STATE OF THE COUNTY 2015

COUNTY JUDGE VERONICA ESCOBAR

Good morning and thank you all for being here. Thank you to all the sponsors and to the
Greater El Paso Chamber of Commerce team members who made this event possible. Its my
honor to be able to share news about our work at the county with you once again.
This has been an eventful year for us at the county. And theres actually a lot of good news that
Im excited about sharing with you.
But because of time limitations, Ill focus on only a handful of issues. Ill be sharing with you the
outcome of decisions weve made and how theyve positively impacted our budget this year, and
Ill also share with you some of what is on the horizon for the county.
Decisions of the Past
This is my fifth State of the County address. Those of you whove attended our four prior
addresses know that the county has been deep in transformation and reform. We engaged in
that work because we wanted an organization that would take its rightful role as a major player
in building a better community and in elevating our region.
In prior speeches, I explained that we needed to modernize, streamline, and strengthen the
organization. Many of those decisions, we believed, would also save money. And thats exactly
what were seeing today.
In case you missed it, this year we passed a no-new-taxes budget; in fact, we went below the
effective rate and adopted last years tax rate. And, every taxing entity within our purview
from University Medical Center to Emergency Services Districts #1 and #2 did the same at our
request.
This was possible at the county in large part because of those changes weve instituted.
So what are some examples?

Law Enforcement
The area where weve seen the most significant savings is in law enforcement, in part because
of changes made by Sheriff Richard Wiles through civilianization and reductions in overtime
(thank you for being such a proactive leader, Sheriff), but also in large part to the changes to the
commissioners court made through the new collective bargaining agreement with the El Paso
County Sheriffs Association.
1

As Ive shared with you before, this contract was a significant pressure point for us each budget
session, with costs (largely in the form of salary and benefit increases) going up nearly $5 million
every single year. Changing a contract of this magnitude wasnt easy, and it took political will to
get it done.
The savings from these combined efforts are remarkable. And instead of seeing law enforcement
costs continue their annual escalation, we are seeing a swing in the opposite direction and the
reverse is taking place. The total savings to our law enforcement budget is nearly $4.5 million
this year alone, and because our work on the contract reduced and capped future costly payouts,
that means the taxpayer will continue to benefit from the savings going into the future.
Infrastructure and Technology
In 2012 I also told you about the need to invest in our infrastructure and technology and to
rethink the way we approached capital funding.
So hows that going?
In terms of capital investments, we made the decision to dedicate one penny from our tax rate to
small capital funding so the County could buy items with a limited life span using cash, instead
of financing them over time. That business decision in 2012 saves us $750k annually in interest.
We also passed a bond issuance to replace outdated infrastructure. That issuance included
several large items of note. So where are we on that now?

Replacement of our Enterprise Resource Planning system, or the ERP, which is an

integrated business processing software, is the first software upgrade to our financial
and HR system since 1985. This move will increase employee productivity and help
policy makers and budget writers access the data that we need in order to make sound
decisions;

Our jail expansion project, which adds 432 beds to the east side jail annex will be ready
July 2016. It will allow the Sheriff to move inmates (or trustees) from the costly
downtown jail to the more modern and efficient annex. That move will save us money,
and the project is on time and on budget.

We built two brand new annexes (one on the east side in Commissioner Carlos Leons
precinct, and the other is in Northwest El Paso in Commissioner Andrew Haggertys
precint). They take necessary county services out into high-growth areas of town. Both
of those were completed ahead of schedule and under budget.

The Ascarate Annex, which is at the Ascarate Park entrance and Delta was an Army
Reserve facility, and frankly, it was an unsightly building. It is now renovated, it
beautifies what was once a blighted corner, and houses a more modern and convenient
Tax Assessor Collector office. It, too, was completed on time and on budget.

These annexes dont just help meet the growing needs of the community, but are saving
us money over the long-term by allowing us to get out of costly and ever-increasing
leases;
2

Replacement of aging fleet. Were no longer spending hundreds of thousands of dollars

on aging vehicles, putting good money into assets that should have been retired long ago.
Weve now replaced 45% of the sheriffs fleet (and were still advancing that countywide fleet replacement plan).

We upgraded our law enforcements radio system to ensure there are no gaps in service
in the outlying areas, protecting our safest city designation.

All other construction/reconstruction projects on time and on budget.

Id like to recognize and thank Patricia Adauto, our Public Works Director, who came to lead
the Public Works department on a temporary assignment and temporary respite from
retirement, and who has since stayed on and helped transform a department that needed
leadership like hers. Im so proud that shes not just a part of our team, but one of the leaders
within it. She and the members of her own staff have done some pretty extraordinary work.
All these projects and financial decisions were made a few years ago in order to create savings
today and going forward, and were finally benefitting from those savings.
Criminal Justice
Last year, I also shared with you the changes that were coming to the administration of our
criminal justice system, which were a consequence of discussions (and debates) spearheaded by
Commissioner Vince Perez, his staff and their tireless research.
The changes are multi-faceted, considerable and they are historic.
Among them is the consolidation of already-existing positions that were scattered around
various departments in the county. Those functions will now operate under a new department,
the Office of Criminal Justice Coordination, with a new leader in a new position, Michael
Rodriguez who will start work next week. He brings with him 30 years of experience with the
criminal justice system, believes in using technology to improve processes, and understands the
importance of balancing community safety with managing the costs of incarceration. He was
selected by a diverse group of county leaders that included members of the judiciary,
commissioners court and central administration.
The changes to the criminal justice system at the county also include expanding access to jail
magistrates. We currently only have one magistrate who works 8 to 5 on weekdays, which
means those charged with an offense have had to wait sometimes as long as a weekend or
through holidays to see a magistrate. Next week, well add 3 more full time magistrates in
order to have 24/7 jail magistration available.
What this means to the taxpayer is that booking, the setting of bonds, qualifying for legal
counsel, being assessed for mental health conditions, and the overall process will be more
efficient. This will reduce the time that people are spending in jail pre-conviction, thus reducing
the time people are away from their families and missing work. It also will reduce the work and
expense involved in putting people into jail, thereby reducing the costs to us, to you, to provide
them food, shelter, supervision and medical care.

Another change weve made to our jail system is how weve chosen to address the needs of the
mentally ill who come through those doors. This is a discussion happening all over the country,
and theres finally an acknowledgement that, unfortunately, too many of our mentally ill in
America populate our jails, and not just once, but over and over in a seeming revolving door.
And in a state like Texas that doesnt offer adequate funding or assistance to the mentally ill, we
are particularly susceptible to housing too many of our citizens who need access to mental
healthcare in our jail instead of an appropriate program.
The commissioners court decided to invest in mental health screening and diversion as way to
more appropriately deal with the citizens who end up in our jail. This past Monday we
approved a contract with Emergence Health Network, and were embarking on a new
initiative with them.
EHN will be providing the county an extensive menu of services inside and outside the jail,
including:

thorough assessments at intake,

crisis intervention,
a psychiatrist and a 24/7 prescriber,
referrals to appropriate community services,
individual treatment plans,
training for our Sheriffs department staff,
counseling,
PTSD services,
and more.

What is critical to us, the policy makers, is that EHN will also collect and provide us with data
so we can assess the benefits and where the gaps might still exist a year from now.
This new approach is more practical, just, and humane, and it is more reflective of the kind of
organization we are and the kind of community El Paso is known to be.
The goals of all these criminal justice reforms combined are to more appropriately, efficiently
and transparently manage the processes that are not judicial but which are administrative in
nature, and to continue to decrease the costs of incarceration.
These changes would not have been possible without tremendous support, collaboration and
leadership from everyone involved, including:

commissioners court,
members of the judiciary,
Sheriff Richard Wiles,
County Attorney JoAnne Bernal,
Assistant County Attorneys Joe Gonzalez and Cygne Nemir,
District Attorney Jaime Esparza,
District Clerk Norma Favela,
Public Defender, Jaime Gandara,
the Probation Department,
County Court Administration,
4

Human Resources,
our financial team led by our very talented and dedicated Executive Director of Budget,
Wally Hardgrove,
State Representative Joe Moody and Senator Jose Rodriguez, who sponsored legislation
for us in order to make some of this possible, and,
of course, Commissioner Perez who led the discussion in the first place.

Our thanks to all of them.

I cant emphasize enough the enormity of these changes or the pace with which theyve
occurred.
Its hard to predict what the overall savings to our jail costs will be, but we know for certain
there will be a reduction going forward, and we know for certain that savings will begin this
fiscal year. We also know that more importantly these changes mean people wont
needlessly languish in jail something costly for the county and for our community.
Central Administration
Speaking of consolidation and administration, this was the first fiscal year we embarked on
Central Administration which also brought together various (and mostly already existing)
administrative positions under one department and one leader: a chief administrator. This, too,
was an historic first for El Paso County and a decision that has transformed the way we govern.
Under Central Administration, we consolidated budget, fleet, grants, operations analysis,
agenda management, and contract administration. There are no more costly, time-consuming
committees, theres greater accountability, efficiency and, as you just heard, a focus on policy
development.
And more importantly, every member of commissioners court is on board, having acknowledged
the benefits of this change, the improvements to the organization, and how much better it
makes us at governance and oversight.
As you are probably aware, the commissioners court parted ways with our first administrator
and weve begun the search for his replacement. In the meantime, however, nothing is stopping
our trajectory. Although that position is currently vacant, Betsy Keller, a star at the county and
the Assistant Administrator, has taken on the interim position while we are on our search. And
the team in the department is helping shoulder the greater workload until we find the right
permanent person for the job.

Transportation
An update on another decision this one from 2013 is the adoption of the $10 vehicle
registration fee (or the VRF), which generates $6.25 million per year, and which was leveraged
under the tremendous leadership of then Commission Chairman Ted Houghton. In total, that
decision has created over $400 million worth of transportation projects for our community,
some new and some existing, which were moved up as a result of the funding availability.
5

The timeline and the dollar amounts are both impressive: We voted on the fee in 2013 and then
In FY 2015, 3 projects were let totaling $205 million
In FY 2016, 9 projects will be let totaling $123 million
In FY 2017, 4 projects will be let for $60 million
And in FY 2019, 2 projects will be let for $42 million.
And El Paso County will continue to leverage funds through this revenue stream in order to help
enhance our transportation system and address chronic needs.
Im very proud of the way El Paso County has become a transportation leader and will continue
to be as a result of our investments. And make no mistake about it: transportation is key to
economic development.
Strategic Planning for Economic Development
Economic development: It is undoubtedly a priority for every leader in this community, along
with job retention and creation, growing wages and growing our tax base. And while
collaborative, strategic efforts are important and believe me, we value those collaborations
we know that each spoke in the economic development wheel needs to be a strong contributor.
During this years strategic planning session at the county, we decided that we needed to
reevaluate our incentive policy, think through what kind of targeting we were interested in
doing, how we could leverage existing assets, and other ways we could further engage in
economic development.
To that end, last week, the county hired Market Street, an economic development consulting
firm to help us put together the countys Economic Development Action Agenda. They are
ready to go, and we intend to have our plan complete in 100 days.
Im very excited about this and what ideas, incentive policies and strategic goals may come from
our discussion. Its clear to me that when it comes to economic development, we need more
strategies at work in El Paso. Weve made some great gains in our community, but we are still
struggling with wages and with getting El Pasoans access to significantly more and better jobs.
With respect to wages, Im very proud of the fact that both the County and UMC raised their
minimum wage to $10 per hour. We know that anything less than that living wage makes it
difficult for citizens to get by. I believe the City of El Paso did the same thing, and Im proud
that they did so. Also, the county is updating its prevailing wage survey, the results of which are
used for our projects so that El Paso workers are getting paid a fair wage when they work on
public construction.
It will take all of us not just the public sector, but the private sector as well working to
ensure that El Pasoans dont continue to lag behind the state and the nation when it comes to
wages. That is one of the reasons why it is difficult for us to attract or retain our talent. Existing
jobs in El Paso must offer fair and competitive wages. Its good for the employees, good for the
community, and its good for our local economy as well.
But what else can we do?
6

Ive spent some time listening to business people and other leaders who I have tremendous
respect for, asking them for their ideas about what El Paso should to do to grow our economy in
a way that makes the most sense. And in these discussions, we all agree that the efforts to
recruit large corporations to our community need to continue, but the added consensus Ive
heard, is that we arent doing enough to support the talent we already have here.
The questions I was asked were, what are we doing to grow El Pasos own corporate
CEOs? What are we doing to support the successful entrepreneurs who are risking their own
capital? How are we helping them grow from 100 employees to 1000 -- to grow from 1,000 to
10,000?
When I think about the times Ive spoken with companies considering relocating here, theres
always the need for a pitch about why El Paso is a great place to be. I have absolutely no
problem doing that enthusiastically.
But our successful company leaders people like Lane Gaddy, like Octavio Gomez, Miguel
Fernandez and others they are already in love with El Paso. They are our true believers and
our own risk-taking entrepreneurs and theyre right here at home.
How do we best help them and those like them?
I know we can think of a way. We need to. Again, we absolutely need to continue our efforts to
draw businesses to El Paso. But we also need a strategy to create our own corporate
headquarters, led by El Pasoans who are true believers and who are committed to our future. As
one of these leaders told me, we need to do a better job of charting and controlling our own
destiny. Its my hope that the county can play a role in accomplishing this.
Healthcare
Healthcare is one of the areas where we really are charting our own destiny.
Over fifteen years ago, long before I entered elected office, El Pasoans came together and decided
that healthcare was one of the sectors we would pursue in order to deal with our chronic
problems having a high uninsured population, having too few doctors, few healthcare
facilities, inadequate access to health services, and low wages. Growing the healthcare sector
and supporting a four year medical school, growing our own doctors these were goals our
community rallied around. Furthermore, creating and supporting the Medical Center of the
Americas a medical center hub that would be a strong economic driver was another
important goal.
Well, University Medical Center, our county hospital district, continues to grow and create
both increased access to affordable healthcare and great jobs as well. Two weeks ago, we broke
ground on the newest addition to El Pasos healthcare landscape: the eastside clinic, which is
the first of the three new clinics UMC is building.
That clinic will open January 2017, and will create 100 new jobs and an estimated 50,000 patient
visits a year.
The northwest clinic will see its groundbreaking in December of this year, open its doors May
2017, will create an additional 100 new jobs and provide access for another 50,000 patient visits.
7

And finally, the central clinic, which will be in the heart of the Medical Center of the Americas,
will break ground Winter, 2016 and also create yet another 100 new jobs and 50,000 patient
visits. Hensel Phelps is the General Contractor, and 80% of the subcontracts will go to local
subcontractors, and 60% of that will go to minority businesses.
Im very excited about El Pasos healthcare future.
Another important asset is the El Paso Childrens Hospital, which you might have read a little
bit about recently. UMC will be acquiring El Paso Childrens as an affiliate as part of the
bankruptcy process, a process we hope is over by years end.
Our goal was not just to save a struggling company and the jobs and clinical care it provides, but
also to save and safeguard a mission and vision that began long before the hospital was built or
opened its doors.
In my comments moments ago about economic development, I shared what Ive heard from
smart, talented business people and leaders about asserting control over our own future as an
important strategy for our communitys success. That was the impetus behind the medical
school.
Well, this company that UMC is engaging in a strategic partnership with El Paso Childrens
Hospital it is a critical asset for our region. And the decisions we made during our
negotiations have effectively:

brought an end to the costly litigation that El Paso Childrens Hospital filed against
UMC,
are making a key partner (our communitys medical school) whole, and
are bringing closure to the bankruptcy process.

The decision was made by a diverse group of El Pasoans: 7 people on your UMC board, overseen
by 5 people elected by you to your commissioners court, and we made our decision with
information provided by different lawyers, financial advisors, the executive leadership team,
budget writers, consultants and healthcare experts.
After 20 months, countless meetings, grinding negotiations and mountains of information the
fact is that we agreed on our plan of action going forward. This doesnt always happen, but in
this case it did: all of us were in agreement.
El Paso Childrens Hospital is worth saving. It is the only dedicated pediatric hospital within a
205 mile radius and a very important partner to our communitys medical school, the Texas Tech
Health Sciences Center Paul F. Foster School of Medicine and its team of 50 clinical providers,
primarily physicians and 45 residents who go to work there every day. This partnership
between EPCH and Texas Tech represents a little over $11 million in contracts annually.
EPCH employs high caliber specialists and subspecialists, highly trained nurses and clinical staff
and they been successful in significantly reducing the out-migration of our littlest patients.
And, as a result of our joint plan, El Paso Childrens Hospital, will remain locally owned and
locally controlled.

The very conservative five year proformas filed last week demonstrate that with some changes,
implementation of good business practices, a hard working board and new CEO, with stability
and leadership the hospital can break even and will not be a burden on the taxpayer.
And by the way, speaking of a new board for El Paso Childrens Hospital, I cannot emphasize
enough that we need strong, experienced, respected members of our community to step up. As
has been my experience when recruiting board members for UMC, Im finding that too many
people cant or wont do it, and we need good leaders, now more than ever.
Once stability occurs, El Paso Childrens Hospital will begin to repay UMC its outstanding debt
over time.
I am incredibly happy to report that in the meantime,
the EPCH doors stay open,
there will be no interruption in service,
the 400 jobs stay intact,
the doctors stay in El Paso, no interruption of medical services
the medical school keeps a key partner, and
our families maintain access to outstanding healthcare in a region that badly needs it.
We did that, we saved a hospital, and Im proud of it.
There will be much hard work ahead for the new EPCH board, UMC and the county. That
includes continued collaboration with the Health and Human Services Commission (HHSC) to
deal with the decisions made by EPCH in the past. I need to recognize the work done by the
UMC and County lawyers, who have made significant headway in conversations with HHSC
to work through saving the hospital. Senator Jose Rodriguez and Congressman Beto
ORourke and their staff have been incredibly helpful and committed to this same endeavor.
Preserving the vision and mission was paramount to all of us involved and we were not willing
to surrender this community asset.
The process sure wasnt pretty, but I am certain that well look back and never regret saving
EPCH.
I also need to recognize the work the UMC board did during this difficult time and those who
generously devoted their time to the process, especially Board Chairman Steve DeGroat and past
Chair Tracy Yellen. Their leadership was unwavering, dedicated, solid and FREE!
And the commitment from their colleagues on the UMC board was enormous as well.
Our volunteer board members gave up thousands of hours of their time time they could have
instead focused on their businesses, at their jobs, being with their families to help UMC and
the County. They made big sacrifices and they dedicated their public service to our community.
I am so grateful to them. These last 20 months especially, they were doing Gods work.
Together with the dedicated staff at UMC, they navigated through these turbulent times, and
they passed a budget with no new taxes and a tax rate that went below the effective tax rate.
That is in a fiscal year when they are breaking ground on two clinics and when EPCH will
become a subsidiary of our hospital district.
9

I also want to recognize and thank Jim Valenti, who dedicated the last decade of his life and
career to this campus. The modernization, investment, growth and care there, is a reflection of
his commitment to UMC and we are all grateful for it. Jim, we wish you the best of luck in your
new journey this next year.
Earlier I mentioned the relationship between EPCH and Texas Tech. Last year, I showed you a
chart that demonstrated how UMCs relationship with Texas Tech had grown over the last
decade. This year, we approved a UMC budget with $56 million in contracts with the medical
school. Add to that EPCHs $11 million, that represents a $77 million partnership with and
investment in our medical school.
We are part of an impressive clinical and economic development engine that is helping
transform our region.
Im so proud that we are doing our part to contribute to the dream of a world-class healthcare
center right here on the U.S. Mexico border.
Whats ahead
I have so many more projects and plans to share with you. For example, in 2016, the county is
bringing back the County Fair. We think itll be a fun, new event with a traditional twist to add
to our quality of life. Were investing more in our parks, including our rural parks in the far east,
lower valley and northwest parts of town, and we recently hired a new Park Manager. Were
evaluating ways to better leverage our assets, like the Fabens Airport. I bet you didnt know we
had an airport. We cant tell you much about the Fabens Airport project yet, but we will soon.
Itll be out of this world.
So much to share, not enough time.
Conclusion
Before I wrap up, I want to recognize the extraordinary people that Im lucky enough to work
with every day the team in the new Office of County Administration and our department
heads, who have taken all the ups and downs associated with the changing landscape like such
pros, and whose positive, can do attitude is inspiring to all of us.
Thanks to all of the elected and appointed officials at the county who choose to be part of the
team and engage knowing were on the same side. But a special thank you to County Attorney,
JoAnne Bernal and her staff. Shes not just a great lawyer for us, but shes a trusted leader and
someone who makes things happen. She and her staff take a problem and find the solution. Im
so grateful for her leadership and friendship.
Ruben Vogt, Celeste Varela and Nicole Ruiz in my office the people who make the wheels
turn every day. I dont know how I got so lucky to have the opportunity to work with you. They
are talented, loyal and like family. In fact, theyre sitting with my family, my mom Isabel, my
husband Michael, and our daughter Eloisa (our son, Cristian, is away at college). I love you all.
And finally, my colleagues on the court.
recognize their work brag on them a bit.

Please have patience with me as I take a minute to

10

Commissioner Andrew Haggerty, is part of an innovative approach to community meetings to

make access to information easier for his constituents. He has been dedicated to increasing
transportation, quality of life and water/wastewater services to every pocket of his precinct.
Hes such a great addition to the court, has a great attitude, and is a lot of fun, too.
Commissioner Carlos Leon, who is always on the lookout for best practices that we can and
should adopt for our operations, and whose commitment to accountability has helped
tremendously when it comes to making tough decisions. He and Commissioner Haggerty have
both been focused on ensuring the services at our annexes connect with their constituents
needs. Commissioner Leons wisdom and experience add so much to our decision making.
Commissioner Vince Perez, who as I mentioned before, initiated and hastened significant
reform in criminal justice administration, also led the effort to bring greater access to
transportation (both via infrastructure and mass transit) and water infrastructure to his
precinct. He reminds us of the need to honor and preserve our past, especially the Mission Trail.
He is one of the smartest people I know and were lucky to have him on the court.
Commissioner David Stout, who has been my bankruptcy buddy on the court. His
commitment to healthcare, especially during this challenging period has been impressive. He
has spent enormous amounts of time with us vetting proposals, plans, proformas, asking tough
questions and coming up with ideas. And hes done it with a view to protecting taxpayers while
saving a hospital. Im so grateful to him for his leadership.
I also want to say that none of this couldve been possible without leadership from prior
members of the court like now-Judge-then-commissioner Anna Perez and now-happily-retired
former commissioner Patrick Abeln.
All of these leaders deserve all the credit and much recognition for their tireless work. I am
grateful to them and inspired by them. I couldnt ask for better colleagues or a better team.
In closing, just like every other large organization, the County is not without a crisis around the
next corner, or without tumultuous events that land us on the front page (day after day after
day), but what there is not an absence of at your courthouse is strong, collaborative, and more
importantly, TRANSFORMATIVE leadership. I walk into the courthouse every day with my
head held high because I am lucky to be part of this great team.

11