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Thursday, March 27, 1997

Governor says Feds should make decision on privatizing welfare eligibility

By ANTHONY WILSON

Staff Writer

The federal government should approve or reject by Monday a state plan to privatize the system for determining Texans' eligibility for welfare, Gov. George W. Bush said Tuesday.

During a visit to Abilene, Bush said the U.S. secretary of health and human services recently assured him the federal government will decide on the proposal by March 31.

In a meeting with the Reporter-News editorial board, the governor grew visibly agitated as he recalled his conversation with Secretary Donna Shalala.

"I said, 'Hey, at least tell us,' " Bush said. " 'We've been waiting now for nine months. Can we or can we not have your permission to do that which the Legislature said we can do? The people of Texas have spoken. Can we do something?!"

The state is seeking permission to competitively bid Texas Integrated Enrollment Services, the process for determining eligibility for public assistance such as food stamps, Medicaid and Aid to Families with Dependent Children.

State officials want to consider awarding the TIES contract to a private vendor. Public-private consortiums will be among the vendors. The state would retain control of policy.

Bush noted the state spends more determining eligibility for AFDC ($350 million) than it pays in benefits ($348 million), a revelation he called "extraordinary."

Restructuring the system will require a huge capital outlay, so it "makes eminent sense" to privatize it and let the private sector fund the changes, Bush said.

Along with creating savings, the governor believes privatization will yield a "more compassionate" process in which applicants go to one place to determine needs to be met by a myriad of agencies, including churches and synagogues.

Bush said his most important welfare initiative is to let faith-based organizations participate in the welfare system without "losing their soul" to state regulations. He proposes stiff standards verified through private accreditations rather than by bureaucracies.

"I want the people of good faith and good heart to voluntarily be able to participate in the delivery of welfare," Bush said. "Government simply does not have a monopoly on compassion.

"It's the simple, but profound theory that if we change a heart, perhaps we'll change a life. The system has failed. It makes sense to bring a different approach."

If the federal government rejects the privatization plan, the state simply won't go forward. If the plan wins approval, the governor expects strings will be attached.

With a push from Bush, state lawmakers two years ago reformed welfare, limiting benefits to three years and requiring mothers to identify their children's fathers to receive assistance.

AFDC recipients were also required to enroll in a job program, help obtain child support for their families, and ensure their children stay in school and get medical and dental checkups.

Bush called the changes the "most significant (welfare) reform in the country."

The continuing challenge, he said, is to meld the Department of Human Services and the Texas Workforce Commission so they don't clash. Bush fears "competing cultures" as the emphasis swings from efficiently registering welfare recipients to finding them jobs.

Re-election plans uncertain

Bush says he hasn't decided whether to seek re-election next year, though he's pondering issues that could push him into the race.

The Republican governor hinted he'll seek a second term, telling Reporter-News editors, "If you were a betting person, you might want to take the line that I will."

But, he added, he'll reserve judgment until this summer. The decision will hinge on how his wife and twin teen-age daughters will be affected and whether he can generate enough zeal for four more years, he said.

"I just want to make sure my energy level will be high," Bush said. "This is a job you've got to tackle with all the enthusiasm you can muster if you expect to be effective."

During his first term, Bush has successfully guided the Legislature's agenda.

He defeated popular Gov. Ann Richards in 1994 on the strength of a four-plank platform - reforms in juvenile justice, education, tort law and welfare. He and the state lawmakers delivered on each count.

Following the legislative session, Bush reported he wanted to tackle school property tax reform, an idea most in Austin dismissed, he said.

"One year ago today, no one believed anything would happen except for me," he said.

But on Tuesday he reported optimism that lawmakers are close to completing a proposal that would slash school taxes to 50 cents, almost double the state's funding burden for public schools, and result in "substantial" savings to homeowners. Bush expects a bill on the House floor within a week.

He said he's searching for other compelling issues to convince him to run again.

"I'll have a reason to run," the governor said. "It won't be just for the sake of holding office."

Among the possible issues he mentioned were defining a clearer vision for higher education, reforming state government's cost and regulatory structures, fortifying the state's position in science and high-tech industries, promoting rural economic development among telecommuters, and continuing his initiative that all Texas children read by the third-grade.

"We've made a lot of progress to date," Bush said. "I'd hate to see it dismantled."

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