Somebody around here should point out the remarkable similarities between Tom DeLay's defense, so far, and Kay Bailey Hutchison's defense against the same prosecutors in 1993 and 1994. Hutchison won acquittal after a searing public investigation and indictments, dropped indictments and re-indictments that threatened her political career. When the judge in that case, John Onion Jr., refused to pre-approve evidence seized by prosecutors from Hutchison's state treasury offices, prosecutors refused to present their case. With nothing from the prosecution to consider, the court acquitted Hutchison. And here's the political moral: She's been invincible in state politics since then.

So it's no surprise that when faced with his own Travis County troubles, DeLay hired the same lawyer, Dick DeGuerin of Houston. And DeGuerin is using the same formula that ultimately ended with Hutchison's acquittal on charges of using her state office and staff for political work.

There's been little in the way of a legal fight so far. While there have been legal papers flying back and forth, the courtroom wars are mostly still in front of us. But the publicity wars are well under way, and once indictments have been filed, the spotlights and attention move from prosecutors to defenders.

And as he did a little over ten years ago, DeGuerin took over the storytelling. He started with a tale the prosecutors have woven — in this case, that DeLay & Co. helped win the 2002 Texas legislative elections with a vigorous injection of corporate money, some of which they ran through the Republican National Committee to launder it for use in state elections where corporate funds are illegal. And then he went to work building his own story — and with it, his legal case — with a series of steps still being played out:

• Attack the charges as an attempt to criminalize normal and even desirable political activity. In Hutchison's case, the defense lawyers said it's normal and traditional and honorable to communicate regularly with constituents and that some large number of the people interested in what an officeholder is doing are people who support those officeholders politically. Hutchison, they argued, was just doing her job. DeLay, they're arguing now, changed the face of Texas politics by helping elect a GOP majority in the statehouse, which then helped change the political maps to create a Republican majority in the state's congressional delegation. He's merely been an effective partisan, and that's his job. And besides, they argue he wasn't involved in the sort of day-to-day details and decisions alleged in the indictments.

• Attack the prosecutor, saying the investigation is a partisan affair and that the grand jury system has been abused. Last decade, the volley at Travis County District Attorney Ronnie Earle was that Hutchison had won a seat in the U.S. Senate that he himself wanted and that the prosecution was retribution and also an attempt to win favor with other Democrats like Gov. Ann Richards. Earle, they argued, sought a greater award. And they said the grand jury system used in Travis County promoted cronyism, with Democratic judges picking supporters to serve, who recommended friends in a cycle that produced a politically tainted system. This time, the shots at Earle are similar; the shots at the system are that Earle abused it by shopping his charges to several grand juries before finding one that would report the current charges against DeLay.

• Talk to the "jury" through the papers and television and other media so that when the real jury is chosen, the pool will consist of people who know all about the case — whether they've got it right or wrong — and people who avoid civics and legal and political stuff as if it were a big bowl of Brussels Sprouts. This one is what defense lawyers do in all high-profile cases. People are seeing the story on the news, so you try to spin the story your own way. It's just like running a political campaign, except that losers sometimes have to go to jail.

• Ask for a change of venue, on the basis of political bias of people in Travis County and because they've all read and heard so much about the inquiries into campaign finance that they can't possibly be objective. Hutchison's trial was moved from Austin to Fort Worth. DeGuerin asked for a change of venue in the DeLay trial this week. 

A Rose By Any Other Name

What if the corporate franchise tax was replaced with an "insurance premium" — so that anybody paying the state's business levy kept their liability protection and those who didn't pay lost it? Former Comptroller John Sharp, who's heading Gov. Rick Perry's task force on taxes, is tossing that idea around with business groups. He says it's not the work of the task force — the members of which haven't been named yet — but just one of many ideas bumping around.

The idea starts with the seed of "corporate privilege"; one of the arguments for the corporate franchise tax (and the reason for its peculiar name) is that the state grants companies the right to operate here in return for the tax those companies pay. Sharp is taking that a couple of ticks forward. Corporations and some other business organizations have limited liability — you can't go after the owners for more than their company is worth. Those sorts of businesses currently pay state taxes. But other businesses, organized as sole proprietorships or partnerships or whatever — don't pay the tax. Because of the way they're formed, forcing them to pay a business tax would be, in effect, forcing them to pay an unconstitutional state personal income tax. Sharp's suggestion: Give businesses that pay the tax the limited liability protection enjoyed by corporations, and deny it to those that don't.

He pitched the idea to the Texas Taxpayers and Research Association, backpedaling as he laid it out to say it's just an idea and hasn't risen to the level of a "plan" or a "proposal." It would have the advantage, at first blush, of raising state money from businesses that don't pay taxes now, maybe without tripping over the dreaded personal income tax. And you'll remember that when Perry and Sharp announced the formation of the task force, both said personal income taxes will not be among the options under consideration.

The panel hasn't been put together yet. Sharp says it'll likely have around a dozen members and that they'll be "names you know." And he and others are working to staff the task force, which will have the dual role of going around the state to put a plan together and then helping to sell that plan — or at least explain it — when the Legislature is ready for a look. That could come in the 2007 regular session, or earlier, if the courts order a solution to the state's school finance system earlier than that. 

A Surprise Resignation 

State Rep. Todd Baxter, R-Austin, is calling supporters and others to tell them that he plans to resign from his HD-48 seat to pursue job opportunities in the private sector. 

Baxter had been expected to seek reelection and had drawn three serious Democratic opponents, including attorney Andy Brown, former Eanes ISD trustee Donna Howard, and former Austin ISD trustee Kathy Rider. Baxter, who'd been a Travis County commissioner, was part of the big Republican sophomore class that shifted control to the GOP after redistricting. He first won election to the House — against incumbent Rep. Ann Kitchen, D-Austin — in 2002, and then prevailed in a very tight reelection battle in 2004.

Ben Bentzin, a Republican who ran against Sen. Gonzalo Barrientos, D-Austin, in 2002, says he's "seriously assessing the opportunity" presented by Baxter's decision to retire. Bentzin lost to Barrientos, but tromped Barrientos in the House district, getting 56 percent of the votes. He said he out-performed Baxter in the House district by about three percentage points, and would be trying to capitalize on those numbers if he ran for the House. He says he'll decide by the end of the week.

Baxter, in a written statement, said he'll resign as of November 1 to pursue "professional and family goals." He didn't endorse anyone, but said he expects the seat to remain in GOP hands "and I do not plan to be a casual observer in the upcoming elections."

Baxter's resignation would presumably prompt a special election, but it's hard to say how fast that might happen. When Elizabeth Ames Jones, R-San Antonio, left the House to accept an appointment to the Texas Railroad Commission, Gov. Rick Perry ordered a quick election so that her voters wouldn't go unrepresented during the regular session. When Joe Moreno, D-Houston, was killed in a highway accident later in the same session, Perry ordered a November special election, leaving Moreno's chair empty during two special legislative sessions on school finance. Chances are pretty good there will be another special session on school finance before the regular legislative session in 2007; whether Perry will hurry to fill Baxter's shoes is an open question.

One more thing: Bentzin is a Perry guy. He's one of a group of George W. Bush supporters — Mavericks — who formed a state political action committee earlier this year to support Texas candidates. Their first endorsement went to Perry. 

The Special Election Already in Progress 

The special election to replace Democratic state Rep. Joe Moreno coincides with next month's constitutional amendment election. That Houston ballot will have six names on it, with the distinct possibility of a runoff to follow. All six are Democrats: Al Flores Jr., a lawyer; Charles George, a corrections officer; Ana Hernandez, a lawyer; Rick Molina, a lawyer; Dorothy Olmos, an educator and business owner; and Laura Salinas, an assistant leasing administrator. Apropos of nothing in particular, they were all born between 1947 and 1978. All filed from Houston addresses, with the exception of Molina, who's from Pasadena. And notably, most of the big money in the all-Democratic HD-143 race is from conservatives. 

At the 30-day mark, Salinas had $48.12 in the bank. She collected $24,987 in contributions, including $15,000 from the Texans for Lawsuit Reform PAC, and $1,000 from Mike Toomey, a lobbyist, former Republican House member and former chief of staff to Govs. Rick Perry and Bill Clements. She spent $31,877.

Hernandez, with a month to go, had $23,513 in the bank after bringing in $54,183 and spending $48,346 in July, August, and September. Her donors include Houston builder and Republican stalwart Bob Perry, $10,000; Dallas City Limits LLC Operating Account, $5,000; Texas State Teachers Association PAC, $3,000; and the Mostyn Law Firm, $2,500. Several unions and law firms were in there for $1,000 or less. Dallas City Limits LLC is a development venture of Billy Bob Barnett and Bill Bueck.

Flores raised $24,956, spent $15,069, and had $3,890 in the bank at the end of the reporting period. He raised $3,275 from Esteban Adame, founder of a bus company; $3,000 from Aguilar Geneil; and $2,300 from Larry Flores, among others.

Molina spent $4,292, raised $1,083 and closed the period with no money on hand (and no loans). George's report wasn't available on the Texas Ethics Commission's website. Olmos reported raising no money, spending no money and having no money on hand with 30 days left. 

Another Rumor Flattened 

State Sen. Frank Madla, D-San Antonio, says the rumors of his political retirement are premature and unfounded: He's running for reelection next year. 

Madla, elected to the House in 1972 and the Senate in 1992, has been the subject of retirement rumors for most of the year, and others — like state Rep. Carlos Uresti, D-San Antonio — have actively sought support for a Senate run. But Madla says he'll seek another term.

Self Help 

State Rep. Richard Raymond, D-Laredo, is betting big on his own candidacy for a spot in Congress, according to Federal Election Commission filings. Raymond reported $430,398 on hand at the end of September, including $300,000 in loans. That $300,000 includes $100,000 from his own accounts and $200,000 borrowed from IBC bank and guaranteed by Raymond. It was enough to move him past U.S. Rep. Henry Cuellar, D-Laredo, and former U.S. Rep. Ciro Rodriguez, D-San Antonio, in the financial race for that seat. Cuellar ended the period with $289,798 on hand. Rodriguez had $49,527 in the bank.

Behind Enemy Lines 

Rep. Pete Laney, D-Hale Center, has an opponent: Republican insurance agent Jim Landtroop of Plainview. Laney beat his last two opponents handily, though HD-85 is the most Republican House district in Texas that's still held by a Democrat. The average statewide Republican candidate got 68 percent of the votes in that district in the 2004 elections (George W. Bush got 76.3 percent), compared with 59.1 percent statewide. Laney, meanwhile, got 58.8 percent against his Republican opponent that same year. The challenger's website: www.jimlandtroop.com. That district grabs a small part of Abilene, and Landtroop's website lists Railroad Commissioner Victor Carrillo, a former Abilene city council member and Taylor County Judge, as one of several supporters.

While we're on the subject, Carrillo is endorsing Rob Beckham — a former colleague on that city council — in his race to succeed Rep. Bob Hunter, R-Abilene. Hunter decided to quit after being diagnosed with prostate cancer. Beckham, who unsuccessfully challenged then-U.S. Rep. Charlie Stenholm, in 2002, is one of several candidates either considering or joining the HD-71. Celia Davis, a Republican who's been involved in Develop Abilene and other groups, working on military affairs and economic development, is also looking at it. And some Republicans are trying to draft Susan King, who's president of the Abilene ISD Board. 

Issue Campaigns of the Near Future? 

They have no money and don't have a niche in mind, but the founders of the Texas Republican Legislative Campaign Committee have filed papers for that new 527 committee in Washington. Bill Crocker, an Austin lawyer who is also one of the state's two Republican National Committee members, says the outfit hasn't raised any money yet. The papers creating it — IRS forms filed with the feds — are less than a week old. They list Crocker as president, consultant Jeff Norwood of Austin as vice president, and David Porter of Giddings as secretary/treasurer. The official purpose listed on the form of that tax-exempt outfit is "to accept political contributions and make political expenditures."

Crocker says the committee isn't intended to replace any others out there that back Republicans running for the Legislature, and he says they don't have a particular contest in their sites. It's a federal filing, but the group will work solely in Texas and its reports, Crocker says, will be filed with the Texas Ethics Commission. 

The Beginnings of the 2007 Wish List

House Speaker Tom Craddick has made his interim committee assignments, directing lawmakers to work on stuff that'll be of interest in the 2007 regular session.

He wants lawmakers to look at controls of state spending growth; powers and practices of homeowner associations; limits on liability for firms taking over state welfare services; the health care system in Texas prisons and competition among providers; civil and criminal protections for "a person who uses force, including deadly force, against a person who unlawfully and with force seeks to enter a residence, dwelling or vehicle"; the feasibility of new nuclear power plants in Texas; predatory lending practices in subprime mortgages; taxpayer funded lobbying by school boards and local governments; consolidation of health professions licensing boards; insurance for people with eating disorders; new sales locations for lottery tickets; local government property tax practices; successful "school choice" programs; compensation of school administrators and its relation to student performance; state district court redistricting; regulation of mobile food vending vehicles; alternative business taxes and other revenues that might be used to cut local property taxes; and the process used by state budgeteers to figure the impact of tax bills.

The House interim charges go on for 38 pages, organized by committee. Click here for a copy. Aides to Lt. Gov. David Dewhurst say the Senate's list will be out soon.

Political People and Their Moves 

One of the Texans who filed for bankruptcy before the deadline for a change in bankruptcy laws last week was Bill Ceverha, according to The Dallas Morning News. Ceverha, a former House member, was the treasurer for Texans for a Republican Majority, and earlier this year lost a civil suit related to the 2002 elections. He told the paper that judgment — and the prospect of another, similar suit — triggered his financial fix.

Sugar Land Mayor David Wallace, after trying to connect the dots for several weeks, won't run for state comptroller against Susan Combs. She had too big a head start, locking up donors, volunteers and others Wallace would need for a serious campaign. Plus, the governor and others at the top of the GOP would have frowned on a challenge; Combs endorsed Perry early, over Kay Bailey Hutchison — her former boss — and Carole Keeton Strayhorn — the woman she wants to succeed. After that bit of help, she had many of Perry's supporters either on her side or agreeing to stay out.

You know what they say about real estate titles: Mark Lehman is moving into a new office and a bigger title at the Texas Association of Realtors. He's the trade group's new vice president of public affairs, a job he's basically been doing since the August 2004 departure of Bill Stinson from that group. Lehman's in charge of legislative relations and a couple of political action committees — one for campaigns and one for "issue advocacy."

After five years with the Texas Cable Television Association, Kathy Grant is leaving to hang out her own lobby shingle. She'll still do some work for TCTA, but is also looking for other clients.

Ernest Angelo Jr. moves into the center chair at the state's Public Safety Commission. Colleen McHugh left that board to join the board of regents at the University of Texas; her replacement hasn't been named.

Gov. Rick Perry appointed W. Edwin Denman of Lake Jackson to the 412th Judicial District Court. He's been a private sector lawyer up until now.

And the Guv named five people to the Texas Medical Board (it used to be the Medical Examiner's Board): Julie Attebury, a financial manager for a property company in Amarillo, and Dr. Lawrence Anderson of Tyler, a dermatologist, are being appointed for the first time. Three reappointments: Dr. Jose Manuel Benavides of San Antonio, Dr. David Garza of Laredo, and Paulette Southard of Alice. 

Quotes of the Week 

Attorney J.D. Pauerstein, talking about a list of names referred to — but not produced — by prosecutors who sought indictments against U.S. Rep. Tom DeLay and two associates, quoted in the San Antonio Express-News: "I'll tell you what I think about this list. In the 1950s, a man named McCarthy claimed to have a list of 200 communists in the State Department, and he didn't. And I think this is the same thing we're seeing all over again with this list."

Terry Scarborough, attorney for Bill Ceverha, quoted in The Dallas Morning News after Ceverha declared personal bankruptcy and blamed a legal judgment and other expenses related to his work for Texans for a Republican Majority PAC: "The day he agreed to be treasurer, he didn't realize what the statutes said and he was caught up in the politics of all this."

U.S. Attorney General Alberto Gonzales, a former Texas Secretary of State and Supreme Court justice, asked by the Associated Press whether he'd consider running for office in Texas when his federal gig is over: "I wouldn't close the door, no."

Nat Hardy, an engineer who worked for developers and then for the city of San Antonio, talking to the San Antonio Express-News about a slew of "grandfathered" development plans filed in 1997 that allow builders to follow old regulations and to ignore current ones: "Was it a good business decision? Sure. Was it in the best interest and welfare of the city? No. I can look you in the eye and tell you that."

Former Hidalgo County Clerk J.D. Salinas, who quit that job to run for county judge, in the McAllen Monitor: "Pride and ego do not have a place in Hidalgo County politics."

State Rep. Warren Chisum, R-Pampa, telling a business group that state taxes shouldn't favor one group over another: "My approach has been, 'No taxpayer left behind.'"

Former Texas Comptroller John Sharp, on who should take the shots if people don't like the tax recommendations made by the governor's task force on that subject: "Blame me. I don't anticipate caring whether you blame me."

Jourdanton Mayor Tammy Clark, accused in the slaying of a neighbor, quitting her city position and telling the San Antonio Express-News she was leaving town as quickly as possible, maybe even that same night: "I will not be living in this hellhole. If I can pack my panties fast enough, I will." 

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Texas Weekly: Volume 22, Issue 19, 24 October 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.

Making sure two-thirds of education money goes to the classroom isn't a math problem -- it's almost a philosophical problem. It's all about how you define instructional spending. State leaders want educators to get 65 percent of every dollar to the classroom. The state has a definition of that, and the results are posted on the Texas Education Agency's website for anyone who wants to dig around and find it. The National Center for Education Statistics has a definition, too, and it's the one backed -- at least for now -- by Gov. Rick Perry and some others in state government. But there are big differences between what Texas has labeled as instructional spending and what the feds have chosen. Deciding on what to include has fallen to the TEA, and to task forces of school people and civilians assembled for the arguments. We plowed through the state's own statistics a couple of weeks ago to look at this based on the state numbers. Since then, the TEA has ranked the state's schools as if the NCES standard was the law of the land. The results are, well, different. We charted their numbers under each of the two definitions for every school district in the state. You can get the listings -- in Adobe Acrobat or spreadsheet form -- in the files section of our website. The overall results are similar. With the state's Academic Excellence Indicator System, the average district spends 64.8 percent of its money on instruction. Using NCES, that's 64 percent. Inside those averages are big differences. Use the state's numbers and all but three of the biggest school districts in Texas are over 65 percent; use the national numbers and 14 of the 25 don't hit the mark. Only 250 of the 1,037 school districts spend 65 percent or more of their money on instruction using the state definitions, but those districts teach 59.6 percent of the state's students. The state definition is kinder to bigger districts. More Texas districts make the grade using the national definition -- 424 -- but they educate only 38.9 percent of the state's public school students. Why the swings in results? Both AEIS and NCES (which is part of the U.S. Department of Education) include salaries for teachers, aides, substitutes, special education teachers, physical education, and costs of instructional materials and equipment used in classrooms, textbooks, band instruments, computer labs and supplies, testing materials, and insurance for drivers' education vehicles. That's all in a category designed to include everything that deals with direct interaction between teachers and students. If you read the broad categories that are and aren't included, it's harder to see what the fight is about. The devil's in the details, some of which are listed here. TEA includes several things the feds leave out, in three broad categories. • Library and resource centers: Librarians, aides and assistants, people who run instructional media areas and equipment, those who write and produce those programs, and books and films and tapes maintained in a school library. • Curriculum and instructional staff development: In-house and outsourced staff development personnel, travel for staff instruction, substitutes who fill in while regular teachers get training, certain tuition and fees and other costs of outside training for teachers, paid sabbaticals for instructors, and administrators who solely oversee curriculum. • Student guidance and counseling: student testing, mental health screening, psychiatrists, psychologists and diagnosticians, guidance records and record-keepers, placement services, and parent/teacher counseling. NCES doesn't include those things, but does include costs from three categories the state doesn't include. • Extracurricular activities: Coach salaries (above what's already included for P.E.), assistants and trainers, insurance to cover student sports injuries, athletic supplies and equipment, referee and umpire pay, travel and lodging for traveling athletes, coaches and staffs, for band directors and debate coaches and the like, and band uniforms. • Shared service expenses and salaries. • Costs of juvenile justice alternative education programs. Education Commissioner Shirley Neeley has a group of educators worrying over the definitions, and another group made up of people who aren't in that business. Gov. Perry wants TEA to come up with a 65 percent rule -- with exceptions for districts with unusual problems like high transportation or special needs costs -- that it can impose on public schools all over Texas. 

Remember potential energy? That was the bit in high school science class where you found out about the stored power of a bowling ball at the top of a staircase. The political equivalents of that teetering bowling ball are piling up. Lots of stuff could come bouncing down the stairs in the next few days and weeks. • A federal grand jury's decisions about the CIA leak investigation -- which has embroiled some politicos who did their teething in Texas -- are expected to be public soon. • U.S. Rep. Tom DeLay, R-Sugar Land, is pushing for a fast trial with a new judge in someplace other than the state capital. He's racing, in some sense, against the ambitions of congressional colleagues who are temporarily holding his seat open. • This is more in the realm of marbles than bowling balls, but it's already in motion: Candidates are making final decisions about what they'll do next year, and the list of bids for reelection, challenges, resignations, retirements and whatever else will trickle through the end of the year. • The combatants in the war over a proposed constitutional amendment on gay marriage are in full battle and might turn that into a closer election than some polls indicate. Light turnout elections are often decided by true believers on both sides. This one could be more dependent on organization -- who turns out their voters -- than by the views of voters who are drawn to the polls by other issues. • The Texas Supreme Court is overdue on its school finance decision. Chief Justice Wallace Jefferson told a group on September 9 that the ruling would be out in two week's time; that was seven weeks ago. The court's actions are usually announced on Fridays, but they don't have deadlines and could announce a school finance decision -- once it's made -- whenever they feel like it. A ruling could trigger anything from another special session on school finance to another round of hearings in trial court. • And any minute now, Gov. Rick Perry is going to announce the members of a task force who, with former Comptroller John Sharp, will try to come up with a tax plan that raises more money, makes everybody happy, and offers a way out of the state's school finance jam. 

Read this sentence: "This state or a political subdivision of this state may not create or recognize any legal status identical or similar to marriage." That's the second sentence that would be added to the state constitution if voters approve the gay marriage ban next month, and opponents of the measure say it amounts to a ban on marriage itself. They're calling it a "drafting error" in the legislation and saying voters who believe in marriage should vote against the amendment. They're saying it loudly, too, using phone-calling equipment to deliver that message to voters all over the state. Now read this: "Marriage in this state shall consist only of the union of one man and one woman. This state or a political subdivision of this state may not create or recognize any legal status identical or similar to marriage." That's the whole schmear, and proponents of the amendment say the two sentences taken together are clear. Gov. Rick Perry referred to the first spin on this as "disinformation," and Rep. Warren Chisum, R-Pampa, says the opposition has forfeited its integrity. The calls feature the voice of a Presbyterian minister from San Antonio: "I'm Rev. Tom Heger. Rick Perry and the Legislature made a blunder in writing the gay marriage amendment. Don't risk it. Vote against it. They left off words that would have made sure it applied only to gays. A greedy insurance company, tricky divorce lawyer or a liberal Austin activist judge can easily use these words to overturn traditional marriage and cause people to lose health insurance, tax breaks and pensions. The status quo protects everyone's marriage. Don't risk it. Vote against it. God bless you. Read it for yourself at SaveTexasMarriage.com." The proponents have websites, too, at TexansForMarriage.org and txmarriage.com. Kelly Shackelford, president of the Free Market Foundation, is among several writers on the first one who's calling the phone campaign misleading: "The calls from Save Texas Marriage are so deceptive that they are even ending the call saying God Bless You," he writes. " One of these starts out from a Reverend and says that Governor Perry messed up, and that there is a hidden liberal agenda. The group is even calling seniors who would typically support conservative legislation." They're pushing a Yes vote. 

A couple of corrections are in order...  Department of Corrections: Early voting for the November elections began on Monday, October 24, and will run through Thursday, November 3. The law used to allow counties to open the polls on the weekend before the official startup, and we wrote it that way last week. It's no longer the case. The Monday startup applied to everybody. And a Legitimate Quibble Building to an Explanation: A friend in the tax business begs to differ with two details from a story on corporate taxes last week, and he's right. One, we wrote that putting business taxes on partnerships and proprietor ships would amount to making them pay personal income taxes; that's certainly their contention, but it's not an undisputed fact, as we presented it. Two, not all of the businesses that have some form of limited liability pay corporate franchise taxes, and the way they duck the state tax is by morphing into one of the forms that gives them liability protection without exposing them to the tax. Sorry, sorry, sorry. 

Tax relief, sea breezes, election news, Texas money, alternative media, and a school for candidates Comptroller Carole Keeton Strayhorn, looking for an idea that'll capture the fancy of voters, says lawmakers should come back for a quick special session to write $260 checks for every homeowner in the state. She says the money is in the till, and that it would provide tax relief to homeowners. The state has a surplus of about $1.2 billion -- money that's been raised but that wasn't budgeted -- and she wants to use that to fund her idea. None of the money would go to other property owners; people who rent homes and apartments wouldn't get any of the dough. Gov. Rick Perry, Strayhorn's opponent in next year's GOP gubernatorial primary, would have to call a special session to put wheels on her plan; his aides say that's not going to happen. They labeled it a short-term solution to a long-term problem, and said this is the third idea Strayhorn has offered for the surplus funds. • Texas Land Commissioner Jerry Patterson signed a lease that'll allow offshore testing by a couple of big wind towers in the Gulf of Mexico; the tests are designed to find a spot for an offshore wind farm. The first numbers run by the General Land Office says the project will bring in $26.5 million. The company on the other end of the contract -- Louisiana-based Wind Energy Systems Technologies -- wants to put 50 windmills on platforms about seven miles from the coastline. They'll be huge: 260 feet tall with blades about 55 feet long, all mounted on offshore platforms. The state will get a 3.5 percent royalty at first, escalating over the duration of the 30-year lease. • Two Republicans are planning challenges to Rep. Mary Denny, R-Aubrey. Anne Lakusta, a real estate agent who was once the president of the Lewisville ISD board, and Ricky Grunden, a Denton investment advisor, both told local reporters they'll challenge the incumbent in HD-63. Denny has been in the House since 1993. • Rep. Ruben Hope Jr., R-Conroe, says he'll be on next year's ballot, but not for the same job: He wants to be a state district judge, succeeding Olin Underwood, who has signaled his retirement. This is a reprise of sorts; Hope was close to resigning from the House during the legislative session earlier this year when it appeared Underwood would hang up the robes and create a vacancy. That didn't work out, but Hope says now he'll be on the ballot. Former Rep. Bob Rabuck told the Conroe Courier he won't be in the contest. Brandon Creighton, an attorney, says he will be in the contest. A couple of others are asking around about the race, including former Rep. Keith Valigura, R-Conroe, who served three terms in the late 1980s. • Perry added to his endorsees list: U.S. Reps. John Culberson, R-Houston, and Louie Gohmert, R-Tyler; the Texas RN/APN PAC, which is tied to three nursing associations; the Texas DPS Officers Association PAC; the Texas Building Owners and Managers Association; and the Independent Bankers Association. • The Texas Association of Dairymen endorsed Agriculture Commissioner Susan Comb's bid for comptroller, and will back Sen. Todd Staples' bid for the Ag job. Neither of those two Republicans has a visible opponent, though the filing deadline is still two months away. • Political donors from Texas have so far given $26.7 million to federal candidates and 527 committees, according to campaign finance reports compiled by Political Money Line (www.fecinfo.com). House candidates have banked $5.4 million from Texas contributors. Senate candidates have received $4.1 million. Texans have given another $5.8 million to political action committees, $9.2 million to political party committees, and $2.0 million to 527 groups. Dallasites led the list, giving $5.7 million, followed by Houston, $5.4 million, San Antonio, $1.8 million, Austin, $1.8 million, and Fort Worth, $1.0 million. • Dallas lawyer Tom Pauken -- and a group that includes several refugees from The Dallas Morning News -- is starting up a website to cover news and politics and such in Dallas. It's called Dallas Blog, is located at www.dallasblog.com, and they're actually hoping to make the thing a going financial concern. And they're letting readers write, opening up the site where bloggers in and about Dallas can post their scribblings. • The Texas Credit Union League is doing a campaign school for candidates November 8-9 in Austin. There's a day for Democrats and a day for Republicans. It's free, but you have to sign up for it, at www.tcul.coop/campaign_school.html. You'll also find more details there. 

Kelly White, the campaign treasurer for Austin Democrat Donna Howard, might abandon her candidate to run for the House herself. She says she's "not ready to talk about that in the media," but other candidates in the race, and various party officials, say the prospect of a special election in HD-48 might transform White from aide to candidate. White, an Austin Democrat who missed being a state lawmaker a year ago by less than 150 votes, signed up this year as the treasurer for another candidate, Donna Howard. White lost to Rep. Todd Baxter, R-Austin, and Howard is one of three Democrats campaigning for the chance to challenge him. But Baxter surprised the Democrats last week by saying he won't run for reelection, and in fact will quit the House on November 1. Republican Ben Bentzin was in the race within a day and so far has been able to keep other Republicans from joining in the contest. Baxter's resignation will force a special election -- the timing of which is up to Gov. Rick Perry. That sets up some interesting campaign puzzles. If the governor calls a quick election, Bentzin has a chance to split the votes with the three Democrats now in the contest: Howard, Andy Brown, and Kathy Rider. One theory among the apparatchiks is that Bentzin would get the 50 percent of the vote that Baxter got, and that the Democrats would split the other 50 percent. If Bentzin gets more than half, he'd win straight up. An election with that many folks in it could also result in a runoff. Democrats fear that could be timed to coincide with the March primary elections. Their worry is that the Republicans, with a gubernatorial primary between Perry and Comptroller Carole Keeton Strayhorn, the GOP will have the better draw in March. If more elephants than donkeys go to the polls, Bentzin might benefit from the increased traffic, swamping whatever Democrat makes it into the runoff. That's pretty interesting, and it prompted much of the scheming about White and Howard and Brown and Rider, but it's wrong. Officials with the Texas Secretary of State say you can't hold a special election -- or a runoff -- on a primary election date. And if you believe that, you might also believe that the Democrat with the best combination of name identification, grassroots support and money would have the best chance. And since she ran before, you might pick White to bear the standard, even though she's endorsed Howard and told friends and supporters in emails that Howard would make a better representative than she would. The Democrats caucused over the weekend with local party officials to talk about the situation. They didn't come to any resolution.
And White, in spite of having her name in play, went ahead with a previously planned fundraiser for Howard at White's house. And Gov. Perry hasn't announced his decision on whether to call a quick special election (by designating it as an emergency) or to wait until the next uniform election date, in May. In either case, there will also be primary elections for that seat, followed by a general election in November 2006. The special election winner will serve until the end of next year, and then give up the spot to the winner of the general election. 

Dave Beckwith is moving back to Austin as state director for U.S. Sen. John Cornyn. Beckwith, who has worked on and off for U.S. Sen. Kay Bailey Hutchison over the years, is moving to Texas to lead Cornyn's in-state staff. He worked on Cornyn's Senate campaign and did a stint with Lt. Gov. David Dewhurst before returning to Washington, D.C., for his most recent run with Hutchison. Beckwith and the senior senator used to be in the Houston press corps together -- she as a TV reporter and he as a scribe with the Houston Chronicle. He'll be on Cornyn's payroll by the New Year.  

Indicted: State district Judge Amado Abascal, for two counts of tampering with a government record. He's accused -- in charges announced by Travis County prosecutors -- of listing 15 contributors on his campaign finance forms who didn't give to his campaign. The $15,000 he attributed to them, according to news reports, came from people associated with the casino in Eagle Pass. Indicted: Texas oilman Oscar Wyatt Jr., who stands accused (by federal prosecutors) of paying kickbacks to Iraqi leaders who let him sell their oil through a United Nations assistance program.