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An update on legislative activity relating to rural policy priorities.
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SUMMARY TDRA Rural Policy Process
Presented by Kim White/Eric Beverly * DISCUSSION Sharing Legislative Outcomes A number of TDRA Governing Board rural policy priorities received attention during the 81st Legislative Session. The legislative team has reviewed legislation that became law and produced a report called Legislative Outcomes from TDRA’s Rural Policy Process. This report will quickly indicate which rural policy priorities were addressed and which were not. The principal goals of this report are to inform:
• the TDRA Governing Board about policy priorities that were addressed during the last legislative session; and
• citizens who participated in the rural policy recommendation process conducted during the last legislative interim about policy priorities that were addressed during the last legislative session.
Biennial Rural Policy Recommendation Process Begins Again The legislative team plans to use a similar process to the process that was used during the last biennial cycle to gather rural policy recommendations in the four key areas of rural economic development, rural community development, rural healthcare, and rural housing. The legislative team anticipates using a combination of methods to successfully complete this initiative and to ensure public participation. Methods may include PSA(s), press release(s), webinar(s), survey(s), and an online rural policy recommendation page through TDRA’s website.
RECOMMENDATION No action is required by the Governing Board. RURAL DEFINITION N/A for this agenda item. *Should a Governing Board member have questions concerning this agenda item, please contact Kim White, phone 512-936-6713 or email at [email protected] or Eric Beverly, phone 512-936-6728 or email at [email protected].
Legislative Outcomes from TDRA’s Rural Policy Process
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Summary ORCA Governing Board policy recommendations Legislative Action
Comprehensive rural development
We recommend that the legislature encourage an integrated approach to rural development that includes planning, leadership development, youth engagement, entrepreneur support, and the development of community foundations.
SB 684, which would have provided TDRA with comprehensive rural development programs, was introduced but did not pass.
Flexible standards for no growth communitiesWe recommend that the legislature study the extent to which various state programs can provide regulatory flexibility for communities with declining or static populations.
No action.
Enhance infrastructure funding
Because many rural areas have aging and inadequate infrastructure, we recommend that the legislature supplement federal CDBG funds that are used in rural regions of the state with general revenue funding. This increased funding will help to offset inflation of construction costs and provide an anti-recessionary benefit for rural areas through job creation and increased capacity for business and residential expansion.
The legislature provided TDRA with $8 million in funding for the Rural Sustainability Fund exceptional item request. In addition, $19.5 million in ARRA funding was directed for use in existing eligible infrastructure projects. TDRA anticipates that the ARRA funding will create 400 jobs.
ORCA, Disaster relief
We recommend that the legislature create and fund a state-level disaster fund that will supplant the use of CDBG funds for disaster response. A separate Disaster Relief and Recovery Reserve would be funded primarily from general revenue funds and would provide the crucial assistance needed for smaller communities to meet the federal FEMA match requirement. It also would not have all the federal requirements associated with CDBG funding and it would speed up financial assistance to rural communities.
TDRA did not receive its exceptional item request for the Diaster Relief and Recovery Reserve Fund.
Additional funding for road improvementsWe recommend that the legislature prioritize funding the maintenance of and safety improvements for Texas’ rural roads.
On Wednesday, April 28, 2010, Amadeo Saenz, Jr., P.E., Executive Director, Texas Department of Transportation provided extensive written testimony entitled, Rural Transportation Needs, Texas Department of Transportation: Safety and Efficiency of Existing Agriculture-related Transportation Infrastructure to the Joint Hearing of the House Committees on Transportation and Agriculture & Livestock. In part, the testimony highlights TxDOT's maintenance of and safety improvements for Texas' rural roads. The report has been included as an attachment.
Community development
Legislative Outcomes from TDRA’s Rural Policy Process
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Summary ORCA Governing Board policy recommendations Legislative Action
Enhanced technology access needed to spur rural economic development
Many rural areas lack reliable, adequate, and affordable access to two key kinds of technology: 1) high speed Internet and 2) cell phone networks. We recommend that the legislature provide incentives that address those technological deficiencies. Improved telecommunications capabilities will spur economic investment and job growth in rural Texas.
No state level legislative action. Gov. Perry designated the Texas Department of Agriculture (TDA), in partnership with the Public Utility Commission of Texas (PUC) and the Texas Public Safety Commission (PSC) to lead the state's broadband service expansion initiatives and represent the interests of Texas to the National Telecommunications and Information Administration (NTIA). TDA, PUC, and PSC have been actively involved in supporting applications that seek funding from the federal Broadband Technology Opportunities Program (BTOP).
Environmental flows and water conservationWe urge the legislature to prioritize rural areas when considering environmental flows and water conservation issues.
The Environmental Flows Advisory Group was created by the 80th Texas Legislature in recognition of the importance that the ecological soundness of our riverine, bay, and estuary systems and riparian lands has on the economy, health, and well-being of our state. The next meeting of the Environmental Flows Advisory Group will be held on Thursday, May 27, 2010, in the State Capitol Extension, Hearing Room E1.012. Please note that the time for this meeting has been changed from 9:00 AM to 11:00 AM.
Career and professional training
We recommend that the legislature provide career and professional training specific to the needs of rural communities. We ask that the legislature encourage programs that would make rural community colleges more responsive to the career and professional training needs of rural Texans.
No action.
Community development
Legislative Outcomes from TDRA’s Rural Policy Process
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Summary ORCA Governing Board policy recommendations Legislative Action
State employees
We recommend that the legislature encourage state entities that are cutting state employee positions or rehiring for state employee positions due to attrition or retirement to maintain positions or rehire positions in areas that are rural or economically depressed.
TDRA continues to prioritize field offices.
Funding for economic development
We recommend that the legislature enhance funding for rural economic development through challenge grants and loans targeted at entrepreneurs and small businesses. We recommend that the legislature encourage the use of and provide funding for challenge grants to promote local and regional economic development efforts that assist entrepreneurs.
SB 1016, the Texas Department of Agriculture's Sunset Bill, contains statutory elements for the Texas Rural Investment Fund. This entrepreneur and business fund did not receive an appropriation. The purpose of the fund is to stimulate one or more of the following:
• local entrepreneurship;• job creation or retention;• new capital investment;• strategic economic development planning;• individual economic and community development leadership training;• housing development; or• innovative workforce education.
Vocational and workforce training
We recommend that the legislature provide funding or incentives for locally based skills development and vocational training to address development gaps between our rural youth and rural employers. Also, as a long term strategy, we recommend that the legislature return vocational education to secondary schools.
Article XII, Item 7 of the General Appropriations Act (SB 1, 81st Legislative Session) provided $82,000,000 to the Texas Workforce Commission under the Workforce Investment Act (WIA) for youth-related activities. This was funded through ARRA. This item is not rural specific, but will benefit rural youth.
Renewable energyWe recommend that the legislature assist and incentivize complimentary and less competitive sources of renewable energy.
TDRA received $3 million for biennium for water desalinization projects. SECO received approximately $200 million for renewable energy projects throughout the state.
Economic development
Legislative Outcomes from TDRA’s Rural Policy Process
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Summary ORCA Governing Board policy recommendations Legislative Action
Energy efficient housingWe recommend that the legislature encourage energy efficient building in all housing, including colonia housing.
Article XII, Item 1 of the General Appropriations Act (SB 1, 81st Legislative Session) provided TDHCA with $326,975,732 for the Weatherization Assistance Program. This was funded through ARRA.
Housing study
The office has completed an assessment of the need for rural housing by income and type. That assessment is included in the office’s biennial report. The assessment identifies a need for rural rental housing units.
No action.
Housing for economic development
We recommend that the legislature create a program that provides incentives for housing for rural individuals and families so that housing is available to create and retain jobs and otherwise enhance rural economic development.
SB 1016, the Texas Department of Agriculture's Sunset Bill, contains statutory elements for the Texas Rural Investment Fund. This entrepreneur and business fund did not receive an appropriation. One purpose of the fund is to stimulate housing development.
Housing
Legislative Outcomes from TDRA’s Rural Policy Process
Page 5 of 6
Summary ORCA Governing Board policy recommendations Legislative Action
Electronic medical records
We encourage the legislature to provide funding for a pilot project to support the development of electronic medical records (EMR) using two clusters of hospitals with similar patient bases in the same general geographic area. This would enhance the attractiveness of rural areas as places that residents might consider for permanent practice. The cluster method for EMR development would also streamline the costs of building the system from a vendor perspective. This item has been submitted as an exceptional item request in the office’s LAR (Small Rural Hospital Information Technology Program).
This item was submitted as an exceptional item request in TDRA's LAR (Small Rural Hospital Information Technology Program). TDRA received $525,000 for this initiative over the current biennium.
Recruit and retain health care practitioners
We recommend that the legislature support an increase in funding for existing rural-focused healthcare recruitment and retention programs to increase the number of healthcare professionals in rural areas. In particular, we encourage a focus on primary care practitioners. Two ways to increase the supply of primary care practitioners would be to 1) encourage Texas residency programs to sponsor J1 visa recipients for training provided that the individual completes a three-year service obligation in an underserved area and 2) provide additional funding for the Outstanding Rural Scholar Recognition and Loan Program for Rural Health Care.
HB 2154 modifies the Physician Education Loan Repayment Program and uses revenue from a tax imposed on certain tobacco products as a dedicated source of revenue for the physician education loan repayment program account. The physician education loan repayment program is administered by the Texas Higher Education Coordinating Board and recruits and retains physicians in health professional shortage areas. The bill establishes a maximum amounts of repayment assistance for eligible physicians based on their length of participation in the program. For the first year they would be eligible to receive $25,000; for the second, $35,000; for the third, $45,000; and $55,000 for the fourth year.
Long-term healthcare needs
We encourage the legislature to support an increase in funding for the rate methodology for Medicaid to address long-term healthcare needs. In addition, we encourage the legislature to study methods for increasing reimbursement for home healthcare with the goal of decreasing the costs associated with long term care.
No action.
Innovative Pilots in Physician Training
Because telemedicine holds great promise in increasing access to care in a cost effective manner, we recommend that the legislature fund a pilot program that supports telemedicine training as a part of a rural residency training program.
No action.
Healthcare
Legislative Outcomes from TDRA’s Rural Policy Process
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Summary ORCA Governing Board policy recommendations Legislative Action
TransitWe recommend that the legislature support an increase in state funds for rural public healthcare transportation.
The General Appropriations Act (SB 1) provides the Health and Human Services Commission with funding in Strategy B.2.3. funding for medical transportation in the amount of $154,844,362 for 2010 and in the amount of $133,620,036 for 2011. Although this is not rural specific, rural areas will benefit from this funding.
Medical Transportation. To the extent allowed by federal and state law, a portion of the funds appropriated above to Strategy B.2.3, Medical Transportation, shall be used to implement a regionalized full-risk brokerage model which utilizes a pre-payment methodology (capitation) to reimburse the broker or brokers. This program will be for all Medicaid non-emergency transportation under the Medical Transportation program in areas of the state that the Commission finds can sustain a regionalized model. To implement this change, the Commission shall apply to the Centers for Medicare and Medicaid Services for a state plan amendment as provided for in the Social Security Act, Section 1902(a)(70), and in accordance with Federal Regulations 42 CFR 440.170(a)(4).
Healthcare
