saturday's meltdown.

• #TROXROX -- Texas less desirable place to invest because of Austin Ridesharing debacle.
• "Local control is only valuable as a tool to protect individual liberty."
• Mentions what happened Saturday.

• Schwertner: Restricting mobility options is just wrong.

• Kelly Hancock goes full trial lawyer on Ann Kitchen.

• Committee took the black market that emerged in Austin after council kicked out Uber and Lyft to the cleaners.

• Samsung's largest physical plant in the world is located in NE Austin.
• Even with the incentives they receive, Texas' property tax system still isn't competitive.
• Note: That's quite a remarkable statement coming from a big business.
• Whitmire goes full Elizabeth Warren.

• #TROXROX -- Rates should go down as appraisals go up.
• Austin had an additional $50 million to spend last year even at "no new taxes" rate.
• Austin budgets have consistently grown 7 to 10% even without counting 'exemptions.'
• SB 2: "A critical tool that must be adopted."
• First thing to cut would be new vehicles every three years.
• Voted against bailing out library.
• Kel Seliger tried to throw her under the bus and she threw it back.
• No reason you can't hold cities and counties accountable alongside school districts.

• #TROXROX: Several activists from outside the local area who'd never seen Ellen Troxclair in action before spoke positively about the degree to which she refuses to take crap (especially re: the exchange with Seliger).

• They laid out but have yet to take testimony on the short term rental bill, but the short version is as follows: the degree to which the Austin anti-STR ordinance creates new police powers out of thin air is creepy.

Bottom Line: We'll include links to testimony and deeper thoughts at a later time, but the short version is that after decades of atrophy the Texas Senate is beginning to rehab their constitutional muscles as it relates to local government accountability.

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McRaven cries UNCLE over Houston Land Grab!!!

"There is a way that seems right to a man,
But its end is the way of death."
Proverbs 14:12

Confession: We really, REALLY enjoyed this one....

Chancellor McRaven ends plan for UT project in Houston

AUSTIN – University of Texas System Chancellor William H. McRaven announced today that he is ceasing any additional efforts to launch a UT project on land it purchased in Houston last year. McRaven’s decision was based on his concerns that the project was overshadowing the extraordinary work under way on the 14 campuses of the UT System and he did not wish to do anything that could detract from the advancement of UT institutions and their presidents’ visions. Consequently he advised the Board of Regents that any further efforts on the Houston project would be stopped immediately.

“I accept full responsibility for the lack of progress on this initiative. I am grateful to the Regents, my System staff and the university presidents for their engagement over the last year,” McRaven said in a memo to Regents’ Chairman Paul Foster.

“I also offer my deepest apology to those members of the Houston Task Force who selflessly dedicated countless hours to develop a bold vision for the future of UT’s investment in Houston. I am incredibly appreciative for their support and friendship throughout this process. While we will not implement this plan in Houston, I am confident that some of the great ideas that emerged from the Task Force will be worth considering on other UT campuses,” McRaven added.

McRaven also recommended to the Board of Regents that the UT System real estate office develop a plan to divest the System of the land. Noting that it will take time, McRaven emphasized that the plan will be executed in a manner that protects the System’s investment in the property.

McRaven thanked the regents for their support and expressed his enthusiasm for working with them on many opportunities ahead.

 We attended the media availability this afternoon and got audio:



Highlights:

• "Divesting" Houston property in "thoughtful, methodical process."
• "Protecting our investment."

• Goal was to produce an "Institute for data science."

• Don't expect to lose money on property.

• No timeline on selling the property: "The main approach will be to protect our investment."

• "I was not able to develop a shared vision."

• Threw in the towel the past couple days.

• "I certainly think so" re: continued Board of Regents support.
• Author's Note: We spoke to a source following the event who pointed out that McRaven signed a three year contract when he was originally hired...in which he is now in year three...which means there's a face saving way for them to get rid of him in a year.
• Author's Note II: Just to be clear, the source to which we refer in the previous note never served on the Board of Regents...so it's not who you think.

• "We are through with our expansion into Houston."

• "I wasn't able to get the stakeholders necessary."

• "Minor environmental issues."

• "We've closed on most of the acreage."

• "We're going to develop a plan and I'll submit it to the Board of Regents." re: selling the property.

• They've spent somewhere in the mid-$20 million range so far.

• Houston task force report being presented to the board later this week.

Following the media availability, we caught Senator Whitmire at another event who told us "I'm very pleased" about today's news.

Finally, this report in yesterday's Statesman couldn't have helped.

Bottom Line: OUCH...............................................

An unintentionally revealing tidbit about how Texas politics really operates....

Do not be deceived: “Evil company corrupts good habits.”
1 Corinthians 15:33

Quorum report is a corrupt, low circulation, publication that details gossip around the Texas capitol.  We don't read them often, but occasionally they say more than they intend.  Yesterday was one of those occasions:

Wow; so the realtors have just hired:

• THREE former committee chairs (from both chambers).

• A former Joe Straus chief of staff.
• Author's Note: Jesse Ancira is a real pr...winner; learn more about that guy here.

• The daughter of the current dean of the Texas Senate (Whitmire).

Bottom Line: Never, ever, ever forget that Texas politics is primarily about a bunch of good ol' boys (at every level) putting together shady real estate deals.

How will Tom Herman hire impact U.T./Houston dynamic in the 85th #TXLEGE?!?

"He who is often rebuked, and hardens his neck,
Will suddenly be destroyed, and that without remedy."
Proverbs 29:1

Last Sunday, while attending Tom Herman's introductory press conference as the new Longhorn Football Coach, we had a thought: considering that the legislature is already livid with U.T. for their activities in Houston, how's poaching U of H's football coach going to go over?!?

For those who don't remember: Last fall the U.T. system, at the behest of Chancellor McRaven, announced plans to expand into Houston.  As we predicted at the time, this set off a gigantic turf war between U.T. and U of H.  As Senator John Whitmire said exactly one year ago today: "In all candor, in my 42 years of service in the Texas Legislature, I have not seen such and affront to the legislative process and the conservative deliberations of the higher education community."

To which U.T. responds by poaching U of H's Football coach.

With that background in mind, consider these remarks from the chairman of U of H's board of Regents:

"It's disappointing that the University of Texas -- who wants to open a campus in Houston and said they would never do anything to harm the University of Houston, with all the football coaches in America, who said that they would stand up for us to get into the Big 12 and then didn't even vote for us when they met with the commissioner and all the schools -- had to come take our little football coach,"

OUCH...and we hadn't even thought about Big-12 expansion.

Bottom Line: If, in addition to restoring Longhorn Football, the Tom Herman hire also inspires the legislature to crack down the UT politburo's various other shenanigans, it could be one of the greatest two for the price of one deals of all time.

Whitmire fires ANOTHER UT Houston Warning Shot

Likewise you younger people, submit yourselves to your elders. Yes, all of you be submissive to one another, and be clothed with humility, for

“God resists the proud,
But gives grace to the humble.”
1 Peter 5:5

Ouch:

An influential Texas senator is asking the state auditor to investigate the University of Texas' purchase of 300 acres in Houston.

In a letter sent to the auditor's office Wednesday, state Sen. John Whitmire, a Houston Democrat, said the auditor needs to review the purchase "to ensure complete transparency and accountability of our higher education dollars."

"It is imperative that elected officials and the public have a clear understanding of the entire process and timeline leading to the decision to purchase these tracts of land," Whitmire wrote. "Did the contracting process include a needs assessment, a request for proposals, quantitative scoring criteria and a selection committee? Were these and or other best practices followed in the purchase of land in Houston?"

Read the whole thing here.

McRaven to Whitmire: Drop Dead!!!

"He who is often rebuked, and hardens his neck,
Will suddenly be destroyed, and that without remedy."
Proverbs 29:1

We reported back in December on Senator Whitmire's reaction to the U.T system's Houston expansion plans, we recently obtained McRaven's response to Whitmire via open records request:

[Author's Note: And, of course, he plays the 9/11 card.]

12-15-15 Senator John Whitmire Letter From WHM

U.T./Houston Turf War: McRaven ALIENATES Whitmire!!!

"Likewise you younger people, submit yourselves to your elders. Yes, all of you be submissive to one another, and be clothed with humility, for 'God resists the proud, But gives grace to the humble.' "
1 Peter 5:5

Remember, a little under a month ago, when we said Bill McRaven was starting a turf war in Houston?!?  When we said that, we had forgotten that the Dean of the Texas Senate was from Houston.  Yesterday, John Whitmire let Mr. McRaven know exactly what he thought about a U.T. campus in Houston:

Ltr to McRaven UT Houston Expansion

Bottom Line:  It's not smart, but it's one thing to thumb your nose at the Lieutenant Governor.  It's another matter to give estrange yourself from the Dean of the Texas Senate, who happens to be from Houston.  OUCH....