#atxcouncil: Attacking Trump (while asking for money)

"An evildoer gives heed to false lips;
A liar listens eagerly to a spiteful tongue."
Proverbs 17:4

“Mobility for All” is the establishment aligned political action committee promoting Project Connect. They recently sent out the above mailer. Not surprisingly, it attempts to cast citizens concerned about the initiative’s 25% tax hike as captives of a cabal of non-binary, non-gendered, boogiepersons in the minds of liberal Austinites.

But for as much as the views of “weapons dealers” may or may not swing the election, one choice of target is: Trump Inauguration Attendees.

Because, whether they want to admit it or not, Project Connect’s supporters are the ones asking Donald Trump for money.

As the trade publication “Mass Transit mag” explained this summer: “CapMetro will now pursue 45 percent federal funding of this $7.1 billion, with a local match for the remaining funding coming through a voter-approved tax rate election for Project Connect.”

Whether or not they want to admit it, right now that means asking Donald Trump for the money. Obviously, Biden could [Note: Probably will] win.  But Austin voters have to make their decision on Project Connect BEFORE they know the answer to that question.

On the other hand, asking 45 (Trump) for 45 (percent of the funding for Project Connect) is an amusingly ironic set of numbers.

Bottom Line: Seriously, y'all are the ones asking him for money, not us.

Paul Foster never stopped giving Abbott money

Do not be deceived: “Evil company corrupts good habits.”
1 Corinthians 15:33

We were looking at Governor Abbott's recent campaign finance data this morning.  To be honest, we were looking for something else that might or might not be there.  Further investigation required.

However, in perusing Governor Abbbott's top donors for this cycle, we saw something that's very interesting if you know the history:

1
For those who don't know of him, Paul Foster is a former chairman of the UT Board of Regents. What makes this interesting, however, is that Greg Abbott forced Foster out as Chairman in 2017. At the time, we suspected it was due to steps Foster had been taking to undermine Abbott's legislative agenda.

Apparently, however, Abbott only holds a grudge until it's time to cash a check.

According to state records, Paul Foster has made the following donations to Greg Abbott since his board ouster:

• 6/30/18 -- $250k to "Texans for Greg Abbott."

• 6/29/19 -- $100k to "Texans for Greg Abbott."

• 8/14/19 -- $41,861 to "Texans for Greg Abbott" for "plane expenses."
  
  
• Note: Must be nice.

• 6/30/20 -- $250k to "Texans for Greg Abbott."

Bottom Line: None of this is really surprising, but it's still a highly revealing window into Abbottworld.

Beth van Duyne opposed Jerry's taxpayer subsidies (back when they were popular)

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Some national group is attacking Beth van Duyne in CD-24:

[Note: For purposes of this blog post, the first five seconds are the relevant clip.]



What an utterly, totally, and completely bizarre line of attack.

Obviously, Jerry's taxpayer subsidies have been a bugaboo of this website for awhile. We weren't expecting them to come up in this context. But...well...we can go with it.

Taxpayer subsidies for professional sports franchises have always been a ripoff.  This has been well documented since at least the 1990's.   The website "Field of Schemes" has more.

So...Beth van Duyne opposed Jerry's subsidies back when they were "just" an issue of fiscal policy.

Good for her.

But what makes going after Beth van Duyne over this subject truly strange is the timing.

It's not exactly a secret that the NFL has taken a popularity hit recently.  It's also not really a secret why.   Furthermore, the NFL's current unpopularity has a longer history in Texas.   Thus, to attack Beth van Duyne over this subject at this time is...tone deaf at best.

But you do you "House Majority PAC."

If we were advising Beth van Duyne, we would advise her to embrace this attack.

Something like this:

Hi, I'm Beth van Dunye, candidate for Congress in district 24.  Before I was a congressional candidate, I served two terms as the Mayor of Irving.   As mayor, I opposed taxpayer handouts to Jerry Jones [cut to picture at the top of this blog post].   Back then, I thought that public subsidies for misogynistic billionaires was 'just' a matter of prudent fiscal policy.   I had no idea the NFL would become the anti-American cesspool is is today [cut to picture of Jerry kneeling]. But, unfortunately, the last five years happened. What was a good decision then looks even better in hindsight. Doing what's right, even when it's unpopular in the short term, will always pay dividends over time.

Finally, to introduce this subject the day after a Cowboys loss is just...**CHEF'S KISS**.

Bottom Line: We wouldn't have expected this to become a campaign issue at this time. But, apparently, it is. Beth van Duyne should run with it.

#TXLEGE: Wendy Davis...and quasi-legal Bribery of Texas Legislators

 

"A present is a precious stone in the eyes of its possessor;
Wherever he turns, he prospers."
Proverbs 17:8

Ouch:

Understand something: These charges are 100% accurate. The original source material is here and here. Wendy Davis ABSOLUTELY lived large off of her campaign contributors.

[Note to the Club for Growth: Since you brought it up, don't forget Wendy Davis' career as a conflict-of-interest infested toll road lawyer.]

That being said, this story isn't about Wendy Davis personally.  At least, not really (beyond the fact that Wendy Davis is personally running for another office this cycle).  This is about bidness-as-usual in Texas state government.

Cuz' Wendy Davis ain't the only one doing this.

[Note to opposition researchers: When running against a current or former Texas legislator, ALWAYS check the "expenditure" sections of their old campaign finance reports. Especially in cycles where they don't have credible opposition. Never know what you'll find.]

Also, you'd think that after Rick Perry and Royce West, those who've spent a career working in Texas State government would think twice about running for federal office.

Oh well.

Bottom Line:  Wendy Davis certainly didn't invent the game.  But she's been a player.  Whatever the impact in this particular congressional race, this is a teachable moment for the whole operation.

Clay Jenkins' Law Firm got COVID Bailout

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Gadzooks:

A law firm owned by Dallas County Judge Clay Jenkins received up to $2 million in Paycheck Protection Program (PPP) loans this spring, according to a ProPublica report.

Car Wreck Masters PLLC received "$1-2 million" in PPP loans via lender Frost Bank in a deal approved April 9, according to the ProPublica article.

....

ProPublica's report said it received data regarding the $1-to-$2 million PPP loans for Car Wreck Masters from the Small Business Administration. That data includes lender-approved PPP loans of at least $150,000. Other loan programs, including the Economic Injury Disaster Loans, were not included in the Small Business Administration's database.

Jenkins, a Democrat, received his law degree from Baylor University in 1987 and has been a Dallas County Commissioners Court Judge since 2011. He was re-elected in November 2018 and his current term expires in 2022.

In addition to receiving the PPP funds, Jenkins attracted attention last spring for his hard line with business owners who remained open despite government-mandated shutdown orders intended to suppress spread of COVID-19. Those orders included Jenkins' own "safer-at-home" order, issued March 12 and amended April 23.

Bottom Line: We're sure there was no preferential treatment, none whatsoever.

Elon Musk to Austin could get fun

"But You, O God, shall bring them down to the pit of destruction;
Bloodthirsty and deceitful men shall not live out half their days;
But I will trust in You."
Psalm 55:23

So it's official:

Austin will soon be home to a $1.1 billion Gigafactory, Tesla founder and CEO Elon Musk announced during the company's quarterly earnings update on Wednesday.

"We're going to make it a factory that's going to be stunning," he told investors, adding that construction is "already underway."

As proposed, the factory will be located on a 2,000-acre site in Southeast Travis County. It will provide at least 5,000 jobs and produce the Cybertruck pickup and the Model Y, a midsize SUV.

Both Del Valle ISD and Travis County offered Tesla tax rebates to build the factory in Austin.

First, allow us to state the obvious: As a resident of both Travis County and Del Valle ISD, we completely oppose giving special treatment to Tesla. Broad base, low rates, and all that. That we've been busy with other things, and had higher priorities recently, should not be mistaken for assent.

However...this is a deal that could blow up in the faces of a whole bunch of politicians who deserve it.

It's not a secret that Musk doesn't suffer petty tyrants well.  Unfortunately for Musk, that's what most of our state and local elected officials actually are in reality.  Eventually, Elon Musk is going to figure out that reality.  When that happens, it will be glorious.

About a month ago, following the Peter Rex/WSJ op-ed, we wrote a long post about why CEO's from other locations should no longer buy they company line about either Austin or Texas.  In terms of substance, the points we made to Peter Rex are the same as the points we'd make to Elon Musk.  But the TL,DR version is that both of them have fallen for a company line about both Austin and Texas that's no longer relevant.  Dazed and Confused was three decades ago.

Of course, that's before we get to the fact that Tesla's business model remains illegal in the state of Texas.

The whole thing's gonna be a shitshow.

Bottom Line: Obviously, this is a terrible deal for taxpayers.  We get that.  But taxpayers get hosed all the time (especially in this town).  In terms of entertainment value, however, the gloriousness of the coming debacle could easily make this very, very, worth it.

#TXLEGE: No Thank You to Joe Straus' COVID-related "Behavioral Health" initiative

"The king establishes the land by justice,
But he who receives bribes overthrows it.
Proverbs 29:4

From the Department of not letting a crisis go to waste:

This moment, in other words, is not just a physical health pandemic, but also a behavioral health emergency. Our willingness to confront and address our worsening behavioral health challenges will go a long way toward determining how quickly and successfully Texas recovers from the damage unleashed by COVID-19 — and how well we can meet our state’s ongoing mental health challenges further exposed by the pandemic.

And on an even larger scale, we know that healthy Texans mean a healthy workforce. Illnesses like anxiety and depression can sap the enthusiasm and innovative spirit of our state’s entrepreneurs, business leaders and workers, long before they reach their potential, or in some cases even get started. That spirit is at the very heart of our state’s ability to recover economically.

Over the last two legislative sessions, Texas has made significant progress in treating mental health issues. Our state has wisely invested in local treatment programs, greater access to services, needed facility repairs and significant updates to the ways we identify and respond to mental health and other safety issues in our public schools. Just recently, the state launched the Child Psychiatry Access Network to help pediatricians throughout the state better treat mental health issues. Legislators from both parties in the Texas House and Senate have done commendable work on these issues — identifying problems, listening to experts and making strategic short- and long-term investments.

Yeah, um, no.

To be honest, others know more about this topic than we do. We're not necessarily sure what this portends. But nothing good comes from the Texas legislature pushing schemes allegedly for the protection of mental health.

That Joe Straus is personally pushing this initiative makes it that much more suspect.

You can learn more about the recent history of this topic here.

Bottom Line: Given what's happened in the not very distant past, to see this subject raised in this manner by this individual is highly suspicious.

Abbott gets sued re: "Contract Tracing" Boondoggle

"Agree with your adversary quickly, while you are on the way with him, lest your adversary deliver you to the judge, the judge hand you over to the officer, and you be thrown into prison."
Matthew 5:25

Daaaang:

Federal lawsuit filed today in the Southern District of Texas takes aim at @GovAbbott & state agencies for Texas’ $295M contact tracing deal. Suit includes some 1,500 plaintiffs, incl. @Bill_Zedler & 3 former state reps, & alleges various violations of U.S. Constitution. #txlege pic.twitter.com/j3bHPtbxVu

— Jasper Scherer (@jaspscherer) June 15, 2020

Here's the thing: Lawsuits are not free. They cost money to file and fight. While that last statement is obvious, it also speaks volumes to the degree of abuse in this case.

Think about how frequently those with the means to take on these sorts of fights roll over and die.

That a fight is actually occurring means: a) those waging it think the abuse is severe enough to warrant it **AND** b) they think they can win.

We know that we've been saying for awhile that we think Abbott's going to drop this contract.  That being said, we admit that it hasn't happened yet.  But we still think dropping the contract is Abbott's path of least resistance.  And that's before you get to this.

Bottom Line:  Honestly, it's astounding that they've yet to jettison this contract.  It's an albatross.  But they've got to eventually.  Right?!?

Good Follow-up questions about Phil Wilson

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Obviously, last week we wrote about the multifaceted disaster of Phil Wilson/the Texas Department of Health and Human services/the Lower Colorado River Authority.  We weren't aware of this when we wrote the original post, but apparently Mr. Wilson is a longstanding member of the good ol' boy crowd in Smith County.  Given the Smith County connection, JoAnn Fleming has some follow-up questions:

Mr. Cahn's blog got us thinking about the timing of Mr. Wilson's hire and Abbott's contact tracing contract. Here's our list of unanswered questions:

1. Why is a quasi-state agency “river authority” paying over $636,000 per year for a General Manager?

2. Why is Gov. Abbott entrusting the state agency charged with leading the COVID-19 response to a part-time commissioner?

3. Why did HHSC Executive Commissioner Phil Wilson sign the $295 million contract with MTX Group for contact tracing – approving it in two days – apparently without running due diligence backgrounds on MTX and the CEO?

(Note: As we’ve reported, grassroots leaders have uncovered plenty of questionable information about the contract, MTX Group and its CEO that Mr. Wilson apparently overlooked.)

4. How long can anyone hold two high level demanding jobs before mistakes become deadly – especially since HHSC regulates nursing homes, operates nearly two dozen state hospitals and state supported living facilities, and is one of the largest state bureaucracies with 36,600 employees?

5. Why is this double posting considered constitutional, legal, or even ethical and how long will the Abbott-ignored legislature allow this kind of elite nest-feathering to go on without question?

Well said...although we will politely (but very, very, firmly) suggest the answer to question #5 can be found here.

Bottom Line:  The world of legal political corruption in the state of Texas can be...quite sordid.

The Head of the Lower Colorado River Authority is making...HOW MUCH?!?

"There is desirable treasure,
And oil in the dwelling of the wise,
But a foolish man squanders it."
Proverbs 21:20

Apparently, this story is almost a week old, although we just saw it:

The acting head of Texas’ massive health and human services bureaucracy, who is leading a 36,600 employee agency during a global pandemic, is also working a second job as the well-paid general manager of the Lower Colorado River Authority, a quasi-state agency — funded without state tax dollars — that provides water and electricity to more than a million Texans.

And despite temporarily heading one of Texas’ largest and most high-profile agencies, acting Executive Commissioner Phil Wilson is not on state payroll. Instead, he continues to earn $636,694 from the river authority, more than double what the previous health commissioner made.

The Trib article goes on to discuss the appropriateness of Phil Wilson working both positions.  That's certainly a valid question.  It probably isn't appropriate.  But we admit it's a complicated discussion.

Can we take a second, however, to ask why the head of a friggin' river authority is making over $600k in the first place?!?

As a matter of comparison, that's more than any school district superintendent makes. And, to be fair, most of the larger school districts have over 10,000 employees. LCRA, by contrast, has under 2000.

  

Then there's this gem:

Wilson has had a long career in and around state government, at least once making news for out-earning predecessors in the same positions. As executive director of the Texas Department of Transportation, his starting salary was $100,000 more, 50% higher, than the previous head. Wilson was also deputy chief of staff to Gov. Rick Perry, who appointed him secretary of state, and worked as a lobbyist and corporate officer for Irving-based Luminant, an electricity generator.

Because of course he's a former high level Rick Perry staffer.

Cue Sinatra:

Bottom Line: Even by the standards of legal political corruption in the state of Texas, this is still real money.

Backlash to Abbott's so-called "Contact Tracing" Boondoggle is still Growing

Add caption

"David said furthermore, 'As the Lord lives, the Lord shall strike him, or his day shall come to die, or he shall go out to battle and perish.'"
1 Samuel 26:10

Ouch:

HHS Office of the Inspector General
P.O. Box 85200
Austin, Texas 78708

Dear Inspector General Kauffman:

I request of you, in the strongest possible way—and for a multitude of sound reasons—to begin an investigation into the handling of the contact tracing contract process and procedures before the Health and Human Services Commission moves forward with the proposed contact tracing program.

I am requesting the following questions be investigated:

• The efficacy of the selected contractor, MTX Group. 

• The newly discovered, possibly misleading, and undisclosed information of some board members that may have had undue influence on final contract award. 

• There are reports citing its failure to fulfill the terms of previous agreements. How could a company with a questionable performance record have been rigorously vetted in such a short acquisition period? 

• How do we expect a company that has only had a few small, $1 to 2 million contracts to manage a nearly $300 million contract that requires rapid mobilization? 

• What proof is there that a company with only a couple hundred employees, located mostly in India, can recruit, train, and manage over 4,000 tracers to do something that has never been attempted on this scale?

As time is of the essence, I do ask for a speedy resolution and ask that the contract is halted until a deep investigation may be conducted.

Thank you,

Senator Bob Hall

Hoo boy.

If Abbott's smart, he'll cancel the contract as a Friday afternoon document dump later today.

Bottom Line:  This contract has become a political albatross.  It WILL get cancelled.  At this point, the only real question is how much pain Abbott wants to put himself through before he surrenders to the obvious.

#TXLEGE: No, really, who hired the right lobbyists re: "reopening?!?"

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

PushJunction yesterday:

Obviously, PushJunction is tracking reopening in the macro sense. Equally obvious, in that macro sense, is that Texas' alleged "reopening" falls far short of claims made by politicians. We noticed something else.

That chart is a guide for how Mike Toomey, using the authority Greg Abbott delegated to him, is picking winners and losers.

It's tough to know exactly what  to make of this.  It's a snapshot in time.  Except that this is what happens when you put lobbyists in charge of the 11th largest economy in the world.

Equally obvious, the path of least resistance for Abbott is to fire Mike Toomey and lift the remaining restrictions.

Bottom Line:  Next round of campaign finance and lobby reports gonna be fascinating....

#TXLEGE: Royce West a Textbook Example of Petty Legislative Enrichment

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

There was a story a few months back that we meant to highlight.  Not so much because of it's own merits, but because it was a great vignette into how the lege operates.  Unfortunately, we didn't have time.  Well, now it looks like the same player is back on a different story.

Texas Scorecard this morning:

Next week, Dallas’ city council will vote on a special development deal for the son of a Democrat U.S. Senate candidate and state senator. City staff keeping elected officials in the dark, as well as questions about the developer’s competency, were among the issues raised during a meeting on Monday—further heightening similarities with Fort Worth’s Panther Island boondoggle.

Interstate 345, located in southeast Dallas in the Deep Ellum district, is a stretch of highway constructed in 1973 that has been blamed for the decades-long economic downturn of the area.

The Texas Department of Transportation (TxDOT) owns the land but has leased it to the City of Dallas with an agreement that they can use it to build parking lots. As previously reported, there are two proposals for the future of I-345; one calls for tearing it down to allow for new economic development, and the other calls for Roddrick West—son of Democrat candidate for U.S. Senate and Texas State Sen. Royce West (DeSoto)—to build soccer fields beneath it. Texas Scorecard received the plans for the fields as part of a response to an open records request sent to TxDOT.

On Monday, the City of Dallas’ Transportation and Infrastructure Committee discussed amending the agreement with TxDOT to allow West’s soccer fields to be built, whereby the city would surrender control of the area to TxDOT. West told the committee he could have the project up and running in three to four months, and the fields won’t be full size and will be for recreation only—despite the claims of one state bureaucrat who talked about the World Cup coming to Dallas.

Emails secured by Texas Scorecard reveal that, in an attempt to push through the agreement, a swap has been proposed where TxDOT will not stand in the way of Dallas redeveloping Carpenter Park. Critics say tying the soccer field with other deals is a classic tactic used to make projects harder to oppose. When asked at Monday’s meeting why development for Carpenter Park has been put together with West’s soccer field, Assistant City Manager Majed Al-Ghafry replied, “For the benefit of consolidating everything.” He also said council could separate the projects if they wished.

“We strongly support moving forward with additional parking,” said Matt Tranchin, president of Coalition for a New Dallas, which supports tearing down I-345. He also said West should not have the contract awarded to him without first having to compete against other bidders. “Let’s have Roddrick compete with world-class institutions.”

“How did you get this contract?” District 9 Councilwoman Paula Blackmon asked.

“There’s no open bid,” West replied. “I can’t speak to [TxDOT’s] process.”

“We polled and talked to a hundred different stakeholders involved,” said Jon Hetzel, president of the Deep Ellum Foundation, which has continuously opposed West’s soccer fields. “Nowhere on that strategic plan did people bring up that we don’t have enough soccer facilities … in the neighborhood.”

On its own, this may or may not be a big deal. It certainly looks shady. But, if this is a one off deal, who knows.

However, as this Texas Tribune story from last year (which we had meant to discuss at the time) makes clear, this isn't a one off deal:

For years, state Sen. Royce West (D-Dallas) has raked in millions in legal fees representing governmental entities such as the Dallas and Houston independent school districts, metropolitan transportation agencies and major Texas cities, sparking criticism that he is using his influence as a state lawmaker to score business deals average citizens can’t get.

Until now, it was nearly impossible for voters to quantify the number of governmental contracting deals or estimate how much he’s personally making from his private business interests.

But because he’s running for the U.S. Senate, a federal office that requires far more robust disclosure than the state of Texas, the Dallas Democrat is finally pulling back the curtain on his considerable wealth. A recently implemented tweak to state ethics rules also requires him to provide more detail than ever about his government contracts.

In a U.S. Senate campaign disclosure filed last month, which includes all of 2018 and this year through mid-August, West reported that he made over $1 million in earned income, and that he’ll be eligible to draw a state pension exceeding $80,000 a year — or more, depending on when he retires.

....

West lists contracts between his law firm and seven public entities: the public school districts of Houston, Dallas and Crowley; the cities of Houston and Fort Worth; Houston’s Metropolitan Transit Authority; and the Sunbelt Freshwater Supply District in Houston.

He also reports serving, via his law firm, as bond counsel for multiple governmental entities, including Dallas Area Rapid Transit, Dallas County Community College, the North Texas Tollway Authority and several school districts and cities.

There you have it.

Like we said, we had actually intended to discuss this story months ago.  Royce West is a great example of the various ways legislators (in either party) can skim off the top.  A little bit here, and a little bit there, and all of a sudden you're talking real money.

And that's before your family members get in on the scam.

To be fair, Royce West is hardly the only legislator who does this.  Royce West is just the guy who chose to run for office at the Federal level (thus triggering more robust disclosure).  But lots of legislators do similar things.

Bottom Line: If you want to understand why things in the lege are the way that they are, Royce West (and family's) personal finances are a good place to start.

Musk threatens to move to state...where his business model is illegal?!?

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Riiiiiiiiiiiiiight:

Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.

— Elon Musk (@elonmusk) May 9, 2020

This is...kinda interesting.  We don't doubt Mr. Musk's sincerity in deriding state and local officials in California.  But is Elon Musk truly prepared to reward the legislators who have been keeping Tesla out of Texas for (at least) five years.

In Texas, we have something called "auto dealer franchise laws."   These protectionist measures disallow automobile sales without a middle man and a physical retail location.  This is a problem considering that Tesla's entire business model is based around direct to consumer sales.

For those who follow the Texas legislature, this was kinda a big deal in both 2015 and (especially) 2017.

Obviously, it's not illegal for Texas residents to own a Tesla.  There's even a few showrooms.  But all of the financial/paperwork aspects of any transaction must occur in another state.  Is Musk really prepared to overlook that?!?

Bottom Line: For as much fun a this narrative might be, there are a lot of unresolved questions before it materializes.

#atxcouncil: Austin City Limits...and the Saudi's?!?

"Do not be wise in your own eyes;
Fear the Lord and depart from evil."
Proverbs 3:7

This is pretty crazy:

The Saudi Arabian government now effectively owns a piece of the Austin City Limits Music Festival.

An April 27 filing with the U.S. Securities and Exchange Commission revealed that the government-run Saudi Public Investment Fund purchased a 5.7 percent stake in Beverly Hills, California-based concert giant Live Nation Entertainment Inc. Live Nation owns a majority stake in Austin-based concert promoter C3 Presents LLC, which runs ACL.

Media reports peg the value of the Saudi deal at $500 million. In picking up nearly 12.4 million shares of stock in publicly traded Live Nation, the Saudi fund now ranks as the company’s third largest stockholder.

In 2014, Live Nation bought a 51 percent stake in C3. With that purchase, reportedly valued at $250 million, Live Nation added ACL, Lollapalooza, and other music festivals to its roster.

 (h/t. MediaATX Newsletter...sign up here.)

We need to start this post off with a confession: Last night, when we first saw this story, we thought there were major implications for Texas at a time of low oil prices.  Having had a chance to sleep on it, we don't really think that's the case.  Most of the Texas-specific stuff is tangential and through multiple degrees of separation.  Texas is really only relevant to this story to the degree that Texas is part of the United States.

That being said, the geopolitical and international implications are mind-boggling.  If we were a policy maker at the national level, we would scrutinize that particular Saudi transaction very closely.  But geopolitics is no longer our bag.

However, there is a local angle here.

Every year, the C3 Events LLC gets to put on a for-profit event (ACL fest) using a city owned asset (Zliker Park) without compensating taxpayers.  C3 events LLC then hoards most of the profits.  That's been the case for a long time, and it's always been wrong.

But Saudi involvement takes the level of wrong to a different level.

Wahhabism and all that.

Bottom Line: Private entities shouldn't receive sweetheart deals to use public assets to produce for-profit events.  That's a basic principle and has always been the case.  When the private entities in question suddenly suddenly morph to include Saudi wahhabists, however, it raises the stakes.  C3's longstanding preferential treatment really ought to receive a fresh look.

#TXLEGE: Bonnen replaces Dishonest, Unlikeable ,Liberal with Honest, Likeable, One

"Therefore, putting away lying, “Let each one of you speak truth with his neighbor,” for we are members of one another."
Ephesians 4:25

ICYMI:

AUSTIN – On Monday, Speaker Dennis Bonnen appointed Representative Mary González to the Legislative Budget Board. “Thank you Speaker Bonnen for entrusting me with this opportunity to serve as a member of the Legislative Budget Board. I am humbled to carry on the work of Representative Drew Darby as a valued member of the Board and trusted voice for our rural communities,” Gonzalez shared.

“Our state’s budget at its core is a reflection of the values of all Texans. In the face of our current health and economic crisis, we will have an even bigger task to provide resources that prioritize working families, our seniors, and our children’s future. I look forward to joining the Board and continuing the work to achieve a fiscally sound budget that puts Texas families first.”

The Legislative Budget Board is a committee of ten legislators responsible for working with state agencies to form the preliminary state budget in advance of each legislative session.

There's been a decent amount of ink spilled about this move.  Texas Scorecard has a good summary of Gonzalez's record.  Likewise, Kyle Biedermann.

The criticisms tend to revolve around Bonnen replacing an alleged Republican with an open Democrat.  That's certainly true.  Bonnen really did do that and it's very valid to criticize him for so doing.

It's also very much the case that Darby was on Bonnen's list during this Michael Quinn Sullivan episode, and that Bonnen continues to play those games.

Still, it's hard to get too upset.

She's replacing Drew Darby.

Historically, Darby supported high property taxes until doing so became politically untenable.  He's never lifted a finger on spending.  Darby's career record on fiscal policy has been smoke and mirrors interspersed with occasional intervals of doing the bare minimum.

While it's absolutely true that Mary Gonzalez will pursue a pretty liberal fiscal policy, she'll also tell you the truth about that that's what she's doing.

That's not nothing.

Bottom Line: Neither one would be our first choice for this position, however...we understand the arguments.

Speaking of Abbott playing games...let's not overlook James Huffines

"Therefore by their fruits you will know them."
Matthew 7:20

Yesterday, we wrote about Governor Abbott appointing Mike Toomey to his so-called "strike force" to guide re-opening the state.  Considering his history and his lobbying connections to industries receiving preferential treatment, Mike Toomey is a particularly egregious appointment.  That one needed to stand by itself.

But Toomey's hardly the only problematic appointment.

From the same announcement:

Abbott also named a "statewide strike force" devoted to developing reopening procedures. Austin banker James Huffines will chair the task force, while veteran lobbyist Mike Toomey will be its chief operating officer. The group will oversee what Abbott described as a phased reopening.

Now who, pray tell, is James Huffines?!?

You can learn about James Huffines' various activities here.  The TL,DR version is that he has a wide variety of business and philanthropic interests.  For our purposes, however, the relevant detail is that former Texas Senator Don Huffines is his brother.

Why is Don Huffines important?!?

Texas Scorecard (Tuesday):

Austin American Statesman (Wednesday):

DON Huffines has been one of Abbott's more outspoken critics for awhile.  In recent weeks, DON Huffines' criticism has become more pointed.  While not directly relevant to the current crisis, if you have 20 minutes we strongly recommend Huffines' full presentation.

In response, Abbott appoints James Huffines to his "reopen Texas" board.

Which means DON Huffines can't go after Abbott without going after James Huffines.

To be fair, James Huffines isn't an inherently terrible selection.  In isolation, there's not necessarily anything wrong with an elected officials consulting with someone with a wide array of business and philanthropic interests.  FWIW, James Huffines has struck this author as a perfectly capable individual on the couple of occasions when we've met.

(Certainily better than Mike Toomey.)

In context, however, this appointment means one thing: An attempt to shut DON Huffines up by making it socially awkward for him to criticize Abbott.

Only time will tell if it works.

Bottom Line: Kinda brilliant (in a dastardly kind of way).

Abbott appoints Perry's ex-Gardasil Lobbyist ex-Chief of Staff

Do not be deceived: “Evil company corrupts good habits.”
1 Corinthians 15:33

In our post from a couple hours ago, we said that our expectations for the Governor's widely hyped announcement this afternoon were low.

But we weren't expecting this:

Abbott also named a "statewide strike force" devoted to developing reopening procedures. Austin banker James Huffines will chair the task force, while veteran lobbyist Mike Toomey will be its chief operating officer. The group will oversee what Abbott described as a phased reopening.

Mike Toomey, for those who don't remember, was this guy:

The most dramatic moment of the GOP debate in Florida last Monday revolved around Gov. Rick Perry and his 2007 executive order mandating that all 11- and 12-year-old girls in Texas get the HPV vaccine. The human papillomavirus vaccine protects women and teens against a sexually transmitted disease that causes cervical cancer.

During the debate, presidential candidate Michele Bachmann called Perry's executive order an example of crony capitalism.

"The governor's chief of staff was the chief lobbyist for this drug company," Bachmann said. "The drug company gave thousands of dollars in political donations to the governor. This is flat-out wrong. Was this about life, or was it billions of dollars for a drug company?"

Back in 2007, the first reaction to Perry's executive order was mystification on both sides of the political aisle.

....

It emerged that Merck's political action committee had donated $5,000 to the governor's campaign at the same moment their executives were negotiating with the governor's staff. Merck would eventually donate nearly $30,000 to Perry and more than $377,000 to the Republican Governors Association, which Perry chaired.

Yeah, same guy.

A quick perusal of Mike Toomey's recent lobby clients reveals:

It goes on.

Keep in mind, this only covers recent time periods.  This doesn't say anything about lobby clients further in the past.  Or, potentially, future lobby clients (wink, nod).

Even so, you have insurance companies, grocery stores, construction interests, local governments, medical device companies, and (imagine that) Merck.

Basically, every industry that's been getting special treatment this entire time.

Also, while we have no specific knowledge, it wouldn't surprise us if deeper direct conflicts of interest exist.

But that's speculative.

Bottom Line: Revolving door gonna keep revolving....

Abbott's Hat to Cattle Ratio remains...underwhelming

"Bread gained by deceit is sweet to a man,
But afterward his mouth will be filled with gravel"
Proverbs 20:17

Remember, less than a week ago, when Greg Abbott teased his vaunted "plan to reopen Texas?!?"

Yeah, about that:

On Monday, Governor Greg Abbott, together with Goldman Sachs Chief Operating Officer John Waldron, announced $50 million in loans that will be provided to small businesses in Texas.

Half of that will come from the LiftFund, a Goldman Sachs program purposed to provide small businesses with capital during difficult times.

Soo...businesses won't actually be allowed to serve their customers. Legitimate revenue = no way (TOO DANGEROUS DAWG...................).  But they can go into debt to Goldman friggin' Sachs.

We know (from experience) we're pretty cynical.  We know Wall Street makes its real money financing debt.  We know, over the past 100 years, government has primarily existed to facilitate that debt.  Even by that standard, however,...

...wow.

Just...wow.

What campaign contributor and/or lobbyist (but we repeat ourselves) came up with that plan?!?

But don't you worry your pretty little head, y'all.  Later this week, Greg Abbott's totally gonna announce his "team" to "oversee how to reopen Texas safely."  We're sure no campaign contributors and/or lobbyists will benefit.  That'd be too cynical.

It probably does make sense to reduce activity ("social distancing") for another few weeks.  Yes, the so-called "Coronavirus" is trending downward.  No, the hospitals aren't overwhelmed.  But we do understand why caution remains prudent (for now).

But...seriously...Goldman Sachs?!?

It's quite something.

Bottom Line: Cynicism *might* be justified here....

#TXLEGE: Chapter 313 should be the FIRST Thing To Go

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Interesting thought from Empower Texans this morning:

 

This is actually a really interesting proposal.  Because schools are still going to be clamoring for more money.  But nobody's going to want to raise taxes on individuals or homeowners.

The truth is that Chapter 313  carve outs don't serve any economic purpose.  They simply reward the people who hire the best lobbyists.  Bonus point: Eliminating chapter 313 would also make the school finance system more efficient over the long term.

Furthermore, it's absolutely true that there's widespread agreement between the left and the right on this subject.  We actually first learned about Chapter 313 from the Texas Observer.  UT professor Nathan Jensen has also done some fantastic work on the subject.

Chapter 313 is a subject that basically lines up all of the honest people across the political spectrum vs. all of the dishonest ones (aka. the overwhelming majority of legislators).

Bottom Line: Even in good times, special interest carve outs are bad policy...but in the coming crunch, there really isn't any excuse.