2 LBB signatures needed to transfer money to TSR
BY LELAND ACKER

The Texas State Railroad Authority (TSRA) needs two more signatures before it can collect the $2 million earmarked for the transfer of the Texas State Railroad. If the TSRA is unable to collect the funds and make them available for American Heritage Railways of Texas to operate the railroad, American Heritage reserves the right to declare the TSRA in breech of contract and terminate the agreement on Jan. 28, 2008.

All four members of the Legislative Budget Board (LBB) must agree to the appropriation before the funds can be disbursed. Members of the LBB are Lt. Gov. David Dewhurst, House Speaker Tom Craddick (R-Midland), Senate Finance Chairman Steve Ogden (RBryan) and House Appropriations Chairman Warren Chisum (R-Pampa). So far, Lt. Gov. Dewhurst and State Sen. Ogden are the only members who have signed off on the appropriations paperwork for the $2 million.

"Lt. Gov. Dewhurst was the first to sign, and that was about two weeks ago," said State Sen. Robert Nichols (RJacksonville). "I realized we had a problem about two weeks ago. I went to Austin basically for the railroad. All we're waiting on is what I like to call the $2 million check."

Sen. Nichols said getting the four votes of the LBB is usually part of the normal course of business.

"However, you have to admit the change of the railroad is not business as usual," he said. "It has never happened before. No one has ever created a quassi-state recreational district between two cities. This is out of the ordinary."

Sen. Nichols said he went to Austin to meet with the members of the LBB. He met with Lt. Gov. Dewhurst, who said he was comfortable with the appropriation. He then met with Sen. Ogden, who admitted he was not familiar with the contract and rider.

Sen. Nichols said he included members of Speaker Craddick's office in the meeting with Ogden to save time.

"We got staff in, went through the contract, and discussed what was being accomplished," Sen. Nichols said. "He felt comfortable, but said he wanted to make one or two phone calls."

In the meantime, State Rep. Byron Cook (R-Corsicana), made a request for an informal opinion from the Attorney General's office to answer questions from the Speaker's office about the legality of the fund transfer. The Attorney General's office responded that the transfer of funds would be legal on Oct. 19. Sen. Ogden signed off on the appropriation at 3 p.m. Thursday.

"The informal opinion is that (TSRA) can loan funds (to American Heritage) if it is for public use," Sen. Nichols explained.

The $2 million transfer is awaiting approval from Speaker Craddick and Rep. Chisum. Sen. Nichols said the TSRA is 30 days into a 120 day breech of contract warning.

"We don't need to cut it that close (by waiting)," he said.