Highlights from around the Capitol

AUSTIN, Texas (AP) — The mayors of Houston, Dallas and Austin told lawmakers on Tuesday that they support a proposed $2 billion fund to finance water projects across the state and would like to see less red tape and more conservation efforts.

Houston Mayor Annise Parker told the House Natural Resources Committee that she supports using money from the Rainy Day Fund to create a water development bank that would help local authorities build new water projects and finance conservation efforts. Houston has invested in numerous water projects and delivers 495 million gallons a day to 470,000 customers.

Parker said the fund would help the rest of the state make sure there is enough water for Texas' growing population.

"If the rest of the state doesn't make the same significant investment that we have, then we are out there by ourselves, and we may lose our competitive edge as a state going into the future," she said.

The committee was hearing testimony on House Bill 4, a proposal by Rep. Alan Ritter, R-Nederland, to create a revolving, $2 billion fund that the State Water Development Board would use to leverage financing for water projects. The board says Texans need to spend $53 billion over the next 50 years to make sure the state has enough water for a growing population, with half of the money coming from the state.

Luke Metzger, director of the advocacy group Environment Texas, told the Senate Natural Resources Committee on Tuesday that it was critical that the state emphasizes conservation and ensures enough water is left behind for the eco-system. He pointed out that large-scale water projects, such as new reservoirs, can have a negative impact on the environment.

"In 1968, the State Water Plan predicted that by the year 2020 you would need 32 million acre-feet of water. Of course it's almost 2020 now, and we're only using 18 million acre-feet," he said. "It's critical that in planning for the next 50 years, we are flexible and we're careful not to burden Texans in the future with huge debts for projects we might not need."

He pointed out that San Antonio grew by more than 65 percent while still using the same amount of water and said other cities could follow that model. He said plans are for the state to meet 34 percent of future water needs through conservation and called on the committee to set aside that much of the new water fund for projects that save water.

Just fixing leaky water mains could save enough water for 2.7 million Texans, Metzger said.

Dallas Mayor Mike Rawlings called on lawmakers to change the permitting process to make it easier and cheaper to build new water facilities. He cited the experience of Dallas, which tried to build a new reservoir on the Neches River called Lake Fastrill.

The city spent millions of dollars on developing the project, filing permits and ultimately on litigation, only to have the U.S. Supreme Court rule against the city, killing the project.

"The lengthy permitting process creates a situation where local governments must make a wager on getting water," Rawlings said. "If we don't deal with these water needs, in 2060 it will cost us about half a million jobs in the area and $64 billion in projected income."

So far no group has come out against creating what would be called the State Water Infrastructure Fund for Texas, or SWIFT. But the measure may require Republican lawmakers to vote in favor of lifting the state's constitutional spending limit, which many conservatives do not want on their record.

Lawmakers feel a new urgency in dealing with the state's water shortage following the worst single-year drought in the state's history in 2011. Much of the state remains in drought and experts warn that it may continue and become the worst multi-year drought on record.

Austin Mayor Lee Leffingwell also testified Tuesday in support of the water fund, saying it would eliminate the need to charge a fee for every water tap in the state.

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TEXAS SENATORS HAVE HARSH WORDS FOR STAAR EXAM

A Senate education panel spent hours Tuesday maligning the state's standardized testing system, even questioning whether it's appropriate to ask youngsters across sun-kissed South Texas math problems about the possibility of frost forming on their sidewalks.

By the end of the meeting, it seemed the exam stood only a snowball's chance in Brownville of surviving the legislative session without a major overhaul.

Members of the state Senate Education Committee demanded answers on the exam regime known as the State of Texas Assessment of Academic Readiness, or STAAR, particularly asking why so many high school students are failing it.

Sen. Dan Patrick, a Houston Republican who chairs the committee, said testing "is the most important issue in front of us this session."

"We're obviously going to go back and make some changes," he said.

STAAR was passed into law in 2009 and is designed to be tough and get progressively more difficult through the years. But it has sparked heavy criticism since students began actually taking it last school year.

Parents, teachers, school administrators and community and education activists packed a Senate hearing to complain about the exam and suggest alternatives, and members of the House Public Education Committee also discussed ways to remake it during a separate meeting Tuesday.

High school students who began ninth grade last year must pass 15 STAAR tests in different subject areas in order to graduate. But thousands of the state's 5 million-plus students failed at least one of the exams during their first year in high school. Even after retakes, only about 73 percent passed the English I writing exam, and 81 percent passed English I reading.

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DEWHURST WANTS SENATE HEARINGS INTO POWERS DISPUTE

The Texas Senate announced Tuesday that it will hold hearings into the behavior of the University of Texas' regents and whether they are meddling too much into President Bill Powers' private life and management of the school.

Lt. Gov. David Dewhurst called Tuesday for the hearings. A day earlier, the Legislature delivered a strong message of support for Powers and Dewhurst accused some of the nine members of the University of Texas System regents of waging "character assassination" of Powers and his family.

Dewhurst has said anonymous letters attacking Powers and his wife has been circulated among the regents but has provided no other details.

Sen. Kel Seliger, an Amarillo Republican and chairman of the Senate Higher Education Committee, said he didn't know when the hearings would start. Seliger said regents could be called to testify and the Senate could subpoena the documents Dewhurst mentioned.

"President Powers appreciates all the support he's received this week from the lieutenant governor and other lawmakers," Powers spokesman Gary Susswein said. "The president will cooperate fully with the Legislature as it examines issues related to UT and higher education."

The regents did not immediately comment Tuesday.

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SENATE COMMITTEE APPROVES BILL ON MEDICAID FRAUD

The Senate Health and Human Services Committee has approved a bill intended to fight fraud in the Medicaid system.

Committee chairwoman Sen. Jane Nelson introduced the bill which she says will empower the Office of the Inspector General to investigate fraud in the health care program for the poor and disabled. The bill would also increase penalties for those found responsible for fraudulent claims.

Senate Bill 8 would also make significant changes to rules concerning medical transportation to and from appointments.

One South Texas group complained the bill would require single parents to accompany their children to therapy and treatment, forcing them to either miss work and lose income or skimp on their child's health care.

But the committee also heard testimony about how Medicaid patients misuse the transportation system.

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QUOTE OF THE DAY:

"Is 37 percent correct on algebra too hard?" The message towed by an airplane around the Capitol on Tuesday. The Texas Association of Business was protesting proposals to lower the standardized test score require to graduate high school, which for algebra, is only 37 percent correct.