NEWS January 27, 1999

Consumers Union response by
Reggie James, director, Southwest Regional Office
to legislative priorities in
Governor's State of the State address

"The strength of Texas' economy and the budget surplus present the best chance for investing in a future bright enough to shine on all Texans. The priorities listed by the Governor would leave many in the shadows. This is the time to focus on helping disadvantaged Texans help themselves - long before the cost to resolve problems associated with neglect and poverty is insurmountable.

Giving tax breaks, especially for businesses and individuals who are doing well in the current economic boom, is tantamount to loading the able bodied into life boats ahead of children and the infirm.

The Governor's focus on education is commendable, but falls short because it fails to address the many children whose performance would improve with better access to health care. Putting healthy kids in our classrooms should be one of the state's highest priorities.

With a creative combination of a healthy economy, surplus state revenues, tobacco settlement funds, matching federal funds for the Children's Health Insurance Program (Chip) and Medicaid, and the Texas Healthy Kids Corporation -- which assists working families in need of health insurance for kids -- we can go further than extending coverage just to kids in families earning up to 150% of the poverty level. We could come close to a guarantee that every child in the state who needs health care can receive it.

While the economy is doing well right now, demographic projections for the state indicate a large segment of the population will be left further and further behind when the economy is doing less well. Priorities should include not only preparing those on public assistance for employment in jobs paying living wages, but addressing predatory commercial practices such as over-priced insurance and usurious interest rates that attack the pocketbooks of working Texans.

We should also take care to ensure that working families and small businesses do not pick up an unfair portion of the tab in our rush to deregulate electric utilities - current proposals fail in this respect. Consumers should be guaranteed that the reliability of electric service is maintained and that rates are lowered.

If compassion means anything it must include the conviction, courage, and common sense to invest state resources in the least fortunate among us."