Cadet Debt: |
March 25, 2009 |
Did Aggie Contributions Grease $50 Million Enterprise Fund Deal?
Perry, Dewhurst & Craddick Took $1.4 Million From A&M PAC and Supporters
Three years before Texas A&M University received a controversial $50 million state grant to build a health-research facility, A&M supporters formed A&M PAC to overcome A&M’s “tremendous disadvantage” in competing with other public universities that operated political action committees.1 During the 2008 election cycle A&M PAC spent $374,360, ranking among Texas’ fastest-growing PACs. A&M PAC’s 2008 expenditures shot up 481 percent from the $64,461 that it spent in the 2006 cycle.
Top recipients of A&M PAC money include then-House Speaker Tom Craddick and Lieutenant Governor David Dewhurst, who along with Governor Rick Perry control the Texas Enterprise Fund (TEF) that the three state leaders tapped for A&M’s $50 million grant. In an unprecedented transaction, the state leaders shifted $50 million from TEF to the Texas Emerging Technology Fund (ETF) on January 2, 2009—two days before Craddick acknowledged that he lacked the votes to retain his speakership. Three weeks later, on January 27, ETF signed an agreement to commit $50 million in taxpayer funds to the A&M project. The largest grant that ETF previously awarded was one-fifth this size.
A&M PAC was busy in the build-up to these extraordinary transactions. During December 2008 it cut a $5,000 check to Dewhurst and a $10,000 check to then-Speaker Craddick. The Craddick check was the single largest contribution check that A&M PAC ever cut. Only Laredo Senator Judith Zaffirini, chair of the Senate Higher Education Committee, received a larger aggregate total of money from A&M PAC: $12,000.
Top Recipients of A&M PAC Money
Recipient |
Party-Town |
A&M PAC Donations |
| Sen. Judith Zaffirini | D-Laredo | $12,000 |
| Rep. Tom Craddick | R-Midland | $10,000 |
| Rep. Warren Chisum | R-Pampa | $5,500 |
| Lt. Governor David Dewhurst | R | $5,000 |
| Rep. Lois Kolkhorst | R-Brenham | $5,000 |
| Rep. Geanie Morrison | R-Victoria | $5,000 |
| Sen. Steve Ogden | R-Bryan | $5,000 |
| Sen. Florence Shapiro | R-Plano | $4,500 |
| Sen. Kip Averitt | R-Waco | $4,000 |
| Sen. Robert Duncan | R-Lubbock | $4,000 |
| Sen. Troy Fraser | R-Horseshoe | $4,000 |
| Sen. Glenn Hegar | R-Katy | $4,000 |
| Sen. Mike Jackson | R-La Porte | $4,000 |
| Sen. Jane Nelson | R-Lewisville | $4,000 |
| Rep. David Swinford | R-Dumas | $4,000 |
| Sen. Jeff Wentworth | R-San Antonio | $4,000 |
| Sen. John Whitmire | R-Houston | $4,000 |
| Sen. Tommy Williams | R-Woodlands | $4,000 |
| Rep. Beverly Woolley | R-Houston | $4,000 |
The same Aggie donors who have supported A&M PAC contributed a total of $1,366,044 to the Perry, Dewhurst and Craddick campaigns during the 2006 and 2008 election cycles. They contributed another $21,100 to Stars Over Texas PAC, which unsuccessfully worked to extend Craddick’s reign as Speaker. The top recipient of this money was Governor Perry, the Aggie alumnus who exercises the most visible control over the two state development funds tapped on A&M’s behalf.
Politicians Controlling the Development Funds
Received $1.4 Million From A&M PAC Donors
Recipient |
Amount |
| Rick Perry | $939,486 |
| David Dewhurst | $390,100 |
| Tom Craddick | $36,458 |
| Stars Over Texas PAC | $21,100 |
TOTAL: |
$1,387,144 |
Top Donors to A&M PAC, 2006 Through 2008
A&M PAC |
Contributor |
City |
Business |
$21,000 |
Jon L Hagler | Dover, MA | Grantham Mayo Van Otterloo & Co. |
$30,000 |
William H. Flores | Houston | Phoenix Exploration/Gryphon Exploration |
$20,000 |
Raba Kistner PAC | San Antonio | Raba-Kistner Consultants, Inc. |
$20,000 |
San Antonio Steel Co. | San Antonio | San Antonio Steel Co. |
$20,000 |
Todd Routh | Austin | Developer |
$20,000 |
Trinity Industries Employee PAC | Dallas | Trinity Industries |
$20,000 |
Ralph & Joy Ellis | Irving | Belmont Oil & Gas Corp. |
$15,000 |
John H. Lindsey | Houston | Lindsey Insurance Agency |
$12,500 |
Erle A. Nye | Dallas | TXU Energy Corp. |
$11,000 |
Michael J./Nancy Shaw | Denver | Mike Shaw Automotive Automotive |
$10,000 |
Morris Foster | Houston | ExxonMobil Corp |
$10,000 |
James L. Huffines | Dallas | Huffines Auto Dealerships |
$7,000 |
John D. White | Houston | Jones Walker Law Firm |
$5,500 |
Oscar W. Schuchart | San Antonio | Retired Engineer |
$5,000 |
Randall L Hohlaus | San Antonio | Architect |
$5,000 |
James K.B. Nelson | Houston | Retired Consultant |
$4,000 |
Jack E. Little | Houston | Retired |
$4,000 |
Mike Hopkins | Brenham | Mike Hopkins Dist. Co. |
$3,500 |
Robert Allen | Houston | Robert H. Allen Investments |
$3,500 |
Perry Thompson | Tyler | Thompson & Associates engineer |
$3,500 |
Lowry & Peggy Mays | San Antonio | Clear Channel Entertainment |
During a hearing on the grant this week, House Appropriations Committee Chair Jim Pitts2 raised questions about the extent to which the A&M grant was a bailout for two troubled biotech companies: Introgen Therapeutics and XOMA, Ltd. The companies signed a memorandum of understanding with A&M last fall about potentially participating in its new research center.
Three donors with Introgen ties have contributed $55,500 to Perry and $2,342 to Craddick since 2005. Perry got $50,000 of this money from David Nance, who just resigned as Introgen’s president on March 11—three months after the company filed for bankruptcy. Introgen board member Bob Pearson, who also sits the Emerging Technology Fund Advisory Committee, gave $2,500 to Perry. Pearson recused himself from matters related to the A&M grant, according to the Austin American-Statesman.3 ■
Introgen-Related Contributions, 2005 Through 2008
Contributor |
Introgen Tie |
Perry |
Craddick |
Dewhurst Total |
| David Nance | Resigned as President March 2009 | $50,000 |
$0 |
$0 |
| William Cunningham | Board Member (ex-UT Chancellor) | $1,000 |
$2,342 |
$0 |
| Bob Pearson* | Board Member (Dell Vice President) | $2,500 |
$0 |
$0 |
| Charles Long | Board Member (Ex-Citibank vice chair) | $2,000 |
$0 |
$0 |
TOTALS: |
$55,500 |
$2,342 |
$0 |
1 “Texas universities have long-used political action committees (PACs) to promote their schools and become directly involved in politics or advocacy,” notes the A&M PAC website. “In contrast, the Texas A&M University System had never participated in the political arena through a PAC effort to complement its public information program—and had been working at a tremendous disadvantage. Seeking to address this inequality, the A&M PAC was formed in 2006.” See http://www.tamuspac.org/Default.aspx
2 Pitts received $1,500 from A&M PAC in December 2006.
3 “Lawmaker Questions A&M Grant, Perry’s Role,” Austin American-Statesman, March 25, 2009.
