Republican Jim McGrody, one of two challengers to U.S. Rep. Ciro Rodriguez, D-San Antonio, has decided not to run.McGrody was relying on an aggressive Internet and word of mouth campaign, but said in an email to supporters that he's out for financial reasons: "Due to financial considerations, I have decided to withdraw my name from contention for the Republican nomination for Texas Congressional District 23. My Campaign will officially terminate its filing with the Federal Election Commission (FEC) and will return all financial contributions to its donors. My wife and I have appreciated the many kindnesses afforded to us along the way — and, we look forward to returning to a less hectic pace." That leaves Republican Francisco "Quico" Canseco as the sole declared challenger. Canseco started campaigning early — he's been running radio ads for weeks even though the primary's not until March. As it turns out, he might not have a race until next autumn, leading up to the general election. McGrody wasn't on the financial map yet — the Federal Election Commission doesn't have any reports for him on its website. Rodriguez, the incumbent, had $592,062 in the bank at the end of September. Canseco, who sparked his campaign with personal loans, had $303,553 in cash, and $813,166 in debt at that date.

The shoe falls at the Houston Chronicle.

The Houston Chronicle's layoffs reached that paper's Austin Bureau. Polly Ross Hughes, who wrote about health and human services, among other subjects, during a decade at the paper, is looking. So is Amy Raskin, the paper's office manager, researcher and sometimes reporter. The layoffs are part of a five percent cut at the paper announced last week by publisher Jack Sweeney; that's about 70 people throughout the paper (not just in the news department). At another Hearst-owned Texas paper, the San Antonio Express-News is tallying the number of people who took that buyout; if too few took that option, the company warned employees that layoffs will follow.

• Lobbyist Joe DaSilva left the Texas Hospital Association, where he's been for almost three decades, to open his own shop. The DaSilva Strategic Group will do lobbying, communications and strategery.

• Event Horizon: Democratic presidential candidate Barack Obama will make an Austin fundraising appearance on November 17, appearing at The Backyard — usually a spot for big-time musical acts — for $25 per... and on December 6, presidential consigliere Karl Rove will be the headliner at a Associated Republicans of Texas fundraiser, also in Austin.

Dan Bartlett, a former top aide to Gov. and then President George W. Bush, will return to Texas with a job at Austin-based Public Strategies Inc.

He's not the only Bushie headed for Texas. Karen Hughes is quitting her post as head of public diplomacy at the State Department. She was one of Bush's top three advisors when he was first elected, then left the administration to spend time with her family. After a few years, she took the current post.

Gov. Rick Perry named Bryan Shaw — an associate professor at Texas A&M University — to the Texas Commission on Environmental Quality. Shaw is an agricultural engineer and has focused on air pollution and related subjects there.

The governor named A.W. "Whit" Riter III of Tyler the vice chairman of the Texas Higher Education Coordinating Board. He's president of Riter Management Co. and of a family foundation named for his father. And he's been on the THECB since 2004.

Wendy Gramm is the new chairman of the Texas Public Policy Foundation. She held that position from 1999 to 2004; Gramm succeeds Houston businessman William McMinn.

After 25 years with the comptroller's office, Elizabeth Blount has retired and plans to open a consulting and lobbying shop. She's part of a small circle of state employees who really know what's in the state budget, after following the doings of legislative budgeteers for years.

Kenneth Besserman is leaving the staff of Sen. Rodney Ellis, D-Houston, after nine years there. He's saving the news of where he's going next, but says he's been talking to people about several possibilities.

Deaths: Olan Brewer, political prognosticator and advisor to candidates, trade associations and others who followed Texas House and Senate races over the last 50 years. He was 77, and remained in the political game until the end.