Enlarge Graphic by Todd Wiseman

Texas politicians love to repeat the line that the only thing they are required to do is pass the budget.

With this election season bearing witness to a wholesale changing of the guard among the GOP leadership, though, the actual process of writing the budget is a tad more challenging in the months leading up to next legislative session.

Basically, House Speaker Joe Straus is the only member of the Lege’s fiscal leadership team who will be returning. Consider the current members of the Legislative Budget Board:

•    On the Senate side, Lt. Gov. David Dewhurst is not coming back, and there hasn’t been a Senate Finance chair since Tommy Williams left back in October to take a job at Texas A&M.

Of the five Senate members of the LBB, only two Democrats — Juan "Chuy" Hinojosa and Judith Zaffirini — are coming back next session.

•    On the House side, Straus is coming back, but neither the House’s Appropriation chair — Jim Pitts — nor the House’s Ways and Means chair — Harvey Hilderbran — is coming back next session. Another Straus appointee to the board, Dan Branch, also isn’t returning to the chamber. The only current member apart from Straus who is coming back is Democrat Sylvester Turner.

To be sure, this is far from a crisis situation. The preliminary work on the budget is largely an agency- and staff-driven effort. On the House side, budget subcommittees have begun meeting to discuss the budget. And a select House committee on transportation funding has also stepped up to go over the Texas Department of Transportation’s budget.

But if the leaders of the main budget writing committees aren’t named until much later, it’s quite possible that they will have to put their names on budget bills that might contain things with which they do not agree.

That seems more likely on the Senate side since it won’t be known until November who the next lieutenant governor will be.

Dale Craymer of the Texas Taxpayers and Research Association tells TW that the House used to have a rule requiring a replacement be named for chairs who are not returning next session. That rule, however, was dropped a few years ago, he said.

One pending item facing budget writers will be the unpaid bills from the last Legislature. Lawmakers every session must pass a supplemental budget because the regular budget almost never covers the entire cost of running the government for the full two-year budget cycle.

That is most often the case when it comes to the Medicaid program, which lawmakers are loath to give a penny more than necessary.

This biennium is no different. The latest estimate from HHS is that about $971 million will be needed to pay the full cost of the Medicaid program for the current fiscal period

Here’s where things get a little complicated. The last couple of years have been good to Texas on the revenue front. The LBB calculates the state has about $2.6 billion more in revenue than what was in the budget.

However, the spending cap — which is designed to keep the growth of state spending more or less in line with the overall economy — won’t allow lawmakers to use all of that additional revenue.

The LBB estimates that the amount of revenue available under the spending cap is around $500 million.

In other words, there’s not enough in easily appropriated money to cover the bill for Medicaid. Lawmakers can break the spending cap, but that would require a vote. Going on the record as being in favor of breaking a constitutional spending limit to fund growth in Medicaid is a vote most Republican lawmakers would prefer not to make.

That’s not to say that budget writers won’t figure out a creative alternative. Lawmakers generally prove adept at budget trickery when they have to be. But that’s a task that will fall on the shoulders of the Lege’s budget writers next session — whomever that might be.

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Jodey Arrington

In the last issue, we mentioned Jodey Arrington circulating his name as a candidate for the West Texas state Senate seat that has been vacated by Robert Duncan, who is now chancellor at Texas Tech University.

In the intervening week, Arrington moved to formalize his candidacy, circulating a press release and bio shedding more light on his background.

The key takeaway here is Arrington playing up his connections to George W. Bush. He notes that as a graduate student, he worked for Bush during his time in the Governor’s Mansion. Arrington traveled with Bush when he went to Washington, D.C., serving as a special assistant to the president with responsibilities in agriculture, water and energy policy areas.

Afterward, Arrington went to work for FDIC Chairman Don Powell as his chief of staff. Returning to Lubbock, Arrington then worked as a vice chancellor at Texas Tech before leaving to become president of Scott Laboratories, a company that commercializes medical technology and healthcare innovations.

Arrington is the latest in what might turn out to be a crowded field for the SD-28 seat. Lubbock state Rep. Charles Perry has already said he would run for the seat, as has Eppie Garza, a resident of Wolfforth, a Lubbock bedroom community. Other names being mentioned are Tech regent John Steinmetz and Lubbock City Councilman Todd Klein.

*****

Wayne Faircloth, the GOP candidate for Galveston’s open HD-23 seat, has won the endorsement of U.S. Rep. Randy Weber.

“As a former state representative, I know that Wayne has the right qualifications to be effective at the state capitol," Weber said in a statement. "I've called the Texas Gulf Coast my home for sixty years and, whether it's in Austin or Washington, we need elected leaders who will stand up and fight for our home. You can trust Wayne to do just that.”

The seat is now open after Craig Eiland announced he would not run for re-election. The incumbent had held the seat since 1995.

Faircloth faces former state District Judge Susan Criss in the November general election.

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This week in the Newsreel: President Obama spent a few days in Texas and met with Gov. Rick Perry to talk about border issues. Bill Powers is quitting his job as president of the Univeristy of Texas.

You can view the video at: https://trib.it/1rc5qVE

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With the University of Texas Board of Regents meeting this week to consider the fate of Bill Powers, the president of UT-Austin, we asked our government and political insiders about the continuing drama. Powers resigned, effective next June, after the survey was conducted.

Sixty percent said the impeachment proceedings against Regent Wallace Hall should proceed in the Texas House. About as many said that the regents should wait until after Gov. Rick Perry’s term ends in January before naming a new chancellor to replace Francisco Cigarroa and — after he leaves next June — a replacement for Powers.

And 59 percent say that a governor should not have any say in who is named chancellor or president of a state university system or school.

The insiders made comments on the questions as they went and a full set of those is attached. Here’s a sampling:

Enlarge Emily Albracht

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Should the Texas House continue its impeachment inquiry against Regent Wallace Hall?

• "Get a grip, people. The obsession with UT and Texas A&M exhibited by the Legislature and the Governor borders on pathological. What about the other 95% of the kids in Texas institutions of higher education? Where's the obsession with community college tuition, rural campuses, and fast growth urban schools?"

• "If you start an inquiry, you should finish it."

• "If there is sufficient evidence that he misused his official capacity then I think it warrants repercussions."

• "They should have never investigated the guy for asking questions people did not want to answer."

• "They are at a point of no return. I'm not sure they ever thought this through. They now have no choice but to continue."

• "The law relating to impeachment of state officials, such as regents, is broad to say the least. This investigation is and has been purely political and to go forward opens up a Pandora’s box. Impeachment should be only used for real misconduct, not as political theater."

• "I don't particularly care and--so long as it doesn't stray into football--neither will the vast majority of Texans."

Enlarge Emily Albracht

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Should University of Texas regents choose a new chancellor while Rick Perry is still governor?

• "The process should begin unless it's believed the three new regents would significantly alter the outcome."

• "It is a sad commentary on the character of the governor that UT supporters even have to worry about Rick Perry having any input into or influence over the selection of a new chancellor or president of the University of Texas. But, Perry's demonstrated over the years that he's the kind of person who would like to gig 'em a little bit on the way out."

• "They should take the necessary time to vet candidates, and if the right one is found they should move ahead regardless of who's Governor."

• "It's time for Gov. Perry's influence to wane."

• "If there is a qualified successor, why not?"

• "Governors appoint regents, regents hire chancellors. Ask John Montford."

• "The best potential applicants will not want to dive into a political maelstrom. The appointment should wait until after a new governor can settle things down."

Enlarge Emily Albracht

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If University of Texas at Austin President Bill Powers resigns or is fired, should UT’s chancellor name a new president for UT-Austin while Perry is still in office?

• "They should take their time and hire a president without worrying about who is Governor."

• "Fears that Perry will damage the UT reputation are misplaced. Too late, he's already made it a national laughingstock."

• "Rick Perry wants to saw Varsity's horns off…and his regents are the saw."

• "The best potential applicants will not want to dive into a political maelstrom. The appointment should wait until a new governor sets a new course."

• "Does anyone not see a pattern here? Mr. Perry is intent on doing GRAVE harm to UT Austin - as long as he is in office that is what he plans to do! (Heavens I sound almost like our crazy conspiracy theory governor, except in this case it is the TRUTH!)"

• "Silly question. They should pick a president when they find a good candidate, irrespective of who's governor."

Enlarge Emily Albracht

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Should a governor have any say in naming the chancellors and presidents at state universities?

• "The Governor appoints the regents who make these decisions, and he signs the budgets that fund these universities. Why wouldn't he have a say?"

• "Governors need to stick with the powers that they have under the Texas Constitution and state statutes instead of creating new unauthorized powers."

• "This is complicated. Ideally, no. We should be able to trust academics and university leadership to select the best person for the job. However, once a Board of Regents becomes as politicized as this body has, oversight is required. Contrast their behavior to the UH Board of Regents and their selection of Khator. UH has only gained in national reputation and campus politics have been minimized, even through significant leadership shake-ups."

• "There is no way to get around the influence of the governor."

• "Yes. Governors appoint Regents. Regents hire staff. That is having a say."

• "They always have and always should have a say."

• "I know it's not been in vogue in Austin for the past few decades but I sort of like following our state constitution: The governor appoints--subject to confirmation by the senate--independent members of the governing bodies of state universities and agencies. Those boards, in turn, set broad policy for their organizations based on statutes and budgets adopted by the legislature and signed by the governor. Board members then hire and oversee the top officials at their agencies to carry the adopted policies."

• "They always have, and they always will. Stop being naive."

Our thanks to this week's participants: Gene Acuna, Brandon Aghamalian, Victor Alcorta, Clyde Alexander, George Allen, Jay Arnold, Charles Bailey, Dave Beckwith, Andrew Biar, Allen Blakemore, Tom Blanton, George Bristol, Chris Britton, David Cabrales, Kerry Cammack, Marc Campos, Thure Cannon, Snapper Carr, Janis Carter, Corbin Casteel, William Chapman, Elna Christopher, John Colyandro, Beth Cubriel, Randy Cubriel, Denise Davis, Hector De Leon, June Deadrick, Nora Del Bosque, Glenn Deshields, Holly DeShields, Tom Duffy, David Dunn, Jeff Eller, Jack Erskine, Gay Erwin, Jon Fisher, Wil Galloway, Norman Garza, Dominic Giarratani, Bruce Gibson, Stephanie Gibson, Kinnan Golemon, Daniel Gonzalez, John Greytok, Clint Hackney, Wayne Hamilton, Bill Hammond, John Heasley, Ken Hodges, Laura Huffman, Mark Jones, Robert Jones, Lisa Kaufman, Robert Kepple, Richard Khouri, Tom Kleinworth, Ramey Ko, Sandy Kress, Nick Lampson, Pete Laney, Luke Legate, Leslie Lemon, Myra Leo, Ruben Longoria, Matt Mackowiak, Luke Marchant, J. McCartt, Dan McClung, Jason McElvaney, Mike McKinney, Steve Minick, Bee Moorhead, Mike Moses, Steve Murdock, Keir Murray, Nelson Nease, Keats Norfleet, Pat Nugent, Todd Olsen, Nef Partida, Gardner Pate, Jerod Patterson, Robert Peeler, Jerry Philips, Tom Phillips, Wayne Pierce, Allen Place, Kraege Polan, Gary Polland, Jay Propes, Ted Melina Raab, Karen Reagan, David Reynolds, Carl Richie, Jeff Rotkoff, Grant Ruckel, Tyler Ruud, Jason Sabo, Luis Saenz, Andy Sansom, Jim Sartwelle, Barbara Schlief, Stan Schlueter, Bruce Scott, Robert Scott, Bradford Shields, Christopher Shields, Nancy Sims, Jason Skaggs, Ed Small, Martha Smiley, Larry Soward, Leonard Spearman, Dennis Speight, Tom Spilman, Jason Stanford, Bob Strauser, Colin Strother, Charles Stuart, Michael Quinn Sullivan, Sherry Sylvester, Jay Thompson, Gerard Torres, Trey Trainor, Vicki Truitt, Corbin Van Arsdale, Ware Wendell, Ken Whalen, David White, Darren Whitehurst, Seth Winick, Peck Young, Angelo Zottarelli.

Enlarge Todd Wiseman

Monday, July 14

• The court challenge to Texas' electoral maps begins again in federal court in San Antonio. The hearing, which is scheduled for six days, deals solely with the Texas House map adopted in 2011.

Tuesday, July 15

• Democratic lieutenant governor candidate Leticia Van de Putte appears at the Newsmaker Breakfast Series organized by the McAllen Monitor; 700 Convention Center Blvd, McAllen

President Barack Obama spent two days in Texas but didn't visit the border despite pointed calls from Republicans (and at least one Democrat) to do so. Instead, he had a brief meeting with Gov. Rick Perry in Dallas on border issues and took part in a roundtable discussion on the topic.

Obama's visit also became a point of discussion in the governor's race, with Democrat Wendy Davis pushing again for Obama to visit the border and Republican Greg Abbott urging Obama to look to Texas for tips on how to get the economy moving again.

The price tag for caring for the unaccompanied minors streaming across the border will cost the city of McAllen and nearby jurisdictions more than $1.1 million this year. McAllen's mayor said he was confident the feds would eventually pick up the tab. A $3.7 billion proposal to send emergency funding to the border is before Congress right now.

Bill Powers submitted his resignation as president of University of Texas at Austin, but he won't be cleaning out his desk anytime soon. He leaves in June. University system Chancellor Francisco Cigarroa had issued an ultimatum — resign or be fired.

Nearly four years after BP awarded Gov. Rick Perry's office $5 million for recovery projects in the wake of the Deepwater Horizon oil spill, most of the money remains unspent. Now, the company is asking Texas for its money back.

More than 20 years after the Texas Legislature passed a law establishing a 24-hour work safety hotline, real people are answering the telephone calls around the clock.

Travis County has embarked on a project to develop its own voting machine technology. The move is a break from the common practice of buying machines from an outside vendor. Created around open-source technology, the new system would also generate a paper receipt for voters to confirm their vote afterward.

Texas-based payday lender ACE Cash Express has agreed to pay $10 million to settle allegations by the federal Consumer Financial Protection Bureau that it used illegal tactics to push borrowers into a cycle of debt.

The former Burleson district attorney who sent Anthony Graves to death row in 1994 will now face a formal hearing on allegations of prosecutorial misconduct.

Disclosure: The University of Texas at Austin and BP America are corporate sponsors of The Texas Tribune. A complete list of Texas Tribune donors and sponsors can be viewed here.

Dora G. Alcala of Del Rio was appointed by Gov. Rick Perry to the Texas Higher Education Coordinating Board for a term to expire Aug. 31, 2015.

William L. Kibler was confirmed as president of Sul Ross State University. He comes to the school from Mississippi State University, where he served as vice president for student affairs.

Erica Sackin has been hired as Battleground Texas' first communications director. She comes to the group from the technology company Mozilla, where she was senior communications director. She also worked on the Obama 2012 re-election campaign, where she led blog and progressive media outreach. Ellis Brachman, meanwhile, is ending his duties as spokesman for the group.

Brian D. Sweany was named editor-in-chief of Texas Monthly magazine, where he succeeds Jake Silverstein. Sweany began at the magazine as an intern in 1996 and, most recently, was the magazine's senior executive editor.

John Paul Urban, a former staffer for state Rep. Wayne Smith and former government relations director for the Public Utility Commission, has joined the legislative affairs team at NRG.

Annie Spilman has joinned NFIB/Texas as its new legislative director for its Austin office. She arrives from the Independent Insurance Agents of Texas, where she was its governmental affairs manager.

Becky Motal, the former Lower Colorado River Authority general manager, has a new job title — president and chairman of the Association of Women in Energy.

The Texas Retailers Association announced two recent hires:

•    Jim Sheer began his duties as vice president of governrment relations on July 1. Sheer has more than a decade of experience at the Capitol where he has served as chief of staff and political action committee manager.

•    David Ford began his duties as director of membership development on May 12. He comes to TRA from the Associated Builders and Contractors Association-Central Texas Chapter where he was pesident and CEO for 10 years.

Deaths: Diana Poteat Stallings Hobby, 83, philanthropist, academic and wife of former Lt. Gov. Bill Hobby.

Disclosure: NRG and the Independent Insurance Agents of Texas are corporate sponsors of The Texas Tribune. The Hobby Family Foundation is a major donor to the Tribune. A complete list of Texas Tribune donors and sponsors can be viewed here.