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Armstrong Center for Energy & the Environment
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Thinking Economically



Policy Centers - 2008

December 31, 2008
 The Perfect As the Enemy of the Good: Market Failure or Market Opportunity?
Thinking Economically: Lesson 10
By Dr. Arthur B. Laffer

Consumers and producers are uniquely situated to make judgments about meeting their own wants and needs. So government regulation in the name of protecting consumers and competition—or in any other name for that matter—rarely lives up to its billing.

December 31, 2008
 Is Academic Research a Good Investment for Texas?
By Rick O'Donnell

The key to preparing the next generation of Texans for more productive and meaningful lives is not to pour billions of additional dollars into higher education research, but to return our colleges and universities to their original mission—teaching students.

December 31, 2008
 Telecom Taxes
2009-2010 Legislators' Guide to the Issues
By Bill Peacock

Texas consumers are burdened with high tax rates on telecommunications services. The average consumer who subscribes to telephone, cable, and cellular service pays annual taxes of around $318. Texas’ tax rate on landline telephone service is the third highest in the nation.

December 31, 2008
 Let's Not Forget the Liberal Arts
The Collapse of Undergraduate Teaching
By Rick O'Donnell

Traditional liberal arts programs are disappearing from higher education in America. The curriculum of most large American universities is a mish-mash of courses that reflect the research interests of the faculty, rather than a program designed to teach students to read, write, or think critically.

December 31, 2008
 Higher Education: Fund Learning, Not Buildings
By Kalese Hammonds

The only way to inject competition into the higher education marketplace is to force universities to compete for students’ money by putting state funds into the hands of students and letting them decide who earns the state’s money.

December 31, 2008
 Free Nurse Practitioners to Practice
By Kalese Hammonds

Considering Texas’ growing need for lower cost alternatives in health care, policymakers should look for every opportunity to give Texans a diversified provider field that offers a variety of health care options at a range of prices. Easing regulations on nurse practitioners would give consumers more choices and more affordable options.

December 16, 2008
 State Employee Health Benefits
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

The cost of providing health benefits to Texas’ state employees has been climbing for years. In an effort to control mounting costs, the Legislature should readjust cost sharing for state employees and offer the option of a high deductible health plan and health savings account to control cost and allow employees to share in the premium savings.

December 16, 2008
 Temporary Assistance for Needy Families (TANF)
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

As a result of welfare reform and the emphasis on work, Texas has been a leader among the states for moving people off welfare and into the workplace. A July 2006 USA Today article shows the number of families receiving welfare in Texas declined by 68 percent between August 1996 and December 2005.

December 16, 2008
 Private Sector Public Safety Solutions
2009-2010 Legislators' Guide to the Issues
By Marc Levin

The private sector can bring innovation and competition to the criminal justice system. Private prisons cost about 14 percent less to operate than their government-run counterparts--saving taxpayer money and providing greater public safety.

December 16, 2008
 Business Overcriminalization
2009-2010 Legislators' Guide to the Issues
By Marc Levin

Criminal law is not just for criminals anymore—at least not criminals as we have traditionally defined them. Significant differences between criminal and civil law make criminal law an overly blunt instrument for regulating non-fraudulent business activities.

December 16, 2008
 Spending Priorities
2009-2010 Legislators' Guide to the Issues
By The Honorable Talmadge Heflin and James Quintero

Every two years, legislators must write a new state budget that best serves the people of Texas while also limiting the burden it places on them. In order to write such a budget, the Legislature has to maximize available tax dollars by balancing actual needs and available revenue. Remember, for every dollar the Legislature allocates to one area of the budget, it loses the ability to spend it in another.

December 16, 2008
 The Income Tax
2009-2010 Legislators' Guide to the Issues
By The Honorable Talmadge Heflin and James Quintero

Even in the face of a national economic downturn, Texas continues to attract employers, create jobs, and stimulate economic activity with its pro-growth, low tax model.

December 16, 2008
 Expenditure Limits
2009-2010 Legislators' Guide to the Issues
By The Honorable Talmadge Heflin and James Quintero

Texas' TEL is flawed and needs to be improved. One such improvement is to limit the growth of all state and local government spending to population growth plus inflation. Ultimately, taxpayers shoulder the burden of paying for government; therefore, government should shoulder the burden of protecting the taxpayer.

December 12, 2008
 Climate Change: Are Manmade Carbon Dioxide Emissions to Blame?
By Drew Thornley and Kathleen Hartnett White

New observational evidence from NASA Satellite Research Project contradicts reigning global warming science. Empirical data indicate a minimal role of manmade CO2 emissions in climate dynamics.

December 09, 2008
 The High Cost of Higher Education
By Kalese Hammonds

The price of higher education in Texas is rising at a rate that outpaces both inflation and family incomes—but there is an end in sight. Restoring consumer-based, competitive market principles to the arena of higher education will bring about the reduction in costs—and tuition—that students, parents, and policymakers are seeking.

December 05, 2008
 Ozone
2009-2010 Legislators' Guide to the Issues
By Kathleen Hartnett White

Ozone levels have long challenged Texas’ two largest urban areas—Houston-Galveston-Brasoria (HGB) and Dallas-Fort Worth (DFW)—although continuous, dramatic improvement has occurred in the last 10 years. Unlike many states, Texas has aggressively regulated industrial sources of ozone and federal engine standards coming online in the next few years will continue to lower mobile emissions without onerous, costly state regulation.

December 05, 2008
 Water Rights
2009-2010 Legislators' Guide to the Issues
By Kathleen Hartnett White

Since the passage of the landmark legislation SB 1 in 1997, river authorities, municipalities, and water utilities have grappled with plans to increase available water supply, urgently needed by our growing population. Legislative clarification of key sections of the Texas Water Code are needed to implement projects to increase water supply.

December 05, 2008
 Children's Health Insurance Program (CHIP)
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

Congress established the Children’s Health Insurance Program (CHIP) in 1997, in response to mounting pressure to address the number of uninsured children in the United States. Proponents of the plan argued that CHIP would deliver health insurance coverage to half of the nation’s 10 million uninsured children by 2000. Through federal FY 2005, however, the CHIP program had never reached enrollment of even 4 million children at any given time.

December 05, 2008
 Consumer-Driven Health Care
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

Consumer-driven health care has become a popular term with the creation and wide spread adoption of personal health accounts, such as Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Health Savings Accounts (HSAs). However, as the popularity of these accounts has grown, so have issues that impact the ability of individuals to make decisions about their health care.

December 05, 2008
 Assessments, Standards, & Accountability
2009-2010 Legislators' Guide to the Issues
By Brooke Dollens Terry

Large numbers of public schools in Texas are not adequately preparing students for success in college or the workforce. The disconnect between high school preparation and college expectations costs students, parents, higher education institutions, and taxpayers.

November 30, 2008
 Building a Principled Budget
A Blueprint for the 2010-11 Biennium
By The Honorable Talmadge Heflin and James Quintero

Texas is a national leader in job creation, gross state product, low unemployment rate and foreign direct investment. Will the 81st Legislature preserve these successes by writing a responsible budget that promotes economic growth?

November 30, 2008
 Texas Transparency: Then and Now
By The Honorable Talmadge Heflin and James Quintero

The 4th President of the United States, James Madison recognized the power of information when he said “Knowledge will forever govern ignorance.” Texas is a national leader in equipping her people with knowledge of government through transparency. We challenge the Legislature to build on that position when they meet in January of 2009.

November 28, 2008
 When You're Right, Well, You're Right: The Laffer Curve
Thinking Economically: Lesson 9
By Dr. Arthur B. Laffer

For good or ill, many people reduce the entire pro-growth worldview of supply-side economics down to the “Laffer Curve,” which graphically depicts the tradeoff between tax rates versus the total tax revenues actually collected by the government.

November 20, 2008
 Monopolies or Markets? Electric Competition in Texas
2009-2010 Legislators' Guide to the Issues
By Bill Peacock

Introducing competition into Texas’ retail and wholesale electricity markets has made Texas the greatest success story in the United States—if not the world. That success is largely due to policymakers’ willingness to let markets work and not manipulate prices or other policies for political reasons.

November 20, 2008
 Franchise Fees
2009-2010 Legislators' Guide to the Issues
By Bill Peacock

While the Legislature has improved the franchise process, it has left franchise fees at high levels. So while the process is now more efficient, consumers still pay fees that provide revenues for cities far above what it costs to manage the public ROW.

November 20, 2008
 Corrections Budget & Prison Operations
2009-2010 Legislators' Guide to the Issues
By Marc Levin

While Texas should maintain tough laws that keep violent offenders, sex off enders, drug kingpins, and habitual home burglars in prison for long periods, narrowly tailored policy changes can control future incarceration costs by rerouting nonviolent substance abuse offenders who do not pose a threat to public safety.

November 20, 2008
 Health Insurance Regulations
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

Health insurance mandates ultimately harm consumers by making health insurance more expensive and requiring individuals to buy health benefits that they would not choose if they had the option. Additionally, they limit the opportunity for insurers to develop new and innovative products tailored to the individual.

November 14, 2008
 Medicaid
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

Since Medicaid was established by Congress in 1965, and in Texas in 1967, more than four decades of incremental policy expansion has created the largest government health program, providing benefits to more people and at a higher cost than even the Medicare program.

November 14, 2008
 TDI Sunset & Homeowners' Insurance Regulation
2009-2010 Legislators' Guide to the Issues
By Drew Thornley and Bill Peacock

The sunset review process of TDI presents an excellent opportunity to address today’s problems with the regulation of homeowners’ insurance and to bring a consumer-friendly regulatory system to the Texas homeowners’ insurance marketplace.

November 14, 2008
 Restoring Property Rights in a Post-Kelo Texas
2009-2010 Legislators' Guide to the Issues
By Bill Peacock

Texas has taken some steps since Kelo in moving toward protecting its citizens from eminent domain abuse. However, the veto of HB 2006 and the failure to pass HB 3057 last session have left much to be done in restoring Texans’ property rights.

November 14, 2008
 Tort Reform
2009-2010 Legislators' Guide to the Issues
By Drew Thornley and Bill Peacock

Since 1995, no state has done more than Texas to restore the trust of citizens in their court system. However, Texas’ tort climate still has problem areas, namely its number of “judicial hellholes,” areas with histories of large or excessive verdicts against tort defendants.

November 13, 2008
 Entrepreneurs Versus Regulators: Government Intervention in the Market
Thinking Economically: Lesson 8
By Dr. Arthur B. Laffer

Whether you focus on theory or history, the lesson is clear: government intervention in the marketplace wastes resources, harms consumers, and often achieves the opposite from its intended goal. A deregulated, lightly taxed market is the best vehicle to achieve freedom and prosperity for all.

November 12, 2008
 Mandating College Student Health Insurance: A Costly Idea for Texas
By The Honorable Arlene Wohlgemuth and Tiffiny Britton

Mandating student health insurance would do little to actually reduce the rate of uninsured young adults and would add extra cost to the already high and rising cost of higher education, making higher education unaffordable to more Texans.

November 07, 2008
 Affordable & Reliable Energy: An Energy Policy for Texas
2009-2010 Legislators' Guide to the Issues
By Bill Peacock and Kathleen Hartnett White

Proposed and enacted solutions for securing affordable and reliable energy for Texas consumers run from higher taxes and subsidies to mandated production from alternative fuel sources. However, long-term solutions must rely on a proper understanding of our current situation and market-based innovations.

November 07, 2008
 Health Care Regulations
2009-2010 Legislators' Guide to the Issues
By Kalese Hammonds

As the cost of health care in Texas rises, the prohibition on the corporate practice of medicine has become a hotly contested topic, raising questions about whether physician employment compromises a physicians’ ability to make medical decisions in the best interest of their patients.

November 07, 2008
 Early Childhood Education (Pre-k)
2009-2010 Legislators' Guide to the Issues
By Brooke Dollens Terry

Pre-k benefits generally fade out by the 3rd grade, particularly for non-at-risk children. If the goal is to increase kindergarten readiness, pre-k is already helping those children who may benefit from it. But if the goal is to improve graduation rates and academic achievement in the later grades, pre-k is not the solution for failing public schools.

November 07, 2008
 Groundwater
2009-2010 Legislators' Guide to the Issues
By Kathleen Hartnett White

Although the Legislature has the authority to limit, or even abrogate, vested property rights in groundwater, it does so with implications of “taking” constitutionally-protected rights for which the state would be liable to compensate the property owners.

November 01, 2008
Testimony to the House Subcommittee on Spending Limits
By The Honorable Talmadge Heflin and James Quintero

October 28, 2008
 The True Cost of Wind Energy
By Bill Peacock

A careful look at the costs of wind energy in Texas reveals that Texas consumers and taxpayers ought to think twice about the state’s current policy of subsidizing wind energy.

October 28, 2008
 Texas Wind Energy
Past, Present, and Future
By Drew Thornley

Instead of subsidizing private wind development and imposing billions of dollars in new transmission costs upon retail electric customers, Texas policymakers should step back and allow the energy marketplace to bring wind power online when the market is ready. Texas consumers will reap the benefits.

October 21, 2008
 Measuring Performance in the Juvenile Justice System
By Marc Levin

As the Texas Youth Commission (TYC) and Texas Juvenile Probation Commission (TJPC) undergo sunset review, their performance measures should be enhanced to focus more on results-based performance measures such as recidivism, educational progress, administrative costs, and restitution to victims.

October 17, 2008
 The Horizon Program: A Model for Education Reform
A Report on the 10-Year Horizon School Choice Program in the Edgewood School District in San Antonio, Texas
By Robert Aguirre, Jessica Sanchez, and Brooke Dollens Terry

School choice among parents and students in the Edgewood school district led to improved student performance, fewer dropouts, higher teacher salaries, and increased economic development.

October 15, 2008
 Unintended Consequences
Regulation of Policy Forms and the Mold Crisis
By Bill Peacock

Regulations that are supposed to help consumers often wind up doing just the opposite.

October 14, 2008
 It's Not About Insurance
By The Honorable Arlene Wohlgemuth

As we gear up for another legislative session the rallying cry to “insure the uninsured” becomes louder and louder, but should crafting additional insurance programs be the focus of public policy?

October 13, 2008
 Cost of Hospital Regulations
By Kalese Hammonds and Thomas Conner

The cost of health care is expensive enough, but burdensome Texas hospital regulations drive up the operating cost of hospitals and increase the price patients pay for health care.

October 07, 2008
 Global Warming: Manmade Mess or Nature's Norm?
A PowerPoint Presentation by Dr. Roy W. Spencer
By Dr. Roy W. Spencer

Dr. Roy Spencer, published author, principal research scientist for the University of Alabama in Huntsville, and the U.S. Science Team Leader for the Advanced Microwave Scanning Radiometer on NASA’s Aqua satellite, provides evidence in this PowerPoint presentation that new data collected from NASA satellites show that there are significant errors in the climate models used by the United Nations’ Intergovernmental Panel on Climate Change (IPCC).

October 07, 2008
 Applying Free Market Principles and Common Sense to Teacher Compensation
By Brooke Dollens Terry

School board members and superintendents need to use the powerful incentive of money to drive changes in teacher behavior and performance that increase student learning, the main goal of education.

October 07, 2008
 Natural Resource Policy:
Free Markets and Liberty
By Kathleen Hartnett White

Free market advocates need a good offense: natural resource policy based on fundamental free market principles--which offer the most effective, enduring, and cost-efficient method of environmental protection.

October 01, 2008
Invited Written Testimony: Interim Charges Relating to State Jails
Presented before the Texas House Corrections Committee
By Marc Levin

This invited written testimony regarding interim charges relating to state jails, technology in the criminal justice system, and offender reentry was presented before the Texas House Corrections Committee on August 21, 2008.

September 29, 2008
 Influential Issues
Education
By Brooke Dollens Terry and Michael Alexander

As more young Texans are failing to meet the standards that are needed to make it in the 21st Century, Texas needs to make bold choices and go against the failing status quo of more money and more of the same. This Influential Issues paper on education provides facts and recommendations for making the Lone Star State a true leader in education without bankrupting its citizens.

For other Influential Issues papers covering health care, immigration, the economy, and thinking economically click here.

September 29, 2008
 Influential Issues
Health Care
By Kalese Hammonds

Real change for our health care system means addressing the rising cost of health care and making it more accessible by taking actions to lower costs without incurring more government expenses or increasing the burden to taxpayers. The most effective way to do that is with a healthy dose of competition and free market forces.

September 29, 2008
 Influential Issues
Immigration
By Bill Peacock and Andrew Liu

Immigration is an issue as complex as it is contentious. With respect to immigration issues, we must recognize the efficacy of free markets in promoting economic growth, but also acknowledge the necessity of policy interventions to protect the rule of law and the security of the state and nation.

September 29, 2008
 Influential Issues
The Economy
By The Honorable Talmadge Heflin and Bill Peacock

Government policies influence people's decisions on whether, where, and how much to work, save, and invest, impacting the ability of states to retain and attract residents and businesses. Research has shown that pro-growth policies result in higher after-tax returns, increased economic activity, and an eventual improvement in overall state fiscal health.

For other Influential Issues papers covering education, health care, immigration, and thinking economically click here.

September 29, 2008
 Influential Issues
Thinking Economically
By Dr. Arthur B. Laffer

Economics is a science; its laws are like those of physics--immutable. Attempts by policymakers to circumvent these laws always result in unintended consequences.

September 18, 2008
Testimony Regarding Scholarships for Special Needs Students
Presented before the Senate Education Committee
By Brooke Dollens Terry

September 16, 2008
 Paying for Results
Examining Incentive Pay in Texas Schools
By Brooke Dollens Terry

Teacher incentive pay programs in Texas school districts have produced higher test scores, higher state accountability rankings, improved teacher morale, and less teacher turnover. This report (with generous support from the Eli and Edythe Broad Foundation) examines how incentive pay has been implemented in the Austin, Dallas, Houston, and Lamesa school districts; and provides recommendations for future implementation.

September 12, 2008
 States' Right--To Mess It Up: What Makes a State Competitive?
Thinking Economically: Lesson 7
By Dr. Arthur B. Laffer

A pro-growth, market-friendly state attracts talented workers, entrepreneurs, and investment, which spurs job creation and booming tax receipts. Empirical evidence backs this up: on every important criterion, pro-growth states outperform those with hostile business climates. State policies matter!

September 09, 2008
 Competitive States: Texas v. California
Economic Growth Prospects for the 21st Century
By Arduin, Laffer & Moore Econometrics and Dr. Arthur B. Laffer

The result of a head-to-head competition between Texas and California is an economic blowout. The economic environment in Texas has significant advantages over California. The implications of this competitive advantage are clear; Texas’ economic prospects are bright and the Texas economy will significantly outperform California’s.

August 28, 2008
 Environmental Policy Constraints on U.S. Oil Supply
Outdated & Unjustified
By Kathleen Hartnett White

Unless the U.S. Congress removes restrictions on domestic oil production, unprecedented U.S. fuel prices will likely continue. Pundits debate the cause of soaring U.S. fuel prices, but the underlying cause remains the tight global supply.

August 20, 2008
 Calculating the Demand for Charter Schools
By Brooke Dollens Terry and Michael Alexander

Students around the state are waiting in line to attend a public charter school as evidenced by nearly 17,000 students on a waiting list. Texas lawmakers can help these students attend a charter school by eliminating the legislative cap, lowering barriers to expansion, and reducing unnecessary regulations.

August 18, 2008
 Consumers, Competition, and Homeowners' Insurance
A Sunset Report on the Texas Department of Insurance and the Office of Public Insurance Counsel
By Drew Thornley and Bill Peacock

The move to a file-and-use regulatory system for homeowners’ insurance, as called for by the Texas Legislature, is incomplete. Completing the move is necessary for consumers to reap the benefits of a competitive marketplace.

August 07, 2008
 Texas' Property Tax Challenge
The True Cost of Owning Property in Texas
By The Honorable Talmadge Heflin and James Quintero

The cost of owning a home or business in Texas is becoming increasingly prohibitive. Short of totally abolishing the property tax, limiting the growth of local spending to the sum of population growth and inflation is the only meaningful way the Texas Legislature can push back the rising tide of property taxes.

August 07, 2008
Occupational Licensing & Overcriminalization
Testimony before the House Government Reform Committee
By Marc Levin

The overcriminalization of occupational licensing is limiting job growth and competition while unfairly excluding some Texans from the workforce. Texas regulates too many occupations, applies excessive criminal penalties to violations of licensing rules, and too often prevents otherwise qualified individuals from obtaining licenses because of a minor and sometimes decades-old conviction. This testimony offers solutions that can put more Texans to work and, by increasing competition, bring greater choice and value to consumers.

July 25, 2008
Testimony Presented to the Senate Natural Resources Hearing
Regarding Panel on Conflicting Federal and State Positions
By Kathleen Hartnett White

July 24, 2008
The Other Franchise Tax
Municipal Franchise Fees Add Hundreds of Millions of Dollars to Consumers' Bill Each Year
By Bill Peacock

Consumers have greatly benefitted from recent efforts to reduce telecommunications taxes. But this testimony shows that the municipal franchise tax on video, voice, electricity, and natural gas services still takes hundreds of millions of dollars a year out of consumers' pockets.

July 21, 2008
 Letter to the Sunset Advisory Commission
Regarding Texas Youth Commission (TYC) and Texas Juvenile Probation Commission (TJPC)
By Marc Levin

After working closely with state policymakers on landmark legislation to overhaul the Texas Youth Commission (TYC), the Texas Public Policy Foundation is pleased to share with the Sunset Advisory Commission key research and recommendations as it reviews both TYC and the Texas Juvenile Probation Commission.

July 17, 2008
 State Employee Health Benefits
By Kalese Hammonds

With almost 560 state employees per 10,000 Texas residents, the increasing cost of health insurance benefits means state lawmakers must allocate considerable funding for these benefits. While health insurance benefits are an appropriate benefit for state employees, there are things lawmakers can do to help control these costs.

June 30, 2008
 Trade: You Ain't Got the Frills If You Ain't Got the Skills
Thinking Economically: Lesson 6
By Dr. Arthur B. Laffer

Many people today call for "fair" trade rather than free trade. But that ignores the fact that all free trade is fair because people only agree to trade if they believe they will benefit from it.

June 26, 2008
 Testimony Presented to the Texas Education Agency
Regarding Proposed Rules for a Dropout Recovery Pilot Program
By Brooke Dollens Terry

June 20, 2008
 Massachusetts Health Care Reforms
The Wrong Path for Texas
By Kalese Hammonds

Massachusetts’ health care reform promised to provide universal health care coverage for the entire state and reduce health care costs, but two years after its implementation, it has accomplished neither. Not only has the program failed to insure the entire population, but it is running hundreds of millions of dollars over budget.

June 19, 2008
 Five Technological Solutions for Texas' Correctional and Law Enforcement Challenges
By Marc Levin

Better utilization of technology in the criminal justice system can help control costs and maximize the productivity of personnel. In some cases it can also improve outcomes such as recidivism, crime rate, and percentage of crimes solved.

June 19, 2008
 Thinking Outside the Cell
Aligning Goals and Incentives in the Texas Criminal Justice System
By Marc Levin

This PowerPoint presentation was given to the Montgomery County Bar Association Luncheon and provides policy recommendations on how to align goals and incentives in Texas' system of criminal justice.

June 12, 2008
 Higher Education Summit
By Texas Public Policy Foundation

The May 21 higher education conference designed for regents appointed to the state’s major university systems explored the rising cost of higher education, the quality of higher education in Texas, and the roles and responsibilities of regents. This publication provides important resource information on each of those areas, as well as the solutions for how to strengthen higher education in Texas.

June 11, 2008
 Staggering Cost and the Benefit?
Lieberman-Warner America's Climate Security Act
By Kathleen Hartnett White

The U.S. Senate's attempt to move this legislation has lifted the veil on the real cost yet ineffectiveness of ambitous federal CO2 reduction mandates. As the leading energy producing state, the Texas economy would be most adversely impacted. This brief offers a risk-benefit assessment of this unprecedented legislation and highlights the effects on Texas.

June 01, 2008
 Money Makes the World Go 'Round: And the Fed Makes Money
Thinking Economically: Lesson 5
By Dr. Arthur B. Laffer

Where our money comes from remains a mystery for most people. The answer would be much simpler if everyone conducted their transactions in cold hard cash. But we can start by applying the law of supply and demand.

May 29, 2008
 Texas' Higher Education System: Success or Failure?
By Richard Vedder, Ph.D.

This report takes a look at the current state of Texas’ institutions of higher education and makes recommendations on how to achieve greater efficiency and effectiveness by putting free market solutions in place that provide greater outcomes for the ultimate customers—students.

May 16, 2008
 Letter to the State Board of Education
By Brooke Dollens Terry

The Foundation’s comments on the State Board of Education proposed K-12 English/Language Arts curriculum.

May 16, 2008
 A History of Lawsuit Reform in Texas
By The Honorable Joseph M. Nixon

Texas has been a leader in tort reform since enacting landmark medical malpractice reform in 2003. This history of tort reform in Texas discusses how it came to be and the tremendous results since.

May 15, 2008
 Innovations in the Business of Health Care
The Role of Specialty Hospitals
By Sean Parnell

Specialty hospitals create a competitive environment that leads to higher quality health care and expanded consumer choice. However, prohibitive government regulations threaten these innovative facilities—ultimately threatening choice, affordability, and improved quality for all health care consumers.

May 14, 2008
 Letter to the State Board for Educator Certification
Regarding Teacher Certification and Preparation Programs
By Brooke Dollens Terry

The Foundation’s comments on State Board for Educator Certification proposed rule changes to teacher preparation and certification programs.

May 07, 2008
 Condemnation Compensation: Time to Get Back to Basics
Testimony before the House Committee on Land Use and Regulation
By Drew Thornley

May 07, 2008
 Eminent Domain: Restoring Texans’ Property Rights
Testimony before the House Committee on Land Use and Regulation
By Bill Peacock

Taking private property is not only wrong, it is also unnecessary. A recent study shows that economic develop can and does occur without eminent domain, another reason why Texas should reform its laws for the post-Kelo world we live in.

May 06, 2008
 Work Release: Con Job or Big Payoff for Texas?
By Marc Levin

For Texans behind bars, a job can be the key to unlocking gates of opportunity and abandoning the criminal lifestyle. The limited experience in Texas and evidence from around the nation indicates that work release programs that properly monitor and carefully screen participants can reduce recidivism and costs to taxpayers while protecting public safety.

April 30, 2008
 The Condition of Our Nation: The Press Is Always Wrong
Thinking Economically: Lesson 4
By Dr. Arthur B. Laffer

The U.S. today is in its best shape ever. Americans enjoy low flat(ish) tax rates, an economy open to foreign trade, and wealth unprecedented in human history. To continue to enjoy this prosperity, it is important to understand why the 1980s and beyond have been so much better.

April 24, 2008
 School Choice Delivers High Marks for Students, Parents, Teachers, and Taxpayers
By Jamie Story and K. Emma Pickering

This paper explores the benefits that existing school choice situations—including private school choice, charter schools, and public school transfers—hold for students in public and private schools, parents, teachers, and taxpayers.

April 22, 2008
 Is Government Expansion of Early Childhood Education Programs Necessary?
By Jamie Story and Brooke Dollens Terry

As Texas lawmakers contemplate expanding government early childhood programs, it is instructive to look at the effectiveness of current programs and whether parents prefer universal pre-k or choice on where and how to educate their four-year old child.

April 17, 2008
 Expanding the Health Insurance Market
Giving Texans More Choices
By Kalese Hammonds

Texas has the opportunity to lead the way in creating a more competitive health insurance market while giving Texas consumers more health insurance options. Ultimately, more competition will give Texans more choices in both benefits and prices.

April 10, 2008
 Invited Testimony to the Select Committee on Electric Generation Capacity & Environmental Effects
By Kathleen Hartnett White

Texas' growing economy requires a growing supply of energy. This testimony examines how we can meet future energy demands while addressing federal clean air regulations and concerns about global warming.

April 01, 2008
 People Behind the Policy
2007 Annual Report
By Texas Public Policy Foundation

A report on the impact, activities, and finances of the Texas Public Policy Foundation in 2007.

March 31, 2008
 Government & Prosperity: Free Market Institutions
Thinking Economically: Lesson 3
By Dr. Arthur B. Laffer

Market institutions matter. Countries that have secure property rights and the rule of law have greater prosperity and greater freedom.

March 28, 2008
 The Case for Converting from Property Taxes to Sales Taxes
By Talmadge Heflin

As a matter of policy, the "best" tax is one that does the least possible harm to the economy and to its citizens. With this in mind, lawmakers should continue to focus on delivering tax relief, while shifting from property taxes to consumption-based taxes for the long term.

March 27, 2008
 Testimony to the Texas State Board of Education
Regarding the draft English/Language Arts K-12 state curriculum
By Brooke Dollens Terry

March 26, 2008
 Analyze Before You Criminalize: A Checklist for Legislators
By Marc Levin

With more than 1,700 criminal offenses on the books in Texas, policymakers should carefully weigh some key factors in considering whether additional criminal laws are needed. Evaluating these factors suggests that in many circumstances civil laws and market incentives can more efficiently and less onerously achieve the intended results.

March 26, 2008
 Texas Electric Meter
Measuring the Effects of Electricity Deregulation
By Bill Peacock

With two years of full deregulation before the next legislative session, Texans have the opportunity to get a clear picture of the true effect of deregulation of the Texas electricity market. The short answer is that consumers are benefitting.

March 25, 2008
 Wind Energy: Power for the Future or a Lot of Hot Air?
PowerPoint Presentation by Rob Bradley

This PowerPoint presentation was given by Rob Bradley of the Institute for Energy Research, at the Texas Public Policy Foundation's policy primer, “Wind Energy: Power for the Future or a Lot of Hot Air?”

March 25, 2008
 Wind Energy: The Right Tool for the Right Job?
PowerPoint Presentation by Jeff Pollock

This PowerPoint presentation was given by Jeff Pollock of J. Pollock, Inc., at the Texas Public Policy Foundation's policy primer, “Wind Energy: Power for the Future or a Lot of Hot Air?”

March 12, 2008
 Bringing Teacher Compensation into the 21st Century
By Brooke Dollens Terry and K. Emma Pickering

Over the course of our nation’s history, the structure of teacher compensation has varied and changed to fit the needs of the time. The current pay structure, introduced over 85 years ago, was designed for another era. If policymakers are serious about improving the quality of teachers in the classroom, they need to tie teacher pay to teacher quality.

March 11, 2008
 Testimony to the High School Success and Completion Initiative Council
By Jamie Story

This testimony was presented before the High School Success and Completion Initiative Council to address low graduation rates and school choice for high school dropouts.

March 06, 2008
 Ten Tall Tales About Texas Criminal Justice Reforms
By Marc Levin

The Legislative Budget Board declared in early 2008 that Texas taxpayers would no longer be handcuffed with a billion dollars of new prisons. However, Texans need not worry that they are saving money by opening the floodgates for violent offenders. The hard reality is that Texas is not going "soft on crime," but it is getting smarter.

February 29, 2008
 What's It Worth? The Value of Things
Thinking Economically: Lesson 2
By Dr. Arthur B. Laffer

What made the Edsel so valueless and the Cabbage Patch doll so valuable? It wasn’t their intrinsic worth based on factors such as production costs or the skill of the labor used in their production. Instead, it was the value placed upon them by consumers.

February 25, 2008
 From the State House to the Jail House: Protecting Public Safety Without Punishing Taxpayers
PowerPoint Presentation
By Marc Levin

Jails are the largest item in most county budgets and Texas jails currently house over 69,000 inmates - 29 percent more inmates per capita than California. This Powerpoint presentation highlights solutions to the county jail overcrowding problem that protect public safety without punishing taxpayers.

February 25, 2008
 Letter to the Sunset Advisory Commission
Regarding Sunset Review of the Texas Department of Public Safety
By Marc Levin

This letter requests that the Sunset Advisory Commission, as part of its review of the Texas Department of Public Safety, examine the issue of the Private Security Board’s disqualification of many otherwise qualified professionals from occupations such as locksmith and alarm salesperson solely because of a minor criminal offense that occurred many years ago.

February 21, 2008
 Individual or Group Coverage?
Regulating Health Reimbursement Arrangements in Texas
By Kalese Hammonds and Mary Katherine Stout

For many small group employers priced out of the insurance market, Health Reimbursement Arrangements offer an affordable alternative to traditional health insurance. Unfortunately, current regulations prevent HRAs from being used to their full potential.

February 20, 2008
 2008-09 Budget Snapshot
Texas Medicaid and the State Children's Health Insurance Program
By Mary Katherine Stout

Public health care makes up a huge portion of the Texas budget. This brief provides a snapshot of just how much of the state’s budget is spent on health care.

February 20, 2008
 Do Small Kids Need Big Government?
A Look at the Research Behind Government Preschool
By Darcy Olsen with Jamie Story

A rising number of three- and four-year-olds are enrolled in taxpayer-funded pre-kindergarten in Texas. This report evaluates the costs and benefits of pre-k, and makes recommendations about the proper role of government in providing early childhood education.

February 14, 2008
 The ABC's Before TYC
Enhancing Front-End Alternatives in the Juvenile Justice System
By Marc Levin

By linking each county's TYC commitments of nonviolent offenders to state funding for local probation and prevention efforts, and tying a share of state juvenile probation funds to key outcome measures like recidivism, restitution, and educational progress, Texas can encourage local innovations that will control TYC utilization and incentivize best practices.

February 03, 2008
 Q&A on Homeowners’ Insurance Regulation in Texas
By Drew Thornley and Bill Peacock

The Texas Department of Insurance is undergoing Sunset Review in 2008. This Q&A is based on the Center for Economic Freedom's response to a series of questions on TDI from the Texas Sunset Commission.

January 28, 2008
 Sunset Review of the Texas Department of Agriculture
By Marc Levin

There are many unnecessary, and unnecessarily excessive, criminal laws relating to licensing and regulation in Texas. This letter requests that the Sunset Advisory Commission examine this issue during its review of the Texas Department of Agriculture to determine whether some of the occupations regulated by TDA with criminal penalties require continued government regulation or would be better left to market processes.

January 25, 2008
 Energy & Air Quality: A Texas Primer
By Joel M. Schwartz

Steady advances in technology are decoupling fossil-fuel energy and air pollution. In fact, air pollution continues to reach new record lows in Texas and the nation, even as Americans burn increasing amounts of coal, oil, and natural gas to power their homes, vehicles, businesses, and factories.

January 25, 2008
 Power for the Future
The Debate Over New Coal-Fired Power Plants in Texas
By H. Sterling Burnett

One reason for Texas' continued economic progress is its successful deregulation of the electric industry. Continued progress, and the prosperity it brings, relies upon continued growth in available power. In the short term, only coal can deliver enough reliable, inexpensive power to meet this need.

January 18, 2008
 Violate at Your Own Risk: The Immutability of Economic Laws
Thinking Economically: Lesson 1
By Dr. Arthur B. Laffer

Thinking Economically is a project of the Texas Public Policy Foundation designed to provide a basic economic education for policymakers, the media, and the general public. In this way, the Foundation hopes to highlight the intersection of economics and public policy, and the importance of “thinking economically” when making policy decisions. This paper shows that immutability of economic laws means that there are limits to what can be accomplished in the political realm.

January 17, 2008
 Texas School Accountability Standards 101
By Brooke Dollens Terry

Texas has a complex public school accountability system to evaluate schools and school districts. The system lacks rigor, is too complex, and does not align with the federal accountability system. To hold schools accountable, policymakers need to make significant changes to the state accountability system.

January 03, 2008
 U.S. Controls Emissions Better than Kyoto
By Drew Thornley

The international climate change bandwagon has yet to offer a plan for battling emissions anywhere close to as good as the U.S.’s strategy of unleashing market forces to control emissions and investing in clean-energy technologies, with a focus on long-term emissions control, as opposed to unrealistic short-term strategies. If the goal is to curb emissions over the long-term, then countries should follow the example of the U.S. in letting competition and the free market lead the way to success.






TexasPolicy.com
Texas Public Policy Foundation
900 Congress Ave., Ste. 400
Austin, TX 78701
Phone 512.472.2700
Fax 512.472.2728
info@TexasPolicy.com

New Day for Texas Juvenile Justice
By Marc Levin

Texas Toll Money: Give It Back
By Justin Keener

EPA’s Greenhouse Gas Blueprint for Disaster
By Kathleen Hartnett White

Ending Secret Ballots Will Cause Worker Misery
By Ronald Trowbridge, Ph.D.

Compassion? Not in My Book
By The Honorable Arlene Wohlgemuth

Improving Health Care Without Expanding Government
By Kalese Hammonds

Courage in the Face of Adversity
By The Honorable Talmadge Heflin

A Change in Climate for Climate Change Policy
By Kathleen Hartnett White

Future Shock
Texas’ Experience with Wind Shows More High Costs on the Way with Renewable Energy
By Drew Thornley

Rewrite Texas Graffiti Laws
By Marc Levin

A Tale of Two States
By William Murchison

Students Benefit from Teacher Incentive Pay
By Brooke Dollens Terry

A Bailout That Sacrifices Freedom for Dependency
By Jeff Sandefer

Economic Damage From Ethanol Mandate Will Continue
By Kathleen Hartnett White

Consumers Lose with Texas' Burdensome Insurance Regulations
By Drew Thornley

Texas Transparency and the Growth of Government
By James Quintero

Is Insurance the Answer?
By The Honorable Arlene Wohlgemuth

Waiting for Rescue
By Brooke Dollens Terry

Texans Demand Accountability for Education Dollars
By William Murchison

Texas Universities Need Reform, Not Resources
By Andrew Abbott

Two Years After Death, Milton Friedman Remains Relevant
By William Murchison

National Health Care Costs Government and Patients
By Kalese Hammonds

Unrealistic Energy Policies Harm Consumers
By Drew Thornley

Texas-Sized Transparency
By Talmadge Heflin

More Health Care Requires More Choices
By Kalese Hammonds

The Importance of Business Friendliness
By William Murchison

A Better Homeowners’ Insurance Market Awaits
By Drew Thornley

Denying Dropouts a Second Chance?
By Brooke Dollens Terry

Staggering Cost But Questionable Benefit
By Kathleen Hartnett White

Regents Must Tackle Cost Structure of Higher Education
By Brooke L. Rollins

Making Less Crime Pay
By Marc Levin

Strangulation by Decree: The Comeback of “Planning”
By William Murchison

Environmental Policy Constrains U.S. Oil Supply
By Kathleen Hartnett White

Telecom Taxes on the Decline
City Franchise Fees Should be Next
By Bill Peacock

Dependency Mindset Limits Health Care Choices
By Kalese Hammonds

The Folly of Food as Fuel
Federal Ethanol Policies Damage Texas Consumers and Businesses
By Kathleen Hartnett White

For Texans, a "Proposition 13" Moment
By William Murchison

A Note of Caution as Wind Energy Whips Through Texas
By Drew Thornley

Budget Shortfalls Create Opportunity for Fiscal Responsibility
By Talmadge Heflin

The Quality of Science Matters
By Kathleen Hartnett White

One Salary Doesn't Fit All
By Brooke Dollens Terry

Texas Consumers Benefit from Competitive Electricity Market
By Bill Peacock

Missing the Big Picture in Homeowners’ Insurance Debate
By Drew Thornley

The “Right Price” and Other Economic Fantasies
By William Murchison

Should Texas Bureaucrats Police Roses and Tacos?
By Marc Levin

Mandating Expensive Health Insurance in Texas
By Kalese Hammonds

Parents Desperate for Choices
By Jamie Story

Texas No Longer Repeat Offender on Prisons
By Marc Levin

In Health Care, Government Is the Problem
By Mary Katherine Stout

Runaway Train to Higher Taxes
By Mary Katherine Stout

Texas’ School Accountability System Fails Students
By Brooke Dollens Terry

Cleaner Energy Means Cleaner Air
Today’s Technology Makes Oil, Natural Gas, and Coal the Fuels of Choice
By Bill Peacock