After the inefficiency of this year's legislative session, it is clear that the Texas Legislature needs a change. Texas should consider adopting a full-time legislature for three reasons. First, the number of bills that die every session is too many. Second, our large state population demands more than just a part-time commitment. Third, it would better facilitate the passage of legislation beneficial to the state. Show By the adjournment of the 84th Legislature, 5,797 bills out of 11,332 died in the process, including many worthy ones. The Legislature failed to pass significant ethics reform, which was one of the top-five priorities for Gov. Greg Abbott. They failed to pass HB 80, which would have created a statewide texting-while-driving ban. They also failed to pass legislation that would have created statewide regulations for Uber and Lyft. Because of the part-time and biennial structure of the Texas Legislature, these bills won’t be heard again for nearly two years, if at all. Many of these bills died due to the time constraint of the legislative session, which is limited to 140 days in every odd number year, as well as thirty-day special sessions called as needed by the governor. Texas ranks 11th in American states whose legislatures meet least frequently and has the only part-time Legislature among the seven most populous states in the Union. A part-time legislature made sense when the Texas Legislature first convened in 1846, when the population was less than 150,000. The same cannot be said now, as Texas is the second most populous state in the country. Many of the laws that made it onto Abbott’s desk could have been passed last year, if not earlier, if we had a Legislature that met annually. Some support the current structure of Texas’s biennial Legislature because they appreciate limited government with legislators that are still private citizens since legislators could not survive on a meager legislative salary of $7,200 during legislative years and $28,200 during years with special sessions. However, limited government does not have to be confined to a biennial schedule. For example, the Legislature could meet for 70 days each year, and hasten the process of filing new bills. Additionally, since the Capitol is open 360 days per year anyway, it does not cost the state much to hold additional days of legislative session, so 70-day annual sessions are not the only option. In fact, former Gov. Rick Perry called many special sessions during his governorship. Thus, since Texas sometimes has special sessions to take care of unfinished business, we might as well increase the number of days our Legislature meets to reduce the need for special sessions. It does not make sense that Texas must wait another two years while Texans die at the hand of those who text and drive. It does not make sense to factor a cost estimate for two years when you can make more accurate annual estimates. We saw this in 2011, when former Comptroller Susan Combs underestimated the two-year budget by as much as $12 billion. As a result of Combs’s inaccurate estimate, the Legislature cut $5 billion from public education, which led to 25,000 school employee layoffs. Additionally, Texas does not live up to its reputation of being conservative and pro-business, when businesses such as Uber and Lyft have to wait another two years before trying, once again, to pass legislation that would streamline their regulations statewide. Understandably, 139-year-old system is hard to change, and past attempts to change it have not gotten far. Moving Texas from a part-time Legislature to a full-time Legislature would require a constitutional amendment, which is a daunting task. “The basic problem of constitutional design for Texas is to create a governing structure for a state in which most of the citizens do not vote, and those who do vote are irrational in the sense that they want government to do many things for them,” government professor David Prindle said. Voters would certainly prefer a Legislature that can address problems as quickly and accurately as possible, although they may be in favor of part-time legislators. Accordingly, we are left asking how many more important bills need to die, budget revenues need to be wrongly estimated and Texans need to be harmed by the current status quo for voters and legislators to finally do what is best for the state? What is best for the state is for the Legislature to meet every single year. Hung is a second year law student from Brownsville.
The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest. The Federal Reserve
Read more in the 11th edition of Federal Reserve System The Fed Explained. The Decentralized System Structure and Its PhilosophyIn establishing the Federal Reserve System, the United States was divided geographically into 12 Districts, each with a separately incorporated Reserve Bank. District boundaries were based on prevailing trade regions that existed in 1913 and related economic considerations, so they do not necessarily coincide with state lines.
Federal Reserve District boundaries are based on economic considerations; the Districts operate independently but under the supervision of the Federal Reserve Board of Governors. Federal Reserve BanksAs originally envisioned, each of the 12 Reserve Banks was intended to operate independently from the other Reserve Banks. Variation was expected in discount rates--the interest rate that commercial banks were charged for borrowing funds from a Reserve Bank. The setting of a separately determined discount rate appropriate to each District was considered the most important tool of monetary policy at that time. The concept of national economic policymaking was not well developed, and the impact of open market operations--purchases and sales of U.S. government securities--on policymaking was less significant. As the nation's economy became more integrated and more complex, through advances in technology, communications, transportation, and financial services, the effective conduct of monetary policy began to require increased collaboration and coordination throughout the System. This was accomplished in part through revisions to the Federal Reserve Act in 1933 and 1935 that together created the modern-day Federal Open Market Committee (FOMC). The Depository Institutions Deregulation and Monetary Control Act of 1980 (Monetary Control Act) introduced an even greater degree of coordination among Reserve Banks with respect to the pricing of financial services offered to depository institutions. There has also been a trend among Reserve Banks to centralize or consolidate many of their financial services and support functions and to standardize others. Reserve Banks have become more efficient by entering into intra-System service agreements that allocate responsibilities for services and functions that are national in scope among each of the 12 Reserve Banks. The U.S. Approach to Central BankingThe framers of the Federal Reserve Act purposely rejected the concept of a single central bank. Instead, they provided for a central banking "system" with three salient features: (1) a central governing Board, (2) a decentralized operating structure of 12 Reserve Banks, and (3) a combination of public and private characteristics. Although parts of the Federal Reserve System share some characteristics with private-sector entities, the Federal Reserve was established to serve the public interest. There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC). The Board of Governors, an agency of the federal government that reports to and is directly accountable to Congress, provides general guidance for the System and oversees the 12 Reserve Banks. Within the System, certain responsibilities are shared between the Board of Governors in Washington, D.C., whose members are appointed by the President with the advice and consent of the Senate, and the Federal Reserve Banks and Branches, which constitute the System's operating presence around the country. While the Federal Reserve has frequent communication with executive branch and congressional officials, its decisions are made independently. The Three Key Federal Reserve EntitiesThe Federal Reserve Board of Governors (Board of Governors), the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC) make decisions that help promote the health of the U.S. economy and the stability of the U.S. financial system.
The framers of the Federal Reserve Act developed a central banking system that would broadly represent the public interest. Other Significant Entities Contributing to Federal Reserve FunctionsTwo other groups play important roles in the Federal Reserve System's core functions:
Depository InstitutionsDepository institutions offer transaction, or checking, accounts to the public, and may maintain accounts of their own at their local Federal Reserve Banks. Depository institutions are required to meet reserve requirements--that is, to keep a certain amount of cash on hand or in an account at a Reserve Bank based on the total balances in the checking accounts they hold. Depository institutions that have higher balances in their Reserve Bank account than they need to meet reserve requirements may lend to other depository institutions that need those funds to satisfy their own reserve requirements. This rate influences interest rates, asset prices and wealth, exchange rates, and thereby, aggregate demand in the economy. The FOMC sets a target for the federal funds rate at its meetings and authorizes actions called open market operations to achieve that target. Advisory CouncilsFive advisory councils assist and advise the Board on matters of public policy.
Federal Reserve Banks also have their own advisory committees. Perhaps the most important of these are committees that advise the Banks on agricultural, small business, and labor matters. The Federal Reserve Board solicits the views of each of these committees biannually. |