Brother Can You Spare A Dime? A Quarter?

Looking for a newspaper clip on the Internet the other day, we stumbled on what appeared to be the story we sought. It was about Gov. Rick Perry telling a Tyler audience about the prospects for a special session of the Legislature. But instead of what we expected — an account of Perry's efforts to negotiate a deal the House and Senate could swallow — it said Perry had given up trying to solve school finance until legislative leaders had a viable plan.

Then, we noticed, we had the right paper, the right people, the right issue, and the wrong year. When we quit the 2004 story and found the 2005 story, it had Perry predicting a special session by the end of this month, after he brought Lt. Gov. David Dewhurst and House Speaker Tom Craddick together for the sort of deal that has eluded all three men for the last two years.

Perry has met with both Dewhurst and Craddick. Several senators, apparently at the behest of Perry — who badly needs a school finance bill — and Dewhurst — who badly wants one — have been calling House members to see whether they're anxious to come back to Austin. The theory, apparently, is that legislators confronted by angry constituents will want to come back to Austin to finish the job. Perry's shuttle diplomacy is an attempt to have Dewhurst and Craddick on board if legislators call in and beg for a special session.

One proposal that is under discussion, but to which no fingerprints adhere, would start with the $2 billion to $2.5 billion that's in the state treasury but which went unspent when school finance fell apart. Add to that the roughly $1 billion that a $1 additional tax on cigarettes would produce. If lawmakers can close the two biggest loopholes in the state franchise tax — one is the Delaware Sub and one is called the Geoffrey's loophole — they'd get another $750 million to $800 million. That's enough money to get a 25-cent cut in local school property taxes and to cover other spending that tax cut would trigger (the school finance system is a tricky thing). And that might be enough to buy political cover for Perry and anyone else who's in trouble because of what the Lege didn't do during the first five months of the year.

Timing is a problem, if not for the schools, then for the politicians. A quick fix on school finance might put changes in place in time for the school districts to figure new budgets, but it wouldn't deliver goodies to taxpayers before next year's primary elections. It takes a while for a property tax cut to wend its way through school budgets, tax authorities, mortgage escrow accounts and the like. That was one reason lawmakers tried to solve this mess in a special session a year ago; a solution then would have produced results — and presumably, happy taxpayers and voters — in time for the March 2006 elections.

Only Her Advisors Know for Sure

Before the spin machine goes to work, here's what U.S. Sen. Kay Bailey Hutchison had to say about running for governor. She talked to a gaggle of reporters after speaking at the investiture of Priscilla Owen.

Spot the talking points in this bit of monologue from Hutchison, unfiltered:

"Certainly, I am in the home stretch of making the decision for what's right for Texas. As you know, I tried to stay out of the fray during the legislative session because there are so many important issues facing the Legislature. I am disappointed, like everyone, that school finance and especially, relief for the property taxpayers of our state, were not addressed.

"I do hope that the governor chooses to call a special session now. In the budget, there is an allocation for teacher pay raises, for judge pay raises, for the buying of textbooks on time. And I think it's time that we have that session to do what's right in the budget, and I don't think our teachers should start in the fall not having the pay raises that we meant for them to have.

"So it is my hope that this is not over, and I certainly would like to withhold anything further until the Legislature has the chance to come back and address these issues. We should take the schools out of the courts and put it back in the hands of elected officials and the people of this state.

"I've tried to stay out of the political fray. You will notice that during the whole regular session that... I've tried to stay out of the way, so that school finance, giving teacher pay raises, giving property tax relief to the people of Texas would be addressed by the Legislature.

"I know the Legislature tried to do it. I think we need leadership to be shown now more than ever to do what is right for our state. Texas is the greatest state in America. I want us to be the example of how to do things right. I want other states to look to us to be the state that has the creativity and the innovation to do what's right to keep our state the best. That's my goal and I hope that is what is shown by all of our elected leaders in the future.

"I think that's probably about all I need to say today."

That bit prompted a couple of political reporters of our acquaintance to adjust their positions on the betting pool on whether she'll run. Parse it like a scribbler: She set up the logic for a race, put the leadership baby on the governor's doorstep and said a session should be called to get raises for judges and teachers, property tax cuts, textbooks and school finance. 

Rep. Kent Grusendorf, R-Arlington, put out a statement after hearing Hutchison's remarks, saying he's ready to call hearings of the House Public Education Committee (he chairs it) on any plan she offers. "As Govs. Bush, Clements, and Richards all learned before, there is nothing as complicated, complex, or challenging as school finance." That's what Hutchison might have said, had she come to town to help Rick Perry become the first ten-year governor of Texas.

A spokesman for Perry said the Guv also wants lawmakers to come back and also doesn't think they've done their jobs on school finance. From Robert Black: "The fact of the matter is, the governor believes they haven't finished their work."

Same As the Old Map

The federal judges who okayed the current congressional maps in Texas have, on reconsideration, approved them again. Their opinion can be downloaded at:

www.texasweekly.com/documents/20050609redistricting.pdf.

Texas Attorney General Greg Abbott, in a statement, said the ruling "should end the matter, and it is time to move on." Nina Perales, a San Antonio lawyer who represents the G.I. Forum, said she is still digesting the opinion but said her clients "are as unhappy with this now as they were in 2003" when the court first ruled. Officially, the lawyers on the losing side are still talking to their clients and reading the opinion and all that. Unofficially, they plan to appeal. Cases like this go straight from the three-judge trial court to the U.S. Supreme Court, and that would be the next stop on the appeal express.

A quick history, in case you haven't been thinking about redistricting in your spare time. Several different groups sued to stop the state from putting new congressional maps in place, including Texas Democrats, congressional Democrats, the G.I. Forum, and the Texas NAACP. They had different angles, variously arguing that the maps were overly (and unconstitutionally) partisan, that they were drawn to minimize the voting power of minorities, and broadly speaking, that the new maps removed some Texans' a reasonable chance to elect candidates of their choice to the U.S. House.

Three federal judges were impaneled to hear the case. They ruled in the state's favor, saying the new congressional maps are legal. The plaintiffs appealed to the Supremes, who had been working on a different redistricting case from Pennsylvania. Instead of ruling on the Texas maps, the high court sent the case back to the three-judge panel and told them to view it through the filter of the Supreme Court's ruling in the Pennsylvania case. This bit is about that ruling.

The Pennsylvania case — styled Vieth vs. Jubelirer — was based on the idea that partisan gerrymandering had resulted in an unfair map that disenfranchised some voters. The Supremes decided that wasn't the case, but the justices weren't in agreement on several points.

One point in particular is tantalizing to redistricting lawyers and political geeks: The court left open the idea that there might be a line to be drawn between fair and unfair partisanship in the design of political districts. In this newest opinion, the Texas judges (Patrick Higginbotham of Dallas, who is on the 5th U.S. Circuit Court of Appeals, and trial judges Lee Rosenthal of Houston and T. John Ward of Marshall) say they were right about the partisan mapping the first time. That doesn't solve the puzzle about how much partisanship is too much partisanship, but without direction about what's in and what's out of bounds, the Texas judges decided the maps are fair. "We conclude that claims of excessive partisanship before us suffer from a lack of any measure of substantive fairness," they wrote.

The court did say the non-competitive districts on the new map that some see as a "stain" aren't all that unusual. "The argument ignores a historical fact; the Texas delegation has enjoyed non-competitive districts for at least the past four and a half decades, long before there were two political parties of any strength in the state," the judges wrote. They agreed with the state's argument that the new maps produced a big swing from the Democrats to the Republicans because the old map was unfair and the new map was a truer reflection of the voting strength of the two parties.

They limited the new opinion to that question about partisan gerrymandering. If the case goes up the food chain, other issues will be open just as they would have been had the Supremes heard the original appeal. One of those — whether mid-decade redistricting violates constitutional standards of "one man, one vote" — got the Texas judges' attention, though they didn't rule on it, since they were concerned mainly with the Vieth case.

But they did go on about it. Redistricting is required every ten years, when the census comes out. Lawmakers are required to draw districts that have the same number of people in them — that's one man, one vote. But a mid-decade like the one in Texas is done with numbers from the beginning of the decade and ignores population changes that took place in the meantime. The argument is that the mid-decade maps violate the constitutional rule because they use out of date census numbers. And since there aren't any better numbers, the defendants contend mid-decade redistricting is unconstitutional. In a concurring opinion, Ward suggested a statewide census that would form the basis for mid-decade maps, and said he'd have tossed the congressional maps on that basis if he and the other judges weren't limited to the political gerrymandering arguments from Pennsylvania.

Finally

Four years and a month after President George W. Bush nominated Priscilla Owen for a spot on the 5th U.S. Circuit Court of Appeals, she took the oath of office.

Owen was sworn in during a closed ceremony in the Texas Supreme Court chambers, surrounded by family, current and former members of the state's high court and other courts, and a mess of law clerks, court staff and news reporters.

Owen is one of a handful of judges whose confirmations stalled during partisan warfare in the U.S. Senate. Democrats said she and the others were so conservative as to be unsuitable for the courts; Republicans said they all deserved up or down votes from the GOP-dominated Senate. A deal that headed off an impasse over filibusters also gave Owen a vote, and she won confirmation.

At the swearing, Owen sat between U.S. Sen. Kay Bailey Hutchison and Gov. Rick Perry. All three spoke briefly, as did Chief Justice Wallace Jefferson, Justice Nathan Hecht, and Judge Carolyn Dineen King, the chief judge on the New Orleans-based court and in that, Owen's new boss. Owen took the oath from Hecht, while her mother held Sam Houston's Bible for the newest federal judge from Texas.

Gov. Perry will get another appointment to the court, naming a justice to replace Owen. He appointed all but three of the court's current justices (several have since won election) and five — including Owen's replacement — will be on the ballot next year.

An Incomplete Grade on the Budget

You were looking for closure, maybe? Comptroller Carole Keeton Strayhorn announced, only days after the legislative session was over, that the amount of money available exceeds the amount lawmakers spent in their $139.4 billion budget. The corresponding number from two years ago: $117.4 billion. That's a $22 billion increase, but it's a balanced budget.

That's good news for lawmakers, but it came with an asterisk: She hasn't yet tallied a second piece of spending legislation — the so-called "supplemental appropriations" bill. That measure, HB 10, includes appropriations for the current budget year and for the next two-year budget cycle. The current money covers spending that wasn't anticipated two years ago when the current budget was written; the other stuff was lumped together in the last weeks of the session, as budgeteers juggled several spending and revenue bills. Whether the whole package balances won't be completely clear until Strayhorn certifies the supplemental bill. And she tossed out a cautionary note, saying she'll watch the governor's line-item vetoes to make sure he doesn't cut something that would actually bring in more revenue, thus throwing the numbers out of whack.

If it balances, no problem. If it doesn't, some of the bigger state agencies — health and human services departments, for instance — could find themselves without the money to finish the year.

Strayhorn caused a fuss two years ago when she said lawmakers had budgeted more spending than the state could afford. They pointed to a "no-bounce" provision in the budget that automatically trimmed spending if money fell short. She said then, and says now, that that was unconstitutional. That provision — Strayhorn calls it a Get Out of Jail Free Card — has never been tested in court. Neither has the Legislature's contention that Strayhorn has to certify the budget within a certain amount of time. Some lawmakers say she must finish her work during the 20 days after the session, a period that coincides with the governor's deadline for vetoes. But that's not written down anywhere in law, and Strayhorn says it's baloney. Even so, she finished certification on the bigger of the two budget bills in record time.

Coming Soon to a Ballot Near You

David Sibley Jr. is mulling a run for a Waco seat in the Texas House. That's a good ballot name up there: He's the son of former state Sen. David Sibley, R-Waco, a law student at Baylor, and a Republican. Potential issues include tax votes by freshman Rep. Charles "Doc" Anderson, R-Waco, who stuck with a slight majority to move the ill-fated school finance package to the Senate during the legislative session.

Pat Carlson, chairwoman of the Tarrant County Republican Party for the last five-and-a-half years, says she'll run for the Texas House next year in HD-91. She's a Fort Worth native who has lived in Grapevine for 25 years; she and her husband are moving back to Fort Worth and into the district. She's been in three school board elections but says she has never held public office (unless you count the GOP gig). That's not an empty seat, but it might be: Rep. Bob Griggs, R-North Richland Hills, is the current occupant and just finished his second regular legislative session. Griggs, who says he set aside longstanding retirement plans to run for the House in 2002, is deciding whether to stick around and says he'll make the call in September. He's been open about it, but is still competitive enough to say nobody is going to beat him if he seeks another term. Whether Griggs stays or not, Carlson says she'll be in the race.

• Ellen Cohen, currently the president/CEO of the Houston Area Women's Center, is planning to run against Rep. Martha Wong, R-Houston, in next year's elections. HAWC is a shelter for abused women, and Cohen has been running it for 15 years. She's a Democrat, and that's one of a handful of seats on the Texas legislative map that could be won by either party.

• Two candidates have signed up with the Texas Secretary of State to run in HD-143 to replace Rep. Joe Moreno of Houston, who died in a truck accident during the legislative session. The list so far includes only Democrats: Charles George, a 58-year-old corrections officer; and Laura Salinas, a 28-year-old "leasing administrator." The election is set for November 8; candidates have to sign up by October 11 to get on the ballot. Ana Hernandez, an attorney who's been successful winning support from other state officials from Houston, hasn't filed paperwork with the SOS.

Age Over Beauty

Retired judge Phil Hardberger is San Antonio's new mayor, after a come-from-behind win over Julián Castro, a city councilman whose twin brother Joaquin Castro, is a state representative. Castro, 40 years Hardberger's junior, finished first in the first round, but third-place finisher Carroll Schubert endorsed Hardberger. The former judge went on to win a runoff election that saw turnout rise by about 15,000 voters over the original election. The final (unofficial) margin: 3,829 votes, out of 129,831 cast.

• El Paso's new mayor will be John Cook, a city councilman who upset incumbent Mayor Joe Wardy in a runoff election. Cook won by about 1,000 votes.

Chris Bell's exploratory campaign for governor turns to House parties to gin up support and some money, in small increments, for a possible run. The former congressman, a Houston Democrat, is doing those in Washington, D.C., Chicago, Tulsa, and eight cities in Texas, and tied them to the anniversary of Bell's ethics complaint against U.S House Majority Leader Tom DeLay, R-Sugar Land. In places where the campaign is asking for money, it's asking for relatively small amounts — $25 and $50.

Rumors of War: Former Comptroller John Sharp, after consecutive losing races for Lite Guv (to Rick Perry and David Dewhurst), is talking about a gubernatorial run. So far, it's blog-fodder; nobody seems to want to go on the record about it, and Sharp didn't call us back. Ahem. Also: The Dallas Morning News has Austin consultant Mark McKinnon talking to the John McCain camp about helping with the Arizona senator's possible presidential campaign. McKinnon worked for several Texas Democrats before signing on as an advisor/adman for George W. Bush, who benefited from his help in both his first run and his reelect. McKinnon told the paper nothing official has happened. McCain's chief political advisor is Texan John Weaver, formerly of Kermit.

• Agriculture Commissioner Susan Combs picked up an endorsement from the political action committee that's attached to the Texas and Southwest Cattle Raisers Association. She's running for comptroller in next year's elections.

• Attorney General Greg Abbott remained quiet about shield laws for journalists during the legislative session, but joined his counterparts from 34 other states in an amicus brief asking the U.S. Supreme Court to allow reporters to protect their sources. The court will consider a lower court decision that said reporters for The New York Times and Time magazine are not protected under federal law from being forced to identify unnamed sources.

• Add "Cowboy Politics" to your bloglist. The unnamed author(s) sent us a note saying they were up and running. They've got one post (hey, during that first week in 1984 we once had only one issue) and it's on Kay Bailey Hutchison, Rick Perry, and the prospects of a shootout for the Governor's Mansion. The address for the new folks: www.cowboypolitics.blogspot.com.

• Special Session, the weekly public television show on the Texas legislative session, is airing its last episode, but they put the whole season up on the Internet if you want to relive your wins and losses. Paul Stekler, a documentary maker based at the University of Texas at Austin, put together a team of film and TV wizards to assemble the show, a combination of short films, long interviews, and talking heads (disclosure: our editor was on the panel a few times). They managed to get it on more than a dozen public television stations around the state, something of a feat. The whole season is (or will be) online at www.klru.org/specialsession.

Political People and Their Moves

As expected, Mike Geeslin got the insurance commissioner job that was emptied by the retirement of Jose Montemayor. Geeslin, a former aide to Gov. Rick Perry and the most recent deputy to Montemayor, has been acting commissioner. First order of business: Absorb the Texas Worker's Compensation Commission into the Texas Department of Insurance. Lawmakers folded the bigger agency into the smaller one in the most recent session.

Former Texas Attorney General and Supreme Court Chief Justice John Hill is collaborating with Ernie Stromberger on a history of Hill's tenure as AG. Stromberger was out of the Capitol press corps by the time Hill became AG in 1972, but worked on Hill's gubernatorial campaign in 1978 and then stayed in touch. He's doing interviews with Hill's former assistants and others on matters like the legal battles over Howard Hughes' will.

Michael Shelby, who announced last month he's resigning from his job as a Houston-based U.S. Attorney last month, is signing up with Fulbright & Jaworski. After all those years as a prosecutor, he's going to head the firm's white-collar crime defense team. Shelby will work out of the law firm's headquarters in Houston.

Andy Erben left KB Homes, where he's been working a combo gig as a lobbyist and exec, to move back to the lobbying end of the spectrum. He ran for the coast — honest — and says he'll make his next move later in the summer.

Felton West, a longtime reporter at the Houston Post who went on, in his alleged retirement to get active in other things — he was a Liberty Hill City Councilman, for instance — is fighting cancer. He can be reached at Sagebrook Health Center in Cedar Park (outside of Austin).

Quotes of the Week

Gov. Rick Perry, on legislation that would put the state's ban on gay and lesbian marriages in the state constitution, quoted by KXAS-TV in Dallas-Fort Worth: "Texans have made a decision about marriage, and if there is some other state that has a more lenient view than Texas then maybe that's a better place for them to live."

Rev. Robin Lovin, a Methodist minister and Southern Methodist University professor, quoted in The New York Times: "There are lots of reasons to go to church on Sunday, but making laws isn't one of them."

Perry, quoted in The Dallas Morning News: "We may be on the grounds of a Christian school today, but our message speaks to all who believe in standing up for the unborn, all who cherish strong, traditional families, regardless of party, ethnicity or creed. We're here because a quiet majority decided to have their voices heard. We could be doing this at a parking lot at Wal-Mart."

House Speaker Tom Craddick, quoted in the Amarillo Globe-News on the prospects for school finance: "Even if we went in tomorrow and passed a bill, we don't know what the court is going to say is wrong with the system because the lower court didn't tell us what the specifics were -- they just said it's broken."

U.S. Sen. Kay Bailey Hutchison, caught by the Houston Chronicle saying she wanted to be sure none of her utterances led anyone to a conclusion: "I will talk a lot, but if you think you've understood anything I've said, you're misunderstanding."

Federal Judge Patrick Higginbotham, in his majority opinion on Texas congressional maps: "The history of electoral politics in Texas during the latter half of the twentieth century can be described as the story of the dominance, decline, and eventual eclipse of the Democratic Party as the state's majority party."

U.S. House Majority Leader Tom DeLay, in the Washington Post, saying congressional Democrats are trying to keep ethics in the headlines by denying him a hearing: "They don't want an ethics committee. They would like to drag this out and have me and others before the ethics committee in an election year."

Kinky Friedman, quoted in The Daily Texan: "Only two kinds of people wear cowboy hats: cowboys and assholes. I hope I'm the former."


Texas Weekly: Volume 22, Issue 2, 13 June 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

The Texas Association of Business has to let loose records of the corporations that contributed to its 2002 election efforts. The Texas Supreme Court, after sitting on the matter for almost 17 months, turned away TAB's request to keep the contributors' names and transactions secret. The trade group said the information was constitutionally protected; the court disagreed. James Sylvester of Austin, a Democratic House candidate who lost that year after being targeted in TAB mailers, filed a civil lawsuit saying TAB's campaign efforts against him were illegal. His lawyers asked for the records detailing how the group raised its money and from whom; the Supremes, after putting the matter on hold in January 2004, lifted its stay. TAB has to produce the information. That's the same election -- and one of the same groups -- under investigation by Travis County prosecutors and grand jurors for alleged violation of campaign finance laws. • Something called "The Marriage Alliance" has opened a website featuring a video of Gov. Rick Perry talking up the constitutional amendment banning gay marriage. The site was set up by Jim Ellis and John Colyandro, two GOP political ops allied with U.S. House Majority Leader Tom DeLay, R-Sugar Land, who are under indictment for their activities during the 2002 legislative elections. Neither man has gone to trial, and both have said they're innocent of any crime. They were indicted in connection with the same criminal inquiry that has included TAB's efforts to elect a Republican majority to the Texas House three years ago. The constitutional amendment on marriage is one of five amendments headed to voters, but it's far and away the draw on the ballot, both for supporters and opponents. On the video, Perry says Texans have a chance to "protect Texas families" with the constitutional amendment on Nov. 8 and says they can support the effort by going to the group's website (since it's on the website itself, the implication is that the ad could run on television). "Protect marriage from fringe groups and liberal judges that would undermine marriage to fit their radical agenda," Perry says in the video. "Join me in sending a message to them that marriage is only between one man and one woman." The website, at www.txmarriage.com, also has videos featuring Reps. Warren Chisum, R-Pampa, Linda Harper-Brown, R-Irving, and Phil King, R-Weatherford. • Some Texas school employees will get a pay raise after all. Teachers, full-time counselors, nurses, and librarians who are now paid the minimum allowed by the state will get more money during the next school year. The state changed some formulas for funding schools and triggered -- perhaps unintentionally -- pay escalators that were already in state law. It comes out to about a 2.8 percent increase in pay for those folks. Educators now making the minimum of $24,240 will get $24,910 next year. Those at the top-level minimum -- that is, experienced educators at the top step of the minimum pay level -- will see pay increase to $41,930 from $40,800 now. Most school districts in Texas pay more than the state minimums -- their employees aren't entitled to the automatic pay increase. By one estimate (from the Texas Federation of Teachers), the pay hike will affect about 8,000 teachers. • Former U.S. Rep. Chris Bell, the Houston Democrat exploring a gubernatorial run, says he raised $35,222 in a "grassroots fundraising drive" that was designed to raise $30,000. Of the total, about $2,500 came from 15 simultaneous "house parties" connected by a conference call last weekend. • Texas Agriculture Commissioner Susan Combs says she'll turn down a $32,000 pay raise that's included for some statewide officeholders in the budget. • Transportation legislation approved by the Legislature and eagerly signed by Gov. Rick Perry would, among a long list of other things, require local voter approval before existing roads could be converted to toll roads. That amends earlier legislation -- also signed by Perry -- that allowed conversion to toll roads without voter approval. In suburban areas, particularly around Austin and Houston, that quickly became a hot button. Even with the fix, it's likely to be an issue in the gubernatorial race, where Comptroller Carole Keeton Strayhorn is promising to talk about it, and in regional contests, like SD-3, where Transportation Commissioner Robert Nichols will be on the GOP ballot. • Here's a mouthful: The federal courthouse in Brownsville is on the way to being named the "Reynaldo G. Garza and Filemon B. Vela United States Courthouse" after two Texans who served as federal judges. That's passed both houses of Congress and is ready for the president's signature. • SurveyUSA, a polling firm, asked voters in all 50 states whether they approve or disapprove of the work their U.S. senators are doing. Barack Obama, an Illinois Democrat, has the highest approval rating in the Senate, with 67 percent, according to the poll. The worst? John Cornyn of Texas, with 40 percent approval. Kay Bailey Hutchison tied for 19th in the 100-member Senate, with a 64 percent approval rating. There's another way to look at it. The senator with the lowest disapproval ratings was Daniel Inouye of Hawaii, who has won the disapproval of 19 percent of his constituents. The highest: Rick Santorum of Pennsylvania, with 44 percent disapproval.

Gov. Rick Perry threw down the gauntlet Saturday, vetoing $35.3 in public education spending and calling a special legislative session on school finance beginning on Tuesday (June 21).He said lawmakers can redo that part of the budget and work on school finance at the same time, and said "we have plenty of time" to get a budget in place without threatening the start of the school year. "I'm not going to approve an education budget that shortchanges teacher salary increases, textbooks, education technology, and education reforms," Perry said in brief comments to the press. He also pointed to another $2 billion for education that slipped from the budget when school finance reforms failed during the regular session. Perry called the veto a "bold" move. Lt. Gov. David Dewhurst called it "disappointing," though he applauded Perry's call for a special session on school finance. And Carole Keeton Strayhorn, who announced her campaign for governor, said Perry's move was "irresponsible." "That is the most irresponsible act that this governor has taken and perhaps any governor has taken to hold our children hostage and veto those dollars for public schools," Strayhorn said. "You shouldn't even be discussing the possibilities that schools will not open." Perry outlined some of his cuts in a press release (get a copy here), and said the detailed version of the budget -- including his line-item vetoes -- would be available later on his website, at www.governor.state.tx.us. The veto raises the stakes for the Legislature, but won't directly force lawmakers to fix school finance. In fact, they now have two problems instead of one. First, they have to repair the budget. Second, they have to work on school finance. Those two things can be linked, but as lawmakers proved during the regular session, it's possible to write the budget without taking on property tax relief or textbook spending or teacher pay raises or school formulas. Public Education Budget Lawmakers have several options when they come back to work on the budget: • Reenact the public education spending vetoed by the governor; • Revise public school spending by moving money from what lawmakers approved three weeks ago to other areas -- like textbooks and teacher pay raises -- without tackling school finance reform and property tax cuts. • Go home and leave the mess for the governor and the Legislative Budget Board. That's not as far-fetched as it first sounds. Budgeteers included a provision saying money set free by vetoes can be budgeted by the Guv and the LBB without the help of the Legislature. In effect, Perry himself, along with the ten lawmakers on the LBB, is the safety net for this high-wire act. Here's the failsafe provision from the budget (in Article IX, for you wonks): "Sec. 13.18. Appropriation of Any Vetoed Funds. An amount equal to the sum of the General Revenue Fund and General Revenue -- Dedicated account appropriations contained in this Act that are vetoed by the Governor under Section 14, Article IV, Texas Constitution, shall be segregated by the Comptroller and is hereby appropriated for budget execution as provided by Chapter 317, Government Code." School Finance As for school finance, they'll start with some of the same problems they ended with three weeks ago. There were two bills: One on school finance reform and property tax cuts, the other a tax bill raising the money to pay for those cuts and those reforms. The House majority includes a faction of Republicans who want to limit what richer districts have to share with poorer districts. They want that "recapture" capped at 35 percent of the money they raise from local property taxes. That's an important sticking point for both those who want the caps and those who say they're unfair. As for taxes, the House generally leans toward bigger increases in sales and other consumer taxes, and away from higher business taxes, especially if that means expanding the corporate franchise tax to include partnerships and other business forms. The Senate prefers to broaden business taxes and rely less on consumption taxes. The differences sound simple, but they locked up the Legislature during the regular session. The governor had a plan last year but lawmakers put it in the shredder before moving on to their own ideas. Most recently, the governor and his allies have been pushing a smaller plan that, instead of trying to halve local property taxes or cut them by a third, would lower them between 10 cents and 25 cents, put more money into backordered textbooks, and make some available for teacher pay raises.

In the papers: Special session starting next Tuesday, following a veto of all public education spending in the new state budget.As Gov. Rick Perry enters the final weekend of his session-ending veto period, the Capitol is buzzing with rumors he'll kill public education funding to force lawmakers to confront school finance in a special session that will begin next week. That would force budgeteers to rescue the budgets for public schools before classes start in August and perhaps, in the process, to rewrite the state's school finance formulas. Perry will make a formal announcement clearing up the details on Saturday. In the meantime, the state's big newspapers are already scribbling: Perry to announce special session
By Christy Hoppe / The Dallas Morning News
AUSTIN -- Gov. Rick Perry has told state leaders that he is prepared to veto all funding for public schools, forcing them to tackle the thorny issue in a special legislative session he intends to call, starting next Tuesday. Perry considering veto on budget item
By Mike Ward, Laylan Copelin, Austin American-Statesman Staff
Gov. Rick Perry is threatening to veto the budget for public schools in Texas as a way to force lawmakers to agree on reforms to the beleaguered school finance system, as a prelude to calling the Legislature into a special session beginning Tuesday. Lawmaker: Special session on school funding next week
By David Koenig, Associated Press
PLANO -- Lawmakers will return to Austin Tuesday for a special session on school finance, state Sen. Florence Shapiro said today. Shapiro, a leader on the school funding issue, said Republican Gov. Rick Perry will announce the special session Saturday. Perry's office wouldn't confirm the announcement. Legislators may be back next week
Peggy Fikac-Chief, San Antonio Express-News Austin Bureau
AUSTIN -- Gov. Rick Perry has told legislative leaders he plans to call lawmakers into a special session to start next week, Capitol sources said Thursday. "Yeah, we're going back" to address school finance, said one source, who like others spoke on condition of anonymity. Hutchison will wait on announcement until after special session
By David Koenig, Associated Press Writer
PLANO, Texas -- U.S. Sen. Kay Bailey Hutchison said Friday she is near a decision on whether to challenge Gov. Rick Perry next year, adding that she has "prodded" her fellow Republican to do more about lowering property taxes and improving schools.

On the eve of his decisions on the state budget, there is some speculation that Gov. Rick Perry will use a heavy marker when he's vetoing lines in the $139.4 billion state budget.That could be a two-fer, buying the governor some political breathing room on what starts as a $22 billion increase in the budget, and, depending on what kind of cuts are made (state money or federal money), freeing up funds for some combination of property tax cuts, back-ordered textbooks, and teacher pay raises. He has to make his decisions about bills -- including line items in the budget -- by midnight Sunday (June 19). Sometime after that, Comptroller Carole Keeton Strayhorn will "score" the budget and announce a bottom-line difference between what's available for spending and how much of it Perry and the Lege promised to spend over the next two years. The Guv has several options with that marker, ranging from dramatic to operatic: • He can make simple line-item cuts, with the surprises coming from what programs get cut and from the amount of money that produces. Anything smaller than $1 billion would get limited headlines; even that amount would be dwarfed by the $21 billion increase in spending still left. • A previous governor used the veto pen -- or maybe it was a paintbrush -- to kill the entire second column in the two-year budget, approving one year of spending but forcing budgeteers to come back and rewrite the second year of the budget. Doing that would force a special session within the next year, but with school finance going to the Texas Supreme Court, chances of a session sometime in the next eight months is pretty good anyway.
-- Perry could also strike out an entire section of the budget, forcing lawmakers to come back to make repairs before things ground to a halt. For instance, the governor has the power to strike Article III in its entirety, which includes all the money to be spent on public and higher education. That would force a special session before the end of the fiscal year on August 30, but risks starting school years without any money. Remember when Congress shut down the Washington Monument?

Political People and their Moves

Jeff Moseley, who runs the economic development department in Gov. Rick Perry's office, is leaving state employment to head the Greater Houston Partnership.That's the second time the Houston group has gone to North Texas for a chief. Former Denton County Judge Moseley moved to Austin after he was hired to run the old Texas Department of Commerce, a job that morphed into his current post. He'll replace Jim Kollaer, who's been at the GHP for 15 years and who, before that, worked in commercial real estate in Dallas. Moseley starts his new gig next month.

The magazine's list of the ten best and ten worst legislators is out.The Best
Rep. Dianne Delisi, R-Temple
Sen. Robert Duncan, R-Lubbock
Rep. Dan Gattis, R-Georgetown
Rep. Charlie Geren, R-Fort Worth
Rep. Fred Hill, R-Richardson
Sen. Steve Ogden, R-Bryan
Rep. Jim Pitts, R-Waxahachie
Rep. Mike Villarreal, D-San Antonio
Sen. John Whitmire, D-Houston
Sen. Judith Zaffirini, D-Laredo The Worst
Sen. Gonzalo Barrientos, D-Austin
Rep. Dwayne Bohac, R-Houston
Rep. Mary Denny, R-Aubrey
Rep. Al Edwards, D-Houston
Sen. Mario Gallegos, D-Houston
Rep. Kent Grusendorf, R-Arlington
Sen. Chris Harris, R-Arlington
Rep. Terry Keel, R-Austin
Rep. Phil King, R-Weatherford
Rep. Robert Talton, R-Pasadena Dishonorable Mention
Gov. Rick Perry
Lt. Gov. David Dewhurst House Speaker Tom Craddick

Kimbrough returns to the AG's office; McClellan leavesJay Kimbrough, deputy chief of staff to Gov. Rick Perry, has moved back to the offices of Attorney General Greg Abbott, where he's the director of "special investigations." That's an office that handles criminal investigations and prosecutions (most of which are done in conjunction with district attorneys whose legal turf includes criminal matters). He's hopped around state government, heading the Texas Commission on Alcohol and Drug Abuse, then the Guv's criminal justice division, then to Abbott's office to head criminal justice, then to the Guv's office to head Homeland Security, to "senior advisor" to Perry and then to deputy chief of staff. He rejoined Abbott as the legislative session ended. Bradley McClellan, who heads the workers comp section for Abbott, is leaving that job for a post in the private sector. He's not saying what that post might be, but his last day on the job is Friday. His mother, meanwhile has asked Capitol Police for permission to block off Congress Avenue north of the Pink Building on Saturday. Her name is Carole Keeton Strayhorn.

East Texans, treated to a hot race when SD-3 was open in 2000, are about to get another one just like it.David Kleimann jumped into the SD-3 race with swats at Austin and the lame duck incumbent, Sen. Todd Staples, R-Palestine. Kleimann, who's been considering the race for months, says Staples called him and asked him to bow out: "He said he and the powers that be in Austin have decided who the next senator should be." The call got Kleimann's blood up, and he says he will be on the Republican ballot next year. The Willis businessman, who grew up in Montgomery County, says Staples' call riled "the little bit of John Wayne spirit in me," and he's making the Austin push for another candidate his issue. Staples, according to Kleimann, is supporting Robert Nichols, a Palestine businessman who is currently on the Texas Transportation Commission and who is a political confederate of Gov. Rick Perry. The senator's consultant, Bryan Eppstein of Fort Worth, dismisses that in four words: "It's ridiculous. No comment." Staples hasn't officially endorsed anyone, but Nichols is apparently the management favorite, which can help sometimes and hurt sometimes. Staples himself got into the Senate after drubbing homebuilder Les Tarrance in a GOP primary. Tarrance was the Austin favorite, had most of the lobby money, the governor's advisors and pollsters and advertising wizards, and vacuumed up a whopping 18 percent of the vote. Staples refrain then was that Austin shouldn't pick the candidate for East Texas. Bob Reeves, a Center businessman, has been considering a race for at least a full year and has been talking off and on to Staples during that time. He plans to officially declare his candidacy next week. He calls Staples a friend and says he won't divulge what might or might not have been said in a private conversation, but says he did get a call from Staples in the same time frame as the Kleimann call. He leaves it at that. Austin consultant Todd Smith will be working on Reeves' campaign. And Frank Denton, who ran and lost a mayoral race last year in Conroe, is planning to run (apparently with consultant Bill Tryon running things). Rep. Roy Blake Jr., R-Nacogdoches, has lately expressed interest; his father was in the Senate. Neither he, Denton, or Nichols returned calls before this was written.
Nichols was reappointed to the transportation board a year ago by Gov. Rick Perry (he was first appointed by then-Gov. George W. Bush). Earlier this year, he lent his name to Perry's reelection campaign for a list of people who will serve on the governor's campaign finance committee.

U.S. Sen. Kay Bailey Hutchison told supporters in an email Friday evening that she will run for reelection in 2006 instead of challenging Gov. Rick Perry in the Republican primary.She's been flirting with a race for governor for months, and told reporters at a Friday luncheon in Plano that she would make her decision known within a few weeks and that she wouldn't announce anything until after an expected special legislative session on school finance. But just a few hours later, she fired off the email telling supporters that she'll run for reelection instead. That message said she would announce her reelection bid on June 27, and would explain her reasoning then. A win next year would give her a third term in the Senate; when she first ran in 1993, she told supporters she'd serve no more than two terms there. This is the second time Hutchison has seriously considered a run for governor and backed down. Texas Republicans who were tangled up in efforts to get a second term for President George W. Bush four years ago asked her not to stir the pot. That would have been a free run, since she wasn't up for election in 2002. This time, she faced the prospect of running for reelection -- expected to be an easy contest with few, if any, serious opponents -- or coming home to run against Perry and Comptroller Carole Keeton Strayhorn, two of the strongest campaigners in GOP politics. With Perry on the verge of calling a special session on school finance and Strayhorn on the eve of announcing her bid for governor, Hutchison bowed out. That came as a terrific surprise to people who've been watching the pre-election posturing for the last year, and was as unexpected as another big moment in Hutchison's career, when Texas Travis County District Attorney Ronnie Earle folded his ethics case against her in open court in 1994. Hutchison, by most accounts, was ahead in private polls of the race. It's too early for those to mean anything in terms of Election Day, but her camp considered the numbers in a race with Perry and/or Strayhorn promising. And other politicians were queuing up in anticipation: U.S. Rep. Henry Bonilla, R-San Antonio, hoped to run to replace Hutchison; several politicians were lining up to replace him in that instance. Cocktail party speculators wondered if Lt. Gov. David Dewhurst would run for her spot, and whether Attorney General Greg Abbott and perhaps Strayhorn would then turn their attentions to replacing Dewhurst. Lawyers were lining up to look at Abbott's job. Agriculture Commissioner Susan Combs, betting early that Strayhorn would move on, is already running for comptroller. Never mind all but that last race -- Strayhorn is saddling up for a run at the only elected state office that comes with free housing. Perry's prospects improve immensely with Hutchison out of the race. She's one of the state's most popular politicians, right up there with the president -- who'd want to run against her? But the governor isn't off the hook yet. Strayhorn's getting in. Kinky Friedman is putting together an independent campaign for governor. Democrat Chris Bell, a one-term congressman and former Houston city councilman, is exploring a run. And a few other Democrats -- insurance exec and former U.S. Ambassador Lyndon Olsen of Waco, former Comptroller John Sharp of Austin, and advertising exec Roy Spence of Austin -- have all talked about it. One last bit of sand to throw in, however unlikely it might seem: There's nothing here to prevent Hutchison from deciding to run for governor after all. She's got the money to run, especially if she were to run a short race instead of a long one. The political filing deadline is after Christmas, and for a politician with solid name identification, there's no need for a "get to know me" campaign. Sitting out the next six months means six months with no attacks to tear down the positive numbers. If things look nasty for Perry in December, Hutchison could always reconsider and get back in the race.

Bill Kenyon, who's been flakking for the Texas Secretary of State, abruptly left that agency after finding "difference of philosophy of communications with the governor's office."Kenyon was on board when Texas Secretary of State Roger Williams took office, having worked for SOS Geoffrey Connor for a few months before that. He joined the SOS, and came into Gov. Rick Perry's political sphere, after working for Comptroller Carole Keeton Strayhorn. They met working on Clayton Williams' ill-fated gubernatorial campaign in 1990, and Strayhorn brought him back to Texas from a political consulting practice in California. Kenyon says he's thinking about hanging out a consulting shingle in Austin.

Three new or promoted judges: Pena, Moore, and HancockGov. Rick Perry named Horacio Peña Jr. of Mission to the 92nd Judicial District Court in Hidalgo County. He's currently a municipal court judge in Mission and a private attorney. Dan Moore of Athens is Perry's pick for a court seat in Henderson County. He's a municipal court judge in Gun Barrel City and the city attorney for City of Athens. Perry named district Judge Mackey Hancock of Lubbock to an open spot on the 7th Court of Appeals in Amarillo, an appointment triggered when the governor named that court's Phil Johnson to the Texas Supreme Court. The governor next gets to pick Hancock's replacement.

Take Roy Blake Jr. off your list of candidates seeking to replace Sen. Todd Staples, R-Palestine.The Republican state representative from Nacogdoches says he looked at it but has decided to seek a second term in the Texas House. Frank Denton of Conroe, David Kleimann of Willis, Robert Nichols of Jacksonville, and Bob Reeves of Center all say they're definitely running. Staples has announced that, later this summer, he will announce his candidacy for Texas agriculture commissioner.

Texas Comptroller Carole Keeton Strayhorn is expected to announce her candidacy for governor in Austin this Saturday, June 18.Her staff -- and her husband, Ed Strayhorn -- have been calling around to ask supporters to show up for an event this weekend. The comptroller, who's been giving Gov. Rick Perry fits for the last two years, is going to stop long-running speculation that she would challenge him. U.S. Sen. Kay Bailey Hutchison is also considering a challenge, and 2006 could see the first competitive GOP primary for governor since 1990. Strayhorn asked Capitol Police for permission to block off Congress Avenue, on the north side of the Pink Building, for several hours on Saturday. That's a slow time of the week in that area, and the stretch of road between the Capitol and the University of Texas only gets really busy six or seven times a year -- when the Longhorns are playing football at home. The permit allows up to 500 people, and will let Strayhorn erect a stage to announce her political plans with the dome of the state government's coolest building as a backdrop. The timing is clever. Perry has until midnight Sunday to sign legislation, veto it, or allow bills to become laws without his name on them. Strayhorn is jumping that by a day, beating any other candidiates -- including the incumbent -- to a formal announcement. On Monday, after the deadline for bills is over, state officeholders are free to raise political money (a prohibition begins a month before the legislative session and continues until the veto pen is put down). Strayhorn's advisors hope the earlier announcement will give U.S. Sen. Kay Bailey Hutchison pause and will allow the comptroller time to get some traction for the March primary. If Hutchison decides to run -- all signs are that she will run -- and looks like the favorite, Strayhorn could always hop to another race. You'll find people who say that's not a good idea, but well-timed changes of course can get candidates out of impossible races and into competitive ones. For instance: Attorney General Greg Abbott was a candidate for lieutenant governor in 2002 before switching to the AG's race. Democrat John Sharp ran for lite guv in 1998, losing narrowly to Rick Perry, after openly considering a run for governor against George W. Bush. It's hard to find solid information about Hutchison's plans, but the received wisdom from her campaign is that she'll decide soon and then make an official announcement sometime between now and August. Choose your poison: That's either a long wait that gives Perry and Strayhorn too much time to set up, or it's a smart move that lets them throw knives at one another while Hutchison stays above the fray -- and out of throwing range -- for a few more weeks. A political graybeard might remind us that nobody pays attention to politics during the summer anyway, and that voters' eyes and ears aren't available to candidates until school starts. And the start of school gives the candidates a peg for arguing school finance. If the Legislature squeezes out some solution in a special session, Perry might have something to brag about when the kids get their new haircuts and put on their backpacks. If things remain as they are now, the start of school will give challengers a chance to point out the failure to solve what might be Texas government's most persistent problem.

Quotes of the Week

Masset, Beckwith, Walt, Adams, Pena, Grusendorf, Senclair, White, and PoeGOP consultant Royal Masset, talking about Carole Keeton Strayhorn with the San Antonio Express-News: "She's a female Sam Houston. She wants to make her best shot even if the odds aren't that good. If she's going to attack, this is when she goes. As soon as the target's in view, she fires. She's not messing around. She's going." David Beckwith, an aide to U.S. Sen. Kay Bailey Hutchison, criticizing Gov. Rick Perry's promise to spend state money on a road at the U.S. Army's Fort Hood, in the San Antonio Express-News: "If you want to know why you have to have a toll road, look at this $20 million." Perry spokeswoman Kathy Walt in response: "Her 12 years in the Senate have cost Texas taxpayers almost $5 billion that have gone to build roads in other states." Cathie Adams of the Texas Eagle Forum, in the Austin American-Statesman: "I don't think anyone who understands what is at stake is chomping at the bit for a special session." State Rep. Aaron Peña, D-Edinburg, writing on A Capitol Blog (www.acapitolblog.blogspot.com) about a special session: "Come on Governor, pull the trigger, let's give it a go!" Rep. Kent Grusendorf, R-Arlington, looking back on the legislative session in an interview with the Fort Worth Star-Telegram: "I think I had a great session, considering the obstacles. Think about that: We passed a school bill out of the House with virtually no support from the education community. ... I never saw a bill pass with that much opposition." Arturo Senclair, tribal governor of El Paso's Tigua Indians, in The New York Times on the effects of closing the tribe's Speaking Rock Casino: "In two or three years it will be back to the way it was before we had gaming. Then we'll be dependent on whatever federal money we can get, after we tried so hard to be self-sufficient." Houston Mayor Bill White, in a Houston Chronicle article on urban sprawl: "I don't want, nor do most people in this community want, to tell people where they can and can't live or how long their commute should or shouldn't be. One person's sprawl is another person's dream house. On the other hand... it is much more expensive for us to provide transportation services, water and sewer services and everything else if somebody lives twice as far away." U.S. Rep. Ted Poe, R-Houston, quoted by the Associated Press after voting against legislation allowing horses to be slaughtered for food: "The thought of people eating the Lone Ranger's horse -- Silver -- or Tonto's horse -- Scout -- is just barbaric."