Administrative Procedures Act. Are tax cases different? That’s something SAC may consider. Some states have established tax tribunals to hear state tax cases. These are generally a separate judicial body, independent from the state tax collection function. As SAC does the review of the administrative tax judge laws, someone is likely to make the tribunal suggestion. There was a bill offered during the last legislative session to establish a tax tribunal in Texas, but it did not make it out of legislative committees. STATE BUDGET OUTLOOK The Texas revenue picture continues to improve. Combs recently released a revised official revenue estimate for the 201415 biennium projecting a surplus of $2.58 billion. That is $1.7 billion more than earlier estimates. What will legislators do with the surplus? Suggestions include funding the admitted shortfall in
Medicaid expenditures, applying the surplus to the next biennium or increasing education spending during the current budget cycle. There’s a twist. The state will have more revenue than it can legally spend due to the constitutional limit on state spending – generally referred to as the budget cap. While it only takes a majority vote by legislators to exceed the budget cap, that’s a vote many legislators are reluctant to make. To increase education funding, legislators would likely have to take that vote. There is good news for franchise taxpayers. The revised revenue estimate includes the conditional reduction in franchise tax rates enacted last session. That provision reduces franchise tax rates for next year if the comptroller certifies that funds are available to do so. The rates will be reduced if the comptroller’s estimate becomes reality. Some pundits point out that the comptroller has traditionally been conservative with her estimates and suggest that the state’s revenues might be even higher than projected. ■
NEW APPOINTMENTS TO THE TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY We usually concentrate on legislative issues, but we shouldn’t forget that we have regulators as well as legislators. The Texas State Board of Public Accountancy (TSBPA) is the agency responsible for keeping CPAs on the straight and narrow. This group of volunteer board members does an excellent job of enforcing the Public Accountancy Act and protecting the public. Part of that public protection is to be sure that professional services are provided by qualified CPAs. Gov. Rick Perry has appointed Tomas G. Prothro, CPA, of Tyler as the presiding officer of TSBPA. Prothro has served on the board for four years prior to his appointment as presiding officer. Prothro replaces A. Carlos Barrera, CPA, of Brownsville, who served on the board for six years, two as the presiding officer. Perry also reappointed Steve D. Pena, CPA, to a new six-year board term. Pena has served on the board since 2008. Perry made two new CPA appointments to the board: Donna J. Hugly, Addison, and Robert (Bob) M. McAdams, San Antonio. All of the CPAs appointed are members of TSCPA and AICPA. Prothro is a graduate of the University of Texas at Austin and president of Prothro, Wilhelmi, & Co., Certified Public Accountants. Prothro earned the Chartered Advisor in Philanthropy (CAP) professional designation from the American College of Financial Services this year. Donna Hugly is a partner in the CPA firm of Sanford, Baumeister, and Frazier, LLP. She is a graduate of Texas A&M University and is a former member of the governing council of AICPA. She is a past chair of the Dallas CPA Society and has served on TSCPA’s board. Bob McAdams was the managing partner of the San Antonio CPA firm Carniero, Chumney for many years. That firm recently merged with BDO USA LLP. McAdams has recently retired, but remains involved as a consultant to the firm. McAdams has also served as a volunteer on the board’s Peer Review Committee for several years before his appointment. He served as TSCPA chairman in 1999-2000. He is a graduate of St. Mary’s University. Steve Pena practiced as a partner in the Round Rock firm of Pena Swayze & Co. for 33 years before the firm merged with the Austin firm of Maxwell Locke & Ritter LLP in 2011. He previously chaired the Brazos River Authority, served on the Today’sCPA
| JANUARY/FEBRUARY 2014
Round Rock City Council and as chairman of the Accounting Advisory Committee of Austin Community College. He is a graduate of the University of Texas at Austin. Perry also appointed three new public members to the board: Susan Fletcher, Frisco; William (Bill) Lawrence, Highland Village; and Phil Worley, Hebbronville. Susan Fletcher is a freelance graphic artist, writer and community volunteer. She is chair of the Collin County Healthcare Advisory Board, strategic events chair of the Texas Faith and Freedom Coalition and a member of the Frisco Bible Church Missions Board. She is a graduate of the University of North Texas. Fletcher is also a candidate for Collin County commissioner. Bill Lawrence is owner and CEO of B. Lawrence Consulting L.L.C. and former mayor of the City of Highland Village. He has a bachelor’s degree from Tuskegee University, an MPA from St. Mary’s, and a law degree from Indiana University. He is a past member of the Texas Commission on Judicial Conduct, former board chair of the Medical Center of Lewisville and former treasurer of the Lewisville Education Foundation. Phil Worley is former dean of arts and humanities at Laredo Community College, as well as a former teacher and coach in the Webb and Jim Hogg County Independent School districts. He is a board member of the Texas Medical Board District Four Review Committee and a past board member of the Texas Guaranteed Student Loan Corporation. Worley received a bachelor’s degree from Texas State University and a master’s degree in sociology and political science from Laredo State University. The other continuing members of the board are CPAs J. Coalter Baker, Austin; John R. Broaddus, El Paso; Rocky L. Duckworth, Houston; Everett (Ray) Ferguson, Abilene; James C. Flagg, Ph.D., Brenham; and Maribess Miller, Dallas. All are members of TSCPA. The continuing public members of the board are Jonathan B. Cluck, Esq., Fair Oaks Ranch, and Jon R. Keeney, Highland Village. The board regulates CPAs and administers the CPA examination in Texas. If you know any of these board members, be sure to express your appreciation for their service. They serve six-year terms with extensive time commitments to serve on the board. 21