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<v Speaker 1>This week's episode of the trip Cast is sponsored by

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<v Speaker 1>Water Grows. All Right, hello, and welcome to the Texas

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<v Speaker 1>Tribune trip Cast for January twenty eighth, twenty twenty five.

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<v Speaker 1>I am Matthew Watkins, Editor in chief of the Texas Tribune.

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<v Speaker 1>We are joined as usual by Eleanor Klibanoff, whose campaign

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<v Speaker 1>continues to change the name of the trib Cast to

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<v Speaker 1>the clib Cast.

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<v Speaker 2>I would say it's my campaign. I would say it's

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<v Speaker 2>the people's campaign. You know, it's a one party, one

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<v Speaker 2>platform issue, all right.

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<v Speaker 1>Well, and one supporter too, one supporter. And we have

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<v Speaker 1>James Barragon, whose weekend was just ruined by the announcement

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<v Speaker 1>of the State of the State speech on Sunday.

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<v Speaker 3>Oh, not ruined. I'm fine, all right.

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<v Speaker 4>Well, I mean, if you like to work on your weekends, that's.

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<v Speaker 3>Look on the positive side, that's the day and a

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<v Speaker 3>half to.

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<v Speaker 4>Enjoy, all right.

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<v Speaker 1>So today we will be endeavoring to convince James to

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<v Speaker 1>get excited about water policy. But before that, we're going

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<v Speaker 1>to talk a little little bit about what's happened in

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<v Speaker 1>the news this week. We have, you know, talked in

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<v Speaker 1>previous episodes about you know, the obviously the Dustin Burrows's

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<v Speaker 1>election to speaker, but also the campaign against him, one

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<v Speaker 1>of which was around, you know, the effort to get

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<v Speaker 1>rid of democratic committee chairs in the Texas House. It

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<v Speaker 1>appears as though the hardline conservatives pushing for that may

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<v Speaker 1>have lost the speakers race, but at least one on

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<v Speaker 1>this issue that they've been pursuing for multiple legislative sessions.

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<v Speaker 1>James tell us a little bit about what happened with

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<v Speaker 1>the rules recently.

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<v Speaker 3>Well, yeah, surprising that you put it that way, because

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<v Speaker 3>I think if you ask them, they would not see

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<v Speaker 3>themselves as big winners. In fact, they said that Democrats

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<v Speaker 3>have more power, which I think realistically and like objectively,

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<v Speaker 3>that is not true. In the rules, it says that

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<v Speaker 3>the majority party will hold committee chairmanships and the minority

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<v Speaker 3>party will have vice chairmanships, so that effectively strips Democrats

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<v Speaker 3>from being allowed to run committees, which is exactly what

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<v Speaker 3>they wanted. Now, I think we have to be intellectually

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<v Speaker 3>honest about this that it's one of the things that

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<v Speaker 3>they wanted. It's the big thing that they rallied around,

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<v Speaker 3>But there are a bunch of other things that those

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<v Speaker 3>hardline conservatives wanted that they did not get, which is

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<v Speaker 3>what they are sort of yelling about. And they're what

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<v Speaker 3>they're making a big fuss about. Democrats and the Speaker.

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<v Speaker 3>Burrows's Republican coalition are saying, hey, like, we gave you

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<v Speaker 3>guys exactly what you wanted. The Democrat chairs are gone,

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<v Speaker 3>and the hardline Conservatives are saying, well, that's just one thing.

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<v Speaker 3>And I've just pulled up the contract with Texas, which

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<v Speaker 3>is what they basically are saying, that they are following.

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<v Speaker 4>The contract to Texas. Is what the kind of more.

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<v Speaker 3>It's like the pledge that they came up with for

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<v Speaker 3>the Conservatives, yeah, which Cook had signed and said, Cook

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<v Speaker 3>being David Cook of Mansfield, the other candidate for speaker

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<v Speaker 3>who lost obviously. But you know, just going down the

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<v Speaker 3>list here, you only still support for speakership from Republican members.

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<v Speaker 3>Obviously neither of them did that. And the practice of

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<v Speaker 3>awarding Democrats with committee chairmanship, that's high, that's number two,

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<v Speaker 3>and Burrows has done that. And sure all GOP legislative

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<v Speaker 3>priorities receive a floor vote before any Democrat bills that

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<v Speaker 3>has not been codified in the rules. Replace the current

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<v Speaker 3>liberal these are their words. Liberal parliamentarians with staff committed

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<v Speaker 3>to only offering advice on adherence to House rules, not

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<v Speaker 3>advancing their personal ideology. They're referring to Hugh Brady, a

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<v Speaker 3>Democrat who was a parliamentarian and he is gone. Now

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<v Speaker 3>there is only one parliamentarian.

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<v Speaker 2>Which is the parliamentarian. For people who don't.

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<v Speaker 3>Know, parliamentariy basically interprets the rules and make sure the

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<v Speaker 3>make sure makes sure that the whatever body it is

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<v Speaker 3>is running according to the rules. And so there's a

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<v Speaker 3>whole list of these, but you can see that there

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<v Speaker 3>is like differences here right the The next one that

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<v Speaker 3>I see is limiting the speaker to two terms to

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<v Speaker 3>reduce their power over individual members. That also is not

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<v Speaker 3>in the rules. And so what the hardliners wanted to

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<v Speaker 3>do this week and last week and the rules is

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<v Speaker 3>to put these things in to codify them, to say

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<v Speaker 3>you were going to commit to the entire contract with Texas.

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<v Speaker 3>The thing is that Burrows never committed to those things,

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<v Speaker 3>and so they can say, but this is the contract

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<v Speaker 3>that we had committed to. Burrows never committed to. So

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<v Speaker 3>there's like truth in both spaces. But I think overall

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<v Speaker 3>to your initial question is like, what are we going

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<v Speaker 3>to see. I think we have to be again intellectually

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<v Speaker 3>honest and say there's going to be a more conservative

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<v Speaker 3>session no matter which way you slice it.

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<v Speaker 1>Well, James, I mean we're sort of a broken record

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<v Speaker 1>on this, but you have continuously made the point on

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<v Speaker 1>this podcast that this is less about ideal ideology and

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<v Speaker 1>more about power, right, And you know, I think we

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<v Speaker 1>have to ask the question, is this situation where if

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<v Speaker 1>I wonder if Burrows is asking this question too, Like,

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<v Speaker 1>if he gives this group what they want on one thing,

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<v Speaker 1>are they just going to start then saying I want

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<v Speaker 1>this instead, you know? And if the point is to

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<v Speaker 1>be kind of going after this speaker and they seem

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<v Speaker 1>kind of committed to doing that throughout this legislative session,

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<v Speaker 1>is is this a sort of impossible battle to win

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<v Speaker 1>in terms of getting the support and getting people to say,

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<v Speaker 1>you know, be happy with his speakership this session?

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<v Speaker 4>Right?

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<v Speaker 3>I am not in Burrows' head, so I wouldn't know.

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<v Speaker 3>But what we've seen with previous speakers is they said

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<v Speaker 3>Joe Strauss is too liberal and he only gives us

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<v Speaker 3>a little bit of red meat so that some members

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<v Speaker 3>can go back to their districts and say they passed

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<v Speaker 3>conservative legislation and then the rest of us get shut out.

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<v Speaker 3>So then Straus steps down. Bonnin comes in, he's clearly

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<v Speaker 3>a more conservative speaker. He goes further to the right,

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<v Speaker 3>and then they say this guy's not conservative enough. Then

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<v Speaker 3>he goes down. Feelim comes in, he's more conservative, passes

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<v Speaker 3>more conservative legislation and they say he is not conservative enough.

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<v Speaker 3>Comes in and they're saying he's not conservative enough. Each

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<v Speaker 3>of these guys has gone consistently more and more conservative,

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<v Speaker 3>and it's just never enough for the hard right. That

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<v Speaker 3>is their prerogative and that is what they say their

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<v Speaker 3>voters come to represent. But they will keep fighting that

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<v Speaker 3>fight until the cows come home.

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<v Speaker 1>I think, well, it's also interesting, as you have listed

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<v Speaker 1>this kind of progression of more conservative speakers, that faction

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<v Speaker 1>that's been unhappy with that leadership in the hard right

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<v Speaker 1>has grown during that time as well. You know, so

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<v Speaker 1>kind of an interesting dynamic there what's gone.

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<v Speaker 3>Through waves, hasn't it like the Freedom Caucus was, you know,

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<v Speaker 3>they they certainly were very active in twenty seventeen, and

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<v Speaker 3>then they kind of waned, I think thanks to Speaker

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<v Speaker 3>Bondon who really managed the Chamber and the inter chamber relationships. Well,

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<v Speaker 3>and then they've popped back up. I don't know. I

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<v Speaker 3>think it's come and gone. But certainly this year there

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<v Speaker 3>are more people, more lawmakers aligned with that view. Okay,

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<v Speaker 3>that's for multiple reasons.

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<v Speaker 1>Quickly, before we move on what impact on governing? Does

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<v Speaker 1>not having democratic chairs have this legislative session?

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<v Speaker 4>If any?

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<v Speaker 3>I mean, I think the conservatives are right. Democrats leading

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<v Speaker 3>committees obviously helps Democrats. You think about things, and I've

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<v Speaker 3>come up with a few examples. You think about in

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<v Speaker 3>twenty twenty one, Herald Dunton leading public education in the

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<v Speaker 3>twenty twenty one second special Session, he refused to advance

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<v Speaker 3>legislation that restricted transgender student athletes, and there was a

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<v Speaker 3>lot of pressure coming from the Lieutenant governor to pass that.

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<v Speaker 3>That was SB two in that special session, clearly a

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<v Speaker 3>priority bill. That bill got killed in twenty twenty one.

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<v Speaker 3>You think about Chairman Pancho Navarrees in twenty nineteen saying

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<v Speaker 3>there wouldn't be a hearing on open Caerry legislation because

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<v Speaker 3>some gun rights activists had gone and bothered lawmakers at

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<v Speaker 3>their homes, which is pretty reprehensible, but Pancho says, no

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<v Speaker 3>more of that and it's done. Obviously, that legislation later passed,

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<v Speaker 3>but it was blocked. You think of people like Missus

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<v Speaker 3>t and Fronie Thompson and Houston in twenty nineteen leading

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<v Speaker 3>public at public education, I'm sorry, public health, and so

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<v Speaker 3>then the abortional legislation stops going to public health and

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<v Speaker 3>starts going to the state affairs. I mean, there clearly

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<v Speaker 3>is a stopper, and this is the way representative government works, right,

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<v Speaker 3>so I think there will be an impact. I think

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<v Speaker 3>to ignore these concerns that the Conservatives are saying is

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<v Speaker 3>to not be honest about this. But it's also fair

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<v Speaker 3>to say that this is representative government and just because

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<v Speaker 3>they're the minority government doesn't mean that they should be

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<v Speaker 3>completely shut out, which is I think what Borrows is

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<v Speaker 3>trying to get out with these vice chairs and these

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<v Speaker 3>sub committees, which will have to wait and see what

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<v Speaker 3>impact they actually have. But the Conservatives are obviously concerned

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<v Speaker 3>about that because they think that's a run around. No

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<v Speaker 3>charite for Democrats.

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<v Speaker 1>Yeah, ultimately, I mean, when you're a committee chair, you

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<v Speaker 1>know every bill has to go through a committee in

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<v Speaker 1>the House for it reaches the full floor. When your

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<v Speaker 1>committee chair you can control what comes up for a hearing.

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<v Speaker 1>A lot of bills get rewritten in committee, so there

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<v Speaker 1>is a considerable amount of power there for sure. All Right,

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<v Speaker 1>I want to talk next about both chambers filing their

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<v Speaker 1>baseline budgets for the legislative session.

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<v Speaker 3>This is Matthew's favorite day of the year.

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<v Speaker 1>I do you know again, the budget the most important

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<v Speaker 1>bill of the session every year, even though it maybe

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<v Speaker 1>doesn't cause as much excitement as a lot of the

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<v Speaker 1>other ones. Eleanor what were the highlights that you saw?

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<v Speaker 2>Well, I will say and just a brief anecdote to

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<v Speaker 2>get inside the mind of Matthew Watkins. Two years ago

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<v Speaker 2>when we were at this point, I remember our former

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<v Speaker 2>colleague Karen Brooks Harper came to me and was like,

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<v Speaker 2>Matthew has asked me to cover the budget. And I

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<v Speaker 2>was like, it's like when a cat brings you a

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<v Speaker 2>mouse as a present and you're like, thank you, I

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<v Speaker 2>don't want that, but I know it came with love.

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<v Speaker 2>You love the budget. Karen actually does love the budget.

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<v Speaker 2>Also a nerd, I would say, you know, the budget

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<v Speaker 2>is the only thing the Texas Ledges has to pass.

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<v Speaker 2>They could pass that, they could go home it's an idea.

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<v Speaker 2>I think they should consider it. But assuming they're not

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<v Speaker 2>going to do that. I mean, the budget has, like

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<v Speaker 2>all the high priority items, I think a lot of

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<v Speaker 2>it was not a huge surprise. They are, as how

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<v Speaker 2>Speaker Boroughs said, substantially identical between the House and the Senate. Obviously,

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<v Speaker 2>the working out the details is what you know, will

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<v Speaker 2>take up most of the session. I think the big

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<v Speaker 2>thing we were seeing is, you know, a big increase

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<v Speaker 2>in funding for vouchers. You know, this has obviously been

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<v Speaker 2>a Conservative priority for a long time. Seems like they've

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<v Speaker 2>got the votes this session, and this increase in funding

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<v Speaker 2>definitely makes it seem like, you know, they don't want

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<v Speaker 2>to take a half step into vouchers, they want to

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<v Speaker 2>run into that pretty significantly. And then also as sort

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<v Speaker 2>of promised funding increases for public education to go into

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<v Speaker 2>that increases for teachers rural teachers, which we should say

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<v Speaker 2>the teacher groups feel like is not is still not enough.

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<v Speaker 2>So figure out how to balance those two things. The

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<v Speaker 2>one thing I will say, in my universe, in the

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<v Speaker 2>health world, that's like a very big deal, a very

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<v Speaker 2>small line item comparably to some of these big numbers.

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<v Speaker 2>But the Texas Health and Human Services Commission has asked

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<v Speaker 2>for three hundred million dollars to improve their Medicaid enrollment system,

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<v Speaker 2>which is in the health world a huge deal. We've

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<v Speaker 2>written a decent amount about that, and so that made

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<v Speaker 2>it into both budgets, and I think people are pretty

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<v Speaker 2>optimistic that that's going to happen.

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<v Speaker 4>Yeah, you know.

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<v Speaker 1>I think two things you look for in those base budgets,

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<v Speaker 1>which can very much change and will change over the

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<v Speaker 1>coming months, are where this is there agreement right, Where

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<v Speaker 1>do they have similar amounts of money, Where are their

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<v Speaker 1>difference is, and how does that change compared to previous years.

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<v Speaker 1>So we saw both both chambers two point five billion

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<v Speaker 1>dollars to spend on broadband expansion in the state, two

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<v Speaker 1>point five billion dollars to spend on water infrastructure we'll

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<v Speaker 1>talk more about that later, five billion dollars on the grid,

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<v Speaker 1>three point five billion dollars to go toward property taxes,

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<v Speaker 1>and as you mentioned, a billion dollars for school vouchers,

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<v Speaker 1>which is double what was in the budget last session

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<v Speaker 1>five hundred million dollars. We also saw a voucher bill

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<v Speaker 1>get filed in the Senate that kind of laid out

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<v Speaker 1>at least the Senates proposal for what that would be. Again,

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<v Speaker 1>we're talking about spending double the amount of money, the

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<v Speaker 1>proposal being ten thousand dollars to give you know, basically

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<v Speaker 1>parents who want to send their kids to private school,

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<v Speaker 1>maybe around two thousand dollars for parents who are going

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<v Speaker 1>to homeschool their kids, things like that. They would prioritize

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<v Speaker 1>low income children and kids with disabilities in that range.

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<v Speaker 1>When you talk about ten thousand dollars per student, you're

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<v Speaker 1>talking about, you know, funding for around one hundred thousand

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<v Speaker 1>students in that realm. Worth noting, there's an estimated two

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<v Speaker 1>hundred and ninety thousand private school students in Texas right now.

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<v Speaker 1>So even though it is a a significant increase in

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<v Speaker 1>what they wanted to spend last year, it's still not

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<v Speaker 1>enough to cover the students who are already in Texas

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<v Speaker 1>public schools. So I think one question that will come

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<v Speaker 1>up if that is indeed how much they end up spending,

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<v Speaker 1>is will there then be immediate demand to spend more

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<v Speaker 1>in upcoming sessions from there?

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<v Speaker 2>Yeah, I think that's definitely. Like, I mean, obviously, through

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<v Speaker 2>as we've talked about previous episodes like Strategic Winning of

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<v Speaker 2>certain seats, Like these policies have the numbers. It seems

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<v Speaker 2>like it seems like Voucher's is going to happen this session.

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<v Speaker 2>That doesn't mean that, Like the way the bill is

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<v Speaker 2>written today is like everyone agrees, we all shake hands, and.

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<v Speaker 3>We go home.

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<v Speaker 2>Like there's a lot of this to sort out, and

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<v Speaker 2>you know, Texas legislators are not overly fond of spending money,

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<v Speaker 2>so you know, the more expensive this starts to look,

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<v Speaker 2>obviously it's still going to get the support, but there

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<v Speaker 2>might be sort.

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<v Speaker 3>Of more guards on the borders, and they're very happy.

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<v Speaker 2>Actually there's a lot of things they want to spend

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<v Speaker 2>money on.

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<v Speaker 3>But I think that the agreement on the one billion

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<v Speaker 3>dollars is huge too. I was just trying to look

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<v Speaker 3>up here the tweet from the governor where he sort

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<v Speaker 3>of tweeted out approvingly of the billion dollar budget, and

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<v Speaker 3>he said something like, I can't find the tweet right now,

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<v Speaker 3>but like, you know, this is a great start, and

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<v Speaker 3>I think the indication that the Senate and the House

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<v Speaker 3>are both out of billion dollars shows you that the

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<v Speaker 3>governor is also involved in sort of the settling on

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<v Speaker 3>that number. So I'm not sure that is actually going

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<v Speaker 3>to change.

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<v Speaker 1>Yeah, how does this bode for I mean there is

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<v Speaker 1>I took notice about how much agreement there was on

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<v Speaker 1>these big ticket items. How much does this bode for

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<v Speaker 1>the ability of the Speaker and the Lieutenant Governor to

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<v Speaker 1>get along this legislative session.

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<v Speaker 4>Well, go for it.

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<v Speaker 3>I found it interesting. Obviously, Lieutenant Governor Patrick was very

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<v Speaker 3>critical or perhaps not critical. Yeah, I mean he was

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<v Speaker 3>critical at Burroughs, he was critical at Burrows, and he

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<v Speaker 3>was clearly very supportive of Cook saying that he was

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<v Speaker 3>the House GOP Caucus nominee. Right, But in the aftermath

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<v Speaker 3>of the action, I've sort of seen like him leaving

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<v Speaker 3>the door open and saying like Burrows will have the

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<v Speaker 3>opportunity to prove that he is going to be the

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<v Speaker 3>most conservative speaker. And Burrows, i think, compared to Feelin,

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<v Speaker 3>is like a player, and he is like he knows

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<v Speaker 3>the chamber, he knows the inter chamber relationships. He's been

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<v Speaker 3>involved in a lot of these negotiations. I think he's

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<v Speaker 3>going to be a lot more forceful and perhaps tactful

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<v Speaker 3>and how he deals both handling interchamber inter chamber battles

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<v Speaker 3>and intra chamber battles, So I'm kind of curious to

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<v Speaker 3>see how that plays out. The litank Nuver has kind

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<v Speaker 3>of backed off a little bit, I think yeah.

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<v Speaker 2>And also, I mean last session, obviously there was a

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<v Speaker 2>great discord between perhaps the three, the big three, and

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<v Speaker 2>you know, I think Lieutenant Governor Dan Patrick has shown

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<v Speaker 2>a willingness to sort of, you know, hold out and

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<v Speaker 2>not necessarily play nice with the other chamber. But also,

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<v Speaker 2>as he has noted, you know, his chamber has repeatedly

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<v Speaker 2>passed a lot of these top priority legislations and a

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<v Speaker 2>top parity legislation and it gets stalled out in the House.

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<v Speaker 2>And so you know, is it perhaps in his best

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<v Speaker 2>interest to try to play nice with the House speaker

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<v Speaker 2>when there is widespread agreement on a lot of this.

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<v Speaker 3>I just would say yes. And looking ahead, State of

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<v Speaker 3>the State address is on Sunday. As you previously mentioned,

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<v Speaker 3>the Governor is going to come out with his emergency items.

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<v Speaker 3>Lieutenant Governor Patrick has said, we've got to go, we've

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<v Speaker 3>got to get moving on these things. And the House

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<v Speaker 3>is known typically for rolling a little bit slower, rolling

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<v Speaker 3>a little bit slower, and so it'll be curious to

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<v Speaker 3>see once the Senate because I have no doubt that

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<v Speaker 3>the Senate will hit the ground running and get going

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<v Speaker 3>on a bunch of these things. How quickly the House

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<v Speaker 3>will move, And I think if the House doesn't move

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<v Speaker 3>as quickly as the Lieutenant Governor wants it, then you

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<v Speaker 3>might see some of this tension start to build up.

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<v Speaker 1>Yeah, I mean, I think it's probably safe to assume

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<v Speaker 1>that school vouchers will be an emergency item which will

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<v Speaker 1>allow the legislature to move more quickly. The I believe

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<v Speaker 1>as we are recording this, the Senate is having a

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<v Speaker 1>hearing on the bill, and I you know, once that

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<v Speaker 1>speech happens on Friday and I mean Sunday and it

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<v Speaker 1>is declared an emergency item, the Senate I would expect,

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<v Speaker 1>will move, you know, in early February to pass that bill.

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<v Speaker 1>So we could be in a situation where, you know,

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<v Speaker 1>this this aspect of the legislature is decided quite quickly.

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<v Speaker 1>So James, as already mentioned, on Sunday, you will be

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<v Speaker 1>doing your favorite Sunday activity of covering.

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<v Speaker 3>You were Lord's Days people.

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<v Speaker 2>You are jubilant.

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<v Speaker 4>What else do you expect from that? What are you

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<v Speaker 4>watching for?

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<v Speaker 3>I'm curious to see what we do with border stuff. Obviously,

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<v Speaker 3>Republicans have a partner now in the federal government, but

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<v Speaker 3>there's still a lot of money dedicated in the budget

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<v Speaker 3>for border security and immigration enforcement, so I wonder what

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<v Speaker 3>will happen there. I'm also curious there's always been this

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<v Speaker 3>ongoing issue of bail reform and I think election integrity.

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<v Speaker 3>I don't have a whole lot of insight into the governor,

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<v Speaker 3>but yeah, I'm curious about those issues because they've been

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<v Speaker 3>things that he's been very supportive of in the past.

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<v Speaker 3>But yeah, I'm kind of curious because there's been so

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<v Speaker 3>much focus on vouchers that I wonder what else he's

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<v Speaker 3>sort of been thinking about. And also, one more thing,

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<v Speaker 3>we talk about this sort of line that the governor

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<v Speaker 3>walks between, you know, traditional Republicans who are more business

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<v Speaker 3>friendly and think about things like infrastructure, which I know

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<v Speaker 3>we're going to talk about next, and the social conservatives

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<v Speaker 3>who want to fight a lot about LGBT rights and

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<v Speaker 3>abortion and all these things. Right, So I wonder what

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<v Speaker 3>he will signal in sort of his attempt to walk

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<v Speaker 3>that line.

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<v Speaker 1>Well, speaking of wanting to know what people are thinking,

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<v Speaker 1>we would also like to know what our audience is thinking.

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<v Speaker 1>We were interested in possibly answering some questions or topic

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<v Speaker 1>discussing topics that people send in. So if you have

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<v Speaker 1>any comments, questions, thoughts for the trip cast, things you'd

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<v Speaker 1>like us to discuss, shoot us an email trip Cast

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<v Speaker 1>at Texastribune dot org. If you happen to be the

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<v Speaker 1>governor and you're listening, you know you were also welcome.

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<v Speaker 3>You are welcome in boxes invited too.

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<v Speaker 4>Yeah.

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<v Speaker 2>In fact, we would give you the you know, the

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<v Speaker 2>welcome of the century.

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<v Speaker 1>Yeah, but you also don't have to be the governor,

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<v Speaker 1>so so right in all right, Well, we are going

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<v Speaker 1>to take a quick break to hear from our sponsors.

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<v Speaker 4>Eleanor is going.

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<v Speaker 1>To hop off because she has another speaking engagement, but

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<v Speaker 1>we're going to talk about water after that. See you later, Eleanor,

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<v Speaker 1>Thank you so much. Water grows our food economy and future.

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<v Speaker 1>Discover how Texas farmers make strides to make water last

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<v Speaker 1>for Texans now and for generations to come more at

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<v Speaker 1>Water Grows dot Org. Okay, Texas summers might seem hot

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<v Speaker 1>and dry now, but the worst it was even worse

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<v Speaker 1>in the nineteen fifties. Between nineteen forty nine and nineteen

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<v Speaker 1>fifty seven, Texas received between thirty percent and fifty percent

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<v Speaker 1>less rainfall as during normal years. The drought wiped out

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<v Speaker 1>half of the state's farming industry. More than a thousand

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<v Speaker 1>cities and communities had to implement water use restriction restrictions

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<v Speaker 1>during that time. It's now referred to as the drought

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<v Speaker 1>of record in Texas, and Texas uses that time as

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<v Speaker 1>a benchmark to measure the sufficiency of its water infrastructure

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<v Speaker 1>moving forward. Jeremy Maser, who is our guest right now,

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<v Speaker 1>director of Natural Resources and Infrastructure Policy at the Texas

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<v Speaker 1>twenty thirty six think tank, recently assessed that readiness and

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<v Speaker 1>the results were not encouraging, at least from my eye.

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<v Speaker 1>Jeremy is our guest. Welcome, Thank you for joining us.

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<v Speaker 5>Matthew James, thank you so much for having me here.

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<v Speaker 5>It's great to be here this morning.

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<v Speaker 1>Right, so great to have you. Let's talk about this

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<v Speaker 1>nineteen fifties type drought situation, because you wrote a report

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<v Speaker 1>on this, and you led the report basically saying that

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<v Speaker 1>we could potentially see some major damage we see another

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<v Speaker 1>drought like that in the future, lay out for us

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<v Speaker 1>that scenario, that sort of worst case scenario we could face.

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<v Speaker 3>So we Texas.

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<v Speaker 5>Twenty thirty six, we released a report assessing Texas water

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<v Speaker 5>infrastructure needs and those basically fall into two buckets.

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<v Speaker 3>First, we need to expand.

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<v Speaker 5>Our water supply portfolio for drought prone and growing state.

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<v Speaker 5>We can talk more about this later, but droughts are

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<v Speaker 5>part of the Texas experience. If you've been here for

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<v Speaker 5>a year, ten years, a century, you know we're drought

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<v Speaker 5>proman state. The second bucket of challenges we face relates

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<v Speaker 5>to the issues of aging, deteriorating drinking water and waste

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<v Speaker 5>water systems. And thanks of the Texas Tribune, you guys

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<v Speaker 5>have covered a lot of stories across the state from

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<v Speaker 5>East Texas to West Texas, even in the Valley of aging,

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<v Speaker 5>deteriorating systems that are failing, falling apart and leaking and

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<v Speaker 5>really becoming liabilities to the communities that they serve. But

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<v Speaker 5>starting with a drought issue and the need to expand

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<v Speaker 5>our water supplies. So in the nineteen fifties, we had

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<v Speaker 5>this drought of record, and that was the worst recorded drought.

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<v Speaker 1>It's worse since like eighteen ninety five or something like that.

424
00:22:21.079 --> 00:22:23.519
<v Speaker 1>I started recording, Yeah, we started.

425
00:22:23.240 --> 00:22:26.720
<v Speaker 5>Recording in eighteen ninety fourteen ninety five year righte. And

426
00:22:26.799 --> 00:22:30.680
<v Speaker 5>there were droughts around World War One and the nineteen thirties,

427
00:22:30.720 --> 00:22:33.319
<v Speaker 5>which is with the Dutch dust Bowl, But the nineteen

428
00:22:33.400 --> 00:22:36.599
<v Speaker 5>fifties drought was pretty unique in terms of its duration

429
00:22:36.839 --> 00:22:40.519
<v Speaker 5>and its severity. And what was remarkablet that drought It

430
00:22:40.599 --> 00:22:44.400
<v Speaker 5>really prompted two things to start happening in Texas. First,

431
00:22:44.480 --> 00:22:49.279
<v Speaker 5>it began our campaign of water planning and aggressively developing

432
00:22:49.319 --> 00:22:53.519
<v Speaker 5>more water supplies, principally water wells and reservoirs. But the

433
00:22:53.599 --> 00:22:57.400
<v Speaker 5>nineteen fifties drought also began this huge economic and cultural

434
00:22:57.440 --> 00:23:00.680
<v Speaker 5>shift in the Texas where we became we started becoming

435
00:23:00.839 --> 00:23:04.200
<v Speaker 5>less of an rural agrarian state, and a lot of

436
00:23:04.240 --> 00:23:08.799
<v Speaker 5>people started moving towards them the cities. And so I

437
00:23:08.839 --> 00:23:11.359
<v Speaker 5>think you know cities where the more majority of people

438
00:23:11.400 --> 00:23:14.559
<v Speaker 5>live today. That trend started during the drive up record

439
00:23:14.599 --> 00:23:15.920
<v Speaker 5>of the nineteen fifties.

440
00:23:16.279 --> 00:23:19.559
<v Speaker 1>Right And so you, like you said, you identified kind

441
00:23:19.599 --> 00:23:21.880
<v Speaker 1>of two different needs that the state has in order

442
00:23:21.920 --> 00:23:25.440
<v Speaker 1>to meet this. One is sort of finding new water

443
00:23:25.480 --> 00:23:29.359
<v Speaker 1>supply in the state. The other is fixing those broken

444
00:23:29.720 --> 00:23:33.400
<v Speaker 1>water and wastewater systems. The total that you put together,

445
00:23:33.640 --> 00:23:36.680
<v Speaker 1>I believe in this report or your team put together

446
00:23:37.559 --> 00:23:40.119
<v Speaker 1>is that we in order to do those two things

447
00:23:40.160 --> 00:23:43.839
<v Speaker 1>sufficiently to be prepared for a nineteen fifties type drought,

448
00:23:44.079 --> 00:23:46.200
<v Speaker 1>we would need to spend one hundred and fifty four

449
00:23:46.200 --> 00:23:48.160
<v Speaker 1>billion dollars over the next fifty years.

450
00:23:48.440 --> 00:23:51.039
<v Speaker 6>That's right, Matthew. What we did is we looked at

451
00:23:51.119 --> 00:23:51.920
<v Speaker 6>the cost.

452
00:23:51.720 --> 00:23:54.640
<v Speaker 5>Estimates in the state Water Plan as well as those

453
00:23:54.680 --> 00:23:57.119
<v Speaker 5>from the EPA on how much needs to be spent

454
00:23:57.200 --> 00:24:01.640
<v Speaker 5>over the next couple decades for fixing and rehabilitating, our aging,

455
00:24:01.680 --> 00:24:05.680
<v Speaker 5>deciorating drinking water and wastewater systems. And when we adjusted

456
00:24:05.799 --> 00:24:10.240
<v Speaker 5>those numbers, those cost estimates for inflation, we see that

457
00:24:10.279 --> 00:24:12.039
<v Speaker 5>the state is going to need to spend at least

458
00:24:12.079 --> 00:24:14.799
<v Speaker 5>one hundred and fifty four billion dollars over the next

459
00:24:14.799 --> 00:24:18.759
<v Speaker 5>half centuries on water infrastructure. But the good news is

460
00:24:18.839 --> 00:24:22.079
<v Speaker 5>we have some existing programs that are already working to

461
00:24:22.079 --> 00:24:26.039
<v Speaker 5>provide financial assistance, such as the Texas Water Fund approved

462
00:24:26.039 --> 00:24:29.200
<v Speaker 5>by voters and Propositions six last year, the State Water

463
00:24:29.200 --> 00:24:33.000
<v Speaker 5>Implementation Fund for Texas that voters approved eleven years ago.

464
00:24:33.559 --> 00:24:35.559
<v Speaker 5>But these existing funds are only going to be able

465
00:24:35.559 --> 00:24:38.240
<v Speaker 5>to provide according to estimates, about forty to forty five

466
00:24:38.279 --> 00:24:41.680
<v Speaker 5>billion dollars worth of long term financial assistance. Say that

467
00:24:41.720 --> 00:24:44.480
<v Speaker 5>emergan about forty to forty five billion dollars in the

468
00:24:44.519 --> 00:24:47.519
<v Speaker 5>long run of financial assistance, And so we're seeing that

469
00:24:47.559 --> 00:24:51.519
<v Speaker 5>there's going to be a big financial assistance funding gap

470
00:24:52.480 --> 00:24:54.799
<v Speaker 5>to just north of one hundred and ten billion dollars

471
00:24:55.079 --> 00:24:57.279
<v Speaker 5>of what the state really needs to pony up to

472
00:24:57.359 --> 00:25:01.000
<v Speaker 5>invest in order to fix our waterf structured challenges.

473
00:25:01.720 --> 00:25:05.559
<v Speaker 4>How did we get so far behind? Here? Is it?

474
00:25:05.640 --> 00:25:07.839
<v Speaker 1>I mean, Texas obviously a place that's growing a lot.

475
00:25:07.960 --> 00:25:09.759
<v Speaker 1>How much is this growth, how much of it is

476
00:25:10.160 --> 00:25:13.039
<v Speaker 1>under investment in the past. What's what put us in

477
00:25:13.079 --> 00:25:14.400
<v Speaker 1>this position in twenty twenty?

478
00:25:14.440 --> 00:25:16.480
<v Speaker 3>And are we an out are we in an outlier

479
00:25:16.839 --> 00:25:17.839
<v Speaker 3>compared to other states?

480
00:25:18.839 --> 00:25:21.559
<v Speaker 5>Well, I you know other I think what's unique about

481
00:25:21.680 --> 00:25:25.400
<v Speaker 5>Texas is, you know, unlike other states such as Florida,

482
00:25:25.519 --> 00:25:29.119
<v Speaker 5>New York, you know, Illinois, they really don't have drought

483
00:25:29.119 --> 00:25:30.640
<v Speaker 5>and water supply issues like we do.

484
00:25:32.200 --> 00:25:33.799
<v Speaker 6>I think, you know, our water supply.

485
00:25:33.640 --> 00:25:37.480
<v Speaker 5>Challenges are certainly analogous to what's being seen in the

486
00:25:37.720 --> 00:25:41.680
<v Speaker 5>desert southwest with California, Arizona, and New Mexico, which is

487
00:25:42.119 --> 00:25:44.319
<v Speaker 5>which is in the in the throes of actually a

488
00:25:44.359 --> 00:25:47.759
<v Speaker 5>mega drought right now. But I think also the issues

489
00:25:47.799 --> 00:25:51.160
<v Speaker 5>that we have with ageing, deteriorating drinking water and wastewater systems,

490
00:25:51.799 --> 00:25:55.240
<v Speaker 5>those are not just a Texas problem. I mean those

491
00:25:55.279 --> 00:25:59.119
<v Speaker 5>also exist in Florida, California, from from coast to coast.

492
00:25:59.720 --> 00:26:02.440
<v Speaker 6>But Matthew, you asked, how did, how did how? How

493
00:26:02.559 --> 00:26:02.759
<v Speaker 6>is it?

494
00:26:03.440 --> 00:26:03.960
<v Speaker 4>How has it?

495
00:26:04.000 --> 00:26:05.119
<v Speaker 6>Why has it come to this?

496
00:26:05.920 --> 00:26:08.559
<v Speaker 5>And I think there are several factors that have been

497
00:26:08.599 --> 00:26:14.000
<v Speaker 5>accelerating and aggravating our water infrastructure challenges. First, when we

498
00:26:14.039 --> 00:26:16.359
<v Speaker 5>look at the data, such as studies we've done in

499
00:26:16.400 --> 00:26:22.119
<v Speaker 5>partnership with the off state climatologists, we're seeing that droughts

500
00:26:22.119 --> 00:26:27.839
<v Speaker 5>and extreme heat are accelerating the strains on our water supplies.

501
00:26:28.319 --> 00:26:31.039
<v Speaker 5>The hotter it gets, the quicker your lakes and reservoirs

502
00:26:31.119 --> 00:26:31.640
<v Speaker 5>dry up.

503
00:26:32.200 --> 00:26:32.440
<v Speaker 6>Uh.

504
00:26:32.759 --> 00:26:34.720
<v Speaker 5>You know, the less rain that we have means that

505
00:26:34.759 --> 00:26:37.680
<v Speaker 5>there's less water in those surface water resources, but also

506
00:26:37.720 --> 00:26:38.720
<v Speaker 5>means that we're drawing a.

507
00:26:38.680 --> 00:26:40.519
<v Speaker 6>Lot more from our groundwater.

508
00:26:40.720 --> 00:26:45.279
<v Speaker 5>And so what's happening with the weather has been accelerating

509
00:26:45.400 --> 00:26:48.440
<v Speaker 5>the strains on water supplies. There's also the issue of

510
00:26:48.640 --> 00:26:52.440
<v Speaker 5>population and economic growth. If you talk with water policy people,

511
00:26:52.839 --> 00:26:54.720
<v Speaker 5>they're going to say there's a lot of people coming

512
00:26:54.720 --> 00:26:56.839
<v Speaker 5>to Texas and they're not bringing water with them.

513
00:26:57.160 --> 00:26:59.000
<v Speaker 6>That's true, but there's also.

514
00:26:59.039 --> 00:27:05.079
<v Speaker 5>A a unique expansion in water intensive industries in Texas

515
00:27:05.079 --> 00:27:08.400
<v Speaker 5>as part of the Texas economic miracle, where you have

516
00:27:08.440 --> 00:27:13.000
<v Speaker 5>a growth in the energy sector, semiconductor manufacturers, data centers,

517
00:27:13.079 --> 00:27:15.960
<v Speaker 5>just to name a few, that all have to use

518
00:27:16.039 --> 00:27:20.200
<v Speaker 5>water resources in order to work. And the state's political

519
00:27:20.319 --> 00:27:23.720
<v Speaker 5>economy as such is that's very attractive for these industries

520
00:27:23.759 --> 00:27:27.279
<v Speaker 5>and businesses to move here, which is good economic growth

521
00:27:27.319 --> 00:27:31.480
<v Speaker 5>and jobs, but that's also accelerating the strains on our

522
00:27:31.599 --> 00:27:34.599
<v Speaker 5>water resources. And then the last issue is Matthew's you

523
00:27:34.640 --> 00:27:39.559
<v Speaker 5>pointed to in your question. The state's financial assistance policy

524
00:27:39.799 --> 00:27:43.240
<v Speaker 5>has been incremental over time, and so what we haven't

525
00:27:43.279 --> 00:27:49.079
<v Speaker 5>really seen as a sustained, concerted, reliable effort to address

526
00:27:49.240 --> 00:27:52.599
<v Speaker 5>these long term funding needs for water infrastructure.

527
00:27:54.599 --> 00:27:57.039
<v Speaker 1>You touched a little bit on the economic impact of this,

528
00:27:57.480 --> 00:27:59.079
<v Speaker 1>and I want to dig a little bit deeper in there.

529
00:27:59.119 --> 00:28:01.119
<v Speaker 1>You you talk about it a little bit in your

530
00:28:01.119 --> 00:28:06.640
<v Speaker 1>report about how a lot of the big infrastructure commercial investments,

531
00:28:07.079 --> 00:28:10.680
<v Speaker 1>industrial investments in the state recently have been accompanied by

532
00:28:11.240 --> 00:28:16.079
<v Speaker 1>communities where those investments have happened really, you know, taking

533
00:28:16.119 --> 00:28:19.799
<v Speaker 1>big steps to increase their long term water supply, things

534
00:28:19.799 --> 00:28:22.960
<v Speaker 1>like the Samsung plant north of Austin and things like that.

535
00:28:24.319 --> 00:28:26.400
<v Speaker 1>One of the things you really talk about is that

536
00:28:26.680 --> 00:28:30.079
<v Speaker 1>if this is felt, you know, I mean, you know,

537
00:28:30.119 --> 00:28:33.279
<v Speaker 1>we've seen communities go through water crisis. Is you truck

538
00:28:33.279 --> 00:28:36.680
<v Speaker 1>in water from other places, you get water bottles and

539
00:28:36.720 --> 00:28:38.759
<v Speaker 1>everything like that. But what you could really see is

540
00:28:38.799 --> 00:28:43.319
<v Speaker 1>a reluctance for companies and organizations to invest in the

541
00:28:43.359 --> 00:28:46.559
<v Speaker 1>state if that water is not done. You say, if

542
00:28:46.599 --> 00:28:49.400
<v Speaker 1>we see another nineteen fifties strought, we could see losses

543
00:28:50.599 --> 00:28:54.640
<v Speaker 1>annual GDP losses of one hundred and sixty billion dollars,

544
00:28:55.319 --> 00:28:58.480
<v Speaker 1>nearly eight hundred thousand jobs lost, and what you describe

545
00:28:58.519 --> 00:29:01.200
<v Speaker 1>as a potential exodus from the state if we don't

546
00:29:01.200 --> 00:29:05.000
<v Speaker 1>address these needs. What does it actually look like for

547
00:29:05.119 --> 00:29:11.160
<v Speaker 1>Texas if we don't meet the water demand needs going forward?

548
00:29:11.839 --> 00:29:17.920
<v Speaker 5>There's extraordinary downside risk if we fail to develop the

549
00:29:17.960 --> 00:29:21.200
<v Speaker 5>water infrastructure that we need a lot of that's described

550
00:29:21.200 --> 00:29:24.279
<v Speaker 5>in the report that I wrote with Texas twenty thirty six.

551
00:29:24.799 --> 00:29:26.759
<v Speaker 3>Also, it's explored in more.

552
00:29:26.599 --> 00:29:29.359
<v Speaker 5>Detail by a report by Gabe Collins with A Baker

553
00:29:29.359 --> 00:29:32.680
<v Speaker 5>Institute at Rice University, who we also partnered with to

554
00:29:33.119 --> 00:29:37.680
<v Speaker 5>explore the economic costs and benefits of water infrastructure investment,

555
00:29:38.319 --> 00:29:41.680
<v Speaker 5>and so we know what would likely be the potential

556
00:29:41.759 --> 00:29:45.599
<v Speaker 5>economic losses in terms of millions of jobs lost, a

557
00:29:45.640 --> 00:29:49.079
<v Speaker 5>diaspora of people leaving the state looking for opportunity and

558
00:29:49.119 --> 00:29:52.559
<v Speaker 5>potentially water elsewhere, and not to mention the one hundred

559
00:29:52.599 --> 00:29:56.920
<v Speaker 5>and sixty plus billion dollars per year in GDP losses,

560
00:29:57.039 --> 00:30:01.359
<v Speaker 5>which were comparison is worse than the economic losses observed

561
00:30:01.440 --> 00:30:05.440
<v Speaker 5>during the COVID pandemic and the Great Recession. But there

562
00:30:05.519 --> 00:30:08.480
<v Speaker 5>are some fascinating examples that we point to in our

563
00:30:08.519 --> 00:30:14.839
<v Speaker 5>report of what inadequate water infrastructure has meant for other economies.

564
00:30:15.880 --> 00:30:19.640
<v Speaker 5>Australia saw some negative growth in its GDP during the

565
00:30:19.680 --> 00:30:24.720
<v Speaker 5>Millennial Drought between the early twenty and twenty fifteen. Same

566
00:30:24.720 --> 00:30:28.839
<v Speaker 5>thing for Cape Town, South Africa. And there are some

567
00:30:29.319 --> 00:30:32.559
<v Speaker 5>fascinating examples from the rest of the world of how

568
00:30:32.599 --> 00:30:36.839
<v Speaker 5>not only you actually realize and see this economic downturn,

569
00:30:37.400 --> 00:30:41.200
<v Speaker 5>but there's also cases of businesses and industries shutting down

570
00:30:41.319 --> 00:30:47.319
<v Speaker 5>and not working anymore absent absent drought and reliable water

571
00:30:47.440 --> 00:30:51.680
<v Speaker 5>supplies are increasingly becoming a part of the economic development

572
00:30:51.680 --> 00:30:55.240
<v Speaker 5>equation in Texas. When I've been talking with state leaders,

573
00:30:55.519 --> 00:30:57.079
<v Speaker 5>a lot of them are saying, like, Hey, we're talking

574
00:30:57.079 --> 00:30:59.000
<v Speaker 5>with companies they want to come to Texas. They're like

575
00:30:59.079 --> 00:31:01.880
<v Speaker 5>so many things here. The question we're getting asked is

576
00:31:01.880 --> 00:31:03.559
<v Speaker 5>if we have enough reliable water.

577
00:31:04.400 --> 00:31:07.839
<v Speaker 1>Right And we've seen this in some ways kind of

578
00:31:07.880 --> 00:31:09.680
<v Speaker 1>already start to play out in regions this day. The

579
00:31:09.759 --> 00:31:11.279
<v Speaker 1>talk a little bit about what's happening in the Rio

580
00:31:11.279 --> 00:31:11.920
<v Speaker 1>Grand Valley.

581
00:31:12.480 --> 00:31:17.480
<v Speaker 5>The Rio Grand Valley comes in and out of trouble

582
00:31:17.559 --> 00:31:19.279
<v Speaker 5>almost like every two years.

583
00:31:19.279 --> 00:31:23.000
<v Speaker 6>I mean twenty twenty two. August of that year, the

584
00:31:23.599 --> 00:31:24.720
<v Speaker 6>water levels in.

585
00:31:24.720 --> 00:31:28.359
<v Speaker 5>Lake Amistan and Lake Falcone were at precipitous lows, and

586
00:31:28.839 --> 00:31:31.839
<v Speaker 5>city managers were looking at emergency measures they may have

587
00:31:31.920 --> 00:31:37.839
<v Speaker 5>to implement in order to avoid cutting people off of water. Fortunately,

588
00:31:37.920 --> 00:31:41.160
<v Speaker 5>a tropical depression came over, put a bunch of water

589
00:31:41.200 --> 00:31:43.640
<v Speaker 5>in the river, saved the day for a little while.

590
00:31:44.160 --> 00:31:48.440
<v Speaker 5>But again in twenty twenty four, low water conditions in

591
00:31:48.440 --> 00:31:52.400
<v Speaker 5>the Rio Grand Valley have begun to precipitate some real

592
00:31:52.559 --> 00:31:57.759
<v Speaker 5>economic consequences. Notably when a year ago the Santa Rosa

593
00:31:57.880 --> 00:32:02.960
<v Speaker 5>sugar mill closed, and that is a business that provided

594
00:32:03.039 --> 00:32:05.720
<v Speaker 5>you know, over five hundred jobs within the region and

595
00:32:05.759 --> 00:32:10.759
<v Speaker 5>about five hundred million plus in regional GDP. In addition

596
00:32:10.839 --> 00:32:14.359
<v Speaker 5>to seeing that that that farm close, were the sugar

597
00:32:14.720 --> 00:32:17.799
<v Speaker 5>cane farm closed, we're also seeing that we're also hearing

598
00:32:17.880 --> 00:32:21.880
<v Speaker 5>that the citrus industry is under duress due to drought conditions.

599
00:32:22.400 --> 00:32:26.039
<v Speaker 5>And I think the Rio Grande Valley is becoming a

600
00:32:26.039 --> 00:32:28.559
<v Speaker 5>bit of a canary in the coal mine for Texas

601
00:32:28.559 --> 00:32:31.279
<v Speaker 5>in terms of describing what can happen, when, what will

602
00:32:31.319 --> 00:32:34.680
<v Speaker 5>go wrong, and what economic horrors will be visited on

603
00:32:34.759 --> 00:32:38.079
<v Speaker 5>your region if you have insufficient water supplies.

604
00:32:39.319 --> 00:32:42.160
<v Speaker 1>All right, let's talk about the two quick kind of

605
00:32:42.160 --> 00:32:45.440
<v Speaker 1>areas that need investment very quickly. One, as we already

606
00:32:45.480 --> 00:32:49.039
<v Speaker 1>mentioned water supplies. You know this actual water you know

607
00:32:49.519 --> 00:32:53.640
<v Speaker 1>that the state needs to draw from. You've you listed

608
00:32:53.640 --> 00:32:56.640
<v Speaker 1>the water supply deficit as being nearly six point nine

609
00:32:56.839 --> 00:33:01.240
<v Speaker 1>million acre feet of water. For people to understand, one

610
00:33:01.359 --> 00:33:05.079
<v Speaker 1>acre foot serves around two to three houses per year,

611
00:33:05.279 --> 00:33:07.960
<v Speaker 1>So if you're six point nine million acre feet short,

612
00:33:08.079 --> 00:33:12.279
<v Speaker 1>you're talking about somewhere around like seventeen million your short

613
00:33:12.319 --> 00:33:15.759
<v Speaker 1>the shortage being about enough to serve seventeen million houses

614
00:33:16.279 --> 00:33:19.480
<v Speaker 1>per year. In that realm. Of course, it's more than

615
00:33:19.519 --> 00:33:22.000
<v Speaker 1>just houses that draw from the water. It's you know,

616
00:33:22.799 --> 00:33:26.839
<v Speaker 1>in industry and agriculture and everything like that. But what

617
00:33:26.960 --> 00:33:29.880
<v Speaker 1>are the solutions there? I mean, obviously you need to

618
00:33:29.920 --> 00:33:33.079
<v Speaker 1>invest money, but is that money to build reservoirs like

619
00:33:33.599 --> 00:33:37.400
<v Speaker 1>desalination like what is what actually needs to be built

620
00:33:37.440 --> 00:33:41.160
<v Speaker 1>and done in this state in order to get to

621
00:33:41.240 --> 00:33:43.960
<v Speaker 1>where we need to be for that supply.

622
00:33:44.359 --> 00:33:48.160
<v Speaker 5>So our six point nine million projected six point nine

623
00:33:48.200 --> 00:33:51.519
<v Speaker 5>million acre foot water supply deficit comes from the most

624
00:33:51.559 --> 00:33:55.559
<v Speaker 5>recent state water plan prepared by the Texas Water Development Board.

625
00:33:56.559 --> 00:33:59.839
<v Speaker 5>What needs to happen is the state needs to invest

626
00:33:59.880 --> 00:34:05.000
<v Speaker 5>in a broad, diversified water supply portfolio. And some of

627
00:34:05.039 --> 00:34:08.360
<v Speaker 5>these projects are going to be the same types of

628
00:34:08.480 --> 00:34:11.519
<v Speaker 5>water supply technologies they used in the Roman Empire, your

629
00:34:11.760 --> 00:34:15.480
<v Speaker 5>groundwater wells and your reservoirs. But I think a lot

630
00:34:15.519 --> 00:34:20.079
<v Speaker 5>of those types of easier water supply projects relatively easier

631
00:34:20.679 --> 00:34:23.119
<v Speaker 5>are I mean, a lot of those have already been built,

632
00:34:23.199 --> 00:34:26.159
<v Speaker 5>and so there's not a lot of easier water to develop.

633
00:34:26.800 --> 00:34:30.800
<v Speaker 5>I think we're going to have to lean into technology

634
00:34:31.039 --> 00:34:35.599
<v Speaker 5>innovation and water supply diversification in order to meet that

635
00:34:35.719 --> 00:34:40.079
<v Speaker 5>six point nine million, six point nine million acre foot

636
00:34:40.159 --> 00:34:42.599
<v Speaker 5>water supply deficit, and so we're going to be talking

637
00:34:42.599 --> 00:34:46.199
<v Speaker 5>about greater water conservation. I think water reuse in recycling

638
00:34:46.320 --> 00:34:49.039
<v Speaker 5>is exciting that can be done, that can expand the

639
00:34:49.039 --> 00:34:50.199
<v Speaker 5>water supply portfolio.

640
00:34:50.719 --> 00:34:51.519
<v Speaker 6>And we're also going to.

641
00:34:51.480 --> 00:34:56.559
<v Speaker 5>Talk about desalination, seawater and brackish water. But also we

642
00:34:56.599 --> 00:35:00.360
<v Speaker 5>need to have a bigger conversation about moving water from

643
00:35:00.400 --> 00:35:02.960
<v Speaker 5>the water rich areas of the state to the areas

644
00:35:03.000 --> 00:35:04.000
<v Speaker 5>that needed the most.

645
00:35:04.280 --> 00:35:06.199
<v Speaker 1>Yeah, and that's where I think some of the politics

646
00:35:06.199 --> 00:35:10.880
<v Speaker 1>come into play. It's not just is there support to

647
00:35:10.920 --> 00:35:13.800
<v Speaker 1>spending this kind of money, right, It's like whenever there's

648
00:35:13.800 --> 00:35:16.119
<v Speaker 1>an idea to build a reservoir in the state, there's

649
00:35:16.159 --> 00:35:19.079
<v Speaker 1>a lot of landowner resistance. Whenever a company, you know,

650
00:35:19.119 --> 00:35:22.599
<v Speaker 1>whether a city wants to pipe in water from you know,

651
00:35:22.639 --> 00:35:24.800
<v Speaker 1>across the state, you hear a lot of concern about

652
00:35:24.840 --> 00:35:28.639
<v Speaker 1>the local uh, you know, the people who are local

653
00:35:28.679 --> 00:35:30.559
<v Speaker 1>there saying, you know, why are they taking water away

654
00:35:30.599 --> 00:35:31.360
<v Speaker 1>from our community?

655
00:35:31.440 --> 00:35:31.559
<v Speaker 4>Right?

656
00:35:31.679 --> 00:35:34.800
<v Speaker 1>Exactly how much of that is a hurdle? Do you

657
00:35:34.800 --> 00:35:36.639
<v Speaker 1>feel like in addition to just the spending, and.

658
00:35:36.639 --> 00:35:40.119
<v Speaker 3>Also with desalination, I mean, how effective is desalination, and

659
00:35:40.239 --> 00:35:44.440
<v Speaker 3>is there concern from lawmakers about the efficiency of desalination,

660
00:35:44.679 --> 00:35:47.239
<v Speaker 3>like going forward, like if you invest billions of dollars

661
00:35:47.239 --> 00:35:49.960
<v Speaker 3>in desalination, Yeah, how efficient will that?

662
00:35:50.000 --> 00:35:53.000
<v Speaker 5>Actually, well it's a Matthew will start with you, then

663
00:35:53.079 --> 00:35:56.039
<v Speaker 5>James will talk about de cell and so you know,

664
00:35:56.559 --> 00:35:59.440
<v Speaker 5>I've followed water policy and the legislature for the past

665
00:35:59.440 --> 00:36:02.960
<v Speaker 5>twenty five years. And what's interesting is like all of

666
00:36:03.000 --> 00:36:05.400
<v Speaker 5>those water policy fights are regional and local.

667
00:36:06.519 --> 00:36:08.880
<v Speaker 6>They don't really break down on partisan lines.

668
00:36:09.800 --> 00:36:13.920
<v Speaker 5>And there are some regions that are fiercely protective of

669
00:36:13.920 --> 00:36:18.960
<v Speaker 5>their water resources for good reason. That supports the regional identity,

670
00:36:19.000 --> 00:36:24.199
<v Speaker 5>that supports their regional economy, and the prospect of moving

671
00:36:24.280 --> 00:36:28.320
<v Speaker 5>water from one part of the state to another is

672
00:36:28.639 --> 00:36:31.400
<v Speaker 5>easier say it said that done. The same thing with reservoirs.

673
00:36:31.440 --> 00:36:33.280
<v Speaker 5>I mean, there have been some reservoirs on the books

674
00:36:33.280 --> 00:36:36.800
<v Speaker 5>for decades that have still not been built, but are

675
00:36:37.119 --> 00:36:42.679
<v Speaker 5>are just politically challenging to develop, owing two concerns about

676
00:36:43.400 --> 00:36:47.320
<v Speaker 5>water supply development or even condemning condemning that land. James,

677
00:36:47.360 --> 00:36:50.480
<v Speaker 5>you asked about desalination and what are what are legislators

678
00:36:50.519 --> 00:36:54.639
<v Speaker 5>thinking about desalination? I would say that Over the past

679
00:36:54.679 --> 00:36:59.519
<v Speaker 5>twenty years, there has been a growing crescendo of interest

680
00:36:59.559 --> 00:37:04.039
<v Speaker 5>in dec salnation among within within the within the House,

681
00:37:04.599 --> 00:37:09.159
<v Speaker 5>incentate leaders in the legislature. Desalination has the benefit of

682
00:37:09.159 --> 00:37:11.280
<v Speaker 5>being a little bit more drought proof. There's I mean,

683
00:37:11.360 --> 00:37:14.079
<v Speaker 5>unless a meteor hits it, there's always gonna be water

684
00:37:14.159 --> 00:37:16.079
<v Speaker 5>in the Gulf of Mexico, which is a good thing.

685
00:37:16.840 --> 00:37:21.360
<v Speaker 5>But it's always been expensive to do in energy intensive

686
00:37:21.519 --> 00:37:25.880
<v Speaker 5>and so I think the the load demands of desalination

687
00:37:26.039 --> 00:37:29.559
<v Speaker 5>plants are something that need to be taken into consideration,

688
00:37:30.280 --> 00:37:34.159
<v Speaker 5>especially as we have increasing load demands across our electric grid,

689
00:37:34.480 --> 00:37:39.280
<v Speaker 5>as our economy and population continues to grow. There is opportunity,

690
00:37:39.480 --> 00:37:44.239
<v Speaker 5>there is promise in desalination. Will it be the panacea

691
00:37:44.360 --> 00:37:48.639
<v Speaker 5>or silver bullet that solves every region's problems? That that

692
00:37:48.920 --> 00:37:51.960
<v Speaker 5>probably We're probably not at the scale and position to

693
00:37:51.960 --> 00:37:54.880
<v Speaker 5>do that yet, But desalination is going to be playing

694
00:37:54.920 --> 00:37:57.800
<v Speaker 5>more of a robust part in contributing to a water

695
00:37:57.840 --> 00:37:58.840
<v Speaker 5>supply portfolio.

696
00:37:59.519 --> 00:38:02.280
<v Speaker 1>And then the other part of this to actually maybe

697
00:38:02.559 --> 00:38:05.440
<v Speaker 1>the more expensive part of this is just the pipes

698
00:38:05.480 --> 00:38:08.920
<v Speaker 1>that are in the ground across Texas are crumbling. They're

699
00:38:08.960 --> 00:38:11.480
<v Speaker 1>starting to break down, some of that is in fact

700
00:38:11.639 --> 00:38:14.760
<v Speaker 1>worsened when drought comes and it causes the ground to shift.

701
00:38:15.079 --> 00:38:17.840
<v Speaker 1>But I mean, you've identified ninety five billion dollars to

702
00:38:17.880 --> 00:38:21.400
<v Speaker 1>fix broken water and waste water systems. There's an astounding

703
00:38:21.440 --> 00:38:24.880
<v Speaker 1>amount of water leaking out of pipes in Texas that's

704
00:38:25.159 --> 00:38:28.480
<v Speaker 1>causing waste and causing us to need more supply.

705
00:38:28.599 --> 00:38:30.039
<v Speaker 4>Tell us a little bit about that situation.

706
00:38:30.199 --> 00:38:33.519
<v Speaker 5>Yeah, So this this is data from the Texas Living

707
00:38:33.559 --> 00:38:38.719
<v Speaker 5>Waters Project, which which found that our aging, deteriorating, leaking,

708
00:38:39.400 --> 00:38:43.079
<v Speaker 5>drinking water systems leak enough water five hundred and seventy

709
00:38:43.079 --> 00:38:46.039
<v Speaker 5>two thousand acre feet to be exact to fill a

710
00:38:46.199 --> 00:38:50.719
<v Speaker 5>major state reservoir like Possum Kingdom up north, like Buchanan

711
00:38:50.760 --> 00:38:55.800
<v Speaker 5>here in central Texas. So our inefficiencies alone are just

712
00:38:57.000 --> 00:38:59.960
<v Speaker 5>shoving water supplies out the window, and so we're waste

713
00:39:00.360 --> 00:39:03.239
<v Speaker 5>a lot to begin with. But then we have these

714
00:39:03.280 --> 00:39:07.239
<v Speaker 5>bigger issues of aging, deteriorating and failing systems. And the

715
00:39:07.280 --> 00:39:09.679
<v Speaker 5>Tribune has done a great job of providing coverage of

716
00:39:10.000 --> 00:39:13.039
<v Speaker 5>incidents that have ocurred over the past few years, such

717
00:39:13.039 --> 00:39:16.159
<v Speaker 5>as the boil water notices and water condamination in the Rato.

718
00:39:17.119 --> 00:39:20.199
<v Speaker 5>The thirty five year old trunk line that broke in

719
00:39:20.239 --> 00:39:24.039
<v Speaker 5>and Odessa, leaving the town without water for forty eight hours.

720
00:39:24.320 --> 00:39:28.480
<v Speaker 5>Even the system failure in Zavala. Y'all's coverage of these

721
00:39:28.480 --> 00:39:32.280
<v Speaker 5>water system failures has been impressive and it provides very

722
00:39:32.320 --> 00:39:36.599
<v Speaker 5>good anecdotal data with regard to this bigger problem of

723
00:39:36.800 --> 00:39:40.639
<v Speaker 5>systems that are operating well past their useful life and

724
00:39:40.679 --> 00:39:43.760
<v Speaker 5>are really becoming economic liabilities to these communities.

725
00:39:44.400 --> 00:39:50.000
<v Speaker 1>And the EPA has estimated that this cities need about

726
00:39:50.039 --> 00:39:53.559
<v Speaker 1>sixty one point three billion dollars in financial assistance over

727
00:39:53.599 --> 00:39:55.519
<v Speaker 1>the next twenty years, so about a little bit over

728
00:39:55.519 --> 00:39:59.039
<v Speaker 1>three billion dollars a year to help address some of

729
00:39:59.079 --> 00:40:02.559
<v Speaker 1>these issues. The past four years, that average was around

730
00:40:02.559 --> 00:40:05.360
<v Speaker 1>two hundred and seventy five million, So we're talking about

731
00:40:05.440 --> 00:40:08.800
<v Speaker 1>the need being identified being about ten times what is

732
00:40:08.880 --> 00:40:11.920
<v Speaker 1>currently being spent per year in the state. So it

733
00:40:11.960 --> 00:40:15.679
<v Speaker 1>all sort of comes down to, I think, no matter what,

734
00:40:15.840 --> 00:40:18.320
<v Speaker 1>there's a lot of money that needs to be spent here.

735
00:40:18.480 --> 00:40:22.320
<v Speaker 1>We talked a little bit earlier two point five billion

736
00:40:22.360 --> 00:40:26.400
<v Speaker 1>dollars identified in the budget or the proposed budget from

737
00:40:26.400 --> 00:40:31.079
<v Speaker 1>both chambers this year. Your report in fact called for

738
00:40:31.480 --> 00:40:36.119
<v Speaker 1>five billion. That's also what Senator Charles Perry, who's been

739
00:40:36.199 --> 00:40:37.960
<v Speaker 1>kind of taking a lot of the lead on this,

740
00:40:38.159 --> 00:40:40.800
<v Speaker 1>particularly in the Senate, on this issue called for Are

741
00:40:40.840 --> 00:40:44.840
<v Speaker 1>you worried about the political will to actually get this done?

742
00:40:44.840 --> 00:40:47.760
<v Speaker 1>I mean, it's just hard to commit money in a

743
00:40:48.480 --> 00:40:50.039
<v Speaker 1>fiscally conservative state like this.

744
00:40:51.000 --> 00:40:53.360
<v Speaker 5>So yes, we recommended that, you know, there'd be a

745
00:40:53.400 --> 00:40:57.320
<v Speaker 5>five billion dollar initial endowment for the Texas Water Fund

746
00:40:58.000 --> 00:41:01.599
<v Speaker 5>and the consideration of approving a one billion per fiscal

747
00:41:01.679 --> 00:41:06.760
<v Speaker 5>year revenue dedication to that fund for the decades to come.

748
00:41:07.599 --> 00:41:11.679
<v Speaker 5>The two point five billion that the House and Senate

749
00:41:11.760 --> 00:41:18.000
<v Speaker 5>have initially approved for water infrastructure is an extraordinary good signal.

750
00:41:18.639 --> 00:41:22.199
<v Speaker 5>This is the highest appropriation we've ever seen the state

751
00:41:22.320 --> 00:41:26.320
<v Speaker 5>make for water infrastructure, more than the one billion dollars

752
00:41:26.320 --> 00:41:29.239
<v Speaker 5>for Prop six last year and the two billion dollars

753
00:41:29.280 --> 00:41:32.880
<v Speaker 5>for the Swift And so the legislature is already sending

754
00:41:32.920 --> 00:41:36.880
<v Speaker 5>a bright, clear, strong signal that they want to prioritize

755
00:41:36.920 --> 00:41:41.719
<v Speaker 5>water infrastructure investment. But that two point five billion, which

756
00:41:41.719 --> 00:41:43.960
<v Speaker 5>hopefully we can go higher to five, it's not going

757
00:41:44.000 --> 00:41:46.360
<v Speaker 5>to come close to closing that one hundred and ten

758
00:41:46.440 --> 00:41:50.679
<v Speaker 5>billion dollar water infrastructure funding gap. And so that's why

759
00:41:50.719 --> 00:41:54.320
<v Speaker 5>we think that dedicated funding which we already use for

760
00:41:54.400 --> 00:41:57.880
<v Speaker 5>state parks and we already use for state highways. That

761
00:41:58.000 --> 00:42:01.400
<v Speaker 5>financial strategy is a kind of model that we need

762
00:42:01.440 --> 00:42:04.559
<v Speaker 5>to use in order to tackle our water infrastructure challenges.

763
00:42:04.800 --> 00:42:10.480
<v Speaker 1>The idea here is that in recent years with transportation

764
00:42:10.639 --> 00:42:13.840
<v Speaker 1>with state parks things like that, the legislature has essentially

765
00:42:13.880 --> 00:42:16.280
<v Speaker 1>made it so that's automatic that a certain amount of

766
00:42:16.320 --> 00:42:20.760
<v Speaker 1>revenue coming in goes to that, like you say, dedicated fund.

767
00:42:20.880 --> 00:42:23.280
<v Speaker 5>Yeah, and these were constitutional amendments that were approved by

768
00:42:23.360 --> 00:42:27.280
<v Speaker 5>voters in twenty fourteen and twenty fifteen that would dedicate

769
00:42:27.800 --> 00:42:30.760
<v Speaker 5>state sales and severance taxes to the state Highway Fund.

770
00:42:31.199 --> 00:42:33.679
<v Speaker 1>So what do you feel like is the biggest like,

771
00:42:33.760 --> 00:42:36.320
<v Speaker 1>what worries you the most about this? What's the biggest

772
00:42:36.400 --> 00:42:38.760
<v Speaker 1>hurdle that's going to have to be crossed to going

773
00:42:38.920 --> 00:42:44.679
<v Speaker 1>from to raise the confidence in our kind of long

774
00:42:44.760 --> 00:42:46.719
<v Speaker 1>term expectations for water.

775
00:42:46.519 --> 00:42:46.920
<v Speaker 6>In the state.

776
00:42:47.320 --> 00:42:50.480
<v Speaker 5>I think the House and Senate leadership have sent a

777
00:42:50.519 --> 00:42:53.960
<v Speaker 5>great signal thus far. I mean, two point five billion

778
00:42:54.000 --> 00:42:58.679
<v Speaker 5>dollars for water infrastructure. It's a lot of money, great start,

779
00:42:58.760 --> 00:43:01.880
<v Speaker 5>and we should end them for their leadership on this issue.

780
00:43:02.800 --> 00:43:06.079
<v Speaker 5>Getting to yes on a revenue dedication is going to

781
00:43:06.079 --> 00:43:10.239
<v Speaker 5>be the challenge. And at Texas twenty thirty six, we've

782
00:43:10.280 --> 00:43:14.159
<v Speaker 5>been working with Chambers of Commerce eedcs, the business and

783
00:43:14.199 --> 00:43:18.880
<v Speaker 5>industry community and helping make the case for the legislature

784
00:43:19.000 --> 00:43:23.880
<v Speaker 5>on why water infrastructure investment is so important for economic

785
00:43:23.920 --> 00:43:27.840
<v Speaker 5>growth and development. Most people in the legislaturead I'll say,

786
00:43:27.840 --> 00:43:31.400
<v Speaker 5>everyone really likes the benefits of the Texas economic miracle,

787
00:43:31.960 --> 00:43:36.320
<v Speaker 5>economic growth, population growth, jobs, good stuff is happening here.

788
00:43:36.960 --> 00:43:39.719
<v Speaker 5>They want that to continue, and they know that in

789
00:43:39.840 --> 00:43:41.840
<v Speaker 5>order for that to happen, you have to have three things.

790
00:43:41.960 --> 00:43:47.159
<v Speaker 5>One qualified workforce, two dependable electric grid, and three reliable

791
00:43:47.199 --> 00:43:50.559
<v Speaker 5>water infrastructure. But if we want to have that reliable

792
00:43:50.599 --> 00:43:53.920
<v Speaker 5>water infrastructure, that's got to be dedicated funding for it.

793
00:43:54.000 --> 00:43:54.920
<v Speaker 6>I think that's going to be.

794
00:43:56.239 --> 00:43:59.960
<v Speaker 5>It's certainly an uphill fight, but it's not an instrumental,

795
00:44:00.400 --> 00:44:03.280
<v Speaker 5>insurmountable policy discussion for this session.

796
00:44:04.199 --> 00:44:06.440
<v Speaker 4>All right, well, we will watch and see how it goes.

797
00:44:06.519 --> 00:44:09.440
<v Speaker 1>Thank you Jeremy for coming and explaining this complicated but

798
00:44:09.480 --> 00:44:12.840
<v Speaker 1>important issue to us. Thank you to our producers, Rob

799
00:44:12.880 --> 00:44:16.000
<v Speaker 1>and Chris, and thank you to our sponsor water Grows.

800
00:44:16.239 --> 00:44:19.360
<v Speaker 1>Once again, if people have comments, questions, things they want

801
00:44:19.440 --> 00:44:23.119
<v Speaker 1>us to discuss, tripcast at Texastribune dot org.

802
00:44:23.599 --> 00:44:24.760
<v Speaker 4>We will be back next week
