If tax bills were lions and senators were acrobats, that would have been a helluva circus.

Play it back: The Texas Legislature, in just 29 days, passed the biggest tax bill in state history, talked and spent away the largest budget surplus in state history, unknotted (for now) a school finance problem that has bedeviled them for years, cut local school property taxes by as much as a third, increased teacher pay for the first time in six years, and did it all without inciting the sort of mob action that often attends these things.

It didn't seem possible a couple of months ago. Conservatives began this exercise saying they weren't interested in raising taxes, especially when the comptroller said the state had $8.2 billion on hand. Actually, they were raising those objections when the estimate of extra money was merely $4.3 billion. Rep. Warren Chisum, R-Pampa, originally gave voice to that idea. And he was the sponsor, ultimately, of the bill that used the surplus for the first part of the local tax cuts and for the first round of teacher pay raises. Democrats were opposed to the idea of focusing on property tax cuts instead of increasing education spending, but most came on board when a $2,000 teacher pay raise was added. Business groups complained at the size of the tax bills, but ultimately put a sock in it and played along.

The tax bills that passed — three of them, which will bring in $4.7 billion a year in new money when they're up and running — will fund some of those costs in future years. And there's argument over whether the money raised during the session will match up with what was spent. Time will tell. But it's worth noting that state lawmakers, faced with court deadlines, election threats, a business tax proposal that didn't arouse significant opposition, got the job done.

Some program notes are in order.

House Speaker Tom Craddick led the House without bossing it this time, setting up the five bills in the package so that nobody on his side was forced to make a "gut" vote of the type that marred previous sessions. The legislation was arranged so that the mostly Republican House members could vote with management and without voting against their local interests.

The Texas Senate, either by design or accident, is starting to see the rise of strong senators after a few sessions where they often acted as middle managers under Lt. Gov. David Dewhurst. That's closer to the upper chamber's tradition, where a group of strong personalities sometimes stampedes, but it's new for this bunch. They still ended up with a 31-0 vote somehow, but there were more hands in the pie, on all sides.

Gov. Rick Perry finally got a win, after breaking off his long estrangement from former Comptroller John Sharp and combining his own public skills with Sharp's inside skills. Perry's tax reform commission came up with a business tax that raises almost $6 billion a year (that number gets reduced by $2 billion because of the repeal of the current corporate franchise tax that raised that amount). And they got it passed with almost unanimous support from business groups that usually fill the Capitol to kill new taxes.

Some questions remain.

• Don't be surprised if there's a lawsuit challenging the new business tax on the grounds that, for some people in partnerships, it looks and feels a lot like a personal income tax. If courts agree, that would make the tax unconstitutional.

• It's hard to tell for sure how much the new business tax will raise. Several thousand big businesses have to file informational returns at the end of the year so state tax experts can get a peek at real numbers.

• Lots of businesses stayed quiet during the special session so they wouldn't get chewed up in the politics of this thing and because they have plenty of time to ask for changes before the tax comes due. The first tax returns aren't due for almost two years — May 2008 — and there's a regular legislative session between now and then. A Senate bill that was supposed to carry loads of fixes died under its own weight, but watch for "corrections" next January.

• There's an election in November. Sometimes, those things change people's minds about what ought to be in the law. For instance, at least gubernatorial candidate wants to repeal the new tax law. At least two of the five candidates want a bigger pay raise for teachers. And so on.

Good Enough?

The new setup for school finance would be familiar to any sharecropper, but lawyers on both sides think it might suit the courts, for now. Local school districts are the farmers. The state owns the land. And the state gets 97 percent of the crops.

That's not a made-up number: The state is putting up enough money to lower local school property tax rates to $1.33 the first year, and telling districts they can raise 4 more cents locally for local spending. Anything above the four cents would require voter approval. If it stays at four, the state would get $1.33 out of every $1.37, or 97.1 percent.

That's skinny, and lawyers for the school districts will be watching those numbers for a couple of years to see whether this new setup works. The courts, you'll remember, said the old system was out of whack because the state's requirements of schools used all the local money and forced districts to raise taxes. That, in effect, turned the local school taxes into an unconstitutional state property tax. The districts have to have what the courts call "meaningful discretion" over their own taxes for the system to be legal.

The state is hoping the infusion of new state money to lower local property taxes, and the freedom to add on four cents for local spending, will give the districts enough say over the taxes they levy.

Early reviews from the school lawyers — they're still talking to the districts they represent and this could change — is that the legislative fixes should be okay for now.

As this evolves, one of their attorneys, J. David Thompson, says they'll be watching two things. First, whether the state lays on any new education requirements without funding them. Once the districts have their rates down to $1 — the legislative target for January 2008 — that's supposed to match the state's requirements. If it takes more than $1 to do in schools what the state requires, then districts will have to return to raising local "enrichment" money to pay for what are supposed to be basic expenses.

Thing two is related. As costs rise from inflation or enrollment or whatever, will the state fund the increases or force districts to get into their local enrichment funds for basics? That's part of what got the state into its current fix in court. Thompson and others say it'll be one of the indicators of whether this is working over the next few years.

Those lawyers are also meeting later this week with lawyers for the state to talk about whether the legislation takes care of the courts for now or whether there's something more to debate. Dallas lawyer George Bramblett Jr., whose West Orange-Cove group actually won the injunction forcing the Legislature to do something, says he thinks the Legislature's fix is both commendable and short of a real resolution. But, he says, it might do for now. "This is still temporary... in the long term, it's still not a comprehensive review and change of the school finance system. All they did was take an old structure and tweak it around," he says.

Bramblett points to the adequacy of the state's funding for schools as a possible issue of future contention. The state argued that the courts should stay out of whether the schools do an adequate job of educating Texans and how much that should cost; the Texas Supreme Court, among others, rejected that idea. If state funding in the future doesn't measure up to that standard, Bramblett and others say the fight could be rejoined.

He's not for suing again — he says he had hoped to get this far without a lawsuit — but he says only two things drove lawmakers to act this time: The June 1 deadline imposed by the courts and, to a lesser extent, the fact that the Public Education Chairman in the House, Rep. Kent Grusendorf, R-Arlington, lost a Republican primary election where school finance was part of the argument. That's never happened before, and he thinks it helped focus lawmakers.

Sticks and Stones, and Numbers

Your state comptroller, who wants to be living in the Governor's Mansion a year from now, says she will repeal the new business tax if she gets that job.

Carole Keeton Strayhorn's state office hasn't officially scored the bill yet, but she's blasting at it from her campaign headquarters, saying it will be $23 billion out of balance after five years and that it doesn't put any new money into education.

Gov. Rick Perry characterizes the five-bill school finance package as a net tax cut — one that spends more than it raises. And he and former Comptroller John Sharp, who helped devise the new business tax, say the state's economy will get a boost that will produce enough business and enough new state revenue to cover that difference.

Those are the bones of the stories the two candidates will be telling during the coming campaign for governor. Perry will tout lower property taxes, fairer business taxes and a solution to school finance. Strayhorn will stress the increase in business taxes, the lack of new money for schools, and the relatively skimpy pay raise for teachers who she says deserve more.

Strayhorn disagrees with Perry's optimism that the new tax rig will boost the economy, as does the Legislative Budget Board analysis of the plan; both say the bills cost $3 billion to $5 billion more than they brings in each year. The difference, she says, will have to be raised in other taxes, from an expansion of legalized gambling and/or other sources, or would have to be saved with cuts to other programs. Neither she nor the LBB tried to predict whether the economy will surge as a result of the change in taxes.

Perry cited studies from three different economists who contend the legislation will boost the economy and will, in spite of the "snapshot" numbers from the LBB and the comptroller, become a net plus to the economy. The state numbers don't include the impact of lower property taxes, and the politicos and the economists working for them say that'll make all the difference.

The raw numbers from the LBB, taken from the fiscal notes of four of the five bills (HB 2 directs the use of money, but doesn't actually raise or spend any, according to the analysts), show a net deficit to the state of $25.1 billion over five years. The first couple of years of that rely on the state surplus — also not included in the revenue numbers — but two thirds of the negative numbers are in years three, four and five. If the economists are right, no problem. But it's safe to say some of the number crunchers are anxious about the "out years."

Nearly all of the spending happens in HB 1, where the property tax buy downs are spelled out. The annual numbers top $10 billion after a few years, while income from the new business tax and from increased taxes on used cars and cigarettes bring in just under $5 billion annually.

An analysis of the LBB numbers by an outside group — the Texas Taxpayers and Research Association — concluded the package will cost $3.5 billion in the current budget, $10.8 billion in the next, and $11.5 billion in the two-year budget after that one.

Actual mileage may vary. You can find arguments all over Austin about how much the new business tax will bring in. The LBB's estimate, based on numbers from the comptroller's office where the tax will be collected, is that the new tax will bring in almost $4 billion annually when it's up and running (that's after the current franchise taxes revenues are subtracted out). Some business people we know — and some of their lobbyists — think that number is low.

For now, this is what the official numbers look like, and these figures are what lawmakers had in hand when they voted.

 

Grassroots Politics

From the back, it sounded like a question hatched after Democrats waylaid the school finance/tax reform package. The question itself was half-audible, but Gov. Rick Perry's answer was clear: "I'll be signing that piece of legislation gladly and with great joy." But the question wasn't about criticism from the Democrats — it was about the Harris County GOP's vote demanding that Perry veto a central portion of his legislation.

The executive board of the governor's party in the biggest county in the state is against his tax plan. That's not necessarily meaningful; opposition from conservatives didn't do much to slow the passage of the five-bill legislative package through the Legislature during the special session.

But it's a pesky noisemaker inside the tent, and Perry is busy trying to gather his base together to fend off challenges from four candidates. One of those wannabes, Comptroller Carole Keeton Strayhorn, is running as an independent but holds office because of the support of some or all of the same people who put Perry in office. The Perry spin is that Strayhorn has lost all Republican support and won't profit from this. Strayhorn's is that Republicans and others looking for an alternative to Perry will look first to her. Democrat Chris Bell will tell you a split on the elephant side looks good to a donkey.

The Harris County resolution didn't even make the Harris County GOP's website, at least not immediately. But anti-tax activists Steven Hotze and Norman Adams, who couldn't find any traction in the Legislature, is having more success at home ginning up the ire of reflexively anti-tax activists.

Meanwhile, in Your Other Pocket

School tax cuts will cost cities and counties some money.

Budgets for county appraisal districts are funded with money from the cities, counties, school and other districts that levy property taxes. Each local government's share of the costs is related to its relative size on people's property tax bills. The drop in school property taxes brought on by the Lege's new school finance package will cut what schools have to pay the CADs, but will increase the amounts paid by the cities, counties, hospital districts and others that aren't lowering their rates. The CADs don't save any money, so their budgets won't drop. But the price will shift from the schools (which will still likely pay the most) to the others. The Texas Municipal League estimates the average city will see a 6.7 percent increase in its CAD funding in year one of the tax cuts, and another 16.5 percent in year two. That's an average increase of 24 percent by 2008.

It's not a huge amount of money, in most cases; TML officials say the increase will be $10 million to $15 million statewide. And it'll be about the same for counties. Right now, cities pay about 15 percent of the CAD costs, and counties pay about 14 percent. School districts pay about 60 percent, and special districts pick up the rest.

This Will Be on the Test

Republican comptroller nominee Susan Combs says she'll review any rules on the new tax bill that are cooked up by the current comptroller. The tax wonks who work for Carole Keeton Strayhorn started working on rules and collection and startup issues before the tax bill was even out of the Legislature. That's their job, but it made some political brows furrow at the idea that one of Gov. Rick Perry'schallengers was tinkering with his new business tax. Combs isn't saying she'll change anything if she's elected to succeed Strayhorn, just that she might.

• Only eight lawmakers voted against HB 1 after teacher pay raises were added to the property tax relief and other provisions in that legislation. All are Democrats: Lon Burnam of Fort Worth; Garnet Coleman of Houston; Jessica Farrar of Houston; Rick Noriega of Houston; Rene Oliveira of Brownsville; Eddie Rodriguez of Austin; Marc Veasey of Fort Worth; and Mike Villarreal of San Antonio.

Political People and Their Moves

Kent Sullivan is giving up his robes to be first assistant to Texas Attorney General Greg Abbott. Sullivan, a state District Judge in Houston, was a private practice attorney for 21 years before that. He'll replace Barry McBee, who's leaving to join the University of Texas System.

Edward Johnson, at the tender age of 29, is the new executive director of the Texas Building and Procurement Commission. A former House aide, he's been at that agency for three years. He's been the interim ED since January, and the board made it official this week.

ERCOT chief Thomas Schrader is leaving that agency. He came on in the wake of a scandal that ended with criminal charges against several ERCOT execs. He'll be replaced in the short term by Sam Jones, who'll be in the top spot until the board finds a new CEO for the power agency.

Former state Rep. Patricia Gray, D-Galveston, is joining the University of Houston's Law Center as director of research and external relations; she'll also teach a course there on legislating health policy.

 Steve Robinson, the former head of the Texas Youth Commission, is joining the Austin office of MGT of America. That consulting firm also employs former Texas prison chief Wayne Scott in its criminal justice practice.

Maybe you didn't about the Advisory Board of Athletic Trainers, but the state has one, and it has two new members. Gov. Rick Perry appointed Dr. David Schmidt of San Antonio and David Weir of College Station to that panel. Schmidt has a sports medicine practice and is the team doctor for the Spurs; Weir is a trainer at Texas A&M University.

Perry named Dr. Mark Mayberry of Abilene to the Texas Medical Board's district three review committee, and Noe Fernandez of McAllen to the district four panel. Those committees make recommendations on investigations of medical practice and competency.

David Allex of Harlingen will stay on the Cameron County Regional Mobility Authority; Perry reappointed him.

Perry reappointed Samuel Loyd Neal of Corpus Christi and James Maloney of El Paso to the Texas Military Preparedness Commission.

And Perry named McKinney attorney Michael Puhl to the Texas State Board of Examiners of Marriage and Family Therapists.

Quotes of the Week

Rep. Suzanna Gratia Hupp, R-Lampasas, telling other lawmakers she'll remember them when her term is up at the end of the year: "When I'm cleaning my horses' stalls, I'll be thinking of you."

House Speaker Tom Craddick, adjourning sine die: "It is the chair's hope that we do not see you in session again for the rest of the year."

Rep. Carter Casteel, R-New Braunfels, telling the San Antonio Express-News that the new school finance package doesn't balance over time: "We are just so lied to. We're being told, 'I'm going to fill your left pocket' and while you're sitting there asleep, they're going to take it out of your right pocket."

Comptroller Carole Keeton Strayhorn, saying the new school tax package doesn't balance: "Rick Perry's so-called property tax cuts are going to go poof."

Gov. Rick Perry, on criticism from his gubernatorial rivals: "When you talk about leadership, you don't just sit around on the sidelines and criticize. You come up with a plan, you lay that plan out and you work diligently to see that plan pass. You don't just sit around and complain and gripe and bellyache without laying a plan out of your own."

Democratic consultant Mike Lavigne, on the tax plan's effect on Strayhorn, quoted by the Associated Press: "Strayhorn was definitely banking on nothing passing the Legislature and was hoping to run on a train wreck. She's in a tough spot."

House Speaker Tom Craddick, telling the Midland Reporter-Telegram he thinks the courts will approve of what lawmakers did in special session and let the state out of the school finance lawsuit: "If it doesn't pass, we need a new attorney general because he told us this would work."

Rep. Scott Hochberg, D-Houston, on the special session: "We have not changed anything in that regard except to take the promise of a long-term funding source and dedicate it to tax relief in a way that prevents it from being used for schools."

Beaumont Mayor Guy Goodson, talking in the San Antonio Express-News about gasoline-boom-fueled construction there: "People in Southeast Texas want these plants. They want these expansions. This is not the Silicon Valley. I won't be able to get Microsoft to move here. We need to work with what we've got, and we've got refineries."

Steve Buser, CEO of the Partnership of Southeast Texas, in that same story: "If you can walk and chew gum at the same time, you can get a job at $12 to $15 an hour in Southeast Texas."

Max Shumake, part of a family that owns farmland in Red River County that would be flooded by the proposed Marvin Nichols reservoir, in the Houston Chronicle: "I don't know why I should lose my heritage so Dallas can have St. Augustine lawns."

---

Texas Weekly: Volume 22, Issue 46, 22 May 2006. Ross Ramsey, Editor. Copyright 2006 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 (512) 302-5703 or email biz@texasweekly.com. For news, email ramsey@texasweekly.com, or call (512) 288-6598.

Funeral protests and gubernatorial polls.• It's now against the law to protest at the funerals of military men and women in Texas. That was a late addition to the special session agenda and a response to protests organized by a Kansas group that contends the deaths of U.S. soldiers abroad has something to do with God's wrath toward gays. They and others who want to protest for whatever reason now have to stay at least 500 yards away — about a quarter-mile — from an hour before the service until an hour after. • A new SurveyUSA Poll that says more Texans have a negative impression of Gov. Rick Perry than have a positive one. The poll, done last weekend, says 40 percent of Texans approve of the job Perry's doing, while 54 percent don't. Last month, the same outfit said in a poll of 579 "likely voters" that Perry would win the Guv's race if it were held now, with 39 percent of the vote. Comptroller Carole Keeton Strayhorn was in second place in this one, with 25 percent, followed by Kinky Friedman with 16 percent and Democrat Chris Bell with 15 percent. Have a little salt with those results: With six months left before the election, that survey says only 3 percent of Texans are undecided about who they'll support.

If you're writing about student testing, be sure you read over your work before you turn it in.The Harris County GOP is giving away bikes to kids at J.R. Harris Elementary School who passed the state's standardized TAKS test. It's the third year they've done the giveaway for kids with good scores. But if you read their press release carefully, it looks like they're aiming higher than usual -- giving away lots and lots of bikes: "The GOP in cooperation with the school is giving away 300 bikes to any child who passes the TAKS."

Last week's government is this week's politics. Gov. Rick Perry is running television and radio ads to define and claim credit for what the legislature just did on taxes and school finance, touting tax cuts, teacher pay raises, new business taxes, high school math and science standards, and so on.He's got two TV ads, and one for radio (all of them are available on his campaign website or in our Files section). He's the only candidate paying for commercials right now, apparently on the theory that the first part of the argument is defining what happened. He wants to call this a big tax cut and a success on school finance before the public hears the competition calling it something less attractive. At the moment, he's the only one spending money on a megaphone. One ad features Perry standing in front of a house, and includes shots from a classroom and a construction site. The second shows him standing in front of a school with kids playing in the distance, and includes the same classroom and construction site scenes. The script and the words that appear on the screen while he's talking are identical in the two spots. The script, read by Perry, goes like this: "A $15 Billion property tax cut and more money for our schools. We kept our promises to you. The average homeowner will receive a $2,000 tax cut. Every teacher will receive a well-deserved pay raise. We closed corporate loopholes and created new protections to keep taxes low. And we're protecting our job climate — the best in the nation. Lower property taxes, higher teacher salaries, and the largest tax cut in history. That's good for Texas." While he's talking, these words appear on the screen: "$15 Billion Property Tax Cut... Governor Rick Perry... $2,000 Tax Cut over first 3 years... Pay Raise for Teachers... Real Taxpayer Protections Keeping Taxes Low... Protecting Jobs... Lower Property Taxes... Higher Teacher Salaries... Largest Tax Cut in History... Pol. Ad Paid for by Texans for Rick Perry." Perry also has a radio spot running, also narrated by the candidate. That script: "A $15 billion property tax cut over three years. The largest tax cut in Texas history. And more money for schools. We kept our promises to you. This is Gov. Rick Perry. The average homeowner will receive a $2,000 tax cut. Every teacher will receive a well-deserved pay raise. And more money will go to high school math and science instruction and dropout prevention. We closed corporate tax loopholes and created incentives for employer health and retirement benefits. We passed strong new protections to keep taxes low. The effective tax caps mean voters have more say over school spending and tax decisions. And we're protecting our job climate, the best in the nation. Lower property taxes, higher teacher salaries, and the largest tax cut in Texas history. Educators, taxpayers, and businesses agree — that's good for Texas. Political ad paid for by Texans for Rick Perry." Perry got the "average tax cut" by taking a number from Texas A&M University's Real Estate Center and running it through the tax bills. The average sales price in Texas in March, according to A&M, was $184,500. (A spokesman for Perry says they used that number because the governor thinks sales prices should be disclosed as a way to keep property appraisals realistic. That's opposed by many in the real estate business, and wasn't part of the fight over taxes and school finance.) Start with $180,500, deduct $15,000 for a homestead exemption (that's standard; homeowners in Harris County and some other locales get to deduct 20 percent of their property values). Divide it by 100 and multiply the result by 17 cents for the first year, and by 50 cents for years two and three. Add it up and you get a tax cut of $1936.35, assuming prices and tax rates don't rise. The Real Estate Center put the median prices of homes sold in March at $138,700; the tax cut on that house would amount to $1,447.79 over the first three years, if values and rates were stable. Comptroller Carole Keeton Strayhorn blasted the Perry ads in a press release, saying the tax bills passed during the special session don't raise enough money to cover the local property tax cuts promised in other legislation. She disputed Perry's claim of $2,000 in tax savings, saying property value changes and tax increases by cities and counties and special districts will erode that savings. She said the teacher pay raise amounts to less than $25 a week — "less than a tank of gasoline" — and said Perry's plan hit Texas businesses with a 200 percent tax increase over the current corporate franchise tax.

Planned Parenthood is starting a state PAC to back candidates in statewide and legislative races in Texas.Add this to your list of political action committees to watch during this election cycle: the Texas Planned Parenthood Votes Political Action Committee. It's new and it's only filed one report so far -- six contributors gave $4,310 -- but it aims to get involved in this year's elections. One contributor was former Gov. Ann Richards, whose daughter Cecile Richards heads Planned Parenthood's national operation. The group doesn't have a public goal for fundraising. Heather Paffe, the state political director, says the new PAC will fill in where local groups don't have political machinery in place: "Our ability to provide health care services to women rests in part on being politically involved." The new PAC was launched six weeks ago, and will work with others already in place in the state's three biggest cities. The Planned Parenthood of Houston and Southeast Texas PAC had $77,673 on hand at the end of last month, according to the report it filed with the Texas Ethics Commission. Planned Parenthood of North Texas Action Fund Political Committee had $9,855 in contributions that month, but ended with no money on hand. "Winning for Women," affiliated with the San Antonio Planned Parenthood, had $33,361 on hand at the end of last month.

With state Republican and Democratic conventions coming up, not to mention mid-term elections, Texas bloggers put party politics back on the front burner this week. Emerging themes: Has immigration reform damaged President George W. Bush's base support? Has tax reform damaged Gov. Rick Perry's base support? And can one Texas congressman turn blogger anger into blogger admiration?* * * * * All Politics is Local The Harris County Republican Party passed a resolution encouraging Gov. Perry to veto HB 3. Right of Texas posted it, but the governor signed the bill into law two days later anyway. Charles Kuffner of Off the Kuff wonders if there will be a Republican backlash against Perry because of the tax bills. He advises conservatives who opposed the Perry-Sharp Tax plan to "Either endorse another candidate, overlooking all of the places where you and that candidate are a bad fit, declare definitively that you will sit this election out and let the chips fall where they may, or sit down and be quiet because your threats have no meaning." Eye on Williamson County links to recent articles on the president's "base war" in the Washington Post and the Los Angeles Times and wonders what the impact will be on Texas. "If the Republican base and the 'mad-at-Perry' crowd stays home that hurts everyone but (Democratic gubernatorial candidate) Chris Bell," they write. "If the Democrats in Texas can grab some of that energy that's in this country there's no telling what could happen. Not only in the Governor's race but all those races down ballot as well." * * * * * WWJD? After the president's primetime address on immigration reform, Mark Noonan of Blogs for Bush urged supporters to be supportive. "The President's plan is rational, just and merciful — it is everything we need to keep the Democrats away from the issue, satisfy the genuine security concerns along the border, and show ourselves to be the generous and great-hearted Party we are. Try to do anything else, and we will run afoul of the electorate." David Benzion, of the Lone Star Times, started a very interesting thread by asking his mostly conservative readers "How do you — you right-wing, build-a-wall, round-em-up and throw-em-back opponent of illegal immigration — square your political beliefs with your Christian faith?" A reply from J. Kathi Smith was repeated by many others: "Jesus told his people 'render unto Caesar that which is Caesar's when he spoke of following the law and paying taxes. Christians who believe the Bible as literal have no problem with our beliefs and illegals. We are a nation of laws and since even Jesus told us to follow our laws, I will give them to INS who can give them food and water as they are being bussed (sic) back to Mexico." Another interesting discussion on immigration reform ensued when Pink Dome brought up the issue of how and when Attorney General Alberto Gonzales' grandparents came to Texas. * * * * * Interview with the Congressman In a blogger scoop, Vince Leibowitz of Capitol Annex, obtained a lengthy, detailed interview with U.S. Rep. Henry Cuellar, D-Laredo, who had previously been the target of bloggers' "unrelenting hell," in Leibowitz's words. During a 30-minute telephone interview, Cuellar talked about immigration, gas prices, partisanship, and that famous photo of the president pinching his cheeks before the State of the Union address earlier this year. * * * * * Interview with the Candidate Democratic contender for governor Chris Bell sat down for an interview in this month's issue of Texas Monthly. PubliusTX noted Bell's dismissal of a Democrat's chance of beating U.S. Sen. Kay Bailey Hutchison. Eye on Williamson County thought it was a favorable interview: "To me he comes off looking kind of Al Gore-ish. Meaning wonky, very intelligent and with a great sense of humor that not many are aware of. Which I think is a nice contrast to Perry and OTG." Ed. note: OTG is blog-speak for "One Tough Grandma," a.k.a. Carole Keeton Strayhorn. * * * * * Interview with the Senator Retiring Sen. Jon Lindsay, R-Houston, angered some Houston-area bloggers after his Q&A interview with Houston Chronicle reporter Janet Elliott. Anne Linehan of blogHOUSTON said, "He whines about constituents wanting a (property) tax cut because he has no clue how the little people are getting hammered by property taxes. Let's recall that in 2003 he paid $136.45 in property taxes on his two (48-acre) tree farms that were valued then at $654,350. If we all had his property tax bills, we'd probably be just fine with the status quo!" David Benzion of Lone Star Times picked up the thread and created a doctored image from the vintage TV show Green Acres to spoof Lindsay. * * * * * Open Primary Congressman Tom DeLay, R-Sugar Land, has announced June 9th as his formal resignation date. Fort Bend County Republican voters were polled about who their favorite replacement candidate would be, much to the amusement of left-leaning bloggers (see Off the Kuff) and right-leaning bloggers (see Texas Safety Forum). * * * * * Follow the Leader The first blogger in the Texas House, Rep. Aaron Peña, D-Edinburg, outlines the growth in politicians blogging and predicts a future where it'll be as common as responding to constituent mail. * * * * * She's Not Rappoport Eileen Smith of In the Pink Texas attended the Center for Public Policy Priorities' dinner honoring Waco businessman Bernard Rappoport, but found her seat at the press table a little less glamorous than expected. (Hey, you don't do this for the glamour — it's the huge paycheck.) She snapped a few shots of former president Bill Clinton as he worked the receiving line, but the prize, exclusive photos feature her box-lunch dinner. Bon Appétit!

The Texas Commission on Judicial Conduct issued a "public admonition" of state Supreme Court Justice Nathan Hecht, criticizing his testimonials for Dallas lawyer Harriet Miers after she was nominated for the U.S. Supreme Court. But he's battling back and the issue will apparently go to court.Hecht and Miers are friends, fellow church-goers, and even went on a few dates. Miers withdrew her nomination to the court after withering criticism from conservative Republicans and from Democrats. President George W. Bush ended up picking Samuel Alito, who won Senate confirmation and is now a justice on the high court. But while she was in the hot seat, Hecht fielded calls from reporters, saying in numerous interviews that she was qualified for the job and vouching for her character. The state commission said he stepped over two lines when he did that: One that prevents judges from endorsing candidates for public office and one that prevents them from using their office to promote their own or others' interests. Hecht, and his lawyer, Chip Babcock of Houston, were baffled. Babcock said in an interview that judges have been speaking on behalf of judicial nominees for decades without stirring the ethical and canonical waters. And a fairly recent decision by the U.S. Supreme Court freed them even further, allowing judges to talk about their positions on various issues, just like other officeholders. Between that ruling and this decision, Babcock said, Hecht "can talk about abortion, the war on Iraq, and tort reform, but he can't take a position on the nomination of Harriet Miers." Hecht has appealed the decision. He was at a judicial conference and wasn't available for interviews, but he did issue a statement: "The State Commission on Judicial Conduct has admonished me for providing information about the qualifications of a person nominated to sit on the United States Supreme Court and for commenting on the nomination. I believe that my statements on matters of national public interest did not offend canons of judicial ethics and were fully protected by the First Amendment as core speech.  As best I can determine, the Commission’s action is unprecedented despite many judges, over the years, providing factual information and endorsements to the judiciary committee and the public concerning nominees to the federal bench.  I intend to vigorously contest this charge which raises important issues of free speech." The appeal should be relatively quick. Texas Supreme Court Chief Justice Wallace Jefferson will appoint three appellate judges -- not including any of the high court's justices -- to hold a trial. If you figure in all of the permitted delays, that trial has to start within about three-and-a-half months, and the panel will then have up to 60 days to rule.

Gov. Rick Perry -- confronted with a spoiled photo-op in Beaumont -- told a crowd gathered there that the Hurricane Rita relief approved for Lamar University by state lawmakers was being held up by Comptroller Carole Keeton Strayhorn."I had hoped to sign House Bill 63 today," he said. "However, the comptroller has yet to certify that sufficient funding is available to meet these critical needs, even though the state has a budget surplus of more than eight billion dollars and it has been sitting on her desk for more than a week. Why she didn't take compassion on the people of Beaumont and certify this bill as quickly as possible I cannot explain." Strayhorn's deadline for certifying that legislation was actually the next day. But she signed it while Perry was on the road and replied to his towel snap with one of her own, saying he could have signed the legislation right after she did, except that he was out of town. If Gov. Perry was not gallivanting about the state he could have signed this bill today," she said. And she said the aid should have been available last fall, when she called on Perry (he ignored her) to hold a quick special session to free money for hurricane relief. He also could have called in the Legislative Budget Board to appropriate emergency money, she said. "If Gov. Perry had done what I urged last September, repairs to classrooms, libraries and other infrastructure could be completed right now." If you're new here, these are two of the four major candidates for governor. *with apologies to Matt Groening

What's this tax break worth? And why are the numbers from the Carole Keeton Strayhorn camp so small while the numbers from the Rick Perry camp are so big? In his TV spots, Perry says the property tax break approved by lawmakers in the just-ended special session will average $2,000 over the next three years. He's assuming you've got a $180,500 home — that was the average sales price in March, according to the Real Estate Center at Texas A&M — and that you'll get the minimum $15,000 homestead exemption. He's also assuming school districts won't add on a four-cent local enrichment tax — nearly every lawmaker and expert we've talked with assumes that's an automatic increase. And with all of that, Perry says your savings will be $1,936.35 (if school districts take the four-cent local enrichment, it would be $1,737.75). To save exactly $2,000 using Perry's math, you'd have to be in a house with a taxable value of $185,939. Strayhorn takes several nibbles out of the governor's estimate. She says the average value of houses on the Texas property tax rolls is $118,274. And she assumes the school districts will claim their four cents. And she assumes the value of the homes will rise five percent each year. And she adds in other school taxes that pay for things like debt and facilities. By her reckoning, the savings only amounts to $598 for the first three years — about $1,400 less than what Perry is promoting on TV. To save exactly $2,000 using Strayhorn's math, you'd have to be in house with a taxable value of $360,398. Call it the Strayhorn Discount or the Perry Premium: Strayhorn says you'll get 51 cents in savings for every dollar Perry promises; he says you'll get a dollar for every 51 cents of savings she estimates.

Lloyd Bentsen Jr., who served for 22 years in the U.S. Senate, ran for president and vice president and served as President Bill Clinton's first Treasury Secretary, died at home in Houston after a long illness that followed a couple of strokes. Bentsen was 85. Bentsen was a decorated bomber pilot in World War II and started his career in public office by getting elected Hidalgo County Judge when he was 25. He started three terms in Congress a couple of years later, and then quit to go into private business. In 1970, he ran for Senate, beating incumbent U.S. Sen. Ralph Yarbrough in the Democratic primary and then besting U.S. Rep. George H.W. Bush in the general election. He was the vice presidential nominee on the Democratic ticket that lost to Bush in 1988, behind Michael Dukakis of Massachusetts. His death prompted an outpouring of remembrances, starting with one from his family: "Senator Lloyd Bentsen passed away at home Tuesday surrounded by his loving family. He was a man of courage, wisdom and civility and set the highest standard for public service. As a young World War II squadron commander, he repeatedly risked his life to defend freedom. In the U.S. House of Representatives and the U.S. Senate, he promoted fiscal responsibility and free trade, supported the civil rights of minorities and women, and enabled protection for children and older Americans. As Secretary of the Treasury, he helped bring greater opportunity and unprecedented prosperity to our country. A friend of business and workers alike, Lloyd Bentsen earned his family’s and his country’s deepest appreciation for his extraordinary contributions to the well-being of his and our nation. Lloyd Bentsen had a blessed life and fully graced every member of his family’s lives. He is survived by his incredible wife of 63 years, B.A. Longino of Lufkin; three children and their spouses, and eight grandchildren." Gov. Rick Perry: "Today we mourn the loss of a war hero and true Texas leader who earned the respect of the nation with his dedication to public service. Anita and I extend prayers of comfort to his family in their time of grief, and urge all Texans to remember and honor his life of service." Comptroller Carole Keeton Strayhorn: "Sen. Lloyd Bentsen was a true Texas icon and a friend. He put Texans above politics. He lifted all Texans." Democratic gubernatorial candidate and former U.S. Rep. Chris Bell of Houston: "Lloyd Bentsen never lost site of the fact that, in a state like Texas, we need to be about lifting each other up. And he spent his entire time in public service fighting for just that. I believe we need to honor his life remembering what he stood for: bipartisan, common-sense leadership. Lloyd Bentsen personified the word statesman and he will be sorely missed." Lt. Gov. David Dewhurst: "With today's passing of Senator Bentsen, the people of Texas have lost a true leader for the state and for America. Throughout his 28 years of public service, Senator Bentsen was an advocate for the people of Texas, and I appreciate and respect his dedication to improving the lives of all Texans. In this difficult time, I extend my deepest sympathy and prayers to his family and friends." State Sen. Rodney Ellis, D-Houston: "Senator Bentsen was a great statesman and role model for me and so many. I was honored to have had the opportunity to get to know him while we traveled the country campaigning for the vice presidency. His footprints of statesmanship on local, state, national and international politics will long be remembered." State Rep. Garnet Coleman, D-Houston: "Lloyd Bentsen was a true statesman whose very name became synonymous with good and fair government. His lifetime of public service left Texas and Houston better places than he found them. His wisdom will be missed. My prayers go out to the entire Bentsen family." Texas Democratic Party Chairman Boyd Richie: "Texas has lost a great leader today. The passing of Senator Lloyd Bentsen is a tragic loss to the citizens of Texas and the citizens of this great nation. Sen. Bentsen was a man who put service to his state and country before all. Our thoughts and prayers are with the Bentsen family."