Transcript of "Ron Whitlock Reports" for April 12, 2009 from ronwhitlock.com Copyright © 2009 The Shepherd Group. * * * * >>Ron: HELLO. WELCOME TO THE PROGRAM. YOUR HOST, RON WHITLOCK. THIS IS PROBABLY ONE OF THE MOST IMPORTANT PROGRAMS WE'VE EVER HAD ON OUR TELECAST. IT'S IMPORTANT BECAUSE THE LEGISLATURE IS IN SESSION IN AUSTIN. THE LEGISLATURE'S IN SESSION, THAT'S THE GOOD NEWS. THE LEGISLATURE'S IN SESSION, THAT'S THE BAD NEWS. THAT'S THE WAY IT WORKS. ALL KINDS OF LEGISLATION GOING ON AT THE STATE CAPITOL AS WE SPEAK, BUT THE MOST IMPORTANT THING THAT'S THERE IN THE HOPPER IS A BILL WHICH WOULD ELIMINATE THE, UH, MORATORIUM THAT EXISTS CURRENTLY ON MANAGED CARE, AN H.M.O. EXISTING ALONG THE BORDER, BROWNSVILLE, HARLINGEN, UP TO McALLEN, ALL THE WAY THROUGH LAREDO, UP TO EAGLE PASS AND DEL RIO, MAVERICK COUNTY IN PARTICULAR. WHY? WHAT'S IT MEAN? SIX POINT SEVEN BILLION DOLLARS, MAS O MENOS, INCLUDING LAREDO, WHICH IS NOT INCLUDED CURRENTLY, BUT DOESN'T HAVE AN H.M.O. IF YOU LOOK AT THOSE DOLLARS, THEY'RE CURRENTLY FUNNELED DOWN TO THE REGION FROM THE NATION'S CAPITOL, THROUGH AUSTIN, WHO TAKES A LITTLE CUT SOMETIMES, THEN ZIPS IT ON DOWN TO THE BORDER REGION. SO, THAT'S THE DOLLARS THAT COME CURRENTLY. AN H.M.O. WOULD TAKE 20 PERCENT OFF THE TOP, WOULD NEVER COME TO THE BORDER REGION OF SOUTH TEXAS. THAT'S WHAT WE'RE TALKING ABOUT. WE HAVE TWO ECONOMISTS WITH US HERE IN THE STUDIO TO TRY TO MAKE SENSE OF ALL THIS. MOSTAFA MALKI. MUSTAFA, WELCOME TO THE PROGRAM. ASSISTANT PROFESSOR OF ECONOMICS, U.T.B.-T.S.C. RAFAEL OTERO. RAFAEL, WELCOME TO THE PROGRAM. CHAIRMAN OF THE BUSINESS ADMINISTRATION DEPARTMENT ALSO AT UNIVERSITY OF TEXAS, BROWNSVILLE-TEXAS SOUTHMOST COLLEGE. WE'RE NOW GONNA TAKE YOU TO A LITTLE CLIP, "PACKAGE" AS WE REFER TO IT IN THE BUSINESS, OF A NUMBER OF INDIVIDUALS TRYING TO PUT IT ALL IN A LITTLE BIT OF A, UH-, A SITUATION WHERE YOU CAN COMPREHEND IT, I CAN COMPREHEND IT, OUR TWO ECONOMISTS CAN COMPREHEND IT, STARTING OFF WITH SENATOR EDDIE LUCIO >>Eddie Lucio, Jr.: RON, ONE OF THE MOST IMPORTANT ISSUES THAT, THAT FACES US THIS SESSION, LIKE IN SESSIONS BEFORE, IS THE FACT THAT WE HAVE TO KEEP MANAGED CARE FROM COMING IN. IF THAT HAPPENS, WE'RE GONNA LOSE BILLIONS, NOT MILLIONS, BILLIONS OF DOLLARS, UM, OF HEALTHCARE MONEY. TO ME, THAT IS, THAT MEANS THE LOSS OF THOUSANDS OF JOBS THAT COME WITH THAT MONEY ON A, ON A YEARLY BASIS. THE AMOUNT OF MONEY THAT COMES IN IN MEDICAID, IT'S IN EXCESS OF SIX TO SEVEN BILLION DOLLARS FOR THE BIENNIUM. THAT IS A CONSIDERABLE AMOU-, AMOUNT OF MONEY THAT, IF WE LOSE, THAT WOULD BE DEVASTATING TO US, NOT ONLY HEALTHCARE-WISE, BUT ECONOMICALLY. >>Ron: AND, THAT'S WHAT WE MIGHT FACE THIS SESSION IF WE'RE NOT REAL SMART. >>Eddie: WE FACE IT EVERY SESSION. IN THE LAST THREE SESSIONS.. >>Ron: BUT, MORE SO THIS TIME THAN NORMAL. >>Eddie: MORE SO THAN EVER, BECAUSE FUNDS ARE LIMITED. >>Ron: WHY? WHY WOULD IT BE AN ECONOMIC DISASTER? >>Josie Williams: WE ALREADY KNOW THAT, IN OTHER H.M.O.'s, 20 PERCENT OF THE DOLLAR GOES TO THEIR ADMINISTRATIVE COSTS AND TO THE STATE, NOT TO DELIVERING HEALTHCARE. AND, THAT'S THE ENTITY THAT WE BELIEVE IS NOT THE RIGHT MODEL FOR A VERY FRAGILE HEALTHCARE SYSTEM AS IT IS TODAY. >>Carlos Cardenas: I THINK WHAT'S GOING ON IS, IS THAT, TRADITIONALLY, WE'VE BEEN RECEIVING A CERTAIN NUMBER OF FUNDS INTO OUR AREA. MEDICAID, MEDICAID FUNDING. UH.. >>Ron: THE AREA BEING THE U.S.-MEXICO BORDER. >>Carlos: RIGHT. IN-, THE RIO GRANDE VALLEY, FROM HERE, YOU KNOW, FROM BROWNSVILLE TO EL PASO. UH, A MANAGED CARE SYSTEM, SUCH AS A HEALTH MAINTENANCE ORGANIZATION, BASICALLY L-, ADDS A LEVEL OF BUREAUCRACY THAT YOU'VE GOT TO PAY FOR, AND A CERTAIN AMOUNT OF MONEY THAT TAKES C-, TAKES, UH, THAT GETS TAKEN RIGHT OFF THE TOP. YOU KNOW, THAT, THAT COMES RIGHT OUT OF THE HEALTHCARE FUNDING THAT COMES INTO THIS AREA THAT HELPS TO FUND JOBS, THAT HELPS TO TAKE CARE OF PATIENTS, AND, AND TO, AND HELPS US TO DELIVER THE CARE, UH, LOCALLY. YOU KNOW, OBVIOUSLY, IT'S, IT'S SOMETHING THAT FEEDS INTO THE, INTO THE ECONOMY AS A WHOLE. SO, I THINK THAT WHEN WE LOOK AT SOMETHING, WE'VE GOT TO LOOK AT THE ECONOMIC IMPACT OF WHAT DECISION IS BEING MADE. UM, AND THAT GOES BEYOND THE OTHER, THE OTHER ISSUES. WE REALLY DON'T HAVE A MEDICAID, OR, OR AN H.M.O. MODEL THAT IS VIABLE, OR HAS BEEN VIABLE IN SOUTH TEXAS AT ALL. SO, WHAT YOU ALSO HAVE IS A, IS A POPULATION, UH, OF BENEFICIARIES, PATIENTS, AND PROVIDERS, WHO DON'T ALREADY EXIST IN AN H.M.O. ENVIRONMENT, WHERE A CERTAIN AMOUNT OF RETOOLING, RELEARNING, ETCETERA, HAS TO GO ON, UH, WHICH I THINK, QUITE FRANKLY, AS YOU GO FORWARD, UH, IS A RECIPE FOR, FOR CHAOS. >>Richard Cortez: IF YOU WERE TO TELL ME AND COULD GIVE ME A CHOICE TO PICK BETWEEN THE CHECK WE RECEIVE FROM THE, FROM THE FEDERAL GOVERNMENT AND THE STATE GOVERNMENT, OR THE MEXICAN SHOPPERS, I-, I'D, I'D PICK THE CHECK FROM THE FEDERAL GOVERNMENT. AND, HEALTHCARE EMPLOYMENT IS ONE OF OUR, OUR HIGHEST, UH, GROWING, UH, INDUSTRIES. SO, FOR ME TO HEAR THAT THERE'S ANY, ANY MOVEMENT TOWARDS JEOPARDIZING THE GROWTH AND DEVELOPMENT OF THAT INDUSTRY WOULD BE DEVASTATING TO US. >>Ron: SO, WHAT, KIND OF OFF-THE-TOP, AS YOU SEE THE MAYOR OF THE CITY OF McALLEN SAY IF HE COULD, HAD TO MAKE A CHOICE BETWEEN THE MEXICAN SHOPPER CHECK, OR RETAIL SALES CHECK COMING INTO THE CITY, IF THOSE SHOPPERS STOP COMING TO THE LA PLAZA MALL IN McALLEN, OR THAT FEDERAL-STATE HEALTHCARE CHECK QUIT COMING IN OVER THE TRANSOM IN THE MAILBOX TO ALL OUR HOSPITALS, DOCTORS, AND SO FORTH, HE WOULD TAKE THAT FEDERAL-STATE HEALTHCARE CHECK IF HE LOST EVERY MEXICAN SHOPPER IN THE CITY OF McALLEN. THAT'S HOW DEVASTATING THAT WOULD, THAT WOULD BE, APPARENTLY, BASED ON WHAT HE SAYS. THE FORMER CHAIRMAN OF THE B.T.A. A B-, A, A C.P.A. HIMSELF. AND, THE ADMINISTRATOR OF A CITY WHERE 55 PERCENT OF THE CITY OF McALLEN'S BUDGET COMES OUT OF RETAIL SALES. SOUNDS PRETTY BAD TO ME WHEN THESE FELLAS TALK ABOUT DEVASTATING; A FISCAL TSUNAMI. WOW. WHAT DO YOU THINK? >>Rafael Otero: WELL, INDEED, UM.. >>Ron: SCARY. >>Rafael: IT IS. UH.. >>Ron: ESPECIALLY DURING NOW, DURING THESE ECONOMIC TIMES. >>Rafael: [Laughs] ONE BILLION DOLLARS FOR, FOR THIS AREA IS, IS ALOT OF MONEY. AND, THEN, IF YOU TAKE INTO ACCOUNT THE MULTIPLIER EFFECT, WHICH IS ESTIMATED ABOUT, UH, ONE POINT FIVE, SO THAT WOULD REPRESENT ABOUT 1.5 BILLION DOLLARS NOT BEING GENERATED IN THE LOCAL ECONOMY. AND, SO, THAT REPRESENTS ALOT OF MONEY, ALOT OF JOBS. >>Mostafa Malki: WHEN MONEY COMES IN, IT RIPPLES THROUGH THE ECONOMY. IT'S NOT JUST GOING TO ONE SECTOR, IT'S AFFECTING EVERY SECTOR WITHIN THE ECONOMY. SO, IF YOU TAKE THE MONEY FROM HEALTHCARE, YOU'RE NOT JUST AFFECTING THE HEALTHCARE BY ITSELF, YOU'RE AFFECTING EVERYBODY ELSE BECAUSE OF THAT MULTIPLIER EFFECT, BECAUSE OF THE RIPPLE EFFECT THROUGH THE ECONOMY. >>Ron: SO, EVERYONE VIEWING THE PROGRAM, AND THAT MORATORIUM WAS ESTABLISHED, ORIGINALLY, FROM WHAT I UNDERSTAND, TO KEEP THIS AREA, UH, SOMEWHAT BETTER SERVED BECAUSE IT IS SO MEDICALLY UNDER SERVED, AND BECAUSE THE HEALTHCARE INFRASTRUCTURE IS SO FRAGILE. THAT'S THE TERM USED BY THE PRESIDENT OF THE TEXAS MEDICAL ASSOCIATION THAT YOU JUST HEARD SPEAK TO THE ISSUE. SO, EVEN THOUGH THE HEALTHCARE CHECK WOULD BE DIMINISHED BY 20 PERCENT, TO HOSPITALS AND PHYSICIANS, THE TRICKLE-DOWN EFFECT COULD AFFECT WHAT KIND OF JOBS OF VIEWERS TO THE PROGRAM? >>Mostafa: IT WOULD, IT WOULD AFFECT EVERYBODY.. >>Ron: EVERYBODY. PERIOD. >>Mostafa: ..BECAUSE YOU HAVE TO LOOK AT, UH, THE HEALTHCARE. BUT, YOU ALSO LOOK AT WHERE DOES THE HEALTHCARE GET SOME OF THEIR SUPPLIES, OR, YOU KNOW, SERVICES. AND, THEN, ALSO, ALL THESE PEOPLE ARE EARNING AN INCOME. SO, ALL THOSE PEOPLE GO TO SUPERMARKETS, THEY GO TO CLOTHING STORES TO SPEND THAT MONEY. SO, YOU HAVE A DIRECT, UH, AN INDUSTRY THAT'S DIRECTLY IMPACTED, AND THAT'S WHERE THAT 20 PERCENT IS GOING TO AFFECT DIRECTLY. BUT, YOU ALSO HAVE THAT INDUSTRY THAT'S LINKED TO OTHER INDUSTRIES BECAUSE THEY ARE SUPPLIERS OF THAT INDUSTRY. YOU HAVE SERVICE PROVIDERS TO THAT INDUSTRY THAT ARE GENERATING, UH, INCOME FOR THESE PEOPLE WORKING THOSE INDUSTRIES. AND, THOSE PEOPLE GO AND SPEND IN INDUSTRIES THAT ARE NOT RELATED TO THE HEALTHCARE. >>Rafael Otero: IT WOULD AFFECT, FOR EXAMPLE, ABOUT APPROXIMATELY 680 JOBS IN THE FOOD SERVICES AND DRINKING PLACES. SO, AS Y-, AS WE CAN SEE, IT'S NOT ONLY THE HEALTHCARE, UM.. >>Ron: RESTAURANTS, FOOD SERVICES PEOPLE. >>Rafael: ..DIRECTLY, UH, BUT, ALSO, ALL THE REST OF THE ECONOMY, UH, THAT WILL BE INDIRECTLY, AS MOSTAFA'S SAYING, AFFECTED. LIKE I'M, LIKE I'M CITING HERE, 680 JOBS WILL BE LOST IN THE FOOD SERVICES AND DRINKING PLACES. >>Ron: SO, A BILLION DOLLARS, EVEN THOUGH WE'RE GETTING USED TO SEEING BILLIONS AND TRILLIONS ON C.N.N. AND THE NATIONAL MEDIA, AND THE STIMULUS PACKAGES COMING OUT OF THE NATION'S CAPITOL, A BILLION DOLLARS NOT COMING ANY LONGER INTO THE BORDER REGION, BROWNSVILLE, McALLEN, LAREDO, INCLUDING EAGLE PASS TO THE NORTH, WOULD BE HORRIBLE. >>Rafael: UH, INDEED. UM, WE DID A, AGAIN, AN INITIAL ESTIMATE, UM, USING, UM, THE VALLEY'S MULTIPLIERS, UH, AND, AND EFFECTS ON-, ON EMPLOYMENT. AND, ROUGHLY, WE ESTIMATED, DEPENDING EXACTLY WHERE THIS BILLION DOLLARS WOULD BE, UM, WITHDRAWN, OR-, OR, UH, DIRECTLY AFFECTING, UH, WITHIN THE HEALTHCARE S-, SECTOR, IT CAN AFFECT ANYWHERE BETWEEN 13 TO 24,000 JOBS, UM, UH, IN-, THAT, AS A NET EFFECT. SO.. >>Ron: MINUS 13 TO 24,000 JOBS COULD BE LOST FOR THE BORDER REGION. WE'RE GONNA GET DOWN INTO DISSECTING IT A LITTLE BIT, WITH THE NUMBER CRUNCHERS IN PARTICULAR, SO STAY TUNED. --------------------------------------------------------------------------- >>Ron: WELCOME BACK. THANK YOU FOR STICKING WITH US. RON WHITLOCK. IN THE STUDIO WITH MOSTAFA MALKI AND RAFAEL OTERO, BOTH FROM THE UNIVERSITY OF TEXAS, BROWNSVILLE-TEXAS SOUTHMOST COLLEGE. ECONOMISTS HERE TO HELP US UNDERSTAND THROUGH CRUNCHING ALL THE NUMBERS, LOOKING AT THE, UH, FALLOUT THAT WOULD OCCUR IF, IN FACT, MANAGED CARE, AN H.M.O., WERE TO COME TO THE BORDER REGION, BROWNSVILLE, HARLINGEN, McALLEN, ALL THE WAY UP TO LAREDO, INCLUDING TO THE NORTH OF LAREDO ON THE RIO GRANDE RIVER, UH, MAVERICK COUNTY AND DEL RIO, EAGLE PASS. IF MANAGED CARE WERE TO COME, THERE WOULD SUDDENLY BE AN INFRASTRUCTURE, A BUREAUCRACY BETWEEN YOU AND YOUR DOCTOR, AS WE HAVE HEARD EARLIER IN THE PROGRAM FROM CARLOS CARDENAS CHAIRMAN OF THE BOARD OF DIRECTORS, IN PARTICULAR, FOR DOCTOR'S RENAISSANCE HOSPITAL, McALLEN. IN ADDITION TO THAT, 20 PERCENT OF THAT SIX PLUS BILLION DOLLARS WOULDN'T COME TO THE REGION, THEREFORE THOSE DOLLARS WOULDN'T COME DOWN AND FILTER INTO YOUR AND MY POCKET. UH, MANY JOBS WOULD BE LOST. POTENTIALLY, 13-24,000 JOBS. AND, WE'LL GET OUR NUMBER CRUNCHER ECONOMISTS TO REAFFIRM THAT AFTER WE WATCH THE PACKAGE OF INTERVIEWS WE DID AT THE STATE CAPITOL IN AUSTIN. WE WERE SO CONCERNED AFTER DOING THE INTERVIEWS THAT YOU HAVE SEEN IN THE PREVIOUS SEGMENT THAT WE TOOK OUR STAFF, WENT UP TO THE STATE CAPITOL, TALKED TO ALOT OF INDIVIDUALS THERE AS TO HOW CRITICAL THE SITUATION IS, AND HERE'S WHAT THEY TOLD US >>Don Gilbert: YOU HAVE SUCH A FRAGILE HEALTHCARE INFRASTRUCTURE, AND BY THAT I MEAN YOU DON'T HAVE ENOUGH DOCTORS, YOUR HEALTHCARE PROVIDERS ARE VERY SPARSE. AND, WHEN YOU INTRODUCE MANAGED CARE, EVEN WHEN IT WORKS WONDERFULLY WELL, IT IS EXPENSIVE TO PAY FOR. WHEN YOU START TINKERING AROUND AND REDUCING THOSE DOLLARS TO PAY FOR OTHER THINGS, NO MATTER HOW GOOD THOSE OTHER THINGS MAY BE IN TERMS OF SAVINGS, IN TERMS OF ADMINISTRATIVE STRUCTURES, OR WHATEVER GOES INTO THAT, NO MATTER HOW GOOD THAT MIGHT BE, AT THE END OF THE DAY, YOU'RE STILL TAKING DOLLARS OUT OF PROVIDERS' POCKETS. AND, AS LONG AS THOSE PROVIDERS HAVE THE, THE KIND OF STRAIN THAT WE ALL KNOW THEY HAVE IN TRYING TO MAKE A LIVING AND SERVE THE POPULATION DOWN THERE, ANYTHING THAT HAS THE IMPACT OF REDUCING REVENUES IS A BAD THING. >>Ron: OTHERS ARE TALKING ABOUT THE FRAGILITY OF THE HEALTHCARE SYSTEM AT THE BORDER. WHAT DOES THAT MEAN? HOW IS IT FRAGILE? >>Aaron Pe–a: WELL, IT-, IT'S FRAGILE BECAUSE WE'RE DEPENDENT ON MANY, UH, DIFFERENT FACETS THAT CONTRIBUTE TO THE, THE CURRENT STATUS OF, OF MEDICAL CARE. IF YOU PULL OUT ONE LEG OF A STOOL, THEN YOU MAY JUST FALL DOWN. AS YOU KNOW, THERE, THERE ARE, UH, CONCERNS THAT SOMEBODY'S GONNA ATTEMPT TO TINKER WITH THE SYSTEM. AND, IF WE DON'T PREPARE OURSELVES AND ADDRESS WHAT'S GONNA POSSIBLY OCCUR, WE'RE GOING TO BE VICTIMS OF WHAT HAPPENS. >>Ron: HOW CONCERNED ARE YOU ABOUT THE LIFTING, POTENTIALLY, OF THE MANAGED CARE MORATORIUM, UH, FOR THE BORDER REGION? >>Ryan Guillen: WELL, WE'RE SIGNIFICANTLY CONCERNED OF HOW ANOTHER LEVEL OF BUREAUCRACY WOULD AFFECT, UH, NOT ONLY THE HEALTHCARE INDUSTRY, BUT THE ECONOMY IN SOUTH TEXAS. >>Ron: SO, LOSING A BILLION DOLLARS OUT OF THE BORDER ECONOMY, NOW, WOULD NOT BE THE RIGHT THING TO DO? >>Ryan: IF YOU ASK ME IF I WOULD, IF I WOULD WANT TO LOSE A BILLION DOLLARS IN SOUTH TEXAS, IN THE ECONOMY OF SOUTH TEXAS, I WOULD SAY NO. HELL NO. >>Ron: THIRTEEN TO 24 POTENTIAL THOUSAND JOBS LOST. IS THAT WHAT I HEARD YOU SAY GOING INTO THE LAST SEGMENT? >>Rafael Otero: YES, AND I'D LIKE TO, FOR EXAMPLE, BREAK IT DOWN INTO OTHER SECTORS, LIKE MOSTAFA SAID EARLIER. IT'S NOT ONLY THE HEALTH SECTOR THAT WOULD BE AFFECTED, BUT IT WOULD HAVE A RIPPLE EFFECT INTO OTHER SECTORS. JUST TO GIVE YOU A, I HAVE A WHOLE LIST HERE, BUT, ROUGHLY, LET ME CITE A FEW. ADVERTISING WOULD LOSE ABOUT 32 JOBS. HOTELS ABOUT 149. LIKE I SAID EARLIER, FOOD SERVICES AND DRINKING PLACES, 680. AUTOMOTIVE REPAIR, 58. UH, STATE AND LOCAL EDUCATION JOBS, 509 JOBS LOST. UH, MAINTENANCE AND REPAIR FOR NON-RESIDENTIAL, UH, HOUSING, 32 JOBS. UM, WHOLESALE TRADE, 230 JOBS. MOTOR VEHICLE AND PART DEALERS, UH, ONE THIR-, 138 JOBS. UM, GENERAL MERCHANDISE STORES, 196 JOBS. REAL ESTATE, 184 JOBS. LEGAL SERVICES, ONE HUNDRED AND NINE-, 89 JOBS. SO, AS YOU CAN SEE, IT, IT WILL HAVE A RIPPLE EFFECT INTO SEVERAL OTHER SECTORS OF THE ECONOMY. >>Ron: YOU HIGHLIGHTED SOMETHING THERE. LET ME SEE ALL THE.. >>Rafael: ALSO HAVE SECTORS WITHIN HEALTHCARE. >>Ron: ..MOST, MOST DOCUMENTS WE'VE HAD IN A PROGRAM, BUT THIS IS NUMBER CRUNCHING IN A VERY, VERY SERIOUS AND NEGATIVE WAY, THAT'S WHY WE WANT TO GET INTO IT. SO, HEALTHCARE SERVICES, IN PARTICULAR, 6,921 JOBS. IS THAT COR-, WHAT I SEE? >>Rafael: UH, DIRECT JOBS LOST. BUT, UH.. >>Ron: DIRECT JOBS LOST, POTENTIALLY.. >>Rafael: THIS WOULD BE THE TOTAL, THIS WOULD BE THE TOTAL. >>Ron: ..IF MANAGED CARE COMES TO THE BORDER REGION AND THE MORATORIUM WERE LIFTED. OFFICES OF PHYSICIANS AND DENTISTS, 1,797 JOBS. OTHER AMBULATORY HEALTHCARE SERVICES, 1,422. HOSPITALS, 1,262 JOBS. >>Rafael: AGAIN, THAT DEPENDS ON, ON WHERE EXACTLY THE, THE-, THE MONEY WOULD, UM, NOT COME TO, IN TO. WE, WE DON'T KNOW THE SPECIFICS OF THE BILL. BUT, BUT THAT, THAT'S THE, UM, OVERALL HEALTH SECTOR, THOSE FIVE SUBCOMPONENTS OF THE, OF THE HEALTHCARE SECTOR WOULD, UH, BE AFFECTED. >>Ron: IF THIS DOESN'T CONCERN YOU A LITTLE BIT, AND SCARE YOU A LITTLE BIT, WELL, IT DOES ME, ESPECIALLY AFTER GOING TO AUSTIN AND SEEING WHAT WAS GOING ON. NOW, THE REASON WE WENT TO AUSTIN IS BECAUSE THE BILLS WERE COMING UP. THE BILL, THE, UH, THE BUDGET WAS COMING ON, COMING OUT IN THE, ON THE SENATE SIDE. UH, AND WE WERE THERE WHILE THE, WHILE THE, THE ARGUMENTS WERE GOING ON ON THE SENATE FLOOR. I WILL TELL YOU THE GOOD NEWS, AND THE GOOD NEWS IS, UH, THE MORATORIUM ASPECT OF THE BUDGET FOR THE BIENNIUM FOR THE STATE OF TEXAS WHICH WOULD HAVE, IN FACT, AFFECTED THE BORDER REGION, WAS AT LEAST TEMPORARILY REMOVED. NOW, "TEMPORARILY REMOVED" MEANS, UH, THEY NEGOTIATED IT OUT, UH, DURING THAT PARTICULAR PROCESS, AND DURING THAT CONVERSATION, UH, "DEBATE," SO-TO-SPEAK. HOWEVER, UH, THE CONCERN IS STILL THERE. SO, IT'S NOT A DEAD ISSUE EVEN THOUGH THERE SEEMS TO BE A LITTLE BIT OF A, OF A LEVELING OUT OF THE PLAYING FIELD, BECAUSE SOME ELEMENTS WERE, WERE AT LEAST TAKEN OUT MOMENTARILY. HOWEVER, THEY ARE, FELLAS, CONTINUING TO WARN US, "THEY" BEING THOSE THAT KNOW AND HAVE SEEN THIS HAPPEN MANY TIMES, AS I HAVE IN COVERING THE LEGISLATURE. YOU CAN NEVER BE AT EASE. YOU MUST BE DILIGENT, BECAUSE THINGS WILL HAPPEN IN THE LAST WEEKS OR, OR DAYS OF THE LEGISLATIVE PROCESS, AND SUDDENLY IT'S LAW BECAUSE THEY GO SIGN IT ON JUNE THE FIRST AND IT CAN'T BE ARGUED WITH FOR A TWO YEAR PERIOD, OTHER THAN MAYBE A VETO COMING IN FROM, UH, TEXAS GOVERNOR RICK PERRY. WE'LL BE BACK AND TALK MORE ABOUT IT IN A MOMENT. DON'T TOUCH THAT DIAL. --------------------------------------------------------------------------- >>Ron: WELCOME BACK TO THE PROGRAM. THE TIMING COULD NOT BE WORSE FOR SUCH A THING TO OCCUR FOR THE BORDER REGION, BROWNSVILLE, HARLINGEN, THROUGH McALLEN, ALL THE WAY TO LAREDO, THEN UP NORTH TO MAVERICK COUNTY. BECAUSE, TIME'S A LITTLE BIT TOUGH; ECONOMY IN MEXICO IS SOFTENING SOMEWHAT. TO LOSE 20 PERCENT OF A SIX-PLUS BILLION DOLLAR CHECK THAT'S COMING IN FOR HEALTHCARE FOR THE BORDER REDEN, REGION, COULD BE DEVASTATING. WE TALKED AT THE STATE CAPITOL WITH THE PRESIDENT OF THE UNIVERSITY OF TEXAS, BROWNSVILLE-TEXAS SOUTHMOST COLLEGE, JULIET GARCIA. HERE'S HER REACTION TO THE PROBLEM >>Juliet Garcia: THERE'S NOT A COMMUNITY IN THIS STATE THAT COULD NOT USE MORE HEALTHCARE WORKERS. THERE'S NOT AN INDUSTRY THAT NEEDS IT MORE. AND, THERE'S NOT A BETTER INVESTMENT AND F-, AND RETURN ON THAT INVESTMENT, THAT CAN BE MADE. >>Ron: YOU WERE SAYING WHEN WE WENT TO BREAK, NOW COULD NOT HAVE, BE A WORSE TIME TO TRY AND CONSIDER TAKING A BILLION DOLLARS AWAY FROM A REGION. >>Mostafa Malki: WELL, THE ECONOMY, THE, THE OVERALL ECONOMY IN THE U.S. IS IN DEEP RECESSION, AND WE HAVEN'T EVEN BOTTOMED OUT YET. I MEAN, WE'RE STILL SHRINKING AS AN ECONOMY. WE ALSO, BEING A BORDER REGION, WE DO GET AFFECTED BY WHAT'S HAPPENING ON THE OTHER SIDE OF THE BORDER WITH MEXICO. AND, NOT TOO LONG AGO THE PESO GOT, LOST VALUE, DEVALUATED BY ALMOST 50 PERCENT. SO, THERE'S ANOTHER HIT THAT WE GOT, NOT ONLY WITH OUR GETTING HIT FROM THE N-, THE OVERALL RECESSION, THE BORDER REGION IS ALSO AFFECTED BY WHAT'S HAPPENING IN MEXICO, THE DEVALUATION OF THE PESO. AND, NOW, HERE'S A NEW THING THAT'S COMING TO TAKE ANOTHER 20 PERCENT OFF THE FLOW OF F-, FUNDING, YOU KNOW, FOR MEDICARE. SO, IT'S, IT COULDN'T HAVE BEEN A WORSE TIMING. >>Ron: PROFESSOR OTERO, YOU AGREE? >>Rafael Otero: ABSOLUTELY. >>Ron: THANK YOU GENTLEMEN, BOTH, FOR COMING AND BEING WITH US HERE ON THE TELECAST TO TALK ABOUT THIS VERY IMPORTANT ECONOMIC SITUATION THAT COULD BEFALL GREATER SOUTH TEXAS. MOSTAFA MALKI, RAFAEL OTERO, BOTH FROM U.T.B.- T.S.C., THANK YOU. STAY TUNED FOR A VARIORUM ON THE BEACH AND BIKER FEST THAT'S COMING TO SOUTH PADRE ISLAND IN THE NEXT SEGMENT. WE'RE GONNA TALK ABOUT WHY IT'S IMPORTANT. WHY? BECAUSE 58 BILLION DOLLARS IN TOURISM DOLLARS COME INTO THE LONE STAR STATE FROM PEOPLE WHO ARE OUT OF STATE AND COME TO TEXAS. THE LAST PLACE THEY GO ON THAT ITINERARY, AFTER GOING TO THE ALAMO AND THE RIVER WALK, AND S-, AND-, AND ALL THE OTHER PLACES AROUND THE STATE, IS THEY END UP GOING TO THE MEXICAN BORDER TO SEE MEXICO, OR THEY COME TO SEE A BEACH. AND, SO, BEACHES ARE IMPORTANT. WE'RE GONNA TELL YOU MORE ABOUT IT IN THE NEXT SEGMENT. STAY TUNED. --------------------------------------------------------------------------- >>Ron: THANK YOU FOR STICKING WITH US. THE TEXAS ECONOMY DEPENDS ON 58 BILLION DOLLARS, THAT'S "B," BILLION DOLLARS, IN TOURIST MONEY THAT'S BROUGHT TO THE LONE STAR STATE BY FOLKS LIVING IN SOME OTHER STATE. THAT BENEFITS TEXAS BECAUSE IT'S MONEY COMING OVER THE TRANSOM, RIGHT INTO THE AREA, AND IT GOES IN YOUR POCKET, AND MY POCKET, AND THE POCKETS OF EVERYONE WHO HAS A BUSINESS IN THE STATE OR A JOB IN THE LONE STAR STATE OF TEXAS. TWO INDIVIDUALS WE'VE GOT WITH US IN THE STUDIO, ELI HINOJOSA AND PAUL SALINAS. THANK YOU BOTH FOR JOINING US, BECAUSE THEY'RE GONNA TELL YOU AND I HOW EXCITING IT'S GONNA BE, BECAUSE THEY'RE PUTTING ON, UPCOMING SUNDAY, APRIL 17th THROUGH THE 19th, IN PARTICULAR, "BEACH AND BIKER FEST," WHICH IS THE SPRING BIKER FEST, AS COMPARED TO "BIKE FEST" IN THE FALL ON SOUTH PADRE ISLAND, WHICH HAS BEEN GOING ON FOR A 16 YEAR PERIOD. ALOT OF PEOPLE, WHEN THEY BRING A BIKE AND TRAILER TO SOUTH PADRE FOR YOUR EVENT OR BIKE FEST, THEY'RE BRINGING THESE TOURIST DOLLARS. IT BENEFITS EVERYONE IN THE L-, ENTIRE LONE STAR STATE. WHY IS YOUR EVENT SO UNIQUE TO THE COASTAL AREA? >>Eli Hinojosa: WELL, OUR UNIQUE, FIRST O-, OUR, OUR EVENT, THANK YOU FOR HAVING US, INCIDENTALLY. OUR, OUR EVENT IS, IS GEARED IN THE SPRING. IT IS COOLER IN THE SPRING. IT'S ONLY 15 DOLLARS FOR A FULL EVENT PASS. UH, WHEN YOU COME DOWN TO SOUTH PADRE ISLAND, THE WEATHER IS JUST BEAUTIFUL. IT HAS BEEN AWESOME EVERY YEAR THAT WE'VE HAD IT, THANK GOD. AND, WE HOPE TO, FOR IT TO CONTINUE. THIS WE-, THIS W-, THE WEATHER FOR NEXT WEEKEND, IT SHOWS IN THE 77 IS THE HIGH AND 74 IS THE LOW. SO, THAT'S, WE'RE GONNA HAVE A FANTASTIC WEEK-, WEEKEND. UH, WE.. >>Ron: COULD YOU RENT BIKES, IF, IF Y-, IF I DON'T HAVE A BIKE, OR SOMEBODY WATCHING THE PROGRAM DOESN'T H-, IS THERE, ARE THERE BIKES GONNA BE AVAILABLE FOR RENT? MOTORCYCLES? >>Eli: YOU CAN RENT, YOU CAN RENT A MOTORCYCLE FROM HARLEY DAVIDSON, THE LOCAL HARLEY DAVIDSON DEALER. I DON'T KNOW ABOUT ANY OF THE OTHER DEALERS. BUT, YOU CAN RENT A, A MOTORCYCLE FROM THEM. BUT, YOU CAN COME IN A CAR. YOU CAN COME ON A BIKE, ANY FLAVOR OF BIKE. IT'S, IT'S AN OPEN RALLY. WHATEVER YOU CHOOSE, WE'D LOVE TO HAVE YOU. >>Ron: MANY PEOPLE COME INTO THE STATE OF TEXAS TO COME TO YOUR EVENT, AND THEY COME JUST TO WATCH AND SEE ALL THE BIKES.. >>Eli: ABSOLUTELY. >>Ron: ..AND GO TO THE, GO TO THE BIKE SHOW. >>Eli: WE'RE, WE ARE GONNA HAVE, ACTUALLY WE HAVE T-, UH, TWO MAIN BANDS THAT WE-, THAT WE ACTUALLY CONTRACTED FOR. BUT, WE HAVE A TOTAL OF 15 BANDS THAT ARE GONNA BE PLAYING OUT THERE. LOCAL BANDS. LOCAL, UH, BANDS THAT WANT TO GET EXPOSURE. THAT, EITHER FOR FREE, OR FOR, FOR REAL CHEAP, THAT WE'RE BRINGING THEM IN SO THAT, SO THEY CAN GET EXPOSURE. SO, WE ARE, WE'RE GONNA HAVE MUSIC FROM FRIDAY AROUND TWO P.M. ALL THE WAY THROUGH SATURDAY NIGHT. UH.. >>Ron: FIFTEEN BANDS FOR 15 BUCKS. >>Eli: THAT'S IT. >>Ron: THAT'S A DOLLAR A BAND. >>Eli: THAT'S IT. >>Ron: [Laughs] TELL US MORE, PAUL. WHAT EXACTLY ARE YOU GONNA BE INVOLVED WITH? >>Paul Salinas: WELL, UH, SOME OF THE THINGS THAT I'M INVOLVED WITH ARE, UH, THE FIELD EVENTS. UH, WE HAVE A BURNOUT CONTEST AND, OF COURSE, WE HAVE THE PARADE DOWN MAIN ST-.. >>Ron: NOW, THE BURNOUT CONTEST, THAT'S WHEN YOU SEE SOMEBODY JUST SIT THERE AND THE TIRES SMOKE. >>Paul: SOMEONE WHO'S WILLING TO, TO, UH, RUIN THEIR BACK TIRE. YES. UM.. >>Ron: PERIOD. THEY'RE GONNA SIT THERE AND JUST.. >>Paul: OH, YEAH. >>Ron: ..SMELL THAT RUBBER AND WATCH IT BURN. >>Paul: YES. RIGHT. AND, OF COURSE, WE HAVE, UH, THREE WINNERS. UH, THE, AND THE MAIN WINNER OF, UH, CASH MONEY, UH, AND, UM, WHICH WOULD, OF COURSE, HOPEFULLY COVER HIS TIRE. >>Eli Hinojosa: WE, WE, UH, BELIEVE THAT WE, WE SERVE A, A P-, A, A NEED FOR, UH, THE BORDER REGION. UH, THIS BRINGS IN TOURISM TO THE, TO THIS AREA. WE, UH, AND IT'S ALL FOR CHARITY. SO, COME ON. UH, HOPEFULLY WE'LL HAVE A GREAT EVENT. UH, WE'RE HOPING TO GET DOUB-, DOUBLE OUR, OUR, OUR ATTENDANCE FROM LAST YEAR. >>Ron: WHICH WAS? >>Eli: OVER 4,000 PEOPLE. >>Ron: GROWING EVERY YEAR. >>Eli: AND, GROWING EVERY YEAR. >>Ron: OF COURSE, THE FALL EVENT BIKE FEST IS UP IN THE, HOW MANY? HOW MANY COME TO BIKE FEST? >>Eli: I, I'M THINKING OVER 10,000. >>Ron: YOU'RE KIND OF BUMPING IT UP THERE, THEN. THEY'VE BEEN, THEY'VE BEEN GOING ON 16 YEARS.. >>Eli: RIGHT. >>Ron: ..AND YOU'VE BEEN IN BUSINESS SIX YEARS. SO, YOU'RE.. >>Eli: AND, I COULD BE WRONG. SO, I APOLOGIZE IF I, IF I SAID THE NUMBER WRONG. BUT, I, IT'S, IT'S WAY UP THERE. >>Paul Salinas: YEAH. >>Ron: BUT, KNOWING IT OR NOT, YOU'RE DOING SOMETHING CRITICALLY IMPORTANT FOR THE ENTIRE STATE ECONOMY AND ALL THE JOBS OF THE PEOPLE WHO LIVE IN THE LONE STAR STATE, NOT ONLY ON THE BORDER, BUT ACROSS THE ENTIRE STATE OF TEXAS, BECAUSE OF THE 58 BILLION DOLLARS THAT PEOPLE SPEND WHEN THEY COME TO TEXAS. AND, ONE IN FIVE OF THOSE PEOPLE SAY THEY'RE GOING TO SOUTH PADRE ISLAND WHEN THEY CROSS THE STATE LINE. THAT'S HOW IT'S IMPORTANT FOR EVERYBODY TO BE INVOLVED IN PUTTING ON EVENTS OF YOUR KIND AND YOUR CALIBER THERE ON SOUTH PADRE ISLAND, OR ANY OTHER COASTAL AREA OF TEXAS. >>Eli Hinojosa: TEXAS IS VERY UNIQUE, 'CAUSE, NOT ONLY DO WE HAVE A STATE THAT HAS ALL THESE, THESE ATTRACTIONS, AND SO FORTH, BUT WE HAVE ONE OF THE BEST BEACHES IN, IN THE WHOLE NATION. AND, SO, YOU KNOW, I'VE BEEN T-, I'VE BEEN TO THE BEACHES IN MEXICO, AND THEY'RE VERY COMPARABLE. SOUTH PADRE ISLAND IS A GREAT AREA, WHERE THERE'S LOTS OF HOTEL ROOMS, THEY'RE INEXPENSIVE HOTEL ROOMS, AND, AND EVERYTHING'S, EVERYTHING'S NICE DOWN THERE. >>Ron: TELL THE AUDIENCE WHY THEY NEED TO COME, AND THAT'LL BE THE WRAP-UP. I WANT TO GIVE YOU THE LAST WORD, GUYS. >>Eli: WELL, IT'S ONLY 15 DOLLARS FOR ALL THIS ENTERTAINMENT. AND, YOU KNOW, WE INVITE EVERYBODY. COME ON DOWN. IT'S A GREAT EVENT. WE HAVE BIKINI B-, BIKE WASH THIS YEAR. IT'S NEW. WE HAVE, UH.. >>Ron: B-, BIKINI BIKE WASH? >>Eli: BIKINI BIKE WASH. SO, MAKE SURE.. >>Ron: I'LL THINK I CAN SEE WHAT THAT IS. >>Eli: ..JUST, JUST GO TO OUR WEBSITE AT WWW.BEACHANDBIKERFEST.COM AND LOOK AT, LOOK AT THE, AT, AT ALL THAT WE HAVE TO OFFER THERE, FOR PRE-, PRE- REGISTRATION. >>Ron: PAUL, WHAT'D HE MISS? >>Paul Salinas: UH, THERE'S THE FACT THAT, UH, UM, P-, PROCEEDS GO TO LOCAL CHARITIES. AND, UM, AND JUST FUN AND SUN. COME ON OUT. >>Ron: PAUL, THANK YOU FOR COMING AND BEING WITH US. >>Eli Hinojosa: THANK YOU, THANK YOU VERY MUCH. >>Ron: ELI, THANK YOU FOR COMING AND BEING WITH US. THANK YOU FOR JOINING US HERE ON "RON WHITLOCK REPORTS." YOU CAN FOLLOW IT 24 HOURS-A-DAY, SEVEN DAYS-A-WEEK, AT RONWHITLOCK.COM. TILL NEXT TIME. ADIOS.