I talked to the DPS in Austin and they said they pull their information from Omni-Base which is an automated reporting system for individual cities and districts to pool information on offenders so the state can keep records. The DPS didn't have anything to do with it.
I called back the city of Lufkin and told them what I had learned. The judge has the authority to reduce or waive fines and fees and then report the dismissal to Omni-Base so the DPS will have accurate records. I typed up a cheesy letter and faxed it to him, along with my enlistment papers. He waived the failure to appear fine and the total cost of the ticket was more than cut in half.
Persistance pays.
Thanks for your help, guys.