Hoist By Their Own Petard*

Act surprised if you hear much more from the House this session about limiting corporate and union money in elections. An attempt to dynamite that legislation out of a hostile committee backfired badly enough that 50 of the bill's 93 sponsors ducked, either voting against the effort or absenting themselves from the House floor during the vote. On the strength of a 95-36 vote, it remains in committee.

The legislation by Reps. Craig Eiland, D-Galveston, and Todd Smith, R-Euless, would define what corporate and union money can be used for in campaigns, and would ban third-party "issue ads" in the last 30 days before primary election and the last 60 days before general elections. The idea is to reduce corporate and union influence over Texas elections. The legislation has been bottled up in the House Elections Committee for weeks. It finally emerged from a subcommittee, but the main panel, led by Rep. Mary Denny, R-Aubrey, hasn't done anything with it. Denny has said she is against the bill and that she doesn't know whether it would come to a vote or not.

So the Democrats decided to force the issue, calling up a dusty rule that allows the full House to yank a bill out of a reluctant committee. Instead of ambushing their opponents, they telegraphed their effort by asking House Speaker Tom Craddick a day in advance how he'd handle that rule if they called for a vote. He said he'd honor the rule, and sure enough, when the bill sponsors asked for a vote, he gave them one. Rep. Tommy Merritt, R-Longview, asked for the vote and appealed to members to end the sort of ads that helped him lose a special election for state Senate last year. Rep. Terry Keel, an Austin Republican who was listed among the bill's co-sponsors, took the other side.

Merritt told the House that ads from "Americans for Job Security" attacking his support for a school finance-related tax bill were paid for by donors who still have not been identified and warned that the same could happen to them.

Keel attacked the Democrats for turning the bill into what he called a public relations stunt designed to embarrass Craddick. He said the House shouldn't mess with its committee system, reminded them of an old axiom about the process being designed not to pass bills but to kill them, and he flipped the question, telling the House that voting to "thwart the committee process" would kill the ethics bill more surely than to let the system work.

The legislation had 93 authors and co-sponsors at the beginning of the week, including each of the House's 63 Democrats. After Keel and Merritt talked, the House voted to leave the bill in committee. Of the 93 co-sponsors, 38 voted against the legislation and 12 were recorded as absent when the tally was taken. Those 50 non-supporters included 27 Democrats.

* Department of Irritating Visualizations: Petards are bombs commonly used in the old days to blow up gates on castles. But they were unreliable, and sometimes went off while they were still being carried by the enemies of the castle. The explosion meant for the castle would instead "hoist" the bombers.

Rumor Debunking Squad

Travis County prosecutors are poking through the remains of the 2002 elections to see whether groups trying to help Republicans take over state government did so by illegally using corporate money or by mixing third-party and campaign money illegally. The efforts succeeded and the GOP majority made Tom Craddick the first GOP speaker since the civil war. A rumor around the Capitol had Roy Minton, the attorney Craddick hired to deal with those inquiries, saying the campaign finance reform bill — HB 1348 — would be bad for the Republicans being investigated. It ain't so, he says. Minton says it's a bad idea to list the proper uses of corporate money in the law because "you'll always find something in there that shouldn't be on the list, and something that's not on the list that should be." He says the definitions in the law should be broad enough to let the courts decide what's in and out of bounds, and says that's all he's told anyone about any proposed laws. "I've never tied it to a client or to this investigation in any way," Minton says.

School Finance Gets a Date

The Texas Supreme Court will hear oral arguments in the school finance case on July 6, just about a month after the Legislature's regular session ends. That's not dependent on what lawmakers do to try to reform the system, unless they get something so good that the school districts that filed suit drop their arguments. Nothing of that sort has surfaced.

The court earlier set briefing deadlines, and the lawyers in the case are supposed to have all the paper fighting completed by May 31.

The current system is unconstitutional, according to a state district judge in Austin who heard arguments about the mix of funding, the distribution of money, and adequacy of the education kids in Texas are getting from the government.

The prospect of a hearing in July could influence decisions about special sessions this summer. If lawmakers work out a compromise on school finance and the taxes that go with it, that's moot. But if they don't — which seems more likely given the current discord between the House and Senate — Gov. Rick Perry will have to decide whether a special session would force a solution or just compound the state's failure to patch the system over the last two years.

The timing for a special, if there is one, would be tricky now that the court has set a date. The session ends on May 30. Perry has 20 days after that for signatures and vetoes and such — that's June 19. Calling the Legislature back into session while that's going on would be a rare thing; governors typically don't want lawmakers (and their ability to override vetoes) hanging around during that three-week period. Calling the Legislature back to Austin doesn't make much sense if you wait past early to mid-summer, since the school year starts in August and the current finance system will already be locked in for another school year.

Perry has the most at risk. Governors get blamed when things don't get done, and often when they do get done. If voters are worked up about school finance, failure to get a fix could hurt him (as could a tax bill, if the Legislature chooses a fix unpopular with voters).

Legislators probably skate if school finance doesn't get repaired right away. The governor would get credit for a win and blame for a loss, and most lawmakers will escape that.

The justices on the Texas Supreme Court are in an interesting spot. Five of them — Chief Justice Wallace Jefferson, and Justices Nathan Hecht, Phillip Johnson, David Medina, and Priscilla Owen — are on the ballot next year and school finance could easily become an issue in those elections. A Supreme Court ruling in the fall — if it goes against the state — could set up those contests and put the heat on Perry to call a special session on school finance right before the primary season starts.

In its notice of the July hearing, the court listed some of the issues raised in the briefs filed by the state and the groups suing the state:

• Whether the school districts’ claims are legal questions appropriate for courts or political questions properly left to the Legislature.

• Whether the school districts have enforceable rights to sue under the state constitution (Article VII, Section 1).

• Whether the school districts have standing to claim injury under the state constitution (Article VII, Section 1, or Article VIII, Section 1-e).

• Whether the state school-finance law violates the constitutional prohibition against a state property tax.

• Whether inequity in the state’s maintenance and operations financing violates the state constitution (Article VII, Section 1). The Edgewood appellants specifically attack the trial court’s failure to apply a legal standard or make findings to support its conclusion that “disparity in access to revenue for maintenance and operations” did not violate Article VII, Section 1's efficiency mandate.

If you just can't get enough of this school finance stuff, the briefs that have been filed so far are available online via these links (the school finance case includes three different lawsuits and three different case numbers):

Cause number 04-1144
Appellant: Shirley Neeley, et al. Appellee: West Orange-Cove Consolidated Independent School District, et al.

Cause number 05-0145
Appellant: West Orange-Cove Consolidated Independent School District, et al. Appellee: Shirley Neeley, Texas Commissioner Of Education, et al.

Cause number 05-0148
Appellant: Edgewood Independent School District, et al. Appellee: Shirley Neeley, In Her Official Capacity As Texas Commissioner Of Education, et al.

How about 20 Cents?

The property tax cut -- and the tax bill to pay for it -- are shrinking in the upper chamber.

The newest version of the Senate's education reform bill, by Sen. Florence Shapiro, R-Plano, calls for a 20-cent cut in local school property taxes in 2005-06, followed by another 20-cent cut in 2006-07. That's in place of the 50-cent cut senators were shooting for earlier in the legislative session, and the 75-cent cut senators said a year ago would mark "significant change."

The Senate plan still calls for a state property tax for schools, set (ultimately) at 85 cents per $100 in property valuation. School districts would be allowed to add on as much as 25 cents, using up to 15-cents of that for local enrichment.

Teachers would get a $1,000 pay hike and the $1,000 health insurance stipend — granted and then halved by previous Legislatures — would be restored. If the statewide property tax passes (a constitutional amendment, it would require voter approval), teachers would get another $1,500 per year raise in 2006-07. Think they'd campaign for that amendment? And the bill also includes incentive pay of up to $500 for teachers.

The House bill got rid of the "weights" used to increase per-student funding for kids with special problems ranging from language issues to physical handicaps; the Senate kept them.

The Senate wants charter schools rebooted, bringing them under the same accountability measures used for regular public schools so they can be compared, and giving them up to $1,000 per student if they reach "exemplary" status and hold that level for several years.

The "runs" showing the effect of the bill on each of the state's 1,000+ school districts for each of the first two years can be found at these links:

Comparison of current law to fiscal year 2006

Comparison of current law to fiscal year 2007

That legislation still faces more than two dozen amendments — a sign that senators haven't yet agreed to their customary 31-0 vote — and could get to the full Senate early next week.

Future Shock

The tax bill, supposed to be available earlier this week, wasn't. And the reason was pretty good: The Senate is trying to avoid a hurdle that tripped the House, asking the comptroller's number-crunchers to vet the numbers and the language in the bill before the Senate actually votes on it.

But the hearings on that tax bill — set for the last weekend of April — have been put off, and the reasons are a little shakier. Senators are tied up with the education bill, for one thing. For another, the business lobby has told the Senate and Lt. Gov. David Dewhurst what they've been whispering all along: They prefer the "choice" components of the House's plan to the Business Activity Tax in the Senate blueprint.

The House, you'll remember, voted out a $12 billion spending bill and then a tax bill they thought was cut to match. But Comptroller Carole Keeton Strayhorn rolled in a grenade, saying flaws in the drafting of the tax bill left it some $4 billion short. There was a sort of bottomless argument — no telling who's lying and not — over whether the comptroller's folks had pre-approved the numbers. In the end, the tax collector said the tax bill would fall short, and that's that. The Senate isn't taking chances. They've got the comptroller's folks looking at actual language and cranking numbers based on the actual words that'll be up for a vote. That spadework is taking some time.

The Senate tax bill's details aren't out, but the big pieces include a business activity tax, or BAT (dubbed the Big Ass Tax by business lobsters, since it would raise a huge amount of money). Senators prefer to call it a reformed franchise tax, but they don't write finance and economics textbooks. Partnerships of various flavors — not taxed under current law — would be taxed under the Senate's scheme. The sales tax would be raised a half-cent; whether new goods and services are included for the first time depends on which version of the tax bill you see, but no expansions of the sales tax were in the last version described to us. Taxes would increase on cigarettes — though not as much as the $1 per pack added by the House  — and also on alcoholic beverages, which weren't addressed in the House's bill.

The element of the House bill preferred by some business lobsters would give business taxpayers their choice of two taxes — one that's similar to the BAT and one that's similar to the capital assets based franchise tax the state currently uses. What was attractive was also flawed: The comptroller's problem with the bill was that it didn't have a minimum tax, and the tax wonks say businesses will choose no tax over some tax every time. Several ideas of what could constitute the floor have been floated but nothing yet has attracted a fan club.

In spite of the trouble, the Senate's plan is to present a tax bill to the Finance Committee early next week and to get it to the floor, maybe, by this time next week.

Limited Government, Within Limits

The House wants cities and counties to be more responsive to voters when increasing government spending, but left school districts out of the deal and never even talked about extending the "truth-in-taxation" idea to state government spending.

Rep. Carl Isett, R-Lubbock, first put the bill in front of the House last week, but put it on hold after long arguments and the success of several hostile amendments. He returned with House Speaker Tom Craddick weighing in on every important vote, and that was all the difference. The House undid some of the earlier damage and voted out a bill that lowers the number of signatures needed for a spending rollback election and that lowers the amount of growth governments are allowed before such rollbacks are allowed. Current law lets voters petition for rollbacks if tax revenues rise eight percent or more. Isett's legislation would lower that to either five percent or the federal Consumer Price Index, at the local government's option. Taxpayers could demand a rollback election by getting signatures from registered voters equal to 10 percent of the voters who cast ballots in the most recent gubernatorial election. The locals won one fight: Spending increases driven by state mandates don't get included in the rollback formulas.

The legislation applies to all local governments, with the large exception of public school districts — generally the biggest number on local property tax bills. And it doesn't apply to state government; at the moment, House and Senate negotiators are working on a budget plan that calls for spending increases of 18.4 percent. If the school finance package passes, with its replacement of local taxes with state taxes, state spending would increase about 27.8 percent this year over what was approved two years ago.

That's off to the Senate, where similar legislation has remained in committee so far this session.

Laptop Lottery

Wanna play the Texas lottery on the Internet? Fuggetaboutit.

House budgeteers working on HB 3540 included provisions that would allow Texans to play existing lottery games via the Internet. But when we asked about it, House Speaker Tom Craddick issued a statement saying the provision is unworkable and that Appropriations Committee Chairman Jim Pitts, R-Waxahachie, will take it out of the bill. "Upon further researching this recommendation, Chairman Pitts learned that technology is not currently available to support the purchase of lottery tickets over the Internet. As a result, this recommendation will be reconsidered and lottery sales over the Internet will be taken out of CSHB 3540."

It was supposed to raise $100 million or more, and it's not clear what will be used to patch that hole. That legislation is a mixed bag of budget tricks, transfers, and such designed to help balance the budget that's being hammered out by House and Senate negotiators. Whether the Internet lotto money is needed isn't clear: The final numbers won't fall into place until budgeteers know the fates of the budget bill, the school finance bill, the tax bill, the "supplemental" budget bill, and, of course, HB 3540.

Visions of Sugar Land

U.S. House Majority Leader Tom DeLay won't have Richard Morrison to kick around anymore. The Democrat who challenged the Sugar Land Republican last year won't make the race next time. Houston City Councilman Gordon Quan is openly looking at it, and former U.S. Rep. Nick Lampson, D-Beaumont, has filed federal papers allowing him to campaign for the post.

Lampson's old congressional district is barely contiguous with DeLay's district, but the Beaumont Democrat is running. He (and other Democrats) are betting DeLay will be around in November 2006 and that his name will be sullied enough that a Democrat can win in what appears to be a safely Republican congressional district.

There's a small invisible line where the Morgan's Point end of Ted Poe's congressional district touches the LaPorte end of DeLay's congressional district (Poe, a Houston Republican, beat Lampson last year). But most of the district — including Lampson's Jefferson County home base, is far to the east of DeLay's district. When the Texas Legislature was redrawing the congressional maps, they put about 17.5 percent of the people who'd been in Lampson's congressional district into DeLay's CD-22.

Worse, according to the Texas Legislative Service — which does the data work for the state's political maps — that chunk of Lampson's old district only gave 41.5 percent of its statewide votes in 2002 to the Democrats. Put it simply: The part of Lampson's old district that now belongs to DeLay is three-fifths Republican.

DeLay's full district gave 65.9 percent of its statewide vote to Republicans in 2002; in 2004, the worst performance by a Republican on the federal and state ballot in that district was by DeLay himself. He got 55.1 percent to Morrison's 41.1 percent (a Libertarian and an Independent split the rest). Democrats were encouraged at that lower-than-expected performance by DeLay, but a 14-point margin is formidable.

An untarnished Republican running in that district against an untarnished Democrat should win and win easily. But Democrats are hoping DeLay is still on the ballot in November of next year, and that he's bleeding badly enough to make a Democrat look good to conservative voters. If that's the play, a Democrat might be able to attract national money to the contest, and that could change the odds.

Whose GOP Is It, Anyway?

Nate Crain, the chairman of Dallas County's Republican Party, emailed fellow Republicans urging them to tell the potential Dallas candidate, U.S. Sen. Kay Bailey Hutchison, to stay out of next year's gubernatorial primary.

"In recent weeks, the tone of the Hutchison campaign has changed dramatically," Crain wrote. "Republican County Chairman and Republican Elected officials have been treated in a shameful and disappointing manner."

His email doesn't mention Gov. Rick Perry or any other potential candidates. Crain says he supports Perry's reelection, but he's taking pains not to choose between the Guv and the senior U.S. senator from Texas. He wants both to seek reelection and avoid an intra-party war, he says. Both Crain and his wife are financial supporters of both Hutchison and Perry.

Christina Melton Crain is the chairwoman of the Texas Department of Criminal Justice. Perry named her to the board four years ago and put her in the middle chair almost two years later. According to the Texas Ethics Commission, the Crains have given $169,715.87 to Texans for Rick Perry over the last five years. They've contributed $8,000 to Hutchison, maxing out their contributions in the last two cycles (federals have limits). And they donated $20,000 to Comptroller Carole Keeton Strayhorn since 2000, though they haven't given to her since 2002. She's another possible candidate against Perry.

Nate Crain's email suggests estrangement between him and Hutchison's gang. He told The Fort Worth Star-Telegram that his open support for Perry's reelection got him disinvited from Hutchison events. He won't say who disinvited him (the Austin American-Statesman reported it was Jim Francis, a longtime GOP player in Dallas), and the Hutchison campaign told the paper he's welcome to come to their fundraiser. In his email, he wrote that their denial of the conversation is part of a pattern. Hutchison denied having a personal conversation with Midland County GOP Chairwoman Sue Brannon a few weeks ago; Brannon told the Midland Reporter-News that Hutchison said she wanted to come back to Texas so she could raise her kids here. And an aide to Hutchison last month disputed state Sen. Bob Deuell's account, in the Austin American-Statesman, of a conversation between Deuell and the aide in Washington, D.C., during the presidential inauguration. That aide, David Beckwith, didn't deny the conversation, but his version and Deuell's were quite different (Deuell said Beckwith made a "veiled threat" about his political future after Deuell said he supported Perry for reelection; Beckwith said he didn't).

The Hutchison folks have said Perry supporters are concocting the tales. And she has stopped short of saying she'll run for governor; for about a year, she's been telling people she'll announce her future plans sometime after the end of the legislative session. She didn't say she'd announce anything in June, but that's how the political fortune-tellers generally interpret her timing.

Crain said he sent the email to about 180 GOP county chairs in Texas — everybody with a known email address. He says the Perry camp didn't prompt him to write. But he says the state GOP shouldn't have to pick between the two: "It would be very difficult for the Party if she were to run. It would create animosity at the grass roots and at the finance level that we've never seen before."

Fiscal Notes

Six Texans — not counting the president — each had more than $1 million in their federal campaign accounts at the end of March: Sen. Kay Bailey Hutchison, $7.3 million; Rep. Henry Bonilla, R-San Antonio, $1.8 million; Rep. Lloyd Doggett, D-Austin, $1.7 million; Sen. John Cornyn, $1.7 million; former Rep. Jim Turner, D-Crockett, $1.05 million; and Rep. Joe Barton, R-Ennis, $1.0 million.

The top fundraisers in the bunch during the first three months of the year: Cornyn, $854,004; Bonilla, $791,319; Hutchison, $758,785; and U.S. House Majority Leader Tom DeLay, R-Sugar Land, $458,235.

Barring a change in state or federal law, Hutchison can use her funds for either a reelection race or a run for governor that she's considering. Bonilla wants to run for her spot if she leaves. Doggett hoards political money to scare challengers. Cornyn isn't up for reelection until 2008 and is one of the few statewide politicians in Texas who hasn't been making noise about running for something else (though the former judge is mentioned from time to time in rumors about federal judicial appointments). Turner is lobbying now, but has said he'd like to return to elected office if the right opportunity opens. And Barton, like Doggett, appears to be staying put.

Straight Voting, Narrow Margin

The Texas House wants to put this on the ballot for voters next November 8: "The constitutional amendment providing that marriage in this state consists only of the union of one man and one woman and prohibiting this state or a political subdivision of this state from creating or recognizing any legal status identical or similar to marriage."

With 101 yups, 29 nopes, eight members in the room but declining to vote, and 12 members absent, the House sent the constitutional amendment on to the Senate, where it has no sponsor.

Rep. Warren Chisum, R-Pampa, said he'll increase his efforts to get the measure moving in the upper chamber, but didn't name anyone in particular as a potential sponsor.

He and other supporters of the constitutional change say it would bind Texas courts hearing cases involving an earlier law — called the "Defense of Marriage Act" — that says essentially the same thing. That's a national movement as courts in a couple of states have struck down similar statutes as violations of state constitutionals. The amendment, if passed by senators and approved by voters, would take that argument away from anyone challenging the laws in Texas courts.

Chisum took only one amendment — his own — and in the end, House Speaker Tom Craddick cast a relatively rare vote to make sure the constitutional change had the 100 votes it needed to prevail. The bill started with 78 co-author and co-sponsor signatures on it, and they added 23 more when the votes were taken. No Republicans voted against the measure; one was there and didn't vote and three were absent. And 18 Democrats voted for it, with 29 voting no, seven present but not voting, and nine absent when the votes were taken.

Rock Stars for Geeks

This is one of those moments when the handler might be better known than the handled: Democratic gubernatorial candidate Chris Bell of Houston has a new website design (at www.chrisbell.com) done under the aegis of Joe Trippi, best known as the consultant who got the Howard Dean Internet phenom up and running in 2003. The firm that did the actual work on the site — EchoDitto — was started by Nicco Mele, who ran the Dean for America blog during the presidential campaign. In a particular community, those are big names. The new site has a blog, a podcast (a sound file sent to interested parties featuring campaign and candidate news) and "Don't Mess with Ethics," a knockoff of the "Don't Mess with Texas" campaign. Bell, a one-term congressman and former Houston city councilman, hasn't declared for governor; legally speaking, he's "exploring" a race.

Offbeat campaign pitch: Mandy Dealey, a candidate for city council in Austin, sent supporters an email with this message: "Make Betty Dunkerley share a bathroom." Clicking on that takes the reader to her website, where they add, "One woman on the Austin city council is not enough. It's not about being politically correct. It's about solving problems and having strength through diversity." Dealey's plea doesn't narrow the field much, though: Her opponents for an open seat on that panel include one male and two females.

Political People and Their Moves

Gov. Rick Perry is tapping judge and Texas Tech University law professor (adjunct) Brian Patrick Quinn to be chief justice of the 7th Court of Appeals in Amarillo.  Quinn has been on that court since 1995. That middle seat opened up a few weeks ago when Perry named Phillip Johnson to an open spot on the Texas Supreme Court.

The contingent settling differences on the foster care bill includes Rep. Robert Talton, R-Pasadena, the author of a House amendment that would require foster parents to register their sexual orientation with the state and would bar gay and lesbian foster parents from the program. The House added that provision on an 81-58 vote; there is nothing like it in the Senate version. The House group is chaired by Rep. Suzanna Gratia Hupp, R-Lampasas, and includes Reps. John Davis, R-Houston, Toby Goodman, R-Arlington, and Carlos Uresti, D-San Antonio. The Senate group, named earlier: Sens. Jane Nelson, R-Lewisville, chair, Kyle Janek and Jon Lindsay, both R-Houston, Eliot Shapleigh, D-El Paso, and Judith Zaffirini, D-Laredo.

Sarah Woelk left the Texas Ethics Commission, where she was general counsel, for the Texas Lottery Commission, where she's now the assistant general counsel. Ethics hasn't hired her replacement, but that could happen as soon as May 6, when the board meets.

Court Koenning, the executive director of the Harris County Republican Party, is leaving for the bidness world (consulting). His replacement hasn't been named. Koenning previously worked for then-Attorney General John Cornyn and for former U.S. Sen. Phil Gramm.

Gov. Rick Perry reappointed Brian Flood of Austin as inspector general at the Health and Human Services Commission for a term running through January of next year. He left the Dallas County district attorney's office to help sort out the troubles in the state's child protective services program.

Recovering, but not talking about it: Ric Williamson, chairman of the Texas Department of Transportation and a former state representative, from heart trouble. He was well enough to attend some meetings this week.

Quotes of the Week

Rep. Senfronia Thompson, D-Houston, arguing against an effort by Rep. Warren Chisum, R-Pampa, to add a gay marriage ban to the Texas constitution: "This amendment is blowing smoke to fuel the hell-fire flames of bigotry. When people of my color used to marry someone of Mr. Chisum's color, you'd often find people of my color hanging from a tree. That's what white people back then did to protect marriage."

Bee Morehead, executive director of Texas Impact, talking with The Dallas Morning News about Internet lottery sales that were briefly under consideration in the House: "It's such a super fast track way to get people sucked in over their heads. One of the uniquely bad characteristics of computer-based gambling is nothing seems real, it's all virtual. Unfortunately, the money coming out of your account is real money and you can get rid of it as quick as you can click."

Rep. Jim Dunnam, D-Waco, talking to the Fort Worth Star-Telegram about stalled campaign finance legislation: "I think the buck stops in the back hall, at the speaker's office. The only conclusion is that they don't want ethics reform — they don't want to prohibit the use of these corporate contributions, these soft-money ads — where it is not disclosed who the contributors are."

Republican consultant John Colyandro, indicted for laundering corporate contributions in the 2002 elections, quoted in the Houston Chronicle about authoring the Texas Conservative Coalition's critical analysis of legislation regulating corporate contributions in campaigns: "My job with the coalition is to review all the important pieces of legislation that is making its way through the Texas Legislature without regard to any particular member's interests on any particular interests on part of staff here."

Rep. Charlie Howard, R-Sugar Land, in a Fort Worth Star-Telegram report on textbooks: "I don't believe in evolution — I believe in creation. Some of our books right now only teach evolution — if you're going to teach one, you ought to teach both."

Texas AFL-CIO Legal Director Rick Levy, talking with The Dallas Morning News about a Senate bill limiting asbestos and related lawsuits: "Compared to where the law is now, I don't like it. Compared to what could happen under the current political environment, I can live with it."


Texas Weekly: Volume 21, Issue 44, 2 May 2005. Ross Ramsey, Editor. George Phenix, Publisher. Copyright 2005 by Printing Production Systems, Inc. All Rights Reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. One-year online subscription: $250. For information about your subscription, call (800) 611-4980 or email info@texasweekly.com. For news, email ramsey@texasweekly.com, or call (512) 288-6598.

 

The Week in the Rearview Mirror

But if you need to see the Senate's proposed tax bill, download it here. When the legislative website catches up, we'll link to their official (and hopefully, searchable) version. This smaller file was handed out with the Senate's proposal and gives you the short version of what's in the tax bill and the constitutional amendment that goes with it. Click here to download it.

Feeling the sting of a two-year-old vote to deregulate college tuition, the Texas Senate voted to reconsider.Feeling the sting of a two-year-old vote to deregulate college tuition, the Texas Senate voted to reconsider. They're not lowering tuition, and they're not telling public colleges and universities to lower the price of higher education. But lawmakers who meet in two years would have to decide whether the Legislature or the schools should decide the price of public higher education. The Senate voted to take away the schools' pricing freedom in September 2008, unless the Legislature votes sometime between now and then to let the schools set their own tuition prices. In the meantime, it assigns state officials to study the effects of tuition deregulation. For decades, tuition at public universities in Texas was set by the Legislature as part of the budget. But two years ago, House Speaker Tom Craddick and other lawmakers allowed the schools to set their own prices. Prices jumped. It didn't hurt, for purposes of getting this through the Senate, that it was a pet issue of Craddick's two years ago. The House and the Senate are in their biennial battle over which side is doing most of the work -- a battle that at the moment has brought on a most severe case of legislative constipation -- and putting an expiration date on a Speaker's pet. According to Sen. Rodney Ellis, D-Houston, average tuition at state schools has risen 43 percent. The numbers are higher at the bigger and more popular universities, up 104 percent at the University of Texas at Austin, 65 percent at Texas Tech and the University of Houston, and 61 percent at Texas A&M. The schools say the high prices are more in line with actual costs. And their advocates in the Lege say lawmakers have been underfunding state colleges for years. But the sticker shock had some political backlash (though not yet enough to get anyone unelected). The Senate's "sunset provision" was sponsored by Ellis and passed after Lt. Gov. David Dewhurst helped round up votes and then to work a deal between Ellis and Sen. Florence Shapiro, R-Plano, whose bill Ellis was amending. Her legislation called for a study on the effects of tuition deregulation; Ellis' amendment set up would set up the next Legislature to choose between setting rates itself or letting the colleges continue. The bill's on its way to the House, where most Senate legislation -- like House legislation in the upper chamber -- is stuck.

The slow wheels of legislation are starting to grind on workers' compensation insurance reform.The House committee that has been holding a Senate version for weeks made some changes and sent it along to the agenda-setting Calendars Committee. And the Senate panel that's been sitting on a House version for several weeks started doing some work on that, putting up its own version and voting it out of committee. We're not aware of a deal that gives one bill preference over the other, but at least they're moving. The issue has been held up in a dispute over which version should move forward. The governor's office has been quietly intervening to get the two sides talking, and apparently, they've made a bit of headway. There are some substantive differences, not the least of which is how to regulate that kind of insurance. The Senate, working from its own interim study on the issue, wants the Texas Worker's Compensation Commission to remain a separate agency. The House, which is carrying the sunset legislation that would keep the agency alive or let it die, wants to merge TWCC into the Texas Department of Insurance. The idea, apparently, is to get the bills to a conference committee for a final fight before time runs out.

While the House was still working on legislation (HB 1706) that raises the level of identification voters must show election judges, 11 of the 12 Democrats in the Senate were signing a petition saying they'll vote against consideration of that legislation.Unless somebody flips (or leaves the room when the measure arises), that kills the bill. It takes two-thirds of the 31-member Senate to bring up legislation for debate; 11 votes are enough to block it. Sen. Ken Armbrister of Victoria is the only Democratic senator who didn't sign the petition; the signers are the same 11 senators who moved to New Mexico for a month in a failed attempt to block a congressional redistricting bill in 2003. That legislation, sponsored by Rep. Mary Denny, R-Aubrey, in the Houston, has been a pet project for the state GOP. It would require voters to show photo identification to prove they are who they say they are. Democrats in the House opposed it -- some branded it as a racist measure -- but it passed 78-67 after a fairly long debate. The Senate petition says the bill's requirements are "onerous" and says allegations of voter fraud in recent elections have been overblown. "The bill attempts to solve a problem that has not been proven to exist," the petition says.
-- The House spiked another piece of election reform legislation last week, but there's more news to come on that front. Reps. Todd Smith, R-Euless, and Jesse Jones, D-Dallas, filed papers saying they'll be writing a minority report on HB 1348, which stalled on a 4-2 vote in Denny's House Elections Committee. That legislation would limit the uses of corporate and union money in campaigns, and would prohibit so-called "issue ads" in the last weeks before an election. The House voted down an effort to pull the bill out of committee for consideration; the Senate companion bill is still alive, but stalled.

A state property tax will cost taxpayers in about a quarter of the state's school districts their local homestead exemption, cutting into their property tax savings. In 180 districts -- including Houston, the state's largest -- current proposals for a state property tax could mean higher residential property tax bills.If lawmakers choose a state property tax to solve school finance, property tax rates will have to drop 20 percent from current levels before homeowners in many school districts see any property tax relief. The state's top rate for maintenance and operations taxes would have to drop from $1.50 to $1.20 before they'd see savings. The first-year cut proposed by the Senate is lower than that -- dropping 13.3 percent to $1.30 -- but homeowners would keep their local property tax exemption that year. In the second year of the cuts, a state property tax would replace the local tax -- and the local exemption. That year, voters in districts with high local exemptions would see a higher tax bill. With local add-ons, the overall property tax rate would eventually top out at $1.25, resulting in higher tax bills in some districts than homeowners pay today. Houston homeowners could actually do better if the legislative plans are a half-success, cutting local school property taxes but failing to replace them with a state property tax that kills local homestead exemptions. Under current law, school districts are allowed to exempt up to 20 percent of a homestead's value from their tax rolls, in addition to the exemptions allowed under state law ($15,000 for homesteads, and another $10,000 for taxpayers over age 65). The Senate's version of a state property tax leaves the state exemptions in place, but does away with the local options. It's not a local tax anymore, and that kind of local variation would make the tax higher or lower depending solely on the location of the taxpayer. Houston might cut homeowners a break while McAllen might not, and that would be unequal taxation at the state level. The 20 percent tax break is, for the moment, a boon to homeowners in Houston and 179 other districts -- including most of the others in Harris County, the Highland Park ISD in Dallas County, Galveston ISD, West Orange-Cove (the lead district in the lawsuit against the state's current school finance system), Mineral Wells, Lago Vista and Lake Travis in the Austin area, Ysleta, and a mess of others. Other districts around the state give smaller but still significant local exemptions. Dallas ISD, the state's second biggest, knocks 10 percent off the value of homes for tax purposes. So do Richardson ISD, Midland ISD, Jefferson ISD and several others. The local breaks are in addition to the exemptions in state law for homeowners and, separately, for the elderly. And the rest of the state's districts -- the 700-plus that don't give local exemptions to homeowners -- base their taxes on appraised values less the state's exemptions. Homeowners in those districts would get the full benefit of property tax cuts under a state property tax. Homeowners elsewhere would offset their property tax rate cuts against the loss of their exemptions. The more generous the current exemptions, the less they'd benefit from the switch to a state school property tax, even with its lower rate. The Senate wants to lower the cap on local school property taxes to $1.30 from the current $1.50. Senators would give voters a chance to replace those local taxes with a $1.10 state property tax. Local schools could add back up to 15 cents in local money onto that over time, bringing the ultimate rate to $1.25. If voters rejected the constitutional amendment, the state cap on local school property tax rates would stay at $1.30. As long as that's a local tax, the school districts have the option of continuing their 20 percent homestead exemptions. Even with a state property tax, they'd be able to grant the local exemption from taxable values for the locally added 15 cents for local enrichment. If they find themselves needing more money, they could also kill the local exemption altogether, bringing themselves in line with most of the school districts in Texas. Some examples: The owner of a $100,000 home in a district that gets only the state exemption takes $15,000 off the appraised value and thus pays taxes only on $85,000. At a $1.50 tax rate per $100 in value, that's $1,275. Under the Senate plan, the base value would remain at $85,000. In the first year, with a $1.30 local tax rate, the bill would come to $1,105, for a savings of $170. In year two, assuming voters went along, the state rate would drop to $1.10; the total bill would drop to $935, or $340 less than the current tax. In a district with the 20 percent exemption, the numbers would be much different. Take off $15,000 for the state exemption, and $20,000 for the local exemption. The taxable value of that $100,000 house drops to $65,000. At a $1.50 tax rate, they're getting a deal right now, paying $975. The Senate plan would lower the rate the first year and leave the exemption in place, resulting in a tax bill of $845, a savings of $130. But with the constitutional amendment and the state property tax, the exemption would disappear as the rate fell to $1.10, bringing the tax bill to $935. That's a net annual savings of $40. Rising property values and local enrichment taxes would eat at that amount. The folks with 10 percent local exemptions get a mixed result. Their $100,000 homes are on the tax roll at $75,000 now, meaning the tax at the $1.50 rate is $1,125. Their first year deal would net out at $975, a savings of $150. Their third-year number would be $935, a drop of $190 from current law. Assuming voters approved the constitutional amendment, third-year savings for the owner of a $250,000 home would be $940 in the district with no local exemption, $565 in the district that currently has a 10 percent local exemption, and $190 in the district with the 20 percent local exemption. That's how the state property tax is set up in the tax bill. There's an alternative version in the school finance bill that would replace the $1.50 cap with a $1.30 cap the first year, and then replace that with an 85-cent state tax combined with a 25-cent local tax. That still brings the second-year total to $1.10, but the local homestead exemption would apply to the local part of the tax, lowering the size of the bill. For the owner of a $250,000 home in a district with the 20 percent exemption, the current tax at $1.50 is $2,775. It would drop to $2,405 at $1.30, and then would rise to $2,460 when the state/local property tax kicked in. That third-year would only set up that way with a constitutional amendment. As with the other state property tax, most voters in Harris County, under that plan, would be asked to vote to raise their school property taxes. In places with lower local exemptions, the tax bill would drop in both the first and second years of the shift. Think about voting patterns when that constitutional amendment goes on the ballot: The first break would go to homeowners in places like San Antonio and Austin, the second in Dallas, the third in Houston. And remember that Houston homeowners (and others with 20 percent breaks now) would actually get a better deal if the Senate plan passes and the constitutional amendment fails. For them, that's the best mix of tax cuts and continued homestead exemptions. Remember, too, that Harris County accounts for more than 25 percent of the entire state vote in most constitutional amendment elections. In all cases, local districts would be able to add on relatively small amounts for "local enrichment." School districts would be allowed to phase in those local add-ons, up to a maximum of 15 cents under the Senate scheme. That'd put the top tax rate at $1.25, or a nickel more than the break-even tax cut in Houston and other districts with 20 percent tax exemptions.

Officeholders who weren't in the Pink Building in 1997 are finding out now what George W. Bush found out then: Even when everything appears to be lined up just right, it's almost impossible to pass a tax bill.When the circumstances aren't perfect -- now is a good example -- it's even harder. Lt. Gov. David Dewhurst blew off some steam at business lobbyists early in the week, basically saying they were out there protecting the loopholes they currently enjoy. That came after representatives of some of the bigger taxpaying businesses gave him a thumbs-down on the Senate's tax plan. They prefer the House plan, or nothing, or something they haven't seen yet, to what the Senate was pitching. The kvetching deepened as the week wore on, and the twin bills to rewrite state education laws and cut local school property taxes -- bills that were supposed to come up for floor votes in the last week of April and the first week of May -- were pushed back another week. Sen. John Carona, R-Dallas, wrote a letter to his fellow senators that outlines a less ambitious package for school finance. That gave voice to previously quiet concerns that the Senate bit off more than it can chew politically. Carona opposes a state property tax, wants to lower local property taxes a quarter instead of 40 or 50 cents, wants to revise the current corporate franchise tax while leaving out real estate and oil and gas partnerships, and wants to add about $4 billion to what the state spends now on schools. "Nobody deserving of the office of state senator is going to be defeated at the polls for adequately funding our schools and casting a vote for lower property taxes," he wrote. "This is one among several possible alternatives that will fix the problem without devastating the Texas business climate." You can see the whole letter at this address: www.texasweekly.com/documents/CaronaTaxLetter.pdf While that noise level rose, the wonks chewing on the legislation started finding problems. The biggest might be with the Senate's plan for a state property tax, which, as proposed, would put voters in the state's two biggest counties in the position of voting for a constitutional amendment that would increase their school property tax bills. The timing mismatches in the bill have been mentioned here earlier -- new tax money initially comes in faster than it's needed for buying down local property taxes. That makes it harder to argue that the legislation is a net tax shift -- not a decrease or an increase. That claim would be true over time, but not at first. And it creates a real problem if voters decide they don't want a state property tax. State tax increases, in that instance, would outrun local property tax cuts. That's a tax increase, and Republican lawmakers don't like the sound of that. Dewhurst was hoping the biggest taxpayers in the state would get on board and help sell the Senate plan to the House, to the governor, and eventually, to the public. Like the last guy who attempted this (and went on to much higher office), he's getting schooled. The current franchise tax applies to about 17 percent of the state's businesses, according to the tax wonks who watch this stuff. You're more likely to hear it described as five out of six businesses taking advantage of loopholes, but the fact is that only one in six is legally required to pay the tax. The replacements cooked up by the House and the Senate are designed to spread that out, to increase the number of businesses paying the tax and to lower the rate so that they won't pay so much. The first problem is that 83 percent of the state's businesses -- those not in the 17 percent paying now -- would be subject to a new tax. There are cutouts for small businesses and so on, but that's the general idea. For many of those new taxpayers, property tax cuts will offset the taxes. But one of the political questions is whether the Legislature can add that many taxpayers to the rolls without inciting a mob to grab the torches and pitchforks and march on the castle. Ask a legislator if she's more likely to hear from the new taxpayer or the old one when she goes home after voting to broaden the franchise tax. Business lobsters have been telling the Senate and for weeks that they prefer the idea baked up in the House, which would let businesses choose from two different business taxes. Sen. Kim Brimer, R-Arlington, has been pitching a "basket" tax for nearly a year. The idea is similar to what got out of the House: Offer businesses the choice of a tax on payroll, one on compensation (which grabs partners and others who aren't technically on the payroll) and gross receipts. They'd pay some tax no matter what, but they'd have some flexibility. That's one of the options back on the table now that the Senate plan has unraveled. As we went to press, the Senate Finance Committee, led by Sen. Steve Ogden, R-Bryan, was reworking the bill, trying to more closely match state tax increases with local tax cuts, incorporating appraisal caps for local school taxes, and trying to wire around exemption differences from one district to the next. They hope to get a bill in front of the full Senate after Mother's Day.

The legislative calendar starts getting very interesting next week.The rules are designed to end legislative sessions without any sudden stops, kind of like putting on the brakes when the driver's ed teacher says you're supposed to instead of waiting until the red light is above you. This is more important on the House end of the building, since the Senate regularly suspends its rules and ignores internal deadlines. House Committees have to kick out legislation by next Monday, and next Thursday is the last call for House legislation on the floor of that chamber. After that, it's all local bills, Senate bills and conference committees. Committees in the lower chamber have to finish with Senate legislation on May 21, and the full House has to see those things by the 24th. Conference committee reports have to be approved by both houses by the end of business on Sunday, May 29. Download a copy of the calendar here.

Political People and their Moves

(Updated) Sen. Chris Harris, R-Arlington, got three bills affecting ethics and lobby regulation passed on the local calendar. What was unusual about that? They weren't on the local calendar.We have to give credit where it's due: the Texas Legislative Service noted the discrepancy and flagged subscribers. Harris, the author of all three bills, is the chairman of the Senate Administration Committee that's responsible for assembling the local calendar and seeing it through in a weekly session in the always empty Senate Chamber -- a "trust me" system where the vote is always 31-0. Two of the three unscheduled bills (SB's 1009, 1010, and 1161) require lobbyists to report buying gifts worth under $50 that are delivered to legislators somewhere other than in the Pink Building; and allows lobbyists to represent clients that conflict with each other if the clients know about the conflict. The third gives candidates and officeholders some slack if they file reports late with the Texas Ethics Commission. UPDATE: Michael Grimes, an aide to Harris, says they goofed thinking the bills were eligible because they had been on previous local calendars but held back. The current plan is to let the Senate bills rest in purgatory and to pass the House versions, which have already passed in the lower chamber and are now in Senate State Affairs. "We weren't trying to do anything nefarious," he said. We've also learned more about the ethics bills in question. The gift bill would allow lobbyists and others to give food baskets, for instance, to lawmakers as gifts without sitting down to eat with them. The current deal on food is that you can't buy it for a lawmaker unless you're also there to eat it. Meals would still be under the old rule. And supporters of the "late reports" bill say they're just trying to make it easier and less punitive for filers to correct non-material mistakes.

Barkley, Evans, Connor, and a mess of gubernatorial appointmentsKinky Friedman, one of only two people definitely running for governor of Texas, went and got the same hired hand who helped make Jesse Ventura the governor of Minnesota. Dean Barkley, founder of that state's Independent Party, will be campaign director and chief strategist for Friedman. Barkley, appointed by Ventura to fill in when U.S. Sen. Paul Wellstone was killed in a plane crash, said the Ventura candidacy increased voter turnout. In Texas, where 29.3 percent of eligible voters showed up for the last governor's race, he's hoping to repeat the performance. Former U.S. Commerce Secretary Don Evans signed on as chief executive of the Financial Services Forum, which describes itself as a group 18 CEOs of large diversified financial institutions designed "to promote policies that enhance savings and investment in the United States, and that ensure an open, competitive and sound financial services marketplace." Former Texas Secretary of State Geoff Connor is joining the Jackson Walker law firm's Austin office, where he'll work on administrative, regulatory and governmental affairs. He did government stints in the governor's office, the agriculture department and the Commission on Environmental Quality, and also worked as a lobbyist, before becoming the state's chief elections officer. Appointments Gov. Rick Perry appointed Lupe Fraga of Sugar Land and Gene Stallings of Powderly to the Texas A&M University System Board of Regents. Fraga is chairman and CEO of Tejas Office Products and chairman of the Dallas-Houston branch of the Federal Reserve Bank. He's an Aggie alum, and played baseball there. Stallings is an Aggie, too, and was the school's head football coach, an assistant coach for the Dallas Cowboys, head coach at the University of Alabama, and for the St. Louis-turned-Arizona (football) Cardinals. The Guv appointed Cindy Lyons, a CPA from El Paso, to the state's Finance Commission, which oversees state-chartered financial institutions. Perry named Andy Sheppard of Rockwall to the Texas Polygraph Examiners Board, which regulates Sheppard and other lie detector operators in the state. Carlos Chacon of El Paso and Whitney Wolf of San Antonio are Perry's latest picks for the Texas Skill Standards Board. He directs federal sales for Computer Assets; she's VP of labor relations for SBC. Add three names to the Texas Board of Architectural Examiners: James Walker II of Houston, president of James S. Walker Architects; Rosemary Gammon of Plano, a national account manager with Orthofix, Inc.; and Peggy "Lew" Vassberg of Lyford, president of Valley Designs, Inc. The governor picked Kenneth Mitchell of El Paso for a spot at the State Office of Risk Management. He's the president of an insurance agency there.

Write about legislation for an audience interested in government and politics and you get some feedback. But write about a wedding on the House floor...Rep. Mary Denny, R-Aubrey, is supposed to get married on the House floor, during a break in the usual proceedings, on Friday, May 6, to Mr. Norman Tolpo. We noted that a couple of weeks ago, and said it was unusual. Maybe, but three exceptions came quickly to the minds of readers. Former Rep. Bill Carter, R-Fort Worth, and his wife Virginia, who was a Senate employee at the time, got married in the House Chamber. Helen Dey Valdez, (Dey then, Valdez now) got married to her former husband in a ceremony that required a House resolution for permission, in 1993. And former state Rep. Ralph Wallace was married in the House Chamber in 1979, also after a special resolution. Thanks (honest!) to the emailers for the history lessons.

Comptroller Carole Keeton Strayhorn's appearance at a rally against new toll roads in the state prompted the crowd to change its road chants to political chants against Gov. Rick Perry.There, at the South entrance to the Capitol right outside the governor's state offices, the crowd of about 150-200 broke into chants of "No more Perry!" and "Impeach Perry!" Strayhorn was hard against toll roads, blaming the resurgence of the idea on Perry and his appointees at the Texas Department of Transportation. She also took several swipes at the contractors who won the right to build the first part of the Trans-Texas Corridor, an enlargement of the state's highway, rail and other transportation systems being implemented by TXDOT. A Spanish company dominates that consortium, leading Strayhorn to a "TXDOT, not Euro-DOT" line. And she said the roads ought to be approved only after public votes. Perry aides shot back with a list of past performance reviews from her office they said sympathetic to toll roads. But she refuted that item by item, saying the reports talked about toll roads, sometimes in the context of solutions to transportation problems, but didn't endorse them.

The growing list of potential candidates for 2006Former U.S. Rep. Nick Lampson, D-Beaumont, has filed his papers and is officially raising money to challenge U.S. House Majority Leader Tom DeLay, R-Sugar Land in next year's elections. The districts are barely adjacent -- a finger of Lampson's old district touches DeLay's. After the GOP-dominated Legislature redrew his congressional district, Lampson lost to Republican Ted Poe. Houston City Councilman Gordon Quan is also considering a run against DeLay. Richard Morrison, who lost to DeLay last year, has said he won't seek a rematch. • Republican attorney and banker Francisco "Quico" Canseco of Laredo says via press release that he deposited $1 million into a federal campaign account, to be used in his race to succeed U.S. Rep. Henry Bonilla, R-San Antonio, should Bonilla run for the Senate spot currently occupied by Kay Bailey Hutchison if she decides not to seek reelection next year. Hutchison has been looking at running for governor, and told voters years ago that she'd limit herself to two terms in office. Bonilla says he won't run if she does, and Canseco won't run if Bonilla stays put. Canseco says the state's "Hispanic Republican seat" should remain just that if Bonilla moves on. He says the contest, if there is one, would cost him $2.5 million to $3 million. Republican consultant Todd Smith is signed up for that one. And of course there's a website: www.cansecoforcongress.com • This one's just a website so far, but along those same lines: Juan Garcia III of Corpus Christi is starting up a campaign for U.S. Senate. He's a naval aviator and Gulf War vet who left the service last October. He claims college degrees from UCLA and John F. Kennedy School of Government at Harvard, and Harvard Law School. He doesn't note his party affiliation anywhere on his website, which can be found at: www.garciafortexas.com

Quotes of the Week

Duncan, Perry, Ogden, Talton, Earle, Mayfield, Shannon, Strayhorn, Edwards, Thompson, and ShapiroSen. Robert Duncan, R-Lubbock, arguing over whether public colleges should be allowed to continue setting their own tuition, as the Legislature ordered two years ago: "This is a great debate we're having. We should have had it last session." Gov. Rick Perry, telling The Dallas Morning News that the state law that gives college admissions preference to students in the top ten percent of their high school class drives good students out of Texas: "I'd do away with it tomorrow... The top 10 percent [law] is the best thing that ever happened to LSU and Arkansas and Oklahoma." Sen. Steve Ogden, R-Bryan, on why booze got included in the Senate's tax plan: "There is no particular social motive behind it. If you're going to raise sales tax, you're going to raise cigarette tax, the question is why not alcohol. The answer is there is no good reason." Rep. Robert Talton, R-Pasadena and the chairman of the Harris County delegation, letting groups dine with and lobby lawmakers in a room at the Capitol: "I told them when I was elected that the only time I was going to meet was if somebody fed us and talked to us." Travis County District Attorney Ronnie Earle, in the Fort Worth Star-Telegram: "Justice depends on the law. The law depends on democracy. Democracy depends on clean elections. Elections in which large corporations and large labor unions buy elections represent a threat to democracy, so the job of a prosecutor is to safeguard democracy." Dallas County Commissioner Kenneth Mayfield, a Republican, telling The Dallas Morning News that state attempts to limit local government growth will hurt business development: "The governor clearly doesn't understand -- perhaps he doesn't have the capacity -- that local governments can attract businesses, not the state. It's the city and county, by offering more attractive tax abatements, that bring in business." Russell Shannon with the Andrews Industrial Foundation, quoted by the Associated Press on that town's efforts to attract a hazardous waste disposal facility: "If we thought we could get an NFL franchise or a river walk, we wouldn't have looked at this industry. We just believe it will bring us some jobs, bring people to our community to get involved in an industry, like they did with oil." Comptroller Carole Keeton Strayhorn, talking to toll road opponents outside the state Capitol: "Perry and his hand-picked highway henchmen say we have a choice: No roads, slow roads or toll roads. I say to Governor Perry and his highway henchmen, 'Hogwash.' Vote our way today for freeways." Rep. Al Edwards, D-Houston, arguing for his legislation regulating cheerleading routines in public schools: "Girls can get out and do these overtly sexual performances and we applaud them. And that's not right. This is the beginning of an era to change some of what we've been seeing." Rep. Senfronia Thompson, D-Houston, arguing against that same bill (which passed the House): "This is a ridiculous bill. I don't know how it got to the floor. We don't have any business mandating anything. We are spending time on '2-3-4, we can't shake it anymore.' It's an embarrassment." Sen. Florence Shapiro, R-Plano, quoted in the San Antonio Express-News saying cheerleader regulation ought to remain in the school districts: "What happens in those local districts needs to stay in local districts."