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Investigation: Who Receives, Donates Most Campaign Cash?

POSTED: Friday, February 9, 2007
UPDATED: 9:40 am CST February 12, 2007

Note: The following story is a verbatim transcript of an Investigators story that aired on Friday, Feb. 9, 2007, on KPRC Local 2 at 10 p.m.

On Election Day, most of us cast our votes at the ballot box. But campaign finance critics say some wealthy Houstonians use their bank accounts instead -- donating millions of dollars to Houston-area legislators.


Video: Taxpayer Money Ending Up In Lobbyists' Pockets

KPRC Local 2 Investigates crunched the numbers to show you Houston's biggest givers.

Here's investigative reporter Amy Davis to explain what these donors got in return.

From gambling to liquor to electricity -- special interests run the gamut at the state capital this year in Austin, where activist Craig McDonald says campaign cash can and does buy favors.

"It's a pay to play state in Texas. It always has been and it still is today," said McDonald with Texans for Public Justice.

So, we wondered who's paying and playing in Houston.

Local 2 Investigates added up the contributions from 2003 through November 2006 to just these five Houston area state senators.
  • Democratic State Sen. Rodney Ellis
  • Democratic State Sen. Mario Gallegos
  • Republican State Sen. Mike Jackson
  • Republican State Sen. Kyle Janek
  • Democratic State Sen. John Whitmire.

Then, we sorted the millions by donor.

The top five reads like a who's who among Houston's wealthy.

Bob Perry, owner of Perry Homes, came out on top. No surprise since Perry is also the biggest giver in all of Texas.

But while most of his millions to go Republicans and conservative causes, we found of the more than $217,000 he gave to local senators, only $10,000 went to Republicans. The majority went straight to Democratic State Sen. John Whitmire.

Houston attorneys collectively are by far the biggest givers.

And topping the list of the most generous lawyers -- the Williams Bailey Law Firm, managed by John Eddie Williams Jr., who represented Texas in its lawsuit against the tobacco industry.

Williams Bailey contributed more than $117,000 to Houston senators, followed by the Texas Association of Mortgage attorneys that gave $55,000, and then personal injury attorneys at the Gallagher Law Firm who donated $30,000.

"It's a door opening contribution," McDonald said.

"Getting inside the capital here is easy. It's a public building. But lobbyists we spoke with say giving campaign contributions gets them even better access -- an invitation inside the offices of your state reps and senators," Davis reported.

"Absolutely, there is a connection between the money given in campaigns and the issues that get addressed in the Texas Legislature," McDonald said.

"Does a campaign contribution buy you a vote? No," said Jack Gullahorn, an Austin lobbyist.

Some of the biggest givers told us they give out of a sense of responsibility to support the political process.

"It's going to allow you to have people to talk to that are going to be receptive to what you have to say," Gullahorn said.

And what does our research say about those giving money and getting the attention of legislators?

All of the individuals on the list are millionaires, white men with an average age of 69 years old.

"It's really just the wealthy and the business class that primarily that has any day-to-day influence on the legislature That's just too much power in too few hands," McDonald said.

Bob Perry told us through a spokesperson that his donations to charitable causes dwarf his campaign contributions.

And Mike Gallagher wrote engaging in the political process is a duty and responsibility of all Americans.

KPRC Local 2 Investigates analyzed the campaign contribution reports from January 2003 through November 2006 for five Houston-area state senators --Democratic State Sen. Rodney Ellis, Democratic State Sen. Mario Gallegos, Republican State Sen. Mike Jackson, Republican State Sen. Kyle Janek, and Democratic State Sen. John Whitmire.

The following Houstonians or Houston-based businesses and groups contributed more than anyone else in our area to this group.
  1. Bob Perry, Owner of Perry Homes: $217,800
  2. Williams Bailey Law Firm and John Eddie Williams. Jr.: $117,500
  3. Texas Association of Mortgage Attorneys: $55,000
  4. The Gallagher Law Firm and Mike Gallagher: $30,000
  5. James Jard, Houston Real Estate Investor/Developer: $26,500
  6. Houston Police Officer's Union: $25,500
  7. Joseph Jamail, Houston Trial Attorney: $25,000
  8. BG Distribution Partners, Houston Liquor Wholesaler: $23,500
  9. (Tie) Landry's Restaurants and owner Tilman Fertitta: $23,000
    MAXXAM PAC, a political action committee supporting gambling and gaming: $23,000
    Plumber's Local Union #68: $23,000
  10. CenterPoint Energy: $22,000

Statement from Bob Perry:

"Bob Perry strongly supports Houston legislative delegation with the largest beneficiaries being two local Democrats, but what is most telling is that Mr. Perry has donated over $1,300,000 to local charities over this same period of time."

Statement from Mike Gallagher:

"With regard to contributions, it is my strong belief that political and charitable contributions are both privileges that are available to us as members of a free society. The purpose of a charitable contribution is to provide help to those who are in need of help for one reason or another.

"The purpose of a political contribution is to elect people to office who advocate those social and political philosophies that I think best meet the needs of our society.

"There are occasions when contributions are made to people with whom you do not agree.

"Obviously, the purpose of those contributions is to try to build bridges and open lines of communication so that you can better understand their position and they can better understand and hopefully some day adopt philosophical positions in which you as a citizen and a contributor believe.

"Engaging in the political process, either through seeking political office or supporting those who seek political office, is from my perspective, a duty and/or a responsibility of all Americans. It is a pleasure for me to be able to participate in this process."

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