The Week in the Rearview Mirror

A Travis County grand jury indicted the Texans for a Republican Majority PAC and the Texas Association of Business on charges relating to the use of corporate money in the 2002 legislative election. The five indictments include a total of 130 counts alleging third degree felony violations of campaign finance laws. Copies of the indictments (in Adobe Acrobat format) can be downloaded from these links: The State of Texas v. Texas Association of Business, Counts 1-28: Prohibited Political Contribution by Corporation
Criminal Action No. D1-DC-05-900533 The State of Texas v. Texas Association of Business, Counts 1-14: Prohibited Political Contribution by Corporation
Criminal Action No. D1-DC-05-900534 The State of Texas v. Texas Association of Business, Counts 1-3: Prohibited Political Expenditure by a Corporation.
Criminal Action No. D1-DC-05-900535 The State of Texas v. Texas Association of Business, Counts 1-83: Prohibited Political Contribution by Corporation.
Criminal Action No. D1-DC-05-900667 The State of Texas v. Texans for a Republican Majority PAC, Counts 1 & 2: Unlawful Acceptance of Corporate Political Contribution.  Criminal Action No. D1-DC-05-900669 

You can get copies of the indictments and the exhibits related to them from this directory on our website -- www.texasweekly.com/documents/TAB-TRMPAC -- even if you aren't a subscriber (but by all means, subscribe). Lawyers will notice that the indictments don't carry the time stamps that get attached when these things are officially filed. These electronic files were obtained from the Travis County District Attorney's office, and represented to us as duplicates -- sans stamps -- of what got filed with the Travis County District Clerk. The package of electronic files includes nearly 100 exhibits that go along with the indictments. Those include two television commercials, one knocking Democrat John Mabry and boosting Republican Holt Getterman, the other promoting Rep. Gene Seaman, R-Corpus Christi. And they include more than 80 examples of printed direct mail advertising used in those campaigns, allegedly to the benefit of Republican candidates and the detriment of Democrats. We worded it that way in the previous sentence because the two groups have defended their advertising as "educational" -- not the sort of politicking that corporations and labor unions are barred from doing. See for yourself, in the multimedia and zipped files on our website (if you have problems opening them, shoot us an email and we'll offer what help we can): The Mabry and Seaman ads are at these links: www.texasweekly.com/documents/TAB-TRMPAC/mabry.mpg www.texasweekly.com/documents/TAB-TRMPAC/seaman.mpg And the direct mailers are in (fairly large) zipped files in this directory: www.texasweekly.com/documents/TAB-TRMPAC. 

How'd that audit of the comptroller slip into the papers before it was out? The State Auditor's Office didn't officially release its audit of the comptroller's tax settlements until 3 p.m. on Thursday, September 8. That was roughly nine hours after newspapers bearing the details of the audit started hitting driveways in Dallas and Houston. And it was almost 24 hours after the reporters who wrote those stories started working the phones to put the details together. State Auditor John Keel stuck to his schedule even after the news broke and didn't put the final audit report on his agency's website until the scheduled hour. He says he didn't let it loose to anybody outside of his own shop and the comptroller's office -- which gets a chance to respond in writing to a draft, and to have that response included in the final audit report -- and to the members of the Legislative Audit Committee. That lets the obvious beneficiary -- Gov. Rick Perry, who's being challenged for his job by Comptroller Carole Keeton Strayhorn -- off the hook, at least directly. On the same grounds, it also lets the Democrats off the hook. So who leaked? Dunno. But we'll quote Benjamin Franklin: "Three may keep a secret, if two of them are dead." There's the comptroller and her aides, who showed at least some of the draft report to at least some reporters, the better to spin it their own way. And there are the members of the LAC: Lt. Gov. David Dewhurst, House Speaker Tom Craddick, Sens. Steve Ogden, R-Bryan, and Tommy Williams, R-The Woodlands, and Reps. Jim Pitts, R-Waxahachie, and Jim Keffer, R-Eastland. 

You can't tell from outside whether a comptroller is playing footsie with taxpayers or not, unless a taxpayer jumps up and opens the company books and the political checkbook and starts telling a tale. And that's the difference between the actual substance of an audit of comptroller tax settlements and the political substance of that same audit. The State Auditor didn't find any wrongdoing, but without saying any such thing ever happened, recommended some changes in law that might prevent future comptrollers from using tax settlements as bait for political giving. But just the fact of the report opened a question about whether Comptroller Carole Keeton Strayhorn -- who's running for governor -- has been encouraging and/or rewarding political contributions with favorable treatment in tax cases. Strayhorn called it a win, saying the auditors looked at her agency for three years and found nothing wrong. Gov. Rick Perry went the other way: "The audit report is very troubling because it raises serious questions about the independence of the state's tax collector, and whether she has provided favorable tax treatment in exchange for campaign contributions." Here's a problem that has plagued questions like this one for a long time: Tax records are private. Unless the taxpayer in the middle of a fight with the comptroller opens up the books voluntarily, the public can't peek inside to see who's zooming whom. An attacker in Perry's position can raise questions but can't bring proof. A defender in Strayhorn's position can say politics weren't in play, but can't prove it. The system is built to look the same to outsiders whether it's run honestly or not. The auditors -- prompted by a Legislature that, at the time, was steaming mad at Strayhorn -- started with a question about politics and state business: Is there any linkage between settlements of tax cases and political contributions to the state's elected tax collector? But after three years looking for stains in the spreadsheets, they started their report with a disclaimer: "We make no conclusions regarding the information in this report. We are not implying any wrongdoing on the part of any individual or group associated with the information in this report..." But the question turns up some damning numbers. Auditors said they found 3,656 tax settlements involving 755 different taxpayers that took place within a year of a related political contribution. The audit assessments in 146 of those cases were lowered by at least $10,000. They identified 19 named firms and unnamed individuals who represent taxpayers in cases before the comptroller's office and who, during the 1998-2004 time frame, contributed a total of $1.7 million to the sitting comptroller. (Strayhorn took office in early 1999, succeeding Democrat John Sharp; the 1998 contributions to Sharp made up $137,650 of the total for those seven years.) One firm -- Ryan & Co., which now employs Sharp -- topped the contribution list with $812,928. Most of that money went to Strayhorn; the firm and its principals are among her top contributors. The auditors recommended some changes in law, saying lawmakers should prohibit contributions to comptrollers from taxpayer representatives, requiring those consultants to register as tax folk with the Texas Ethics Commission, require comptrollers to keep a registry of which representatives are working on which cases, and move the tax courts that decide these cases out of the comptroller's office and into the State Office of Administrative Hearings. The full audit report is available at the State Auditor's website if you want to read it before the campaign season begins. You'll certainly be hearing more about it then. The link: Here's a problem that has plagued questions like this one for a long time: Tax records are private. Unless the taxpayer in the middle of a fight with the comptroller opens up the books voluntarily, the public can't peek inside to see who's zooming whom. An attacker in Perry's position can raise questions but can't bring proof. A defender in Strayhorn's position can say politics weren't in play, but can't prove it. The system is built to look the same to outsiders whether it's run honestly or not. The auditors -- prompted by a Legislature that, at the time, was steaming mad at Strayhorn -- started with a question about politics and state business: Is there any linkage between settlements of tax cases and political contributions to the state's elected tax collector? But after three years looking for stains in the spreadsheets, they started their report with a disclaimer: "We make no conclusions regarding the information in this report. We are not implying any wrongdoing on the part of any individual or group associated with the information in this report..." But the question turns up some damning numbers. Auditors said they found 3,656 tax settlements involving 755 different taxpayers that took place within a year of a related political contribution. The audit assessments in 146 of those cases were lowered by at least $10,000. They identified 19 named firms and unnamed individuals who represent taxpayers in cases before the comptroller's office and who, during the 1998-2004 time frame, contributed a total of $1.7 million to the sitting comptroller. (Strayhorn took office in early 1999, succeeding Democrat John Sharp; the 1998 contributions to Sharp made up $137,650 of the total for those seven years.) One firm -- Ryan & Co., which now employs Sharp -- topped the contribution list with $812,928. Most of that money went to Strayhorn; the firm and its principals are among her top contributors. The auditors recommended some changes in law, saying lawmakers should prohibit contributions to comptrollers from taxpayer representatives, requiring those consultants to register as tax folk with the Texas Ethics Commission, require comptrollers to keep a registry of which representatives are working on which cases, and move the tax courts that decide these cases out of the comptroller's office and into the State Office of Administrative Hearings. The full audit report is available at the State Auditor's website if you want to read it before the campaign season begins. You'll certainly be hearing more about it then. The link: www.sao.state.tx.us. Oh, yeah, about the cat in the headline. It's an allusion to indeterminacy -- things that can't be known for certain -- in physics.
Schrödinger's Cat You can't tell from outside whether a comptroller is playing footsie with taxpayers or not, unless a taxpayer jumps up and opens the company books and the political checkbook and starts telling a tale. And that's the difference between the actual substance of an audit of comptroller tax settlements and the political substance of that same audit. The State Auditor didn't find any wrongdoing, but without saying any such thing ever happened, recommended some changes in law that might prevent future comptrollers from using tax settlements as bait for political giving. But just the fact of the report opened a question about whether Comptroller Carole Keeton Strayhorn -- who's running for governor -- has been encouraging and/or rewarding political contributions with favorable treatment in tax cases. Strayhorn called it a win, saying the auditors looked at her agency for three years and found nothing wrong. Gov. Rick Perry went the other way: "The audit report is very troubling because it raises serious questions about the independence of the state's tax collector, and whether she has provided favorable tax treatment in exchange for campaign contributions." Here's a problem that has plagued questions like this one for a long time: Tax records are private. Unless the taxpayer in the middle of a fight with the comptroller opens up the books voluntarily, the public can't peek inside to see who's zooming whom. An attacker in Perry's position can raise questions but can't bring proof. A defender in Strayhorn's position can say politics weren't in play, but can't prove it. The system is built to look the same to outsiders whether it's run honestly or not. The auditors -- prompted by a Legislature that, at the time, was steaming mad at Strayhorn -- started with a question about politics and state business: Is there any linkage between settlements of tax cases and political contributions to the state's elected tax collector? But after three years looking for stains in the spreadsheets, they started their report with a disclaimer: "We make no conclusions regarding the information in this report. We are not implying any wrongdoing on the part of any individual or group associated with the information in this report..." But the question turns up some damning numbers. Auditors said they found 3,656 tax settlements involving 755 different taxpayers that took place within a year of a related political contribution. The audit assessments in 146 of those cases were lowered by at least $10,000. They identified 19 named firms and unnamed individuals who represent taxpayers in cases before the comptroller's office and who, during the 1998-2004 time frame, contributed a total of $1.7 million to the sitting comptroller. (Strayhorn took office in early 1999, succeeding Democrat John Sharp; the 1998 contributions to Sharp made up $137,650 of the total for those seven years.) One firm -- Ryan & Co., which now employs Sharp -- topped the contribution list with $812,928. Most of that money went to Strayhorn; the firm and its principals are among her top contributors. The auditors recommended some changes in law, saying lawmakers should prohibit contributions to comptrollers from taxpayer representatives, requiring those consultants to register as tax folk with the Texas Ethics Commission, require comptrollers to keep a registry of which representatives are working on which cases, and move the tax courts that decide these cases out of the comptroller's office and into the State Office of Administrative Hearings. The full audit report is available at the State Auditor's website if you want to read it before the campaign season begins. You'll certainly be hearing more about it then. The link: www.sao.state.tx.us. Oh, yeah, about the cat in the headline. It's an allusion to indeterminacy -- things that can't be known for certain -- in physics.
www.sao.state.tx.us" target="NewWindow">www.sao.state.tx.us
. Oh, yeah, about the cat in the headline. It's an allusion to indeterminacy -- things that can't be known for certain -- in physics. 

Signed: Two bills from that last special session now have Gov. Rick Perry's signature on them. He's okay with legislation that raises the pay of judges and the retirement benefits of legislators and other state officeholders. And he signed telecommunications legislation pushed by the phone companies and resisted by the cable TV companies. The cable guys were on the case right away, filing a federal lawsuit to challenge the law. They contend the phone companies' ability to get statewide franchises gives the new players an edge over cable companies that are locked into a variety of local franchise agreements for years to come. And they say the legislation would allow the phone companies to skip poor neighborhoods when they're pitching new services, violating federal redlining laws. • Just one example of what the legislative retirement change can do for somebody. Gonzalo Barrientos, D-Austin, announced this week he won't seek reelection to the Senate next year. He'll have 32 years on the job (22 in the Senate, 10 in the House) when he leaves. Under the old system, he'd be eligible for $74,851.20 per year. The new legislation raises that annual retirement pay to $92,000. • Comptroller Carole Keeton Strayhorn put out the (fiscal) year-ender on the state of the state's piggy bank, and there's a surplus of some $1.2 billion. That's money that didn't get spent when state leaders didn't work out a deal on school finance. Strayhorn followed by suggesting a quick special session to appropriate some of the surplus to use for Katrina assistance, to use some of the money to help with added loads on schools, police, and the like. It didn't take. The governor's response was tepid at best; aides said they'll wait to see the extent that the federal government will step up and help. And with their boss riding a wave of good will for the state's Katrina efforts, they don't want to resurrect the specter of special sessions. • Perry ordered flags to the half-mast position on state property for two weeks -- until September 20 -- in memory of Hurricane Katrina victims, U.S. Supreme Court Chief Justice William Rehnquist, and the victims of the 9/11 attacks four years ago. 

The Texas Association of Business, in an email sent to supporters and others, asks for PR and financial support for its fight against four indictments on campaign finance charges. A Travis County grand jury reported 128 third-degree allegations against the group this week, saying it illegally raised and spent corporate money on election-related activities and illegally coordinated its efforts with campaigns and other third-party groups. The email calls county prosecutors "a well-funded opponent who has an unlimited supply of money" and asks for financial assistance. It also includes a plea for others to "speak out" for free speech, and says if groups like TAB are shut down, people will have to depend on the news media for all of their information about how candidates behave once they leave home for Austin. Here's a copy of the whole missive (the "to" line was deleted by the lobbyist who sent us a copy of this):
From: Dalila Galindo
Sent: Thursday, September 08, 2005 6:40 PM
To:
Subject: TAB Will Fight For Every Texan's First Amendment Right
TO: VALUED TAB MEMBER FROM: YOUR FRIENDS AT TAB We are writing to you on a matter of extreme urgency and importance. Travis County District Attorney Ronnie Earle has indicted the Texas Association of Business (TAB) for allegedly violating the Texas Election Code. Nothing could be further from the truth. Everything TAB did as part of its public education program was in complete compliance with the laws of Texas. Everything TAB did was based on the advice of a highly respected election attorney. We will mount an extensive and expensive defense of TAB's and every Texan's First Amendment right - the right to criticize our government and our elected officials. In order for TAB to succeed, we need your help. We ask you to speak out on behalf of TAB and its exercise of free speech, and we ask for your financial support by either continuing your membership or joining TAB. This defense will be expensive, and we need your financial assistance to help cover legal fees. We face a well-funded opponent who has an unlimited supply of money - your hard earned tax dollars. So, please consider a contribution today. In 2002, TAB set out to inform the people of Texas about the goings on in Austin - about elected officials who talked about jobs before the Rotary back home but then voted against job creation in Austin. TAB created an impartial voting record outlining how many members of the Legislature voted to maintain an out-of -control civil justice system and voted time and time again to raise taxes on hardworking Texans. We then took this information and shared it with the folks back home. This is the heart and sole of this case: will TAB and other groups and organizations be able to communicate with the public or will the only source of information be left to the news media? Please do not abandon us in this hour of need. Please help our struggle with your wallet and voice. Someone once said a representative republic cannot remain a republic for long when its representatives become increasingly immune from public scrutiny and criticism. If Mr. Earle succeeds, many critics will be silenced. Please do not allow this to happen. Thank you for your attention. Don Shelton
Information Systems Director
Texas Association of Business
1209 Nueces Street
Austin, TX 78701
Phone: (512) 477-6721 ext 115
Fax: (512) 477-0836
E-mail: dshelton@txbiz.org 

The grand jury looking at campaign finance in the 2002 legislative elections restated and expanded its indictments against John Colyandro and Jim Ellis -- two associates of U.S. House Majority Leader Tom DeLay, R-Sugar Land. A Travis County grand jury restated money-laundering charges against the two men and adds charges they made illegal contributions of corporate money, that they gave money to the Republican Party illegally close (within 60 days) to an election, and that they criminally conspired to break state election laws. Click here for a copy of the new indictment (Adobe Acrobat format). Colyandro's lawyer, Joe Turner, couldn't be reached for comment. Ellis' attorney, J.D. Pauerstein, said there's nothing new for prosecutors to say that they couldn't have said a year ago, when his client was first indicted. "Frankly, I think it borders on prosecutorial misconduct to keep indicting these people over and over on the same charges," he said. Pauerstein passed up a request to speculate about the prosecutors' motives, but said he thinks the indictments were timed to beat the three-year statute of limitations on the alleged crimes. A check photocopied into the indictment matches -- with the exception of the year -- the date of the new and restated indictments. 

You can't tell from outside the comptroller's office whether anybody's playing footsie with taxes and political contributions. But they all have feet and their feet are under the tablecloth, and... Gov. Rick Perry wants to encourage voter suspicions. Here's his riff on the subject, when asked by reporters about the report and about whether the recommendations ought to apply to other agencies. He apparently took that to mean his office and appointments: "First and foremost, I think any citizen of this state can look at that audit and come away with the conclusion that there is some great concern about whether or not campaign contributions have been received in exchange for tax decisions. "Those that would say that that audit was a clear, clean bill of health, I disagree with. As did the auditor. The auditor said that they would certainly make substantial legislative changes. You know what the auditor laid out as those changes. If there's a clean bill of health there, there's no recommendations of that drastic of changes, dealing with tax decisions. "From the standpoint of other state agencies, those of us in statewide elected office, the campaign contributions that I receive, it's very transparent of the appointments that we make, the campaign contributions. I think that's one of the very powerful issues in the comptroller's office, is you don't know. There is no transparency there. And that's, I think, what the auditor very clearly and I think appropriately exposed, was this clear connection between campaign contributions and tax decisions. Very troubling. Very troubling." For her part, Comptroller Carole Keeton Strayhorn points to the auditor's disclaimer about pointing no fingers and alleging no wrongdoing, and says that's a clean bill of health for her office. She says, through aides, that the current system is clean but that she'll follow whatever rules or laws the Legislature wants to put in place. 

Every so often, an experienced reporter from somewhere else will get hired into the Capitol press corps and will proceed to surprise and dominate competitors with stories that should have been obvious to the natives. Except that watching ethics change is an incremental business, like watching a kid grow up. The aunts and uncles from out of town are always surprised by growth that parents don't stop to notice. It's not always a reporter, or a new politico. Sometimes it's a state agency, like the State Auditor, which last week raised questions about the fact that comptrollers decide tax cases and that they take political contributions and that nothing in state law requires the sort of disclosure that would reveal any links between favorable rulings and generous support. They took care to say they weren't accusing anyone of anything -- Comptroller Carole Keeton Strayhorn seized on that as "clean bill of health" -- but just for future protection, they suggested several changes in law that would limit or prevent abuses. SAO was directed to look for links between campaign giving and the comptroller's official actions. The Legislature ordered that audit at a time when lawmakers were particularly miffed at Strayhorn. The orders didn't include any other agencies, but similar potential conflicts are easy to spot. Tom Phillips, the former chief justice of the Texas Supreme Court, spent years trying to figure out a politically acceptable way to select judges without having them take contributions directly from the lawyers whose cases they decide. Any number of candidates for the Texas Railroad Commission have promised to unlink energy industry money from the oil and gas cases the commissioners decide, but the questions have dogged that agency since its inception. Few political investors outside of the regulated businesses seem to care about the agency, at least in a financially substantial way. Those two areas, with their mix of judicial functions and elected officials, are directly analogous to the comptroller issue. It's familiar ethical ground for Strayhorn, who was at the RRC before her current gig. Other agencies have built-in potential conflicts. A Texas attorney general has to decide who to sue, and who not to sue, and which local bond issues ought to move forward -- all matters of interest to this potential contributor or that one. It's the AG who takes tax cases to court if the administrative remedies at the comptroller's office leave taxpayers in a litigious mood. And almost every AG has been accused by enemies of dangling legal opinions on open records and state laws in front of potential contributors. Land and agriculture commissioners have doggie biscuits to hand out, too, in the form of contracts and grants. Land Commissioner Jerry Patterson sees it in the agency's expansion into real estate and development: "El Paso is an example because we have a lot of surface land there... and I had a very successful fundraiser there." Water investors have been trying to get Patterson to open public lands for their use, and the agency makes other decisions that could be lucrative for private investors and business people. And governors and lieutenant governors, while they don't have any judicial duties, have huge powers in their branches of government. Executive agencies that aren't headed by elected officials are run by people who answer, directly or indirectly, to the governor. Rick Perry sees a difference between what the auditor saw at the comptroller's shop and what goes on elsewhere. Taxpayer representatives don't register as such with the state, so you can't tell from outside who's doing the giving and the getting. One such firm employs Strayhorn's predecessor -- Democrat John Sharp -- and is among her biggest contributors. The state auditor listed several firms and their contributions as illustrations of the potential for problems. 

Susan Combs, the state agriculture commissioner who's running for Strayhorn's job, endorsed Auditor John Keel's recommendations and added a few suggestions of her own, saying policy changes should be more widely available, that oral concessions should be banned during audits and replaced with written rulings, and saying the comptroller should keep a registry of tax decisions would be "fully disclosed," including "refunds granted and assessments reduced." Taxpayer records are generally closed to the public and it's not clear how much of each taxpayer's case would be disclosed. As for her current agency, Combs said -- through a political consultant -- that Texas Department of Agriculture decisions and her contributions are "totally transparent." Like Strayhorn, she has no objection to changes lawmakers might want to make. The auditor -- and the unstated promise that this will be a prominent issue in Perry's reelection race against Strayhorn -- gave ethics reformers some hope. "It's a great opportunity, and it's an issue that transcends the comptroller's office and has been a problem regardless of who the officeholder is and is the heart and soul of whether you get a fair shake," says Tom "Smitty" Smith of Public Citizen. "If you're in a position as an officeholder to make a ruling and you know there is a donor that is affected, it's going to make a difference in your decision. Any of them who says otherwise is not being honest about it." "The pattern is clear that large donations come in during periods of time when there is not an election going on, from people who have a lot riding on decisions before a wide variety of elected officials... and that should tell people a great deal about why these investors are making these decisions," he says. Smith supports the auditor's recommendations and would add to them. One proposal would bar donations timed around regulatory rulings. "The clear solution here is to ban contributions except in the period before the election," Smith says. "And that would do a lot to ease questions about whether contributions are tied to decisions." Several House members echoed Perry's concerns and said they'd sponsor legislation containing the auditor's recommendations for the comptroller's office. Democratic gubernatorial candidate Chris Bell said he'd go a step further to make high state office a less lucrative launch pad for lobbyists. Bell said top employees of the governor and other top state officials should be barred from lobbying any state agency, board or commission for a year after they leave state employment. Perry has a rule preventing his aides from lobbying his office, but they can lobby anywhere else in state government. Mike Toomey, a former legislator who gave up lobbying to be Perry's chief of staff, quickly rebuilt a successful lobby practice after leaving Perry's shop; Bell calls his idea the "Mike Toomey Revolving Door Ban." 

Well over 100 lobbyists assembled in an Austin hotel ballroom this week to hear a pitch from Ricky Knox for a new group called "Texans for Tourism." The idea is to bring gaming interests together for a unified push for expanded gambling in Texas. Knox was in the middle of the fight to get pari-mutuel gambling approved in the 1980s and in the battle for a state lottery in 1991. The opening pitch is to get video lottery terminals approved. VLTs are essentially electronic slot machines, and crossfire from horse tracks, casino interests and others made it relatively easy for gambling opponents to kill the idea during the last session (and the special sessions on school finance, which started more than a year ago). At this point, they're just talking. Knox didn't return numerous calls, but in his invitation letter to other lobbyists, he said he's pushing "a united, highly organized and coordinated legislative and public relations effort of all those interested in the legalization of video lottery terminals in Texas." He pitched the idea for several hours, asked everybody to mull it over and told them he'd call another gathering in about a month. The guest list included lobbyists who represent a wide range of companies, organizations, Indian tribes that are interested, variously, in lotteries, casinos, horse and dog tracks in Texas and in competing states. 

Polling on VLTs and on the governor's race.... Separately, a poll commissioned by the AtlanGroup LLC says 85 percent of Texans support putting VLTs on the ballot so voters can decide the issue. The pollsters asked people how they'd like a VLT referendum if the machines were installed at existing horse and dog tracks and if the money went to education, and 58 percent said they would vote in favor of that. We buried the lead, for the sake of transitions from gambling. The same pollsters asked about the governor's race. In the GOP primary, Gov. Rick Perry would beat Comptroller Carole Keeton Strayhorn 62-26 in a head-to-head contest. They have John Sharp at 32 percent, Felix Alvarado at 13 percent and Chris Bell at 11 percent in a Democratic primary. Alvarado and Bell are the only two who've said they'll run. They have Perry and Sharp in a statistical tie in a general election race. The pollsters -- Hamilton Beattie & Staff of Washington, D.C. -- interviewed 700 "registered likely general election voters," 430 "likely Republican primary voters," and 430 "likely Democratic primary voters." The general election sample included more Republicans than Democrats. The AtlanGroup shows up in Texas Ethics Commission records giving $50,000 to the Texas Democratic Party earlier this year, $50,000 to Lt. Gov. David Dewhurst, and $200,000 to Strayhorn. David and Martha Alameel, who show up as principals of AtlanGroup in some reports, have contributed amounts ranging from $100 to $50,000 to 21 politicians and organizations since 2000. According to TEC filings, those includes totals of $100,000 to Sharp, $75,000 to Dewhurst, $50,000 to Strayhorn, $40,000 to Attorney General Greg Abbott, $30,000 to Democrat Kirk Watson, who ran against Abbott in 2002. They gave $50,000 to the Texas Democratic Party. The couple's contributions -- most of them in his name -- totaled $479,800 from 2000 to 2004. 

Passing the cup, busted rumors, and some farm news They're still banging on federal heads to get the rest, but Texas politicos in Austin and Washington, D.C., got their first win in the battle for reimbursement for costs of Hurricane Katrina. The U.S. Department of Health and Human Services will pay 100 percent of Medicaid costs of the displaced and dispossessed driven to Texas by that storm. For Texas residents, the state pays in about $1 to draw in $2 in federal money. For the Louisianans (and those from other states who came here because of the storm) the feds will cover the whole tab. Still on the list: housing, public education, transportation, food, unemployment, and as Yul Brunner used to say in the musicals: Etc., etc., etc. • Rumors, dispelled: It's true that a table full of Democrats talked about getting Chris Bell to drop out of the governor's race and to run instead for Harris County judge, either against Republican Robert Eckels or for an open seat if he leaves. But Bell wasn't one of the people at the table and has no interest in county government. He's in the Guv's race to stay. • Another bit of bad gossip: Rep. Glenn Hegar Jr., R-Katy, says he's also heard the rumor that he'll run for Senate, and says it ain't so. He's running for reelection to the House. But he thinks Gary Gates, an opponent in Hegar's last two races, will be in the Senate race to challenge Sen. Ken Armbrister, D-Victoria. • Shane Sklar, the former executive director of the Texas Independent Cattlemen's Association, is putting together a challenge to U.S. Rep. Ron Paul, R-Surfside. He's a Democrat, and told the local paper he'd be the only member of the delegation with an ag job if he wins. • Todd Staples picked up an endorsement from the Texas Public Employees Association in his bid to be the state's next agriculture commissioner. The Palestine Republican is, so far, the only announced candidate in that contest to replace Susan Combs, who's giving up the post at the end of this term and seeking the comptroller's job. 

Lawmakers went home several weeks ago after failing to work out a solution to school finance, and chances are they'll be back in a few weeks or months for another crack at it. But they're still dueling, via mail and email. Several days ago, Bob Griggs, R-North Richland Hills, sent a letter explaining his decision to retire and imploring other educators (he's a former school superintendent) to consider running for office and to represent public education in Austin. Grigg's letter drew a response from Rep. Bill Keffer of Dallas, a fellow Republican who was on the other side of the education reform fight. He sent this email from his Capitol office to constituents earlier this afternoon.
From: Bill Keffer <Bill.Keffer@house.state.tx.us>
To: Bill Keffer <Bill.Keffer@house.state.tx.us>
Sent: Fri, 16 Sep 2005 14:00:25 -0500
Subject: Rebuttal to Representative Bob Griggs and the "Established Educators" Dear Friend of District 107: With the Texas Supreme Court poised to issue yet one more long-awaited ruling on school finance, and after three failed attempts by the state legislature just this year to successfully address the issue without the need for court intervention, the castigation and criticism are flying in all directions. Frustration will do that; frustration can also cloud judgment. The latest chapter in this year's "school-finance" saga is the announcement by Representative Bob Griggs (R - North Richland Hills) that he will not be seeking re-election to a third term. Griggs is a former school superintendent and was one of my classmates in a sizable group of freshman Republicans elected to the Texas House in 2002. In addition to his announcement to "step down", Griggs also issued a call to members of his education community to "step up" to the plate and take his place in the school-reform debate in Austin. In his "call to arms", Griggs wrote that he and ".a handful of other elected officials with education experience have witnessed and battled a misguided and widely held belief in the Legislature that established educators are the problem with education and that the system can not be fixed without wiping the slate clean and starting over from scratch." As much as I like Bob Griggs personally, I feel compelled to respond to his characterization of what he has been "witnessing" and "battling" in Austin. It is nothing less than the fundamental reform of public education. That such comprehensive reform is essential to the survival of the reality of an educated citizenry should not be subject to debate; and yet, apparently, it is. As a member of the House Public Education Committee, I and others had the task of listening to hundreds of hours of testimony from parents, students, teachers, school-board members, superintendents, academics, and lobbyists for the various state education organizations and unions. Without exception, every member of the "established educators" fraternity who testified made his position perfectly clear: "Send more money (usually the amount specified was $8 billion), but don't tell us how to spend it, and don't change anything we're doing" - in other words, status quo plus more money. The position that I and the other Republican members of the committee tried to make just as clear in response was: "Reform before revenue; the one approach we cannot and will not abide is sending more money without first drastically reforming the way we do public education in Texas." And, so, the House passed HB 2 not once, but two different times. It was unquestionably a historic overhaul of our public-education system. It introduced substantial financial incentives for teachers who deliver results. It opened up the complicated school-accounting system and simplified the arcane funding formulas, so that it would be easier to follow the path of a school dollar from initial funding to ultimate expenditure, even down to the individual campus level. It provided a more accurate measure of student academic progress through end-of-course exams. It required that at least 65% of a school district's budget be spent in the classroom. It increased the state's ability to intervene and take over a failing district or campus. It dramatically reduced the effects of the current system of legalized theft known as "Robin Hood", so that no district would ever have to send more than 35% of its property-tax dollars to Austin. It moved school-board elections to November, in an effort to involve more voters in the process. It moved the school start date to after Labor Day. And it provided $4.2 billion in new money for public schools - more than any such appropriation in Texas history. But, we in the House failed to persuade enough of our colleagues in the Senate, and HB 2 died - twice. The "established educators" and Bob Griggs also adamantly and vociferously opposed HB 2. Although we were proposing an unprecedented amount of new money for public education, we were first and foremost proposing fundamental, systemic reform; and that is what Bob Griggs has been "battling". Change is difficult; significant change even more so. But even a cursory observation of the current and future global economic environment underscores the need for significant change. The "more money" mantra in and of itself is not the solution. Between 1997 and 2004, school-operating expenses increased 57%, while student enrollment increased only 13%. The number of teachers increased 17%, but campus administrators increased 32% and central office administrators increased 35%. Administrative costs have nearly tripled. Less than 50% of each tax dollar collected for education actually makes it to the classroom. Over 50% of graduating high-school seniors must have remedial math and English when entering college. Our hope is in fundamental reform; but the hope of Bob Griggs and his echelon of "established educators" is in money alone. The difference between the two positions is profound, and the path chosen will determine whether we have found the on-ramp to the highway to educational excellence, or simply stayed on the frontage road to nowhere. Sincerely,
Bill  

As a father of two young boys -- they're nine and seven -- I've spent a lot of time worrying that they weren't getting to grow up in the same Texas than I did, but my wife gave me some unexpected news last week. It seems she spent $53 filing up the Chrysler station wagon, and it wasn't even a full tank. In the old days, way back in June, that same trip to the gas station would have cost $25. Like a lot of families, the Bell family has made some changes in response to skyrocketing gas prices. In our case, the boys are now riding bikes to school. So I fully expect that all this extra exercise will pay off down the road (no pun intended) as they become champion cyclists with large endorsement contracts, able to support me in my dotage. I don't expect to have a lot left in the bank after we spend all our money on gas bills. We shouldn't have to look so hard for the silver lining. This is Texas, after all, and if we had able leadership in the Governor's Mansion, we wouldn't have to. But it appears that when it comes to gouging at the gas station, Rick Perry just doesn't get it. Gas doesn't have to cost more than $3 a gallon. OPEC increased the number of rigs in production by 18.8 percent last year, and our domestic refining capabilities will soon be back to normal. As oil prices stabilize, there is ample evidence that greed, not economic forces, drove the recent price spike. It's really sad because you see this a lot of times after natural disasters, and it is sad when you see people trying to profit during times of catastrophe. There maybe other parts of the nation that are going to be impacted because of the refineries shutting down in Louisiana, but here there is an ample supply of gasoline. I really think that's what is going on, because here in Texas we really don't have a gas shortage. What I have recommended is that we follow the lead of other states and suspend the gasoline tax in the state of Texas for a while. That would give Texas drivers an immediate 20-cent-per-gallon tax break. In fact, Georgia's Republican Gov. Sonny Perdue did this a couple weeks ago, and so far we have heard nothing from Rick Perry. Our state is running a $1.2-billion surplus, and with the state's motor fuels tax bringing in about $2 million a month, we can afford it. What we can't afford is for people to be paying $3.00 a gallon for gasoline. That just sounds like common sense to me, but it seems like common sense is a radical notion in Austin these days. After giving every Texan a quick tax break to ease the pain, we need to start investigating the gas price gouging. Despite Gov. Perry's laudable efforts to aid Hurricane Katrina victims he's really done next to nothing when it comes to sky rocketing gas prices. I know that the governor's office, here in Texas, and the attorney general's office have received complaints about the gouging that is going on. The attorney general said he was going to send out investigators to look into the high prices, but absolutely nothing has become of it. I think it is safe to assume, in this particular instance, that politics is playing a role and that they don't want to pick fights with the major oil companies that have worked so diligently to fund the Governor's campaign. This is about the livelihood of the people here in our state and they need to put politics on the back burner for a while and look at where we are heading. We simply can't afford to be paying over $3.00 a gallon for gasoline. It's that simple. Until then, visit texasgasprices.com to find cheap gas in your town and keep your eyes peeled for my two sons if you're driving in Houston. Chris Bell is a Democratic candidate for Governor. He was an at-large city councilman and a congressman from Houston and is now a private-practice attorney. His website is at www.chrisbell.com.



Texas Weekly's Soapbox is a venue for opinions, spins, alternate takes, and other interesting stuff sent in by readers and others. We moderate submissions to keep crazy people out, and anonymous commentary is ineligible. Readers can respond (through the moderator) to things posted here. Got something to submit? We're interested in everything from full-blown opinion pieces to short bits to observations or tidbits that have escaped us and the mass media. One rule: Your name goes on your words. Call or send an email: Ross Ramsey, Editor, Texas Weekly, 512/288-6598, ramsey@texasweekly.com. 

Even though the Texas Legislature failed to deliver for our 4.4 million public school children, Texas' public schools began the 2005-06 school year without a hiccup. And now our teachers and principals, without complaint, have opened schoolhouse doors and their hearts to thousands of displaced children from Hurricane Katrina. Understanding that there will always be room for improvement, it is time to recognize that our public schools are delivering.  Also, we should keep in mind that public school finance was a priority for our state lawmakers back when the 78th legislative session began in January 2003. When they failed to develop a funding plan during that regular session, the Governor called them back for a special session in April 2004. With nothing on their plates except public school finance, they were still unable to reach any kind of an agreement on school funding. So they returned to Austin this past January with this same issue as their number one priority. This time they were both determined and confident that they would not leave Austin without an equitable, adequate, and long-term solution. But alas, it was not to be. Now, after two more special called sessions, they failed again and have returned to their local districts to get re-elected. It is easy to see why those we have asked to represent us have failed repeatedly. For one thing, they really didn't arrive in Austin with a plan for public school funding. All they knew was that they wanted to shift the tax burden from homeowners (a very good idea) to someplace else. That someplace else is what stumped them. Some wanted to close the loopholes in the franchise tax, which nearly five out of six corporations did not pay, but those entities told their representatives that was unfair. Some thought a payroll tax would solve the problem, but companies with large labor forces said that was unfair. Tobacco folks didn't want higher taxes on cigarettes and those opposed to gambling said no slot machines. So they did nothing and once again left the homeowner to pick up the tab. Not having a plan is only part of the problem. The real reason they failed again, and the reason they did not have a plan to begin with, is a lack of leadership. Isn't it obvious? The people who are in charge today are the same people who were in charge back in January 2003, when education reform and public school finance were considered job one. We have the same Governor, the same Lieutenant Governor, the same Speaker of the House, and the same Education Committee Chairs in the House and the Senate. These are the same people who like to tell us that the definition of insanity is doing the same thing over and over again and expecting different results. But that is exactly what they have been doing now for the past two regular sessions and three special sessions. Texas citizens were poorly served by our elected officials during these past eight months. And that goes double for the leadership. Their performance was not exemplary, nor recognized, or even acceptable. The only tax bill they could come up with called for the state's poorest among us to actually pay more in taxes while the wealthiest would get a cut in their taxes. In a state where one in four children lives in poverty and one in five has no health coverage, that is my definition of insanity. Their egos and intransigent partisanship have been an embarrassment for, and an insult to, all Texans. When the Speaker of the House uses his own campaign funds to buy radio ads that criticize his colleagues in the Senate, it seems clear that children and education have become an afterthought. There are consequences for Texas public schools that do not meet academic standards. A school rated low performing or unacceptable for two consecutive years can be reconstituted. In other words, throw out the administrators and teachers who made it that way (a very good idea) and replace them. Now that we have had five consecutive unacceptable (two regular sessions and three special sessions) performances from our leaders, what should be the next logical step? Ken Zornes is a former Dallas ISD board member who now lives in Austin. You can reach him at kzornes13@hotmail.com.



Texas Weekly's Soapbox is a venue for opinions, spins, alternate takes, and other interesting stuff sent in by readers and others. We moderate submissions to keep crazy people out, and anonymous commentary is ineligible. Readers can respond (through the moderator) to things posted here. Got something to submit? We're interested in everything from full-blown opinion pieces to short bits to observations or tidbits that have escaped us and the mass media. One rule: Your name goes on your words. Call or send an email: Ross Ramsey, Editor, Texas Weekly, 512/288-6598, ramsey@texasweekly.com.