Sunday, November 30, 2008

Houston Chronicle: Perry's jabs at feds may have second target as well

Perry issued a written statement opposing the use of tax dollars to finance a bailout, putting himself at odds with the only piece of legislation being discussed, the plan to spend $700 billion to buy mortgage-backed securities. Texans for Public Justice, in an Oct. 13 report, said Perry had awarded $35 million in taxpayer funds to two companies involved in the financial meltdown — mortgage lender Countrywide Financial and failed bank Washington Mutual, which was seized by federal regulators and sold to JPMorgan Chase.Read the article at the Houston Chronicle

Perry's jabs at feds may have second target as well

From bailouts to Ike aid, some see positioning against Hutchison in 2010 governor race

By JANET ELLIOTT
Copyright 2008 Houston Chronicle Austin Bureau

AUSTIN — From the Wall Street bailout bill to helping the Gulf Coast recover from Hurricane Ike, it seems the federal government can do nothing right in the eyes of Gov. Rick Perry.

The latest shot came Tuesday, when Perry accused federal environmental protection officials of "actively working to do more economic harm" to the state through potential regulation of carbon emissions linked to climate change.

"Washington has Texas in its sights," he said.

Many political observers believe Perry's harsh rhetoric is designed to position the governor in his bid for an unprecedented, third four-year term in 2010. The target is his likely challenger in the Republican primary, U.S. Sen. Kay Bailey Hutchison, who is more popular than Perry in some polls.

Hutchison in late September told her Senate colleagues that she wouldn't seek re-election to a leadership post and is planning to form an exploratory committee for the governor's race.

"I guess it's a pretty good shot to take on the federal government if you're running against someone who is an agent of the federal government," said Greg Thielemann, director of the Center for the Study of Texas Politics at the University of Texas at Dallas.

"I think his criticisms are his attempt to raise his profile, and if it slows down Sen. Hutchison, that's a good thing," said Bill Miller, an Austin political consultant.

Miller also said that he thinks Perry's comments reflect the "passing of the torch up in Washington" and that he now feels more free to criticize the Bush administration.

Perry said in an interview that he has a long pattern of blasting federal government policies dating to his time as agriculture commissioner in the 1990s. Perry was lieutenant governor when George W. Bush became president in January 2001, and automatically became governor. He won elections in 2002 and 2006.

Perry has not been shy about speaking out against federal immigration policies, and most recently engaged in a back-and-forth with U.S. Homeland Security Secretary Michael Chertoff over federal failures to deport illegal immigrants booked into the Harris County Jail.

The governor acknowledges he has stepped-up his critiques in recent weeks, but said the reason has nothing to do with politics.

"We have more at stake right now than we've ever had before," Perry said. "We have been hit by the largest storm that's hit Texas in a century. We have counties in Texas that are suffering greatly."

Sparring over bailout
The initial sally, however, was not about hurricanes.

At the same time the U.S. Senate was debating a $700 billion bailout of the financial industry, Perry, who at the time was the head of the Republican Governor's Association, joined the Democratic governor of West Virginia in a bipartisan plea to Congress to "pass an economic recovery package."

Later that October day, Perry issued a written statement opposing the use of tax dollars to finance a bailout, putting himself at odds with the only piece of legislation being discussed, the plan to spend $700 billion to buy mortgage-backed securities that Hutchison and fellow Republican Sen. John Cornyn voted to pass under heavy lobbying from Treasury Secretary Henry Paulson.

Perry's press secretary, Mark Miner, referred to Hutchison as "Kay Bailout" in an Oct. 25 story about a poll done for the Houston Chronicle that showed Harris County voters favored Hutchison over Perry 46 percent to 30 percent. (The same poll showed Houston Mayor Bill White beating both Hutchison and Perry.)

Marc Short, a spokesman for Hutchison, said Perry flip-flopped on the bailout bill.

"Being for the bill before being against the bill is how you get 39 percent of the vote after six years in office," Short said, referring to Perry's share of the vote in 2006 when a Democrat and two independent candidates were on the ballot.

A liberal interest group jumped on Perry's statements as evidence he was kicking off his 2010 re-election campaign. Texans for Public Justice, in an Oct. 13 report, said Perry had awarded $35 million in taxpayer funds to two companies involved in the financial meltdown — mortgage lender Countrywide Financial and failed bank Washington Mutual, which was seized by federal regulators and sold to JPMorgan Chase.

Job creation claimed
Both companies met their requirements to create a specific number of jobs after receiving the Texas Enterprise Fund grants in 2004 and 2005, Perry said. The fund, which Perry asked the Legislature to create in 2003, has awarded $365 million to 48 projects, and created 52,099 new jobs and nearly $14 billion in capital investment, the governor's office said.

"The fact is if the federal government had that type of track record I wouldn't have a problem in the world," Perry said. "The fact is we've thrown $700 billion at mismanaged companies, at greedy Wall Streeters, and the result has been a stock market that has continued to go down."

Tension between Hutchison and Perry has been evident since right after Hurricane Ike ripped through Galveston and southeast Texas in the early morning hours of Saturday, Sept. 13. The following day, the two made separate tours of the devastation and spoke to reporters in separate briefings.

State lawmakers initially lashed out at Federal Emergency Management Agency officials about a month after the storm, saying they were failing to get mobile homes to people, and were instead handing out motel vouchers when no rooms were available in the hardest-hit communities such as Bridge City.

On Nov. 20, Perry held a news conference in Houston and called the federal government's efforts "pretty underwhelming."

He questioned how Washington could "shower $700 billion on mismanaged Wall Street firms but can't spare the funds to help Broadway Street in Galveston."

"Thanks to congressional inactivity, if you will, Texans are unlikely to receive assistance until next summer," he said at the event.

Last week, Perry said his jabs at Congress were not aimed at the Texas delegation as much as the Democratic-controlled Congress.

However, he also has been highly critical of Chertoff, a Bush appointee, for saying Texas should use more of its own funds to help with debris removal. He said it is "incomprehensible" that federal officials would treat Texas differently than it did Louisiana after 2005's Hurricane Katrina.

"I will fight back vigorously to that type of discrimination," Perry said.

Block grants delivered
Hutchison helped secure $6.1 billion in community development block grant funding for weather-related disasters in an emergency supplemental spending bill passed about one week after Ike came ashore. She and Cornyn announced Wednesday that Texas would receive $1.3 billion for repairs to homes and businesses in the first round of funding.

"Being part of the solution by employing state resources would be more helpful than flailing criticism of the federal delegation which continues to secure billions of dollars in aid for hurricane victims," Short said. "The constant carping is counterproductive."

janet.elliott@chron.com

Friday, November 28, 2008

Texas Observer: Whack-A-Speaker

One evening a week after the Nov. 4 election, hundreds of Texas power brokers filed into their favorite haunt near the state Capitol, the venerable Austin Club, to welcome newly elected Democratic House members. The event was also attended by House Speaker Tom Craddick, whose Stars Over Texas political action committee dispensed $1.8 million to defeat the event's honorees. Craddick made a point of seeking out the new Democrats, potential adversaries in an intensifying campaign to depose him. The presence of Craddick, who is not particularly known as a bon vivant, underscored the narrow margin by which he clings to power in the face of a mounting insurrection.Read the article at the Texas Observer

Whack-A-Speaker:
Can Tom Craddick fend off his challengers?


Patricia Kilday Hart
TEXAS OBSERVER
November 28, 2008

Tom Craddick and his wife, Nadine
One evening a week after the Nov. 4 election, hundreds of Texas power brokers filed into their favorite haunt near the state Capitol, the venerable Austin Club, to welcome newly elected Democratic House members. The post-election event drew veteran lawmakers eager to meet their new colleagues, lobbyists equally eager to hand out "late train" campaign contributions—and one slight, unassuming man whose presence dominated the room despite his shy demeanor.

House Speaker Tom Craddick, whose Stars Over Texas political action committee dispensed $1.8 million to defeat the event's honorees, made a point of seeking out the new Democrats, potential adversaries in an intensifying campaign to depose him.

"Hi. I don't believe we've had the chance to meet," the Midland Republican told El Paso Democrat Joe Moody, extending his hand. No irony, and certainly no mention of the $113,500 the Stars PAC dumped into the campaign coffers of Dee Margo, Moody's Republican opponent.

The presence of Craddick, who is not particularly known as a bon vivant, underscored the narrow margin by which he clings to power in the face of a mounting insurrection.

Craddick, who has ruled the Texas House with wiliness and intimidation since 2003, survived two raucous overthrow attempts last legislative session. Ever since, the effort to unseat him has been a powerful undercurrent in Texas politics. And on Election Day, a whiff of vulnerability had settled upon him, and the tempo of the drama quickened.

Depending on the outcome of a recount in an Irving race, the Republicans' advantage in the House has plummeted from 88-62 in 2003 to either 76-74 or an even 75-75 split under Craddick's rule. This was the third election in a row in which GOP numbers have dwindled. Though Craddick helped bring Republicans to power in a Legislature that was solidly Democratic for more than 100 years, his divisive speakership has played a part in rapidly depleting their newfound power. Now Democrats are poised to win back control of the House at the close of the decade, just in time for the next round of legislative redistricting. It's no wonder that dissident Republicans and Democrats smell blood. By the end of election week, eight House members publicly (Houston Democrats Scott Hochberg, Sylvester Turner and Senfronia Thompson; Democrats Pete Gallego of Alpine and Alan Ritter of Nederland; Republicans Delwin Jones of Lubbock, Jim Keffer of Eastland and Tommy Merritt of Longview)—and a handful more privately (Democrat Craig Eiland of Galveston, Republican Ed Kuempel of Seguin)—had already announced their intentions to replace Craddick. As this issue went to press, none had collected enough support to claim victory.

The official vote for a new speaker cannot be taken until the Legislature convenes Jan. 13, but Craddick is clearly fighting for his political life. With 64 Democrats and at least 10 Republicans—one shy of a majority—publicly committed to deposing Craddick, there's hard evidence to support Democratic caucus Chair Jim Dunnam's blunt appraisal that Craddick is "so done you can stick a fork in him." While Craddick may continue to fight for survival until the House convenes, dissident Republican Charlie Geren says he is certain that there will soon be a public announcement "by a candidate with more support than it requires to become speaker."
Burt Solomons

Further chinks in Craddick's armor appeared when even supporters began publicly questioning his leadership. In particular, Republican Rep. Burt Solomons of Carrollton made statements to the San Antonio Express-News that could only be interpreted as withdrawing his support. Solomons, who has been a staunch Craddick ally, said he feared that Craddick would have to make deals with a few Craddick Ds to retain his speakership.

"This is just turning into a fiasco again," Solomons said on Nov. 13. "The House is seemingly coming apart. I am terribly, terribly dismayed that ... apparently we have a handful of Democrats making demands for control of power and clout and title. A number of us, even though we're supporters of Tom Craddick, are just totally turned off."

Those statements created a boomlet among House members for Solomons to offer himself as a candidate. Five days later, on Nov. 18, he did. Until January, this campaign will take place in a private realm that insiders describe as a real-life version of The Art of War, a mostly psychological battle in which perception equals reality.

A speaker's campaign, guided by its own laws and its own social conventions, is by definition a closed-door political phenomenon. Party affiliation matters some, but not as much as personal relationships and the clout of coalitions: anti-Craddick Democrats; the "Craddick Ds" (Democrats who've backed Craddick); pro-Craddick Republicans; and the ABCs (anybody but Craddick).

For rank-and-file Texans, the stakes in this game are high; among other problems with his leadership, Craddick's determined hold on power has contributed to a deep gridlock that prevents many popular bills from even coming up for a vote.

Craddick's growing ranks of opponents believe that he is driven not by public-policy concerns but by helping lobbyist friends and the wealthy financiers of the Republican Party, some of whom have their own legislative agendas. Even ostensibly powerful chairmen under Craddick have openly complained to colleagues that their committees are not permitted to make decisions about particular bills—that they are micromanaged according to Craddick's feuds and political alliances.

The case against Craddick is well known: His six years as speaker have been marked by controversy and complaints about arm-twisting and fear of retribution by his powerful allies, including deep-pocket Republican contributors like Houston homebuilder Bob Perry and San Antonio businessman Jim Leininger, who supports conservative causes like education vouchers. The Texas House has been strong-armed to support issues dear to the hearts of these wealthy backers, including lawsuit limits (Perry's pet project) and vouchers (Leininger's). The "deregulation" of college tuition, which has led to escalating higher-education costs unpopular with the public, was an important piece of the Republican Party's no-new-taxes pledge.

During the debate over lawsuit limits in the 2003 session, Craddick was so closely aligned with the lobby group Texans for Lawsuit Reform that the House gallery seats frequented by its lobby team were derisively called "the owners' box." During the debate on education vouchers, the bill's main proponent, Leininger, lobbied members from an office inside the Capitol. And who could forget the acrimony over redistricting, which led Democratic House members, during Craddick's first session as speaker, to flee to Ardmore, Okla., in an attempt to block mid-Census redistricting in 2003?

Nothing matched the fireworks that erupted in May 2007, when insurgents attempted a vote to "vacate the chair"—parliamentary-speak for firing Craddick. Craddick refused to recognize any member to make the motion, after firing the House parliamentarian who ruled Craddick did not have that authority. He then hired two former House members, Terry Keel and Ron Wilson, who advised that the Speaker had absolute power and members could not appeal his decisions. A walk-out ensued, led by Republican Pat Haggerty of El Paso. Craddick punished this particular indiscretion by recruiting and funding Haggerty's GOP primary opponent in 2008, Dee Margo—a strategy that backfired on Nov. 4 when Margo lost the general election to Joe Moody, the man Craddick was trying to schmooze at the Austin Club.

Money brought Craddick to power, and campaign contributions are an essential weapon in his bid to retain his position. He worked intimately with former U.S. Rep. Tom DeLay's Texans for a Republican Majority, the group that spawned criminal investigations by the Travis County district attorney's office into illegal corporate contributions. Although Craddick accepted and dispensed donations on the political action committee's behalf, he was never charged with wrongdoing.

TRMPAC and Stars Over Texas have been close partners in Texas political giving: According to a new analysis by the nonpartisan Texans for Public Justice, Stars and Craddick's personal campaign committee have received $1.9 million since 2003 from 65 donors who also gave to TRMPAC. Leading the givers were Leininger, who gave almost $400,000 to Craddick's money operation, and Perry, who's given $310,000 since 2003.

During this past election cycle, Craddick contributed $1.2 million to the Stars PAC. During the primary last spring, the nonpartisan group Texans for Public Justice filed an official complaint, still unresolved, against Craddick and another political action committee, the Texas Jobs PAC, which had been dormant for 18 months when it received a $250,000 contribution from the Craddick campaign in January. The very next day, the suddenly revived Jobs PAC cut three checks for $50,000 apiece to the campaigns of Democratic House incumbents Kevin Bailey, Kino Flores and Aaron Pena—all of whom had supported Craddick's speakership. (Bailey ultimately lost in his primary, but the other two won re-election.)

"The transactions between Craddick, the Texas Jobs PAC and the three House candidates appear to be coordinated and illegal," says Texans for Public Justice Director Craig McDonald. "Texas law is clear: You can't buy the speaker's gavel by bankrolling the campaigns of House candidates. Nor can you make a political contribution under someone else's name. It's hard to argue that the Texas Jobs PAC didn't launder Craddick's money. By its own accounting it didn't have another cent to its name." Craddick's ability and propensity to reward and punish members with campaign contributions—and to discipline them by blocking their legislation—has prompted dissidents to insist on a secret ballot for the election of the next House speaker. Last session, Craddick's survival was ensured when Charlie Geren's motion to conduct the balloting in secret failed.

Another squabble over secret balloting will likely kick off the next session as well. Craddick spokeswoman Alexis DeLee recently asserted that the speaker's election will again be conducted by open ballot. Dunnam, the Democratic caucus chair, dismissed her analysis as "spin" in a letter outlining the legal precedent for secret balloting, noting that a Secretary of State's opinion concluded that each chamber could determine its operating rules. That opinion noted that a 2000 Texas Supreme Court decision permitted the Texas Senate to do just that in selecting a lieutenant governor when a vacancy occurred.

Solomons, one of Craddick's several challengers, argues that "unless we have a secret ballot, we have this real problem of tremendous partisanship and true power-grabbing."

So far, the essential element for a successful revolution has failed to materialize: a consensus replacement for the embattled speaker. Each possibility has been met with Goldilocks-like disapproval from one faction or another: Too partisan. Too close to the lobby. Too trial-lawyer. Too close to Craddick.

This indecision works in Craddick's favor. Despite his widespread unpopularity, a fundamental obstacle bolsters Craddick's hopes of retaining the speakership. "You can't vote for speaker a guy named 'Anybody But Craddick,'" a longtime lobbyist points out. So far, the announced candidates, the lobbyist added, resemble nothing more than "a circular firing squad."

Assembling a coalition in the highly diverse Texas House is a fragile social experiment. Adding to the complexity is the narrow margin in Republican Linda Harper-Brown's apparent victory over Democrat Bob Romano in Irving. Harper-Brown's 20-vote lead guarantees a long recount; once that's over, the House itself will have to resolve any subsequent challenge to the outcome. Adding to the uncertainty is a new criminal investigation into Rep. Kino Flores, one of the Craddick Ds who got $50,000 from the dubious Texas Jobs PAC. The uncertainty about Flores' fate, and about who will represent Irving, means the House's partisan balance could remain unclear until after the Legislature convenes.

At the Democratic caucus held the day after the election, 64 of the party's 74 members signed an agreement to not only oppose Craddick, but to decline to negotiate a deal with him for the speakership. And caucus chair Jim Dunnam sent a message that the 10 other Democrats would be forgiven and welcomed back to the fold: "The day they come back, it's over," he said. "Water under the bridge."

Conspicuous by his absence from the caucus was one crucial Craddick D: speaker candidate Sylvester Turner, who believes that his past relationship with Craddick will make him palatable to Republicans, and that his work on behalf of the Children's Health Insurance Program has endeared him to his own party. Cynics, however, view Turner's candidacy for speaker as a bid to cut a deal with Craddick for the coveted chairmanship of the Appropriations Committee.

On the Republican side, dissidents led by Geren hoped to assemble a coalition behind a Craddick opponent to allay fears of capitulation. But five Republicans are now challenging Craddick. Two of them, Delwin Jones and Ed Kuempel, have each promised they would serve only one term as speaker, allowing the House to choose a new speaker in 2011 without Craddick's looming presence.

While Austin buzzes with the possibility of a new House speaker, no one—especially his opponents—expects Craddick to go gentle into that good night. Though state law prohibits him from offering favors for support, Craddick can legally appease his opponents with vows of a kinder, gentler administration—by, among other things, replacing his pet parliamentarians, Keel and Wilson, with a more evenhanded arbiter of House rules.

Craddick's communications director, Alexis DeLee, predicts that her boss will keep his title as long as Republicans have a majority in the House. But she also suggests that the election results might influence Craddick's management style. "The speaker has made changes every session to adapt to changes in the membership of the House," she says. "This session will be particularly historic given the near-parity in the House. For any major bills to pass, there will have to be compromise, and the speaker is committed to seeking more bipartisan cooperation than ever before in the House."

Her statement sounds remarkably like one Craddick gave The Dallas Morning News in January 2007 shortly after he had narrowly survived a challenge by Republican State Rep. Jim Pitts of Waxahachie for the speakership. "We're going to do a better job of listening to what the members are trying to tell us and communicate both ways," he said.

But Craddick has always prided himself on not making concessions to his opponents, either in the political or the business world. Until the official vote is taken in January, expect him to work feverishly to divide his opponents, with significant consequences and recriminations if he succeeds.

An anonymous poster on Texas Monthly's Burkablog recently pointed out that the kickoff of the post-election speaker campaign coincided with Guy Fawkes Day, named for the leader of the Gunpowder Plot of 1605 to blow up the British Parliament. When the insurrection failed, Guy Fawkes was sentenced to be hanged, drawn and quartered.

Patricia Kilday Hart wrote for the Capitol Bureau of the Dallas Times Herald and has contributed to Texas Monthly since 1989.

Wednesday, November 19, 2008

Lobby Watch:
TRMPAC Donors Moved Another $2 Million To Craddick PACs

Since Tom Craddick became House Speaker in 2003—with a little help from his friends at Tom DeLay’s now-indicted Texans for a Republican Majority PAC (TRMPAC)—65 former TRMPAC donors have given almost $2 million to the two main PACs defending Craddick’s tenuous grasp on the Speaker’s gavel.
Read the Lobby Watch

Austin American-Statesman: Texas GOP falls head over heels into deep pockets

GOP leaders in the House are holding their caucus strategy and fundraising session at the exclusive Hyatt Regency Lost Pines Resort and Spa near Bastrop. And in return for access to key Republican House members, they are asking for unlimited corporate and personal contributions.Read the editorial at the Austin American-Statesman

EDITORIAL

Texas GOP falls head over heels into deep pockets

Republican caucus at resort asks for unlimited corporate donations in return for access to preferred members

AUSTIN AMERICAN-STATESMAN
Wednesday, November 19, 2008

The invitation from the Texas Republican House Caucus might as well have said "Republican legislators for sale."

GOP leaders in the House are holding their caucus strategy and fundraising session at the exclusive Hyatt Regency Lost Pines Resort and Spa near Bastrop. And in return for access to key Republican House members, they are asking for unlimited corporate and personal contributions.

Contributors — corporations, individuals and lobbyists — who gave $25,000 got 15 VIP dinner tickets, four rounds of golf with a "Preferred House Member," and prominent company advertising. The caucus began Tuesday and ends tonight with dinner at a prominent lobbyist's home.

After losing legislative seats in three straight elections, after accusations and indictments for fundraising improprieties and with the House in complete disarray, you would think the GOP leadership would be just a bit ashamed to be selling access to its "Preferred Members" and asking for unlimited corporate donations.

But no, the leadership is as tin-eared and arrogant as ever, embarrassing even some of those "Preferred Members." The Texas version of the Republican Party obviously can't read the handwriting on the wall, either.

Nationally, the GOP is recalibrating after the devastating losses of both houses of Congress and the presidency. Party leaders assessing the future argue that the party must broaden its base beyond white males in the southern states or risk becoming a permanent minority in most of the country.

They know they must broaden their appeal to women and minorities and adopt new strategies, such as embracing environmentalism and energy conservation. If the GOP is to be relevant in the near future, it must shed its reputation as an arm of corporate America.

That strategy seems lost on Texas Republicans, and on the divisive leadership under House Speaker Tom Craddick in particular. The Midland Republican is determined to retain his leadership position, no matter what wreckage he leaves in his wake.

Texas Republicans are shameless about their allegiance to the corporate lobby, as an article by Associated Press writer Jay Root about the Bastrop caucus makes clear. But they ignore electoral and demographic changes in Texas and around the country at their peril.

House Republicans are pushing as hard as ever to sell their influence to the business lobby. So hard, in fact, that they might push themselves right out of power in another election cycle or two.

Friday, November 14, 2008

Texas Observer: The DeLay Scandal Turns Six

The Tom DeLay scandal has been with us longer than most kindergartners. Six years have passed since the controversial 2002 election, when DeLay sprang his audacious plan to use possibly illegal corporate money to bury Texas Democrats. DeLay’s Texans for a Republican Majority PAC (TRMPAC) and the Texas Association of Business (TAB) teamed with Texans for Lawsuit Reform to orchestrate a GOP takeover of the Texas House. These efforts made Midland Republican Tom Craddick the House Speaker and let Delay reconfigure Texas’ congressional districts, adding six new Republican seats.Read the article at the Texas Observer

The DeLay Scandal Turns Six
Catching up with the players from the disputed 2002 election.


Andrew Wheat | November 14, 2008
TEXAS OBSERVER

The Tom DeLay scandal has been with us longer than most kindergartners. Six years have passed since the controversial 2002 election, when DeLay sprang his audacious plan to use possibly illegal corporate money to bury Texas Democrats. DeLay’s Texans for a Republican Majority PAC (TRMPAC) and the Texas Association of Business (TAB) teamed with Texans for Lawsuit Reform to orchestrate a GOP takeover of the Texas House. These efforts made Midland Republican Tom Craddick the House Speaker and let Delay reconfigure Texas’ congressional districts, adding six new Republican seats.

The disputed election prompted a flurry of civil and criminal court cases. Defeated Democrats sued TRMPAC and TAB. Travis County District Attorney Ronnie Earle indicted DeLay and other TRMPAC and TAB leaders on charges of criminally tapping more than $2 million in corporate funds to influence the election. The indictments effectively evicted House Majority Leader DeLay from the U.S. House.

The criminal case still crawls along. The Texas Association of Business recently copped a guilty plea, retirement is looming for prosecutor Ronnie Earle, and a fix may be in on the criminal charges against DeLay. Some major players who pushed the electoral limits in 2002 have paid a price. Many others have eluded repercussions, been appointed to political offices or find themselves awash in political-consulting fortunes. Six years after the Republican champagne flowed, the Observer checked up on lead players in the DeLay scandal.

First Family
Recent years have brought upheaval to the First Family of the TRMPAC scandal. In September 2005, Tom DeLay was indicted in Texas on money-laundering charges stemming from TRMPAC’s campaign shenanigans. In the eight months following his indictment, DeLay went from being one of the most powerful men in the nation to a veritable has-been.

DeLay resigned from Congress in April 2006 amid serious questions about his ability to win re-election in his own Sugar Land district. Out of Congress, he launched two ventures that operate out of the same office building in Washington. One is the consulting firm First Principles LLC. While corporate clients may be flocking to the firm, political campaigns don’t appear to be buying its advice. A search of federal political committees, courtesy of Congressional Quarterly’s MoneyLine, reveals that First Principles has received just one PAC payment. Chicago’s conservative Family-PAC paid DeLay—the former PAC-money king—the royal sum of a $4,000 honorarium.

Last year DeLay also launched the Coalition for a Conservative Majority, which he billed as his camp’s answer to MoveOn.org, the decade-old online hotbed of liberal activism, which operates one of the nation’s fattest PACs. Despite its prominent links on DeLay’s blog, the Coalition has had little visible impact.

DeLay’s slipping traction is not surprising, given his sudden, enormous loss of power. DeLay blames his downfall, at least partly, on reporters. “I haven’t been found guilty of anything,” he told the Houston Chronicle at the recent Republican National Convention, “yet my first name is ‘Discredited’ in the media.”

One discrediting of the DeLay name occurred in April 2005. That’s when The New York Times reported that DeLay’s political committees—including TRMPAC and Americans for a Republican Majority Committee (ARMPAC)—had paid DeLay’s wife and daughter more than $500,000 during the past four years. To counter any suggestion of impropriety, ARMPAC issued a statement at the time saying “Mrs. DeLay provides big picture, long-term strategic guidance” and the DeLays’ daughter, Danielle Ferro, “is a skilled and experienced professional event planner.”

Yet it is not clear that the market for these skills survived DeLay’s fall. Christine DeLay received no payments from PACs unaffiliated with her spouse in recent years and received her last ARMPAC checks in December 2005. The $12,500 that TRMPAC paid Danielle Ferro in late 2003 were the last major political payments that TRMPAC ever made. Ferro still works for her father, handling appointments for First Principles.

DeLay’s brother, Randy, appears to be the family member least affected by the scandals, perhaps because he parted company with his relatives before Tom DeLay’s fall. To bounce back from a 1992 bankruptcy, Randy DeLay formed the DeLay Group lobby firm, which has grossed an average of more than $400,000 a year during the past decade. Some of Tom DeLay’s earlier ethics troubles occurred when he intervened on behalf of his younger brother’s lobby clients. These problems may have contributed to the reported estrangement of the DeLay brothers. Yet Randy DeLay’s business has continued apace, even after he dropped “DeLay” from his firm name in 2002 and after his brother lost power. Randy DeLay’s clients today include Time Warner Cable, the Brownsville Navigation District and Motor Coach Industries. (This summer a Motor Coach bus crashed on a highway near Sherman, killing 17 Vietnamese-American church members.)

Randy DeLay and his niece, Danielle Ferro, did not respond to requests for comment. Tom DeLay’s spokesperson at First Principles, Shannon Flaherty, made one attempt to respond but could not be reached by press time.

Electoral Lawsuits
For six years, TRMPAC and TAB have defended themselves from civil and criminal cases alleging that they improperly influenced Texas’ 2002 elections to establish a Republican majority in the Texas House. In the first case to come to trial, five Democrats defeated by TRMPAC-backed Republicans sued three TRMPAC officials for allegedly violating Texas election laws. The state district judge overseeing the case ruled in 2005 that TRMPAC broke state law by failing to report more than $600,000 in corporate contributions (it’s illegal in Texas for candidates to spend corporate money on political activities). In the end, Judge Joseph Hart agreed with the plaintiffs and ordered former TRMPAC Treasurer Bill Ceverha to pay $196,600 in damages.

Ceverha is a former state lawmaker with close ties to Dallas oil magnate Louis Beecherl, who bankrolled TRMPAC and Craddick. After the 2002 election, Ceverha served on Craddick’s speaker transition team. Craddick then appointed him to the board of the Texas Employees Retirement System (ERS). This trustee of the $24 billion state pension fund then declared personal bankruptcy in 2005 to avoid paying his TRMPAC judgment. In addition, TRMPAC donors helped pay some of the more than $800,000 that Ceverha owed to the legal team that lost his case. TRMPAC’s No. 1 donor, Houston homebuilder Bob Perry, gave Ceverha $100,000. Ralph Ellis of Irving, who heads an oil company that pumped corporate cash into TRMPAC, loaned Ceverha $50,000. A school-voucher group maintained by TRMPAC donor James Leininger also handed Ceverha a 2005 lobbying gig. Ceverha’s bankruptcy filings note that his income jumped from less than $85,000 a year in the first four years of the millennium to more than $235,000 a year when his trial heated up at mid-decade. Ceverha’s more recent lobby disclosures suggest diminishing returns, with lobby contracts worth up to $35,000 in 2007 and none in 2008. All the while, Ceverha has continued to serve on the board of the state employees pension fund.

Asked about the meaning of the TRMPAC scandal, Ceverha said, “What I would like to say is so outrageous that, knowing the slant of your paper, I don’t think I should tell you.” Encouraged to do so, Ceverha said, “Think about the fact that there have been people out there dangling in the wind for years and spending a personal fortune for no good reason.”

Two of the three attorneys who tried the civil case against Ceverha came from the now-defunct Austin firm Ivy Crews & Elliott. Cris Feldman has since joined the Houston criminal defense firm Rusty Hardin & Associates. In an odd twist, that firm now represents TRMPAC fundraiser Warren Robold, one of four TRMPAC defendants indicted by Earle (the firm reportedly has Feldman sealed off from the Robold case). Feldman’s ex-partner Joe Crews is now at his own firm. Crews and the third plaintiff lawyer, David Richards (who once was married to the future Gov. Ann Richards), intend to eventually resume their civil case against two DeLay cronies, John Colyandro, the former TRMPAC director, and Jim Ellis, the former ARMPAC director. The plaintiff attorneys must wait until the criminal case against Ellis and Colyandro is resolved.

A former employee of Karl Rove’s direct-mail shop, Colyandro’s main job has been running the Texas Conservative Coalition, which he founded in 1985. The Conservative Coalition accounts for most of the $180,387 that Texas PACs have reported paying Colyandro since 2003. Colyandro’s lawyer said the criminal charges have made it difficult for his client to make a living and “cost him a marriage.” “As a Democrat, I’m still angry at what happened in the Lege in 2002,” said Austin attorney Joe Turner. “From a legal standpoint, I don’t think [Colyandro] violated the law. It’s time to end this nightmare for everyone and move on.”

When the TRMPAC mess erupted in 2003, Colyandro and Ellis landed supplemental income, reporting their first Texas lobby contracts. ARMPAC was one client that paid Ellis to lobby that year in Austin, where Ellis camped out to help DeLay pass congressional redistricting. Ellis and Colyandro both reported receiving 2003 lobby contracts through Virginia-based Performance and Results International LLC (see “There is Always a Bright Side,” March 4, 2005). That firm’s main business number had been disconnected when the Observer called recently. Jim Ellis’ attorney, J.D. Pauerstein of San Antonio, said that his client is “working in some consulting capacity” in the Washington area but that he did not know the details.

Then there are two lawsuits involving the Texas Association of Business. Defeated Democratic House candidates sued TAB and its corporate contributors. The plaintiffs alleged that TAB illegally spent $1.7 million in corporate funds on ads promoting 24 Republican legislative candidates in 2002. Plaintiffs also sued lobbyist Mike Toomey, who raised corporate funds for TAB, mostly from insurance companies. Toomey, TAB and the corporate donors agreed this fall to settle with some of the plaintiffs for an undisclosed sum. But a few plaintiffs are still pressing their case against TAB President Bill Hammond and three of the insurers that bankrolled TAB’s political ads.

Meanwhile, defense attorney Andy Taylor continues to benefit from the DeLay-TAB scandal. Taylor is representing defendants in the TAB civil cases. That’s after Taylor profited handsomely from the redistricting fight in 2003. He billed taxpayers more than $750,000 to vet DeLay’s redistricting plans for Texas Attorney General Greg Abbott.

Legal discoveries
Regardless of how the remaining TRMPAC and TAB litigation turns out, these lawsuits pulled back the curtains on Texas’ 2002 elections. Plaintiffs in lawsuits have the right to inspect documents relating to their case and may compel key sources to answer case-related questions. This “legal discovery” process is the source of much of what is known about the roles of TRMPAC and TAB in the 2002 election.

TRMPAC’s fundraising consultants were key sources of information about DeLay’s money machine. For instance, in September 2002, GOP fundraiser Susan Lilly and state Rep. Beverly Woolley solicited business leaders in Woolley’s hometown of Houston on TRMPAC’s behalf. A typed memo of their itinerary—obtained through discovery—contains handwritten notes about the political wish list of each donor visited that day and how much money they committed to TRMPAC. The Republicans who took control of the Texas House in 2002 helped enact much of this wish list (see “Rate of Exchange, TO, March 12, 2004). The TRMPAC scandal does not appear to have hurt the careers of Lilly or Woolley, neither of whom has been charged with wrongdoing. Speaker Craddick appointed Woolley chair of the powerful House Calendars Committee. Meanwhile, Lilly & Co. of Austin has collected almost $5 million from Texas and federal PACs since 2003. Susan Lilly’s firm remains a leading fundraiser for the Republican Party of Texas and many GOP candidates.

The now-indicted Warren Robold, DeLay’s longtime fundraiser, collected most of TRMPAC’s legally troublesome corporate money. Robold mostly solicited companies that had few interests in Austin but a keen interest in DeLay’s congressional pull. Unlike Lilly’s, Robold’s fundraising business doesn’t appear to have survived DeLay’s fall. In 2003, he received payments of $13,000 from Florida Congressman Dave Weldon, $13,650 from the Republican Party of Texas and $33,009 from ARMPAC. Robold collected his last federal PAC payments in the first quarter of 2004 and then fell off the political-fundraising radar screen. Robold’s attorney, Andy Drumheller, didn’t return calls about his client.

Legal discovery also revealed how a few men made up the nerve center that controlled the TRMPAC and TAB operation. Colyandro, TAB President Bill Hammond, Texans for Lawsuit Reform PAC Director Matt Welch and lobbyist Mike Toomey met regularly during the 2002 campaign to coordinate support for a core slate of Republican House candidates. And discovery showed that TRMPAC paid Kevin Brannon, a onetime aide to former Senator Phil Gramm, to vet which GOP House candidates would receive TRMPAC support. Many Brannon interviews broached the topic of Craddick’s speaker campaign.

Kevin Brannon recently helped launch a GOP consulting firm called the Patriot Group. Other Patriots include Matt Welch and homebuilder Bob Perry spokesman Anthony Holm (see “Patriots for Hire,” TO, June 1, 2007). After the 2002 election, Mike Toomey served as Governor Rick Perry’s chief of staff for two years before returning to the lobby, where he since has billed clients up to $5.5 million.

Criminal cases
Two weeks before Travis County voters elected Earle aide Rosemary Lehmberg to succeed her retiring boss as district attorney, Ronnie Earle settled the remnants of his criminal case against TAB. Mirroring the civil cases, Earle initially charged TAB with illegally spending $1.7 million in corporate funds on ads that promoted 24 Republican legislative candidates. From the outset, TAB was a tougher criminal case than TRMPAC. Unlike TRMPAC, which funneled corporate funds to state candidates, TAB spent corporate money on independent political expenditures, a practice invoking greater legal protections. State District Judge Mike Lynch dismissed the heart of Earle’s TAB case in 2006. He ruled that TAB’s ads—which attacked Democrats and lauded Republicans—did not explicitly tell people whom to vote for. Lynch wrote that the TAB ads “severely test, but do not cross” this line.

In the recent settlement, TAB pleaded guilty to a misdemeanor carrying a $10,000 fine. The association admitted that it illegally used its corporate money to pay President Bill Hammond and another TAB lobbyist to barnstorm the state to promote Republican legislative candidates. In an apology that he read at the time of the settlement, Hammond said, “I now recognize that while working as a salaried employee of the Texas Association of Business it was a violation of the law to expressly advocate for the election of these candidates.” Hours later he shifted gears. “Six years of political persecution by Ronnie Earle has come to an end,” Hammond said, “with a misdemeanor over a bookkeeping error.”

This dual response may explain why plaintiff attorney Joe Crews has not been able to convince himself that the legal showdown over the 2002 election will safeguard election laws. “My guess is that it has made the cheaters more sophisticated,” he said. “I’m not real optimistic about these kinds of people.” A bit more optimistic, Feldman said the legal cases demonstrated that “no one is above the law” even as they showed that “the relationship between state officials and large corporate interests necessitates constant vigilance.”

Earle now bequeaths to Lehmberg the remains of the criminal cases against the TRMPAC four: DeLay, Colyandro, Ellis, and Robold. The most clear-cut of these charges accuse Colyandro, Ellis and Robold of soliciting or accepting corporate contributions.

DeLay, Colyandro and Ellis also face criminal money-laundering charges. A panel of the Austin-based 3rd Court of Appeals ostensibly ruled in August against constitutional claims that Colyandro and Ellis raised in a pretrial appeal. Yet that ruling—written by Justice Alan Waldrop (who had helped Texans for Lawsuit Reform fend off TRMPAC-related subpoenas before he joined the court)—contained an unsolicited gift for the TRMPAC defendants. The opinion said that the Texas money-laundering law in effect in 2002 applied to cash but not to the checks that TRMPAC allegedly used to route $190,000 in illegal corporate cash to Texas House candidates via a Republican Party account in Washington (see “DeLay’s Blank Check,” TO, September 19, 2008). If it stands, this ludicrously literal interpretation of the law eviscerates the remaining case against Tom DeLay. Initially, District Judge Pat Priest must decide what to do with Waldrop’s editorializing about the TRMPAC money-laundering charges. Ultimately, Republican-dominated appeals courts likely will decide the issue.

With TRMPAC money-laundering charges teetering, the greatest legal threat to DeLay appears to have shifted from Austin to the U.S. Department of Justice in Washington. Imprisoned lobbyist Jack Abramoff—who was a big promoter of both Bush and DeLay—pleaded guilty to federal corruption charges that could have earned him a 12-year sentence. Because Abramoff helped prosecutors win related charges against seven high-level Washington officials, however, a federal judge sentenced Abramoff to just four years in September.

Given Abramoff’s unusually light sentence, DeLay must consider the possibility that Abramoff, whom he once called one of his “closest and dearest friends,” will help the Obama Justice Department continue this ongoing corruption investigation. The biggest fish investigated—but not indicted—in the Abramoff probe are DeLay and retiring California Congressman John Doolittle, the king of earmarks. Ratting out Tom DeLay may have been part of the plea bargain that the feds hammered out with Abramoff. Six years after his political machine delivered in Texas, Tom DeLay still may get his day in court.

Andrew Wheat is research director at Texans for Public Justice, a nonpartisan watchdog that has filed ethics complaints against TRMPAC, Justice Alan Waldrop, and Bill Ceverha

Thursday, November 13, 2008

Houston Chronicle: Dewhurst gives prosecutors files related to finances

Travis County Attorney David Escamilla is investigating a complaint that Dewhurst is using a trust to illegally hide details of his assets and business ties from public disclosure. Dewhurst, in an interview, said he hasn't been subpoenaed but has given the county attorney documents "to prove that I have followed the law and there is no substance to the complaint."Read the article at the Houston Chronicle

Dewhurst gives prosecutors files related to finances

He says records show his reports on wealth comply with state law

By CLAY ROBISON
Copyright 2008 Houston Chronicle Austin Bureau


A complaint filed in Travis County says
Lt. Gov. David Dewhurst is illegally hiding personal financial information.


AUSTIN — Lt. Gov. David Dewhurst said Wednesday he has voluntarily provided Travis County prosecutors with documents showing that the way he reports his personal wealth complies with state law.

Travis County Attorney David Escamilla is investigating a complaint that Dewhurst is using a trust to illegally hide details of his assets and business ties from public disclosure.

Dewhurst, in an interview, said he hasn't been subpoenaed but has given the county attorney documents "to prove that I have followed the law and there is no substance to the complaint."

At issue is Dewhurst's identification of most of his assets, which are worth millions, as the David Dewhurst Trust in his state filings rather than individually listing them.

Texans for Public Justice, a watchdog group that frequently criticizes the current state leadership, filed a criminal complaint against the lieutenant governor with the county attorney in September.

"The Dewhurst Trust is blind to the public, but not to the lieutenant governor," TPJ Director Craig McDonald said. "One of the most powerful state officials should not be allowed to hide his assets from the public."

Escamilla has said he is reviewing the complaint.

State law requires an officeholder or candidate to disclose the source of any income worth more than $500 a year. Failure to do so is a Class B misdemeanor, punishable by a $2,000 fine and 180 days in jail.

Dewhurst said his income sources in the trust are commingled. So he doesn't know how much income each is producing.

"I have filled out my ethics (financial disclosure) form for 10 years exactly the way my lawyer recommended. I have no knowledge of assets in the trust earning more than $500 in income," he said. "I have shown the county attorney documentation to prove that."

Dewhurst formed his trust after reporters and political opponents researched his finances during his 1998 race for land commissioner. Aides at that time described it as a blind trust. Dewhurst's ownership in Falcon Seaboard Holding Co., which he founded before seeking public office, isn't mentioned in his statements.

The reports also have never disclosed that the holding company has owned Falcon Seaboard Ranches, which in turn owned the Snaffle Bit Ranch near Fredericksburg. The ranch was sold in 2006.

Dewhurst's trust is listed on his reports under the category, Trust Income of $25,000 or more. He has checked the "Unknown" box for "assets from which over $500 was received.

clay.robison@chron.com

Wednesday, November 12, 2008

Dallas Morning News: Obama's fundraising success puts public financing in question

Barack Obama's fundraising prowess has left Watergate-era campaign reforms a shambles, say advocacy groups ready to push for fixes to curb the influence of big money in politics."The public finance system in its current form is dead," said Craig McDonald of Texans for Public Justice, a nonprofit group that tracks campaign donations. Read the article at the Dallas Morning News

Obama's fundraising success puts public financing in question


By WAYNE SLATER / The Dallas Morning News
wslater@dallasnews.com
Wednesday, November 12, 2008

AUSTIN – Barack Obama's fundraising prowess has left Watergate-era campaign reforms a shambles, say advocacy groups ready to push for fixes to curb the influence of big money in politics.

Mr. Obama, a Democrat, raised more than $640 million overall, relying on a potent combination of small donors and large bundlers, including many in Texas. He's the first White House candidate who didn't take public money in the fall election.

"The public finance system in its current form is dead," said Craig McDonald of Texans for Public Justice, a nonprofit group that tracks campaign donations.

That system, which caps individual contributions and provides public money for presidential candidates, was set up in 1974 after the Nixon-Watergate scandal to try to limit special interests from bankrolling entire campaigns.

Most presidential contenders have solicited private contributions in the primaries, and all – until this year – took the public money in the general election.

Reformers warn that if public financing fails, it would end one of the few checks on donors who unduly seek to buy access and affect public policy.

Mr. Obama defended his fundraising, saying he wanted to give all donors a chance to back him.

His GOP opponent criticized Mr. Obama for not taking public funding, but he drew few complaints from liberal organizations that have long championed efforts to regulate campaign money.

Mr. McDonald said such groups were slow to criticize Mr. Obama because they recognized the system had become increasingly outdated and underfunded. But also, he said, "because he was their guy. A lot of them were rooting for Obama."

Republican John McCain accepted $84 million in federal funding for the general election. That left him at a disadvantage against Mr. Obama, who raised four times that much for the November race.

Many gave maximum

Although Mr. Obama touted his success in attracting small-dollar givers, a third of his support nationally – and in Texas – came from those giving the maximum of $2,300.

In Texas, just a quarter of his money came from donations of $200 or less. Nationally, the figure was higher – nearly half of his money came from donors of $200 or less, many solicited on the Internet.

Contributing to Mr. Obama's fundraising sensation was a team of about 600 big-dollar bundlers, supporters who tap their friends, business associates and others for donations. They collected $50,000 to $200,000 from individuals for the Obama camp. Mr. McCain had a similar program during the primaries.

The bundlers include interests that do business with government or could benefit from government decisions.

Among them, industries seeking contracts or favorable tax treatment, trial lawyers looking to reverse restrictions on the ability of injured people to sue businesses, and those hoping to loosen federal regulations.

San Antonio lawyer Mikal Watts, one of 33 Obama bundlers in Texas, said public financing helps limit the inordinate influence of wealthy givers. But he said the system has to be funded adequately so that candidates continue to take advantage of it.

Mr. Watts said he was not troubled by Mr. Obama's decision to forgo public money because getting millions of new donors diminished the influence of the big-dollar network.

"When you have 6 million donating in a presidential cycle, it drowns out the ability of [big-dollar funders] to unduly affect the election," he said.

Dallas lawyer Mark Iola, another Obama bundler, agreed: "He basically built a parallel public system."

"Anytime you energize the public like he has, both in terms of giving and participating in our democracy, it's a good thing. I don't see how you could think otherwise," Mr. Iola said.

Other big-dollar Obama bundlers in Texas included former Dallas Mayor Ron Kirk, Dallas lawyers Russell Budd and Doug Haloftis and Dallas venture capitalist Kneeland Youngblood, according to campaign reports.

Massie Ritsch of the nonpartisan Center for Responsive Politics said Mr. Obama's record-breaking financial year was unusual and not likely to be duplicated anytime soon.

"Any presidential candidate in the future who thinks he can raise $650 million like Obama did is delusional," he said.

Changes proposed

Still, in the wake of the financial outpouring, several government watchdog groups plan to press the president-elect and Congress to make changes that assure the public financing system remains viable.

They want state spending limits lifted, the federal match for small donations increased and better identification of contributors over the Internet.

Most important, advocates say the amount available to candidates under the public-finance system must be boosted substantially to meet the ever-increasing cost of politicking.

"The public finance system, although it's cleaner money, in the practical world doesn't give them the money they think they can raise outside the system," Mr. McDonald said. "So basically, it comes down to a numbers game."

Top Texas bundlers for Obama
Here are some top Texas bundlers, those backers who collected donations for the Obama campaign from friends, business associates and others who, by law, were limited in giving only up to $2,300 per election cycle.

$100,000-$200,000
Arthur Schechter, Houston lawyer
Richard Mithoff, Houston lawyer
Kneeland Youngblood, Dallas investor
Mark Iola, Dallas lawyer
Mikal Watts, San Antonio lawyer
Naomi Aberly, Dallas investor

$50,000-$100,000
Cappy McGarr, Dallas investor
Doug Haloftis, Dallas lawyer
Russell Budd, Dallas lawyer
Ron Kirk, former Dallas mayor

SOURCES: Federal Election Commission; Center for Responsive Politics; Dallas Morning News research

Sunday, November 9, 2008

San Antonio Express-News: Texans boosted political funding 31% over 2004

Texans contributed at least $206 million to races for state and federal office this year, helping finance campaigns ranging from district judge to president of the United States.That's a 31 percent increase over the amount of money Texans donated in the 2004 presidential election cycle, and all the money will not be accounted for until January.Read the article at the San Antonio Express-News

Texans boosted political funding 31% over 2004


By R.G. Ratcliffe
SAN ANTONIO EXPRESS-NEWS

AUSTIN — Texans contributed at least $206 million to races for state and federal office this year, helping finance campaigns ranging from district judge to president of the United States.

That's a 31 percent increase over the amount of money Texans donated in the 2004 presidential election cycle, and all the money will not be accounted for until January.

Texas donations in races for president and Congress totaled $140 million, an increase of $15 million over 2004, according to data kept by the Center on Responsive Politics. Almost 70 percent of the additional money went to Democratic candidates.

Donations for campaigns for state office have hit $66 million so far for this year, almost twice what the Texas Ethics Commission reported for 2004. There were almost no major contests for state office that year, but this year there were major election battles for control of the Legislature and other down-ballot offices.

There's no limit on donations to state campaigns, and an individual is limited to $2,300 per election for any one candidate and a total of $108,200 a biennium in donations to federal political committees. The donations tracked don't include money given to the many county-level races in Texas this year.

“For a while there, we had statewide races where the Democrats weren't putting up a candidate at all or if they had a candidate they had chump change,” said Andrew Wheat of Texans for Public Justice, a nonprofit group that tracks Texas campaign finance.

“This year, the (Texas House) speaker is on the ropes, there are many competitive state races and there's a sense among Democrats that there's a chance for a comeback,” Wheat said.

There also was the excitement created in the Texas Democratic primary by the fight for the presidential nomination between Barack Obama and Hillary Clinton. Republican John McCain also did not sew up his nomination until the Texas voting. Both parties had record primary turnouts.

Fundraising parity

In the presidential race, $63.5 million was raised in Texas for all candidates, including those in the primaries, according to the Federal Election Commission. Obama at $17.7 million essentially had parity with McCain, who raised $17.6 million in the state, though the Republican carried Texas on Election Day.

Texas bundlers, people who raise donations for a candidate, raised at least $2.5 million for Obama and $7.3 million for McCain, according to records from the Center on Responsive Politics.

In congressional races, Senate candidates in Texas raised $26.6 million in this cycle through Oct. 15.

That includes $7.6 million that San Antonio lawyer Mikal Watts gave to his own U.S. Senate campaign before dropping out of the race last year. Watts' campaign repaid him $5.4 million in loans.

The candidate with the most money was incumbent Republican Sen. John Cornyn, who raised $13.1 million after Jan. 1. Democrat Rick Noriega raised $3.6 million.

Candidates for the U.S. House raised $51 million this cycle.

Thirty-eight Texas donors gave more than $130,000 apiece to pump $14.5 million into state elections.

Among the mega-donors this year, Democratic money outpaced Republican, $7.5 million to $5.7 million. San Antonio grocery chain owner Charles Butt was the only major donor with widespread bipartisan giving — more than $1 million.

Texas' top donors

Houston home builder Bob Perry continues as Texas' top donor, giving $2.5 million so far in this election cycle, mostly to Republicans, according to state ethics commission records.

“The presidential campaigns have raised roughly a billion dollars (nationally). The Texas campaigns have raised well over $10 million in the past eight days,” said Perry spokesman Anthony Holm. “So Mr. Perry's contributions to good government are quite small in the grand scheme of things.”

But giving by some of the other traditional large Republican donors, while still substantial, is down from previous elections. San Antonio businessman James Leininger has given $720,000 this year so far. Leininger donated $4.9 million in 2006 and $801,000 in 2004.

On the Democratic side, trial lawyers continue to be the major financiers of the party and its candidates, accounting for about 90 percent of the money given by the party's large-money donors.

“Trial lawyers in Texas have rallied to try to roll back lawsuit reform, and that's what you see in those contributions,” said Sherry Sylvester of Texans for Lawsuit Reform, a committee that has been instrumental in supporting Republicans and conservatives in past elections.

San Antonio lawyer Watts, besides funding his own campaign this year, was the No. 2 donor to Democrats in state races. He contributed more than $1.2 million. He said he gives to level the playing field against “corporate chieftains” who finance Republicans.

“When three or four billionaires can get together and single-handedly bankroll the Republican Party in this state, that's not healthy,” Watts said. “When a guy like Bob Perry is out there donating $3 million to $4 million a cycle, it motivates me and some like-minded Democrats to try to offset his dominance.”

Much of the Democratic comeback in this year's election is due to Dallas trial lawyer Fred Baron, who died last week of cancer.

Baron, the year's top Democratic donor, made $2.2 million in contributions.

Saturday, November 1, 2008

Wall Street Journal: Democrats in Houston Take Aim at GOP Judges

For more than a decade, Republican trial judges have won every judicial race in Houston, often without having to face a Democratic opponent. Many lawyers nationwide have expressed concern about judicial elections, because judges raise much of their campaign funds from lawyers who appear before them. "Texas needs to rethink its judicial election system to get partisanship out and money out of the courtroom," says Craig McDonald, executive director of Texans for Public Justice.Read the article at the Wall Street Journal

Democrats in Houston Take Aim at GOP Judges


By NATHAN KOPPEL
WALL STREET JOURNAL

For more than a decade, Republican trial judges have won every judicial race in Houston, often without having to face a Democratic opponent.

But now, with Democratic presidential nominee Barack Obama expected to make a strong showing in Harris County, where Houston is located, Democrats are hopeful they can win back Houston's courts.

The battle is a reminder that judges are not above the political fray. While judicial elections are nothing new, the money spent nationally on them has climbed. State supreme-court candidates raised $165 million from 1999 to 2007, compared with $62 million from 1993 to 1998, according to the American Judicature Society, an organization opposed to partisan judicial elections.

Many lawyers nationwide have expressed concern about judicial elections, because judges raise much of their campaign funds from lawyers who appear before them. "Texas needs to rethink its judicial election system to get partisanship out and money out of the courtroom," says Craig McDonald, executive director of Texans for Public Justice, a consumer-rights group.

When it comes to electing judges along party lines, Harris County stands out, as no Democrat has won a district-court race there since 1994. The Republican hegemony has resulted in a bench that, some lawyers say, tilts in favor of corporate defendants in civil cases and prosecutors in criminal cases. Many Republican criminal judges ran on a "tough on crime" platform.

Democrats now believe they can claim some -- and perhaps all -- of the 27 county judicial seats up for grabs Tuesday. The presidential race is one reason Democrats are hopeful. More than 400,000 Harris County residents voted in the 2008 Democratic presidential primary, compared with about 70,000 in the 2004 primary.

Demographics also could play a role. In 2006, Hispanics constituted 38% of the county's population, up from 33% in 2000. Plus, the recent national debate over immigration policy could lead to a high turnout among Hispanics, who tend to favor Democrats, says Renée Cross, the associate director of the University of Houston Center for Public Policy.

For encouragement, Houston Democrats can look north to Dallas County. Republicans had long held a near lock on the courts there, but Democrats in 2006 pulled off a clean sweep, winning every judicial race in the election.

Allen Blakemore, a Republican consultant and fund raiser in the city, says the Dallas GOP was caught napping in 2006. He says Republican judges have now raised considerably more funds than in prior election cycles, to be used on last-minute advertising that touches on conservative themes.