Jason Sabo Founder - Frontera Strategy Sponsored By: Association of Fundraising Professionals – San Antonio

1. Jason SaboFounder - Frontera Strategy Sponsored By: Association of Fundraising Professionals –San Antonio

2. Tweet it up! @texassabo#txlege

3. Overview of the Day • Morning Workshop: • What are winning advocates doing at the Texas Capitol? • How can my organization win AND make friends? • What can nonprofits do NOW to prepare for 2015? • Luncheon Presentation: • What’s the context at the Texas Capitol? • How do we write our state budget? • What happened at the Texas Capitol in 2013? • What is happening with the Special Session(s)?

4. Sage Words from SA “You are either at the table oryou are on the menu.” Texas Senator Leticia Van de Putte

5. Advocacy or Lobbying? Advocacy is a broad and general position that is promoted to legislators, bureaucrats, media, and the public. “Poverty is bad.” Lobbying begins when advocacy becomes very specific to a proposal or piece of legislation. “Poverty is bad. Please support this specific proposal to fight its negative impact.” nonprofit’s now know: Advocacy is not enough.

6. Is lobbying by nonprofits legal? YES! Completely, absolutely, totally… Lobbying by 501(c )(3) nonprofits is 100% legal.

7. Take the H Election and know your limits. • A generous amount of annual expenditures: • 20 percent of the first $500,000; • 15 percent of the next $500,000; • 10 percent of the next $500,000; • 5 percent for every $500,000 to $1,000,000. • ABC nonprofit with budget of $500,000. • 20% of $500,000 = $100,000 = LIMIT. • www.irs.gov and www.fronterastrategy.com

8. Isn’t lobbying dirty? Yes, but YOU don’t have to be dirty. Every industry in every country on every continent engages in lobbying. Do you? nonprofit’s often voluntarily exclude themselves from the political process OR are excluded by institutions of power. We have a RESPONSIBILITY to the families we serve, to the planet, to the future to engage the political order BETTER than every other industrial sector. We have so much more to lose. BUT if you play the game, you MUST play to win.

9. 5 Rules for Citizen Lobbying Focus on 1 or 2 issues. Have politically powerful data. Recruit unexpected messengers. Understand the political process and be relevant but principled. Prepare for implementation.

10. Focus Focus Focus Deciding where to focus is the hardest part of your advocacy. You MUST prioritize. If you try to be everything to everyone and to accomplish unrealistic goals, you will get nothing done and make future lobbying more difficult. “Focus” does NOT mean small. “Focus” means strategic and targeted – even for big issues. Rule of Lobbying: Pick one or two priorities and focus all energy there. Example: Human Trafficking Legislation in 2009, 2011, and 2013

11. Have meaningful data. You MUST have the ability to show the effectiveness of your proposals in an increasingly competitive environment. What is the Return on Investment (ROI) that your organization or issue provides? Can you prove it to a banker or other investor? Rule of Lobbying: Have good data from sources that are considered credible and non-traditional. Example: Partnership with austerity-minded and politically conservative university to conduct an economic analysis of impact of students leaving school before graduation.

12. Find Unusual Messengers The people in this room are the WORST people to deliver your message to legislators and policymakers. Paid staff will always be suspected of simple self-interest. You want legislators to ask themselves: “Why in the world does HE (or SHE) care about this issue? They won’t make any money and it won’t help them directly? It MUST matter to ordinary Romanians.” Rule of Lobbying: Find and aggressively recruit unusual people and voices to support your proposals. Example: “Do you love freedom or hate children?”

13. Use the Political Process Politics is about presence. If you are present, you can be heard. If you are absent, you have provided the excuse to ignore you. Advocates must understand that the political process is 24/7 for 365 days per year. EVERY day is the right day to engage legislators and officials. Rule of Lobbying: NEVER miss a chance to make your case in an official setting and use process. Example: Out-of-School-Time Learning Council

14. Follow Up after You Win Passing legislation is only the first step, actually making it do something is much harder. Most advocates stop their work on the last day of the legislature. Assume victory will occur. Regardless of what your proposal does, cash-strapped bureaucracies will have little time or personnel to implement your glorious idea. Rule of Lobbying: If your goal is social change, legislation is just the beginning. Plan accordingly. Example: Meningitis legislation implementation.

15. A Nod to Development Directors… Public policy activities are the gateway drug of nonprofit advocacy fundraising. Board members and other people of influence want to see your ability to make a broad impact, not just to run quality programs. Texas philanthropy is stepping up the the advocacy plate more than ever before. If you don’t ask for advocacy support, they won’t give it to you. Relevance and visibility matter in fundraising.

16. Applying the Five Steps Focus: What is most critical? What is most topical? Where is there already the most agreement? Data: What compelling data exists already? Who are the new voices that we can add to our work? Messengers: Who has nothing to gain (or lose) by helping your organization promote its priorities? Who will help spread the word? Legislature: Where can you have the biggest impact fast? Who has the best relationships with members? Implementation: Which bureaucrats do we need to befriend? What are the government’s goals related to our issue and how can we support their success?

17. RGK Foundation: From Research to Law • School Health Advisory Councils and Physical Activity • RGK Report Recommendation: “State and local School Health Advisory Councils (SHACs) should commission fitness planning teams.” • House Bill 1018 as Passed: “The local school health advisory council shall establish a physical activity and fitness planning subcommittee to consider issues relating to student physical activity and fitness and make policy recommendations to increase physical activity and improve fitness among students.” • Joint Land-Use Agreements • RGK Report Recommendation: “School boards should implement joint land-use agreements for community-school shared usage.” • House Bill 1018 as Passed: House Bill 1018 encourages, “joint land use agreements or strategies for collaboration between the school district and community organizations or agencies.” “Any joint use agreement that a school district and community organization or agency enter into…must address liability for the school district and community organization or agency in the agreement.”

18. How did RGK do it? Trustee expresses concern. (Obesity among Middle School Students) ê Board of Trustees determines focus. (Emphasis on School-Based Physical Activity as Strategy) ê High quality research sets priorities for policy reform. (Dr. Steve Kelder / “Stuck in the Middle” Reports) ê Board of Trustees selects diverse partners to promote research-based agenda.(Advocacy and Administrative Mini-Grants) ê Texas Legislature and policymakers respond to revenue neutral proposals.(Passage of House Bill 1018 by the Texas Legislature) ê School districts implement new statutes.(To Be Determined)

19. Crafting the “Message” It’s not what you want to say. It’s what they need to hear.

20. Message Discipline The dog is green. Who are the targets of your message? Every audience may need a message of its own. The dog is green. What political conversations are already happening? Maximize opportunities to put your work into the context of existing conversations. The dog is green. What are your tools for promoting your message? The dog is green.

21. Message Discipline Example What color is the dog? Do you want to promote your color or the entire rainbow?

22. Lobby the Media The Five Steps apply to the media too. “If it bleeds, it leads.” Controversy and conflict are the essence of journalism. If you do your work correctly, you will minimize conflict and make it more difficult to get media attention. Regardless of what journalists ask, FOCUS and repeat, repeat, repeat your message. Always respond quickly and honestly. It’s a good thing to say, “I do not know.”

23. Use the Internet Facebook and especially Twitter are fantastic (and free) tools for nonprofit lobbyists. Social media allow nonprofit lobbyists to create their own news – instead of waiting for traditional media to decide you are news. Social media also allow advocates direct access to legislators, staff, and other advocates. And vice versa, so be smart. Imagine the power of just the people in this room all utilizing #TXLege…

24. Change Takes Time If it is easy to win, you are not pushing the legislative system far and fast enough. However, few substantial reforms have occurred quickly and without a fight. Monitor your progress and make corrections when necessary. Private supporters of advocacy want to see results, but they also understand that non-substantive are distractions. Evaluation of lobbying efforts is both very clear (51% of the vote) and very cloudy (changing public opinion).

25. What can we do NOW? • Follow up with the legislators with whom you worked (for and against) in 2013, if applicable. • Understand the legislative Interim: • Interim Charges from Lieutenant Governor and Speaker • Interim Hearings and Reports from All Committees • Engage the media now so you will be a resource later. • Build relationships with legislators and staffers while they have time to listen to your concerns. • Conduct an internal audit to determine current staff and volunteer public policy and lobbying capacity

26. 2013 Texas Legislature…

27. Changing Politics of Texas House

28. Deceptive Stability of Texas Senate

29. Texas General Revenue Budget

30. How do we pay for schools?

31. But what about the lottery?

32. The Kumbaya Oil and Gas Session Huge freshman class in House and high number of new Senators created high expectations for acrimony and partisan rancor. Generally positive session - thanks to energy boom and growth of the state’s Rainy Day Fund. Instead of sweeping the big issues under the water, leadership used the generally positive tone to address BIG issues like water and education cuts 1st Special Session has been anything but kumbaya with the addition of hot button issues to the “Call”.

33. Oh what a difference two years can make… • 2011: Huge Budget Hole of $27 Billion 2013: Where’d all this money come from?!? • 2011: Use of Rainy Day Fund = Socialism 2013: Where’s my umbrella?!? • 2011: We didn’t cut public schools. 2013: Save our schools! Restore the cuts! • 2011: We don’t need your federal money! 2013: We don’t need your federal money!

34. Education Budget • $3.4 billion of the $4 billion cut in 2011 from the Foundation School Program (core school funding) was restored. Minimal restoration to discretionary grant programs. • Good news, but NOT full restoration. For example, Dallas ISD will receive roughly an additional $37 million in 2014 and $50 million in 2015. With a student population of more than 200,000, per student spending increases by roughly $300 per student. • Some school budget deferrals corrected, meaning the buck will not be passed along to the 2015 legislature. • Not everything was restored: • “Expansion Grants” for pre-k programs restored only $30 million, after cutting $200 million last time. • Tens of millions in public private partnership funds were cut. • School populations continue to grow, as does poverty.

35. Oh No You Don’t: School Finance • The Single Most Important Thing We Didn’t Talk about and (Probably) Won’t Until: • A Special Session in 2014 * • The 2015 Regular Session • NEVER? • Timeline Driven by Courts and Politics/Primary Date. New trial set for District Court in January 2014 • Texas Supreme Court holds all the cards. All 9 members are elected statewide and all are Republicans. Risk-averse elected officials will wait to act until the courts tell them what to do (just like always).

36. Education Policy • House Bill 5 (Accountability) Highlights • High school students would take a foundation curriculum of 4 English credits; 3science, social studies and math credits; 2 foreign language credits; 1 fine art and 1 P.E. credit; and 5 elective credits. They would add a 4th science and math credit when they select 1 of 5 diploma "endorsements" in areas including science and technology, business and industry, and the humanities. • The state will require 5 (not 15) standardized tests in English I, English II, Algebra I, biology and U.S. history. School districts will have the option of offering diagnostic exams in algebra II and English III that will not count toward their accountability rating. • Elementary and middle school testing reform bills vetoed. • Senate Bill 2 (Charter Schools) Highlights • The state cap on charter contracts will increase by about 15 a year to 305 by 2019. • Eased closure of low-performing charter schools. • TEA, not the State Board of Education, would oversee the charter approval, renewal and closure process. • Senate Bill 503 to create an Expanded Learning Opportunities Council • Senate Bill 376 to expand school breakfast to poor campuses. • Vouchers: The cannon that went “pop”. Little movement in 2013.

37. Health Care Budget and Policy • Medicaid Expansion: • Rejection of Medicaid Expansion remained the biggest health care issue and will continue to be as federal taxes change to pay for health care reform. • Coverage would have included 1.5 million additional low-income adults, including veterans. • County governments, hospitals, doctors remain concerned. • Mental Health: • Sandy Hook legacy felt even in Austin. • Legislature appropriated more than $300 million over base budget request for a variety of mental health services. • Home Visiting: • Important new accountability language for programs • Legislature appropriated an additional $7.9 million for home visiting.

38. Are You Still Here? Special Session #1 First Special Session called 9 minutes after the House concluded its work on Sine Die. Original focus was exclusively on legislative maps and re-districting in response to court order. Governor Rick Perry added abortion to the Special Session, ending any semblance of political kumbaya. Capitol Watchers are unclear if public education or another unforeseen issue will trigger one or more additional Special Sessions.

39. What did he just say? Jason Sabo Voice and Text: 512.450.2125fronterastrategy@gmail.com www.facebook.com/jasonsabo@texassabo