Texas PACS: 2006

Business PACs spent $57 million in the 2006 cycle, up 24 percent from the $46 million that these PACs spent in the previous cycle. Business PACs accounted for 58 percent of all PAC spending this round, down from 67 percent in the 2004 cycle.

Rapid growth by Ideological and Single-Issue PACs allowed these PACs to seize a much larger slice of the PAC pie this round. Spending by Ideological and Single Issue PACs more than doubled from $18 million in 2004 to $37 million in 2006. As a result, these PACs accounted for 37 percent of all PAC spending in 2006—eating into the Business PAC category’s share of overall PAC spending. Finally, the $5 million spent by Labor PACs accounted for just 5 percent of the total, down from 7 percent in 2004.

Spending by these three primary PAC sectors has been subject to dramatic swings over the past decade. From 1995 through 2000 Business PACs averaged 63 percent of the total, Ideological and Single-Issue PACs averaged 33 percent and Labor PACs 5 percent. In the 2002 cycle Ideological PAC spending expanded to 39 percent of the total, fueled by conservative PACs that successfully sought Republican control of the Texas House. In the following 2004 cycle, Ideological PAC spending plummeted to 26 percent of the total, as Travis County District Attorney Ronnie Earle sought to prosecute Tom DeLay’s Texans for a Republican Majority PAC and the Texas Association of Business for allegedly breaking Texas elections laws in 2002. In 2006, however, Ideological and Single-Issue PACs rebounded to 37 percent of all PAC money.

The resurgence of Ideological PACs can be seen in the accompanying table that lists the largest 2006 PACs that were inactive or nonexistent in the previous election cycle. Twelve of the 14 major new PACs fall into the Ideological and Single-Issue category. Half of these major new Ideological PACs are affiliated with the two major parties. Texas Republicans used their dominance early in the decade to lock in redistricting advantages, which have been eroded by demographic trends benefiting Democrats. As these forces collided in 2006, the two parties fought for legislative control, with Republicans ceding ground—if not control—to Democrats. The rapid growth of minority populations in Houston and the Dallas-Fort Worth Metroplex made these two of Texas’ fiercest partisan battlegrounds. Four of the top new PACs were partisan committees in these metropolitan areas. This same trend also is evident in the table listing all the top Ideological and Single-Issue PACs, which appears in the next chapter.

PAC	Interest Category	2006 Spending	2006 Rank
TX Republican Legislative Campaign Com.	Ideological/Single Issue	$2,726,907	3
TX Democratic Trust	Ideological/Single Issue	$2,256,378	6
Harris Co. Republican Party	Ideological/Single Issue	$1,397,049	11
Border Health PAC	Health	$667,788	25
Future of TX Alliance	Ideological/Single Issue	$655,655	26
Dallas Co. Democratic PAC	Ideological/Single Issue	$641,775	27
Dallas Co. Republican Party	Ideological/Single Issue	$616,554	28
TX Parent PAC	Ideological/Single Issue	$492,800	38
TX Values in Action Coalition	Ideological/Single Issue	$467,473	41
TX Opportunity PAC	Ideological/Single Issue	$395,419	48
Republican Party of Fort Bend Co.	Ideological/Single Issue	$393,306	49
ACC Capital Holdings	Finance	$345,750	60
TX Progress Council	Ideological/Single Issue	$340,137	62
Texans for School Choice	Ideological/Single Issue	$211,757	98

Although they are not partisan in name, several other new Ideological PACs played into the 2006 partisan struggle. Dr. James Leininger and other social-conservative financiers used the Future of Texas Alliance, Texas Opportunity PAC and Texans for School Choice to prod the Republican Party further to the right on school vouchers and other social issues. Meanwhile, major new liberal PACs such as the Texas Parent PAC, Texas Values in Action and the Texas Progress Council worked to prod the state in the opposite direction.

Four Republican and two Democratic PACs also made the accompanying list of the 15 fastest-shrinking PACs. Topping this list was Tom DeLay’s now-indicted Texans for a Republican Majority PAC that made its last, dying expenditures during the 2006 cycle. GOP PACs in Houston and Austin also cut their expenditures by 50 percent or more. The withering Democratic PACs were the Majority PAC of Texas and the Bexar County Democratic Party.

Another major new PAC is ACC Capital Holdings, parent of predatory mortgage lenders Ameriquest, Town & Country Credit and AMC Mortgage. The attorneys general of Texas and 48 other states reached a $325 million settlement with Ameriquest in 2006 to settle deceptive lending charges. Governor Rick Perry’s Texas Enterprise Fund unsuccessfully competed against Illinois in 2004 to land a new Ameriquest operations center.³ Top recipients of ACC PAC funds were Governor Perry ($100,000), Lieutenant Governor David Dewhurst and Speaker Tom Craddick ($50,000 apiece) and Comptroller Susan Combs ($20,000).

Shrinking PAC	Interest	2006 Spending	2004 Spending	’04-‘06 Change
Texans for a Republican Majority	Ideological/Single Issue	$410	$133,784	-100%
Majority PAC of TX	Ideological/Single Issue	$9,236	$660,309	-99%
Jobe PAC	Construction	$4,560	$162,103	-97%
Bexar Co. Democratic Party	Ideological/Single Issue	$23,516	$207,195	-89%
Harris Co. Republican PAC	Ideological/Single Issue	$29,387	$176,276	-83%
Citizens for Equality	Ideological/Single Issue	$41,792	$175,488	-76%
Centex Corp.	Construction	$31,929	$110,821	-71%
Burlington Northern Santa Fe	Transportation	$255,464	$740,964	-66%
Conservative Republicans Harris Co.	Ideological/Single Issue	$102,084	$273,105	-63%
Compass Bancshares, Inc.	Finance	$137,751	$362,467	-62%
El Paso Municipal Police Officers	Labor	$73,266	$185,438	-61%
Trinity Industries	Construction	$75,504	$160,515	-53%
Austin Republican Women's Club	Ideological/Single Issue	$51,450	$103,284	-50%
Texas Trial Lawyers Assn.	Lawyers & Lobbyists	$883,547	$1,665,283	-47%
TXU Corp	Energy/Nat’l Resources	$94,576	$158,363	-40%

The Ideological and Single-Issue category along with the Energy & Natural Resources category account for more than half of the fastest-growing major PACs listed in the accompanying table. Energy & Natural Resources is one of the major sectors discussed in the next chapter, which analyzes PAC spending by industry.

PAC	Sector	2006 Spending	2004 Spending	'04-'06 Change
Mirant Corp.	Energy/Nat’l Resources	$135,402	$3,718	3,541%
TX Equity PAC	Ideological/Single Issue	$134,308	$11,853	1,033%
Campaign For Repub. Leadership	Ideological/Single Issue	$201,585	$26,296	667%
TX Association of Realtors	Real Estate	$929,600	$131,173	609%
BG Distribution Partners	Miscellaneous Business	$1,024,000	$162,300	531%
Exxon Mobil Corp.	Energy/Nat’l Resources	$106,000	$17,000	524%
Tarrant Co. Democratic Party	Ideological/Single Issue	$138,082	$27,507	402%
Libertarian Party of TX	Ideological/Single Issue	$161,992	$33,284	387%
Bexar PAC	Health	$157,446	$33,838	365%
Lyondell Petrochemical Co.	Energy/Nat’l Resources	$275,918	$59,624	363%
People for Efficient Transportation	Other	$109,744	$24,785	343%
El Paso Corp.	Energy/Nat’l Resources	$156,682	$35,416	342%
Cingular Wireless	Communications	$112,147	$25,584	338%
Planned Parenthood of Houston	Ideological/Single Issue	$127,433	$29,869	327%
Texas 2020 PAC	Ideological/Single Issue	$337,891	$80,553	320%
Atmos Energy Corp.	Energy/Nat’l Resources	$121,356	$30,478	298%
Texas Land Title Assn.	Insurance	$167,169	$45,599	267%
Halff Associates	Construction	$107,386	$29,450	265%
ConocoPhillips	Energy/Nat’l Resources	$220,579	$61,780	257%
Ryan & Co.	Finance	$1,015,088	$288,525	252%
Licensed Beverage Distributors	Miscellaneous Business	$312,850	$94,300	232%
Texas Bankers Assn.	Finance	$227,002	$72,430	213%
HDR, Inc.	Construction	$206,075	$68,176	202%

Ten vanishing PACs did not spend a dime this cycle after spending from $30,000 to $101,000 in the 2004 cycle. The PAC of PSA, an Illinois-based construction firm, topped this list. Next came Make Texas Proud. Ex-Texas Supreme Court Justice John Hill, Jr. founded this lobby effort in 2003 to try to reform the state’s corrupt judicial system (in which judges get elected with campaign money from donors who have business in state courts). Justice Hill died in July 2007, apparently taking his failed reform effort with him.

Justice Hill’s death came a year and four days after the death of Ken Lay. The now-dead PAC of Lay’s Enron Corp. (which ranked No. 15 among Texas PACs in 2000) arguably worked harder than any other PAC to make Texans ashamed of their government officials—from Texas courts to the White House.⁴ Good riddance, Enron.

PAC	2004 Spending	Sector
PSI PAC	$101,160	Construction
Make TX Proud Committee	$99,394	Lawyers & Lobbyists
Enron Corp. PAC	$80,702	Energy & Natural Resources
TX Coalition For Good Government	$57,780	Real Estate
East TX Medical Center PAC	$56,378	Health
TX Partnership PAC	$52,517	Ideological/Single Issue
Southeast TX Democrats	$50,600	Ideological/Single Issue
West Gulf Maritime Assn. PAC	$34,600	Transportation
DuPont Good Government Fund	$33,583	Energy & Natural Resources
Harris County AFL-CIO PAC	$30,438	Labor

3The Enterprise Fund gave $20 million that same year to Ameriquest competitor Countrywide Financial to locate major new operations in North Texas. The now-troubled Countrywide was a major player in the predatory-mortgage market that inflated the national housing bubble—before its ultimate collapse.