Rexas, USA
February 19, 2015

Source: Texas Seed Trade Association weekly update

Texas Seed Trade Association (TSTA) staff were present Monday morning when the House Budget Sub-Committee heard testimony from TDA Commissioner Sid Miller on Article 6 budget items pertaining to TDA appropriations.  Commissioner Miller's comments were well-received by the Sub-Committee and stressed the importance of agriculture to the economy of the State of Texas.  According to Commissioner Miller agriculture represents the second largest industrial complex in Texas and accounts for $120B worth of state economic activity. 

Our best estimates are that the seed industry in Texas contributes $5.5B of that $120B agricultural contribution to the state economy.  TSTA staff presented public testimony Monday at the House hearing and will do so again on the Senate side this Friday. 

Commissioner Miller requested a return to 2011 levels of funding at TDA which would constitute a sizable increase from the current budget draft.  Typically new Commissioners of state agencies are given some leeway to establish their own budget priorities but it is doubtful that TDA will benefit from a return to the full 2011 funding levels though we are supportive of any funding increases at TDA.  The budget draft currently under consideration reflects requests and estimates made by the previous Commissioner Todd Staples and his administration. 

The integrity of the certified seed program is at risk with a TDA-requested appropriation of $1.8M per year, or $3.6M, for the biennium.  The Legislative Budget Board (LBB) has countered with a draft appropriation of $3M for the biennium creating a potential shortfall of $600K over the next two years.  If the certified seed program is projected to cost $3.6M over the next two years, and is expected to cost recover that amount through fees, an appropriation of substantially less than that would result in cuts to the program manifested in either FTEs (full-time-employees) or facilities and resources specific to the certified seed program at TDA, or both. 

The TDA request for $3.6M over the next biennium represents a substantial increase in appropriations from previous levels.  Likewise the LBB recommendation for $3M also represents a net increase in appropriations for the certified seed program.  As the TDA numbers came from a previous administration it is not clear exactly how they were calculated.  It seems likely that TDA's forecast for appropriation dollars needed to cover certified seed program costs have been too low in the past and were in need of upward revision. 

Even though the seed program is fully cost recovered TDA nonetheless must forecast correctly as the money they receive from general revenue to cover their biennial costs of administering the programs is commensurate with their approved  request and not the actual costs and recovered dollars. 

TSTA staff has been communicating, and will continue to communicate, with Legislators that any paring back or weakening of any portion of the process required for certified seed would at least damage the integrity of the program as a whole and, at worst, result in something that was not certified seed.  Please click here to see our public comments.  TSTA staff has also met with the Governor's office to communicate our concerns about the certified seed program budget. 

The Senate Finance Committee convenes Friday, tomorrow, February 20, to hear similar testimony from Commissioner Miller and TDA as was heard Monday by the House Sub-committee.  The portion of the state budget containing TDA's appropriations, Article 6, will be marked up next Wednesday and finalized by Friday February 27. 

There are plenty of other important issues being raised in the current Legislative Session but none are as time-sensitive as the budget process that includes the strategies for certified seed.  By next Thursday our portion of the budgeting process will be over and we will be reporting on several other items of importance to the Texas Seed Trade.    

Website: http://www.texasseedtrade.com

Published: February 20, 2015