Dallas Morning News: Do campaign funds bankroll a cushy lifestyle?

Campaign contributions are designed to fund runs for office – advertising, mailings and voter turnout drives to help candidates win. But North Texas lawmakers also spend thousands of their campaign dollars on fine dining, luxury hotel stays and gifts from designer retailers; tens of thousands on car leases, home rental, and even private airplanes; and hundreds of thousands on contributions to other candidates, including friends and colleagues. Read the article at the Dallas Morning News.

Do campaign funds bankroll a cushy lifestyle?

Exclusive: Area legislators defend thousands in non-election expenses

Sunday, December 17, 2006
By EMILY RAMSHAW / The Dallas Morning News

AUSTIN – Campaign contributions are designed to fund runs for office – advertising, mailings and voter turnout drives to help candidates win.

But North Texas lawmakers also spend thousands of their campaign dollars on fine dining, luxury hotel stays and gifts from designer retailers; tens of thousands on car leases, home rental, and even private airplanes; and hundreds of thousands on contributions to other candidates, including friends and colleagues.

A Dallas Morning News review of campaign finance reports filed by the area's lawmakers in the last two years shows that nearly half of what they spent – about $2.2 million – went for things unrelated to their campaigns.

It's all legal, as long as the expenses are related, even indirectly, to their role as state legislators. And lawmakers defend it, saying they're expected to maintain two households and two offices but are paid little.

"You need the flexibility to not only do your job back at home in the district, but also to spend time in Austin," said Rep. Rafael Anchia, D-Dallas, who used campaign funds to rent a 1996 Chevy Blazer to drive during the 2005 session of the Legislature.

"I need a place to hang up my suits and my ties and keep my toiletries, and to sleep after late nights on the House floor. That's part of it as well."

But with the bulk of these campaign contributions coming from high-dollar donors and special-interest groups seeking help in the Legislature, advocates for campaign finance reform say the system opens the door for corruption.

Most of these legislators are in safe seats and don't need much money to get re-elected. So the money they raise is bankrolling a standard of living, watchdogs say.

"Many of these legislators have virtually no opposition and don't need the campaign money," said Craig McDonald, executive director of Texans for Public Justice, which studies the influence of money in state politics. "But they're happy to take money to maintain their lifestyle."

Texas legislators are paid an annual salary of $7,200, plus an allowance of $128 for every day the Legislature is in session. This adds up to about $25,000 for a regular 140-day session – far from a comfortable full-time salary and one of the lowest in the country.

All of the 21 current and former North Texas legislators that The News tracked used campaign money on travel, meals, gifts, flowers and office supplies. Almost all of them spent their funds on apartments and utilities, auto expenses and insurance, and contributions to other candidates or officeholders. Nine lawmakers spent more than half of their campaign expenditures on costs unrelated to their runs for office.

Nothing unusual

Such spending is typical for lawmakers. Expense reports from the last two years included dinners at upscale steakhouses, stays at top hotels and thousands of dollars in gifts from Neiman Marcus and jeweler Tiffany & Co.

"There are certain expenses we incur every day as we work for the people of Texas. We're using these officeholder accounts to defray ordinary, necessary costs," said Sen. Florence Shapiro, R-Plano. "It's up to each individual [legislator] to look at their own conscience and to decide what is and what is not considered 'working for the people.' "

Among North Texas lawmakers:

•Sen. John Carona, R-Dallas, was one of North Texas' biggest spenders. He aided Dallas County district attorney candidate Vic Cunningham with a $25,000 campaign contribution and has given $30,000 to the Dallas County Republican Party since 2005. He gave another $30,000 to other candidates, including colleagues like Rep. Joe Driver, R-Garland, and Sen. Bob Deuell, R-Greenville. Nearly $9,000 in campaign expenditures went toward "aircraft maintenance." Mr. Carona wasn't on the ballot this year; he won re-election unopposed in 2004.

•Ms. Shapiro, who had no opponent to battle for re-election last month, spent about $16,000 on gifts for staff and constituents. She spent more than $6,000 in stays at luxury hotels, from The Ritz Carlton to Austin favorites The Driskill and The Mansion at Judge's Hill.

•Sen. Chris Harris, R-Arlington, spent $24,000 on auto expenses, including putting a $10,000 down payment on a leased vehicle. In the last two years, he also spent nearly $6,000 outfitting his offices and $5,900 furnishing his Austin residence. Like Mr. Carona, he won his 2004 race with no opposition.

•Mr. Deuell spent $18,000 on auto-related expenses, from car payments to gas to auto insurance and rental cars. He won re-election last month with 79 percent of the vote.

•Sen. Royce West, D-Dallas, spent more than $17,000 on accommodations in Austin. Mr. West had no opposition in his last contest, two years ago.

•Two lawmakers – Reps. Roberto Alonzo and Terri Hodge, both Dallas Democrats – spent less than 30 percent of their money on running campaigns. Both had noncompetitive races in 2006. And both spent far less in the last two years than most of their North Texas counterparts.

"Depending on how busy of a race you have, you change your focus from mail-outs and phone calls and buying ads to doing outreach in the community, holding meetings, doing a lot of events," Mr. Alonzo said. "We're also maintaining two households, living in two places at the same time."

Mr. Carona said he often uses campaign funds to contribute to other candidates who share his ideology – and has never had a complaint from his contributors or constituents. He's not shy about spending campaign money to maintain his company's private jet, which he uses in a bind to get him from business meetings back to legislative and district events.

But he said much of his funding goes back into his district for meetings and mailers, and to reward staff members for their performance.

"I try to use the smell test," he said. "Would the person who wrote you that check appreciate you spending it that way?"

Staying afloat

Mr. Driver said campaign funds are often necessary to keep legislators afloat.

As a freshman representative, he said, he didn't know campaign law allowed him to use his officeholder account for noncampaign expenses, and he feared the costs would be prohibitive.

"I'm not independently wealthy, and I thought to myself, 'I don't know if I can afford this!' " he said.

But he doesn't approve of going overboard. Mr. Driver said he shares the two-bedroom Austin apartment he rents with a colleague to cut costs. And his campaign contributions to other candidates are limited to "helping other House members when they have tough campaigns."

To Mr. McDonald of Texans for Public Justice, the expenditures show the need for campaign reform. He said legislators routinely use campaign dollars for expenses "any normal person would consider personal." His group plans to push lawmakers to enact a $100,000 cap on donations from an individual or political committee during a single campaign. Currently, state law places no limits on donations.

A 2004 study by the now-defunct Campaigns for People showed that Texas senators spent just 40 percent of their campaign dollars running for office. The remaining 60 percent went toward living, office and other expenses.

Under the state elections code, "what [legislators] are not allowed to do is convert political contributions to personal use," said Tim Sorrell, spokesman for the Texas Ethics Commission. But there are exceptions.

The law allows those who don't live in Austin to use campaign funds to pay for rent, utilities and other expenses associated with maintaining a residence there. If they're using a car for office-holder duties, Mr. Sorrell said, that fits the bill, too.

But they're supposed to be clear exactly what they're spending their money on. According to The News' study, that's not always the case.

Many North Texas lawmakers used campaign funds to reimburse themselves, and they sometimes failed to attach the proper forms explaining each of the reimbursements. Other times, they used the proper forms, but the expenditures didn't add up to the total reimbursed amount.

Several other Dallas legislators used campaign funds to pay off credit cards used for office-related expenses but failed to list specific purchases.

The ethics commission "says somebody reading the report should be able to know what goods or services were purchased or leased," Mr. Sorrell said. And all reports of expenditures by credit card must identify the actual vendor, not just the credit card company, he said.

Mr. Alonzo, whose reports for the last two years don't always have the proper filing forms linked to his reimbursements, cited complex disclosure rules. But he added: "That's something we have to do, and we will get it done."

Mr. Anchia, who paid off Visa bills, gave specific information about what the purchases were for but listed the credit card company instead of the actual vendors. He said he intends to file a bill this session to provide mandatory ethics training for state legislators to prevent other such "innocuous mistakes."

"There are a lot of little rules that people have trouble keeping track of, including people who spend a lot of time on it, like me," Mr. Anchia said.

Dallas Morning News: For Perry, big game means big business

The governor needed a lift to Southern California and the Rose Bowl. Bill Webb, chief lobbyist for the Texas trucking industry, saw a chance to help an important friend. So, the state's largest trucking industry group paid for Gov. Rick Perry, his wife and two adult children to fly aboard a private jet to Los Angeles last January to watch the University of Texas win its first national collegiate football championship in 36 years. Read the article at the Dallas Morning News

For Perry, big game means big business

Trucking lobby paid for governor's private jet to Rose Bowl

Tuesday, December 12, 2006
By STEVE McGONIGLE / The Dallas Morning News

The governor needed a lift to Southern California and the Rose Bowl. Bill Webb, chief lobbyist for the Texas trucking industry, saw a chance to help an important friend.

So, the state's largest trucking industry group paid for Gov. Rick Perry, his wife and two adult children to fly aboard a private jet to Los Angeles last January to watch the University of Texas win its first national collegiate football championship in 36 years.

During the game, Mr. Perry debuted television ads for his re-election bid.

Mr. Perry, a former yell leader at Texas A&M University, also used the trip to headline a business recruitment barbecue in Hollywood and attend the premiere of Glory Road, a movie filmed in Texas, as a special guest of producer Jerry Bruckheimer.

The Texas Motor Transportation Association's political action committee paid $14,580 for use of the jet. The money was reported as an in-kind contribution to the governor's campaign committee.

"Let's face it," said Mr. Webb, the former TMTA president who arranged the trip, "if you have a way to help the sitting governor get somewhere he wants to be and to help our industry get where it needs to be, to me it becomes a no-brainer."

The trucking association has developed a strong affinity for Mr. Perry, partly because of his advocacy for the Trans-Texas Corridor project to ease the highway congestion that slows delivery times and drives up shipping costs.

TMTA is also a dues-paying member of the TexasOne program, a nonprofit organization Mr. Perry formed in 2003 to help recruit out-of-state businesses.

Mr. Webb said the largesse was meant as a friendly gesture.

"That's what lobbyists do," he said. "They advocate, and they try to gain access."

After UT's place in the Rose Bowl was assured and Mr. Perry said he would attend, Mr. Webb said he suggested that TexasOne hold a recruiting event. He said he saw the event as a chance to attract new customers for Texas trucking firms.

Andrew Wheat, research director of Texans for Public Justice, sized up the trip as a notably pricey example of the coziness between Mr. Perry and a powerful lobby.

"The trucking industry, I suppose, could have sent the Perry family out there on one of its rigs," Mr. Wheat said. "But it gave them the first-class treatment. And they don't do that just because they're nice guys. They want things in return."

Robert Black, a spokesman for Mr. Perry, said the governor decided to attend the Rose Bowl game to promote Texas as a business destination.

"The governor said it would be a good opportunity since Texas was playing for the national championship in California – let's not only see if we can take the game, we can take a few companies," Mr. Black said.

TMTA's only return was "good conservative government," he said.

"If anybody thinks they can give a donation to Rick Perry, and it's going to buy them something, they need to keep their money," Mr. Black said.

Houston Chronicle: Lobbyists lean toward funds limits

Bob Perry and James Leininger aren't the only poster children for campaign finance reform in Texas, but they and other mega-donors are inspiring more talk about the need for contribution limits. And the talk isn't coming from just the public advocacy groups that have been preaching reform for years. A number of prominent Austin lobbyists, whose business clients also play the money game, are increasingly beginning to feel the same way.

Lobbyists lean toward funds limits

Dec. 11, 2006
By CLAY ROBISON
Copyright 2006 Houston Chronicle

AUSTIN — Bob Perry and James Leininger aren't the only poster children for campaign finance reform in Texas, but they and other mega-donors are inspiring more talk about the need for contribution limits.

And the talk isn't coming from just the public advocacy groups that have been preaching reform for years. A number of prominent Austin lobbyists, whose business clients also play the money game, are increasingly beginning to feel the same way.

"The whole money thing ... has gotten totally out of hand. I support any restrictions of any kind, and most of the lobby would, too," said one lobbyist, who didn't want to be named.

Reform still has at least two major obstacles, however, in Gov. Rick Perry and Speaker Tom Craddick. Two of the governor's biggest contributors are Bob Perry (to whom he isn't related) and Leininger.

Some reformers suggest that Lt. Gov. David Dewhurst, a multimillionaire who can largely fund his own campaigns if necessary, may be receptive to contribution limits because they could partially disarm opponents in a future governor's race.

But Dewhurst may not want to fight this uphill battle.

Business lobbyists could help renew an old debate, but many don't want to be publicly associated with campaign finance reform, at least not yet, because they and their clients have to work with lawmakers on both sides of the issue.

Jack Gullahorn, an Austin attorney and former lobbyist, said he has slowly come around to the need for contribution limits partly, but not totally, because of the super-rich donors who, of late, have been dumping tens or hundreds of thousands of dollars into selected legislative races.

"I think that, over the last few years, I've been hearing from more people that they're feeling disenfranchised," Gullahorn said.

In other words, a growing number of lobbyists and their corporate clients are worried about their own preservation in an arena in which money is considered essential to political influence.

Gullahorn said the Professional Advocacy Association of Texas, an organization of lobbyists that he heads, won't take the lead on campaign finance reform but will support efforts to impose contribution limits.

He said the group also would support the legalization of direct, but limited, corporate contributions to candidates, a practice now banned by state law.

That proposal may spark even more controversy, but Gullahorn said such a law could be easier to administer than the system of political action committees, through which many corporate-related donations are now made.

Bob Perry, a Houston home builder, and Leininger, a San Antonio businessman, are among donors now outgunning most traditional givers, including the vast majority of business executives, doctors and plaintiff lawyers.

Perry, who has headed the Texas donors list for the past three elections, spent $16 million on state and federal races in 2005-06, according to a report by Texans for Public Justice, which tracks money in Texas politics. He gave $6.7 million of the total to state candidates, mostly Republicans, and conservative Texas political committees.

Leininger gave about $5 million in pursuit of a law allowing tax dollars to be spent on vouchers for private school tuition. He helped unseat two Republican legislators who voted against him in 2005 but overall lost more races than he won.

A handful of other contributors, including plaintiff lawyers John O'Quinn, of Houston, and Fred Baron, of Dallas, gave about $1 million or more. O'Quinn was Democratic gubernatorial candidate Chris Bell's single biggest contributor.

And Texans for Lawsuit Reform, to which Bob Perry has generously contributed, gave more than $3 million in the recent election cycle, far outpacing most political action committees.

One bill already has been prefiled to limit an individual's total contributions in state races to $100,000 per election cycle, and there will be other proposals, including public funding of campaigns.

The above, unnamed lobbyist said he believes donation limits will get more support from legislators, following the large sums of money that Leininger, in particular, spent against House members who had voted the "wrong" way on vouchers.

"If they have a brain at all, they have to be smart enough to understand that the first time they step out of line, they're going to be the target next time," he said.

Perry aide promoted
Kathy Walt, former Houston Chronicle reporter and Gov. Rick Perry's press secretary for the past six years, has a new title, special assistant for communications.

Currently, she is helping prepare for the Jan. 16 inauguration but also will take on several additional duties, including working with state agencies to assure their coordination with the governor's initiatives.

The new press secretary is Robert Black, who recently was Perry's chief re-election campaign spokesman. Ted Royer is his deputy.

Media 'shield law'
Preliminary shots in the 2007 legislative fight over whether Texas should enact a "shield law" to protect reporters from having to disclose confidential sources of information in court will be fired Wednesday before the House Judiciary Committee.

The issue is among several the panel is studying before the legislative session convenes on Jan. 9.

Similar legislation, which has been proposed off and on for more than 30 years, died during the 2005 session. Some reporters, editors and TV news directors say they believe the protection is necessary to ensure that confidential — and often vital — sources of information, particularly those involving controversial governmental actions, don't dry up.

The main opposition still comes from prosecutors, who contend a shield law could interfere with their ability to develop evidence in criminal investigations.

Fort Worth Star-Telegram: Senator takes aim at TXU

TXU may find itself the target of irritated lawmakers when the 80th Texas Legislature convenes Jan. 9. That's the word from state Sen. Troy Fraser, R-Horseshoe Bay, who singled out TXU with some blistering criticism during an interview this week with the Star-Telegram.

Senator takes aim at TXU

Sat, Dec. 09, 2006
By R.A. DYER, STAR-TELEGRAM AUSTIN BUREAU

AUSTIN - TXU may find itself the target of irritated lawmakers when the 80th Texas Legislature convenes Jan. 9.

That's the word from state Sen. Troy Fraser, R-Horseshoe Bay, who singled out TXU with some blistering criticism during an interview this week with the Star-Telegram.

The influential chairman of the Senate's Business and Commerce Committee, who characterized TXU as a major culprit for many of the problems with the state's electric-deregulation law, said that TXU appears to control too much of the market and that it has racked up record profits by abusing its customers.

He said that he will seek input from industry leaders as to how to make corrections to deregulation during the upcoming session but that he did not expect to hear anything useful from TXU.

"Right now they're a big part of the problem we're having -- they have had the opportunity to treat their 2 million customers fairly, and they chose not to," Fraser said.

His tough stance comes against a backdrop of increasing public dissatisfaction with deregulation -- he and other lawmakers report regular complaints from their constituents -- and just as the final major price control under the law expires Dec. 31.

His comments also parallel statements he made to TXU CEO John Wilder during a legislative hearing last month. It appears, however, that Fraser is now going in suggesting that legislative corrections could come at the expense of the North Texas electric provider.

Anti-competitive practices

Fraser said the company has been linked to anti-competitive practices in a previous Public Utility Commission report. A bankrupt competitor has also made similar allegations, and various other public-utility reports have indicated that the company's sizable wholesale market share in North Texas gives it undue influence on prices.

The company has stood by its market practices and said the reports have not found proof of wrongdoing.

On Friday, spokeswoman Sophia Stoller cautioned against making major changes to the deregulation law and said it offers plenty of relatively low-cost electric deals for consumers.

She said TXU remains committed to working with Fraser and other lawmakers during the upcoming session.

"We have had several discussions with Senator Fraser ... and Senator Fraser has expressed some concerns -- we're working with him and others to find solutions and address concerns," Stoller said.

Fraser enumerated several adjustments to the deregulation law but did not endorse any. Some possibilities include limits on how much wholesale generation companies like TXU can control in specific regions or legislation to force TXU to divest itself of its retail operations or its wholesale operations.

"The concern is that there are market participants who have too much market power in both the wholesale and retail area," Fraser said.

He said lawmakers may consider legislation that would allow cities to group together large blocks of customers and negotiate a single aggregated price for them.

Under the proposal, customers would be part of the aggregation group unless they chose to opt out. Fraser and his counterpart in the Texas House, state Rep. Phil King, R-Weatherford, have not supported similar proposals during previous legislative sessions.

But both now say that it may be time to consider new options.

Lowering electric bills

"We're not going to go back and re-regulate," said King, the chairman of the House Regulated Industries Committee. "The toothpaste is already out of the tube with deregulation. But we've got to make some substantial changes."

Fraser said that whatever happens during the legislative session won't come without resistance from the industry. He predicted an onslaught of lobbyists from TXU and other companies -- "it'll be like the lobby full-employment act" -- because so much money is at stake.

"We're talking about an issue that involves a lot of money, so I would not be surprised to see the [industry] start hiring a tremendous number of lobbyists," Fraser said. "We have to address why the market is not responding."

But Stoller of TXU said the company has not increased the size of its lobby team this year. She said company lobbyists benefit government leaders by providing them with information regarding the views of the company's shareholders and customers.

"We strongly believe, as other companies do, that this is part of the government process," she said.

TXU spent as much as $3.2 million on 52 lobby contracts in 2005, the last year lawmakers met in Austin during regular session, according to Texans for Public Justice, a political watchdog group. The organization said the company's lobby spending was second only to AT&T.

Texans for Public Justice reports that several other players in the electric industry also typically spend millions of dollars on lobbyists.

They include the Association of Electric Companies of Texas, an industry umbrella group, which spent up to $1.6 million in 2005; Houston's CenterPoint Energy, which spent up to $1.5 million in 2005; Entergy-Gulf States, which spent up to $1.1 million that year; and American Electric Power, which spent up to $735,000.

Houston Chronicle: Perry Homes builder is largest U.S. political donor

Houston home builder Bob Perry poured $16 million into state and federal races during the recent election cycle, apparently making him the biggest individual political contributor in the country for 2005-06, a money-tracking group reported Tuesday. A legislator from San Antonio hopes the report will boost his proposal to place limits on big donors, but similar efforts have failed in the past.

Perry Homes builder is largest U.S. political donor

Builder puts $16 million into election process
Bob Perry is nation's biggest campaign donor

Dec. 6, 2006
By CLAY ROBISON
Copyright 2006 Houston Chronicle Austin Bureau

AUSTIN — Houston home builder Bob Perry poured $16 million into state and federal races during the recent election cycle, apparently making him the biggest individual political contributor in the country for 2005-06, a money-tracking group reported Tuesday.

A legislator from San Antonio hopes the report will boost his proposal to place limits on big donors, but similar efforts have failed in the past.

Perry has been a leading political donor in Texas for several years, but the $6.7 million he gave to state candidates, mostly Republicans, and political action committees over the past two years was a 44 percent increase over 2003-04, according to Texans for Public Justice.

Additionally, he put $9.3 million into federal elections, mostly through conservative groups that bought ads attacking Democratic congressional candidates throughout the country, TPJ reported, citing Congressional Quarterly's PoliticalMoneyLine.

"Texas is the Wild West of money in politics. Texas needs limits," said Andrew Wheat, TPJ's research director.

Wheat said Perry's total contributions may be the largest ever by an individual donor from Texas, other than what a wealthy candidate has given to his own campaign. Laredo businessman Tony Sanchez spent about $60 million of his own money on his unsuccessful race for governor in 2002.

Nationally, New York billionaire George Soros gave $23.5 million, mostly to liberal organizations, in the 2004 election cycle. Soros spent less this year.

Perry spokesman Anthony Holm said the home builder gives to Republicans and "pro-business, pro-jobs" Democrats because they support governmental policies promoting job creation.

"Bob Perry's political donations are all transparent and spent in public," Holm said.

"TPJ operates in the shadows. TPJ is funded by secret donors," including plaintiffs' lawyers, he added.

Texans for Public Justice says it is nonpartisan, but it frequently draws fire from conservatives for its periodic reports criticizing the role that large donations play in the electoral process. TPJ Director Craig McDonald said his group receives some funding from plaintiffs' lawyers but gets most of his support from philanthropic and other foundations.

85 biggest givers
About a month before the Nov. 7 election, the group released a report listing the 85 biggest donors to Texas candidates and committees, up to that point in the election cycle. Perry and his wife, Doylene, topped that list, which also included a number of other business people and several prominent plaintiffs' lawyers, including Fred Baron of Dallas, Mikal Watts of Corpus Christi, Walter Umphrey of Beaumont and John Eddie Williams of Houston.

Perry was singled out in this follow-up report because he's "the biggest donor in Texas," McDonald said.

Rep. Mike Villarreal, D-San Antonio, has prefiled HB111 for the legislative session, which convenes in January, to limit total political contributions by one individual in state races to $100,000 per election cycle.

Villarreal sponsored a similar bill in 2005, but it died in a House subcommittee.

"I think there is more public clamor for change," he said, noting that another mega-contributor, San Antonio businessman James Leininger, a leading advocate of spending tax dollars on private school vouchers, also received much attention this year for large political donations to legislative candidates.

Under Villarreal's bill, a person could give the entire $100,000 to a single candidate or committee but would be unable to donate to anyone else.

Among candidates this year, Perry gave 92 percent of his money to Republicans and 8 percent to Democrats, TPJ reported. HillCo PAC, the political action committee of an Austin lobbying firm that represents Perry's company, Perry Homes, received $545,000.

HillCo partner Bill Miller said money has been part of the democratic process since time immemorial.

"What's the difference between him giving his money and John O'Quinn giving a seven-figure contribution?" he asked.

O'Quinn, a plaintiffs' lawyer from Houston, gave Democratic nominee Chris Bell $1.5 million in the recent gubernatorial race.

After contributing $3.8 million to state candidates and committees in the 2002 election, Perry was instrumental in the Legislature's creation in 2003 of the Texas Residential Construction Commission, an agency criticized by consumer advocates as a builder-protection agency.


WINS AND LOSSES
Some recipients of Bob Perry's giving in the 2005-06 election cycle and how they fared in the campaign:

Winners
• Republican Party of Texas: $780,000

• Texans for Lawsuit Reform: $601,000

• HillCo PAC: $545,000

• Gov. Rick Perry: $380,000

• Lt. Gov. David Dewhurst: $285,000

• Sen.-elect Dan Patrick,

R-Houston: $55,000

• Rep. Sylvester Turner,

D-Houston: $50,000

• Sen. John Whitmire,

D-Houston: $45,000

Losers:
• Joe Nixon, R-Houston : $262,500

• Talmadge Heflin, R-Houston: $95,000

• Martha Wong, R-Houston: $59,500

Sources: Texans for Public Justice, Chronicle research

Dallas Morning News: Texan was largest donor to campaigns

Homebuilder Bob Perry appears to have been the biggest political contributor in the nation this year, with $16 million in donations to state and federal races, according to a new report. The Houston businessman put $6.7 million into Texas contests and $9.3 million to national candidates and committees seeking to elect Republicans to Congress. Read the article at the Dallas Morning News

Texan was largest donor to campaigns

Report: Houston homebuilder gave $16M to state, federal races

December 6, 2006
By WAYNE SLATER / The Dallas Morning News

AUSTIN – Homebuilder Bob Perry appears to have been the biggest political contributor in the nation this year, with $16 million in donations to state and federal races, according to a new report.

The Houston businessman put $6.7 million into Texas contests and $9.3 million to national candidates and committees seeking to elect Republicans to Congress.

The effort had mixed results, with Mr. Perry losing more races than he won in the Legislature and in sharply contested congressional races nationwide.

At the same time, the GOP slate of statewide candidates he backed, from Gov. Rick Perry (no relation) down the ballot, won decisively.

"Bob Perry is a kind of Texas political cash machine," said Andrew Wheat of Texans for Public Justice, a nonprofit group that tracks campaign contributions. "He believes in Republican hegemony in Congress and the Texas Legislature, and he seems willing to pay just about any price to get it."

Anthony Holm, a spokesman for Mr. Perry, dismissed Texans for Public Justice as biased and beholden to Democratic-leaning trial lawyers for its funding.

"Bob Perry is acting in the open and in a transparent environment, unlike TPJ," Mr. Holm said. "Until TPJ comes out of the shadows, they lack the credibility to debate this issue in the public arena."

The Austin group is not required by law to disclose who finances its research. Its federal tax filings indicate nonprofit foundations and personal-injury trial lawyers provide some of its money.

Mr. Perry has emerged in recent years as the state's biggest political contributor. He prefers candidates who pledge to limit government interference with business, especially those who support strict limits on lawsuits. Although much of his money goes to Republicans, he supports Democrats in some legislative races.

According to the study by Texans for Public Justice, Republicans got 92 percent of the money Mr. Perry contributed directly to candidates in Texas elections this year. The governor was the biggest beneficiary, with $380,000 in the 2006 election cycle, followed by $320,000 to Attorney General Greg Abbott and $285,265 to Lt. Gov. David Dewhurst, both Republicans.

He gave more than $1 million collectively to his top GOP legislative candidates, but only two of them won – Senate contender Dan Patrick and House candidate Jim Murphy, both of Houston.

He gave more than $200,000 to Democratic state House candidates, most of whom faced little or no opposition. All won.

Texas has no limits on the size of campaign contributions to candidates in state races.

Nationally, Mr. Perry has emerged as the single largest contributor to so-called 527 groups – independent expenditure organizations that can support candidates without campaign limits.

He put $5 million into the Economic Freedom Fund, $2 million into Americans for Honesty on Issues and $1 million for the Free Enterprise Fund, which funded television commercials and automated telephone calls against Democrats in closely contested congressional races from West Virginia to Oregon.

AAS: State's big political spender increased contributions

This fall, Houston lawyer John O'Quinn threw a $2.7 million lifeline to the sinking campaign of Democratic gubernatorial candidate Chris Bell. San Antonio businessman Jim Leininger spent millions this year targeting opponents of school vouchers. Yet, in the world of big-moneyed politics, Houston homebuilder Bob Perry has no peer, according to a new report by Texans for Public Justice, a group that supports campaign finance restrictions.

State's big political spender increased contributions

Homebuilder Bob Perry spent $6.7 million on state campaigns.

By Laylan Copelin
AMERICAN-STATESMAN STAFF
Wednesday, December 06, 2006

This fall, Houston lawyer John O'Quinn threw a $2.7 million lifeline to the sinking campaign of Democratic gubernatorial candidate Chris Bell. San Antonio businessman Jim Leininger spent millions this year targeting opponents of school vouchers.

Yet, in the world of big-moneyed politics, Houston homebuilder Bob Perry has no peer, according to a new report by Texans for Public Justice, a group that supports campaign finance restrictions.

Bob Perry Builder's donations rose 44 percent from past two-year election cycle.

During this election cycle, Perry spent $6.7 million, 44 percent more than in the past two-year cycle, in statewide and legislative campaigns to maintain his status as the top individual donor in Texas.

At the federal level, Perry eclipsed billionaire financier George Soros to become the top individual donor, with $9.3 million, mostly to conservative committees not limited in the money they can accept.

"It's shocking," said Andrew Wheat of Texans for Public Justice. "Bob Perry is an ATM."

Perry, Leininger and O'Quinn also are poster boys for state legislation aimed at capping an individual's combined political donations at $100,000 for each two-year election cycle.

State Rep. Mark Strama, D-Austin, is a co-author of the legislation.

Fear, he said, might be the motivating factor for change.

Lobbyists who traditionally held sway find that they have less power unless they are representing a big donor such as a Perry.

"All the folks who lobby and give $500 or $5,000 are finding it doesn't mean as much," Strama said.

For lawmakers, the fear of a big donor targeting them might unite Democrats and Republicans behind the bill, Strama said.

He vowed that his measure would limit donations from all individuals, whether business owners or partners in law firms.

"It's when both sides fear the power of big donors that we might pass this bill," Strama said.

In Leininger's case, the San Antonio businessman who favors Republicans went after his own kind, targeting GOP incumbents who opposed a pilot program to test school vouchers.

O'Quinn represents the return of the personal injury lawyer willing to spend millions on a Democratic candidate.

Ken Hoagland, a spokesman for Leininger, acknowledged that the momentum for vouchers might have slowed, because candidates he supported lost more races than they won. But he denied that the losses represented a referendum on vouchers.

"We're working harder than ever," he said. "Let's hope the merits of the issue can eclipse the politics."

Unlike some donors' self-interest, Hoagland said of Leininger, "There is nothing in it for him except helping children."

In Perry's case, spokesman Anthony Holm said, all the donations are transparent, and his motive is to support candidates and policy that will create jobs.

Perry favored Republicans, particularly in competitive races, but his money was so pervasive, it also fell to some safe Democratic incumbents.

In Central Texas, Perry gave Rep. Patrick Rose, D-Dripping Springs, $15,000, but he placed losing bets ($70,000 and $65,000, respectively) on Ben Bentzin and Bill Welch, two Travis County Republicans who lost bids for the Legislature.

His big donations went to the Republican Party ($780,000), Texans for Lawsuit Reform ($601,000) and the political action committee for Hillco Partners, a lobbying firm that represents Perry ($545,000).

In some instances, Perry donated six figures to candidates.

He gave $380,000 to Gov. Rick Perry (no relation), $320,265 to Attorney General Greg Abbott, $285,000 to Lt. Gov. David Dewhurst and $250,000 to Comptroller-elect Susan Combs.

He gave $262,500 to Houston Rep. Joe Nixon's unsuccessful bid to become a state senator, then sent $55,000 to the eventual winner, Houston radio talk show host Dan Patrick.

That kind of "late-train money," when donors give to the winners after backing the losing candidate, is not unusual.

Between Election Day and Saturday, the last day to donate before the legislative session starts, winning candidates typically collect about 15 percent of their total donations, Wheat said.

This week is the peak, with back-to-back-to-back fundraisers scheduled for Austin's private clubs. Four years ago, Wheat said, winning candidates raised $6 million in one mid-December week.

Neither Leininger nor Perry will fight legislation capping their donations, their spokesmen said.

"I don't believe Mr. Perry will be working against that bill in any shape, form or fashion," Holm said. "But it should be fair to all sides."

Hoagland said of Leininger: "He will play by whatever the rules are."

In June, Wheat said that only about 85 individuals had given $100,000 or more. But he added that they represented about one of every four dollars given by individuals.

Wheat said he gives the cap little chance of becoming law.

The state leadership — the governor, lieutenant governor and House speaker — has not championed the effort.

No one ordered an interim study of the issue, a sign that it is on the list of concerns for the leadership.

"If you could have a fair, straight vote, it would be interesting," Wheat said. "But I don't know if the leadership is going to let that happen."

Lobby Watch:GOP House Builder Bob Perry Lost Bid For Capitol Additions

The No. 1 individual political donor in Texas—and the nation—upped the ante in the 2006 election cycle, contributing $6.7 million to state PACs and candidates. Houston homebuilder Bob Perry increased his political spending this cycle 44 percent over what he spent on Texas’ last election.
Read the Lobby Watch

Dallas Morning News: Dallas on lookout for water raiders

Dallas officials fear that the Legislature may jeopardize decades of local water planning, overhauling state water policy in a way that could threaten North Texas' resources and prompt even tougher limits on water use here. Read the article at the Dallas Morning News

Dallas on lookout for water raiders

State Legislature's plans may drain well-prepared district

December 4, 2006
By EMILY RAMSHAW / The Dallas Morning News

Dallas officials fear that the Legislature may jeopardize decades of local water planning, overhauling state water policy in a way that could threaten North Texas' resources and prompt even tougher limits on water use here.

Texas lawmakers, faced with drought and water shortfalls across the state, acknowledge that they need to address the issue. Dallas officials don't disagree – they just say planning measures shouldn't come at the city's expense.

The legislation they anticipate in the coming months could hinder the city's ability to manage its own water by forcing Dallas to sell or give away its reserves to water-strapped cities across the state; by limiting Dallas' water recycling efforts to send more flow down the Trinity River; or by requiring Dallas water customers to pay a water tax that would benefit only Texas' least-prepared communities.

"Dallas has been on the cutting edge of developing water resources, and the taxpayers have spent a huge amount of money on water," said Rep. Will Hartnett, R-Dallas. "Now that the rest of the state is realizing they have to play catch-up, they want us to help pay for their past unwillingness to bear the cost. That to me is totally unfair."

With the state's population booming, planning for an adequate long-term water supply has become a priority for officials at all levels of government. The pressure's already on locally – Dallas may be forced to help Irving ease massive water shortages, which could force greater restrictions on Dallas' water customers.

Meanwhile, Dallas is pouring unprecedented resources into lobbying on the issue, paying nearly $125,000 to a private firm to protect the city's water rights.

North Texas shouldn't be punished, Dallas City Manager Mary Suhm said, for being better-prepared than some of its neighbors.

"We've been good planners," she said, "and no one should take advantage of our hard work and investment."

Lawmakers say that while the issue will be "huge" in the session that starts in January, water legislation won't live up to Dallas' worst nightmares.

Sen. Kip Averitt, the McGregor Republican who chairs the Senate Natural Resources Committee, said he expects to see legislation soon that focuses on water reuse, conservation, and environmental flows – the scientific term for balancing river and lake ecosystems with human water needs. He said a water customer tax is, so far, not part of the plan to fund statewide water infrastructure projects.

But when limited resources are at stake, Dallas officials say, a bill meant to hydrate parts of the state could parch others. Rainfall varies significantly from year to year, from east to west, from urban center to farm town. Populations are exploding regardless of where the water is, while the drought drains some of the best-prepared water districts.

Dallas Water Utilities is relatively comfortable, even though its sources are 35 percent depleted. The North Texas Municipal Water District, meanwhile, is strapped. Its main reservoir – Lavon Lake – is 63 percent depleted, and Lake Chapman, its secondary reservoir, is so low that the district is no longer taking water from it.

Flood of bills expected

Experts say a legislative approach to state water planning is long overdue – and elected officials thought it would happen two years ago. State water districts and water development companies spent at least $5.3 million lobbying for water interests in that session, according to figures compiled by Texans for Public Justice, a lobbying watchdog group.

They were left largely unsatisfied.

Lt. Gov. David Dewhurst declared water a priority in the 2005 session and led the charge to change state water policies. But the bottled water tax he proposed to finance water projects was rejected. And while the Senate backed a bill to define water-planning strategies at the state level and create a user tax to fund new water infrastructure, the measure was never brought up for a House vote.

A key element – an analysis of how much water rivers need to maintain their ecosystems, and how much municipalities can realistically draw from them – was reincarnated later in a special "environmental flows" committee appointed by Gov. Rick Perry.

Dallas officials figure that water measures will get much further this time, and they want to be ready.

Some elements of a comprehensive water bill, like conservation and planning measures recommended in a state board's recently approved plan, would be beneficial, they say. That plan, updated every five years, is a blueprint to meet a projected shortfall by 2060.

Others, elected officials say, could threaten Dallas' water rights and supply – and the pocketbooks of its ratepayers.

Dallas' chief lobbyist, Larry Casto, said that an across-the-board tax on Texas water customers, suggested in past sessions to fund water infrastructure in the neediest parts of the state, could give Dallas residents little while rewarding cities that have ignored planning.

"There are cities that have crossed their fingers and hoped for rain, have seen bond elections go down in flames without ever having built anything," said Mr. Casto, who will work with premier consulting firm HillCo Partners to protect Dallas' water rights. "If you're a Dallas customer, you've already paid for your reservoir system."

Going with the flow

Then there's environmental flow. It's a popular notion, and something the state may strive to regulate, Mr. Casto said. But it's also something Dallas, a water-rich city at the top of the Trinity River, must watch closely. If a powerful lobby of parched cities across Texas demands that Dallas send more water down the river, he said, North Texas could see decades of deliberate planning flushed away.

An example: The state could require Dallas to get a special permit to recycle wastewater, instead of sending it downstream. Long term, said Assistant City Manager Ramon Miguez, Dallas intends to supplement its supply with 60 million gallons of recycled water a day.

State Rep. Robert Puente, the San Antonio Democrat who leads the House Natural Resources Committee, said recommendations from the Governor's Environmental Flows Advisory Committee will be considered in the upcoming session. But he said legislation will be based on science, not politics.

"We need to make sure there's enough water in our lakes and rivers to get all the way down to the Gulf of Mexico," he said.

Other water priorities for Dallas include asking the state to stop fining cities for "unpreventable" water main spills. The state fined Dallas $7,500 last year for a main break that leaked chlorinated water into a stream and killed fish – a break related to shifting soil quality. The city is challenging the fine.

San Antonio Express-News: Politicians' cash hunt is on now

Lobbyist Raul Liendo wasn't keen to explain why he forked over $250 to a San Antonio lawmaker in the weeks leading up to the 2007 legislative session. He was just following orders from his client, TXU Energy's political action committee. "I'm just the delivery guy," Liendo said at a Tuesday night fundraiser for Rep. Joaquin Castro, D-San Antonio. Read the article at the San Antonio Express-News

Politicians' cash hunt is on now

12/01/2006
San Antonio Express-News

AUSTIN — The setting was a rear room in a private club. Two already-acquainted men in suits met briefly. Pleasantries were exchanged.

A check passed between them.

This wasn't a business deal or scene from a gangster movie, but a run-of-the-mill political fundraiser, where lobbyists ply elected officials with contributions, hoping, hinting — though never explicitly asking — for political favors down the road.

Lobbyist Raul Liendo wasn't keen to explain why he forked over $250 to a San Antonio lawmaker in the weeks leading up to the 2007 legislative session. He was just following orders from his client, TXU Energy's political action committee.

I'm just the delivery guy," Liendo said at a Tuesday night fundraiser for Rep. Joaquin Castro, D-San Antonio.

Liendo didn't want to discuss whether the commingling of money and politics best serves the public good, saying, "I just work with the system that's in place."

As a hired gun for an energy giant, Liendo was a bit player in the elaborate though rarely displayed ritual of political fundraising. It's a busy time for him: Austin's high season of check writing and catered receptions in the parlors of exclusive clubs.

For politicians, the period between the general election and the barring of political contributions for 30 days before the Legislature convenes is a last-minute scramble for funds.

This year, that window of opportunity ends Dec. 9. For lobbyists, it is a time to deepen existing friendships — and a chance for those who backed losing candidates to mend fences with the winners.

"They call it 'the late train,'" said Andrew Wheat, research director of Texans for Public Justice, an Austin-based group that backs campaign finance reform.

Embracing the railroad motif, at least one politician made clear he wasn't holding any grudges.

"Choo-Choo ... It's not too late!" Rep.-elect John Zerwas, a Republican from the Houston area, wrote in his train-illustrated invitations to a Thursday night reception at the Headliners Club. Zerwas did not return calls for comment.

The single biggest fundraising week of 2002 — the last year there was a gubernatorial race — occurred during the year-end late train period, Wheat said. According to his numbers, more than $6 million was raised that week. Fundraising totals for 2006 won't be known until next month.

Castro said his fundraiser at the Austin Club, to which he allowed access to a reporter, was his chance to repay $12,000 in campaign debt incurred in his race against Republican challenger Nelson Balido.

"I'm not trying to make off like a bandit," Castro said.

Looking dapper in a navy suit, he stood for two hours in the stately President's Room beside a table of potato chips, popcorn and mixed nuts, greeting a dozen or so guests.

There were handshakes, chitchat, and, almost invariably, the passing of an envelope, which Castro tucked discreetly into the pocket of his pressed shirt. Most lobbyists stayed no more than five minutes.

Castro raised $9,800 that night. Nursing a hot chocolate afterward, he said he'd like to see less special interest money in politics. But there's been little appetite in Texas, he noted, for taxpayer-financed campaigns.

So for now, he thinks the best chance for reducing the effect of special interest money is to back campaign contribution limits. He hopes that will pass next year.

Upstairs, in the Millennium Room, a newcomer, Rep.-elect Borris Miles, a Houston Democrat, was hosting a fundraiser of his own — and showing his position on the learning curve.

Campaign workers had sought contributions of as much as $5,000, a faux pas given Miles' newness, according to veteran political consultant Bill Miller.

"When people ask for these exorbitant amounts it tells you two things: They don't know the way the system works up here or the hierarchy of the pecking order," Miller said.

"The caboose," he added, "is the freshmen-elects."

In most cases, incoming freshmen ask for a maximum contribution of $1,000, but that doesn't mean they're going to get it, Miller said.

Reached later, Miles agreed he had some learning to do.