Sunset Committee Report proposes major reform, greater accountability at TxDOT

Link to article below here.

A scathing Sunset Committee Report on TxDOT was released today (news story below) and it recommends a “legislative conservator” takeover the agency among other reforms.

There are 6 problem areas identified in the report, but here are the key recommendations that pertain to our concerns:

• Abolish the Texas Transportation Commission and replace it with an appointed Commissioner of Transportation.
• Establish a Transportation Legislative Oversight Committee to provide necessary oversight of the Department and the state’s transportation system.
• Require the Transportation Legislative Oversight Committee to review and comment on TxDOT’s research program, including individual research projects and activities.
• The Sunset Commission should recommend that the Legislature directly fund the Texas Transportation Institute to conduct transportation research previously contracted through TxDOT.
• Continue TxDOT for four years (instead of 12).
• Require TxDOT to develop and implement a public involvement policy that guides and encourages more meaningful public involvement efforts agency-wide.
• Require TxDOT to develop standard procedures for documenting complaints and for tracking and analyzing complaint data.
• TxDOT should provide central coordination of the Department’s major marketing campaigns.

The big holes? We asked for the 5 member Transportation Commission APPOINTED by the Governor to be replaced with a single ELECTED commissioner, and while the Sunset Committee staff recommended abolishing the Commission and replacing it with a single commissioner, they still would have that position APPOINTED by the Governor (giving us the same mess we have now)! The difference is the Commissioner would be re-appointed and come before the Senate for confirmation every 2 years instead of every 4.

Hole #2“TxDOT should provide central coordination of the Department’s major marketing campaigns.” What??! TURF is suing the State to STOP TxDOT’s “marketing” propaganda campaign, the last thing we need is to centralize illegal activity! We also don’t need “public education” campaigns like “Don’t Mess With Texas” anti-litter program or its “Click it or Ticket” campaign when we’re supposedly “out of money” for basic highway needs. This is wasteful, useless spending and the Committee staff should have called for an end to it. It’s their job to eliminate waste. Well, this is prime fodder for the chopping block. It enriches marketing and PR firms, not provide transportation for taxpayers.

Hole #3 – There are no specific public involvement recommendations that would force TxDOT to do what the public asks them to, particularly in regards to toll projects and the Trans Texas Corridor. Simply taking public testimony and then ignoring it is what has caused a massive taxpayer revolt all over the state! We need some public involvement REQUIREMENTS that FORCE TxDOT to implement the alternative chosen by the public, not the one that makes the State the most tax revenue.

This is why we need YOU to come testify before the full Sunset Advisory Committee on July 15 in Austin to insist the Committee make any new commissioner directly accountable to the taxpayers at the ballot box so we don’t end up with the same problems we have now.

TxDOT labeled ‘out of control’
By Peggy Fikac
Express-News Austin Bureau
06/03/2008
AUSTIN — Saying big changes are needed to restore trust in the Texas Department of Transportation, the Sunset Advisory Commission staff is recommending a revamp of TxDOT’s governing board, project planning and its dealings with lawmakers and the public.

The Sunset staff report to be released today — and shared with the San Antonio Express-News by a source close to the process — comes in the wake of controversy over planned public-private partnerships on toll roads and the Trans-Texas Corridor and questions concerning agency funding figures.

“The Sunset review of the Texas Department of Transportation occurred against a backdrop of distrust and frustration with the Department and the demand for more transparency, accountability, and responsiveness. Many expressed concerns that TxDOT was ‘out of control,’ advancing its own agenda against objections of both the Legislature and the public,” according to the report.

It says that “tweaking the status quo is simply not enough” to restore trust.

TxDOT spokesman Chris Lippincott said Monday, “The confidence of the Legislature and the public are very important to us. We still have work to do, but we are confident that our ongoing efforts to improve the transparency and accessibility of TxDOT are making a positive impact.”

Among changes, the staff is recommending replacing the five-member commission with a single commissioner, who would have a two-year term rather than the current six years. The shorter term would mean required Senate confirmation would occur more often, giving lawmakers more oversight.

However, the commissioner still would be appointed by the governor, a concern for opponents of TxDOT’s policies.

That’s because the policies pushed by the Texas Transportation Commission are in sync with those of GOP Gov. Rick Perry, who named the commissioners. Opponents of those policies would prefer an elected commissioner or commissioners.

“The most important thing is that they’re elected positions,” said Sal Costello of TexasTollParty.com. “It gets right down to who’s accountable.”

“We wanted a single, elected commissioner who answers directly to the people of Texas … Having the governor’s paws on this department just has got to stop,” said Terri Hall of Texans Uniting for Reform and Freedom. She added, however, that proposed changes constitute “a step in the right direction. I’m glad the committee seems to be hearing what the public outcry is.”

The staff also proposes increasing legislative oversight through a new House-Senate committee; making TxDOT’s transportation planning and project development more open and easily understood; enhancing chances for meaningful public involvement; improving TxDOT’s contract management; and reviewing the agency again in four years, rather than the usual 12, to ensure needed changes have been made.

Agencies are reviewed periodically by the Sunset commission to see if they should continue to exist and whether changes are needed. Changes proposed by the commission will be considered in 2009 by the Legislature.

Lawmakers on the commission said it’s clear that change is needed, although they’ll need to weigh input including staff recommendations.

Sen. Juan Hinojosa, D-McAllen, said he wants to give new Texas Transportation Commission Chair Deirdre Delisi a chance to improve agency operations but that he likes the direction of Sunset staff proposals.

Rep. Ruth Jones McClendon, D-San Antonio, said straightforward, public accountability is key.

“There is obviously a great amount of distrust between the Legislature and the agency, as well as the general public. Something obviously needs to be done — major — to change the way this agency is doing business,” she said.

Hutchison calls for increase in refinery capacity

Link to the article here.

Sen. Hutchison Urges Refinery Expansion to Help Alleviate Gas Prices
Texas Insider
Published: 05-29-08
Provision, which Passed in 2005, will Help Increase Domestic Refinery Capacity through Tax Deduction
WASHINGTON – U.S. Senator Kay Bailey Hutchison (R-TX), Texas’ senior senator, today sent a letter to Treasury Secretary Henry Paulson urging his department to expedite the regulation process for tax deductions to spur domestic refinery expansions.

Sen. Hutchison included a provision in the Energy Policy Act of 2005 (EPACT), which provides a 50 percent tax deduction for domestic refineries that increase existing capacity by five percent or more. Although EPACT became law in 2005, the Treasury Department has not approved the pending regulation, also known as Section 179 C.

“At this time when Americans are paying record high prices for fuel, the U.S. government is standing in the way of increasing supply,” said Sen. Hutchison. “This regulation, which encourages expansion of domestic refinery capacity, will increase the supply of fuel to alleviate prices at the pump.”

Sen. Hutchison sent a similar letter to Treasury in April 2007 when gasoline was $2.86 a gallon. Today, the national average is $3.94 a gallon.

TEXT OF THE LETTER

May 28, 2008

The Honorable Henry M. Paulson
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220

Dear Secretary Paulson:

I write today to express my continued support for expedited approval of a pending regulation which awaits final approval at the U.S. Department of the Treasury. Almost three years have passed since the Energy Policy Act of 2005 mandated that this regulation be finalized. American families need the relief that this regulation will provide now more than ever.

Specifically, this regulation, Sec. 179C of the Internal Revenue Code, allows a refinery to expense up to 50 percent of the cost of a refinery expansion if the project increases overall capacity by at least five percent. As you may recall, I wrote to you in April 2007 when gasoline was $2.86 a gallon, diesel was $2.79 a gallon, and a barrel of oil was $64. Today, gasoline is $3.94 a gallon, diesel is $4.72 a gallon, and a barrel of oil exceeds $127.

At this time when Americans are paying record high prices for gasoline and diesel, the U.S. Government should do all it can to reduce these prices. This regulation, which encourages expansion of domestic refining capacity, will increase the supply of fuel to alleviate prices at the pump. Moreover, the longer refineries must wait for these regulations, the more uncertainty is added to their investment decisions to expand capacity. These regulations must be finalized as soon as possible to allow companies to plan for future construction.

I appreciate your efforts to date to finalize this regulation and encourage you to expedite its approval.

Sincerely,

Kay Bailey Hutchison

Sunset Committee to recommend TxDOT be taken over by a conservator!

Link to article here.

Yippeeeeeeee! Finally a voice of reason! The Sunset Committee report on TxDOT is likely to recommend TxDOT be taken over by a conservator and that the Transportation Commission appointed by the Governor be replaced with a single commissioner! Now we asked for an elected commissioner, they recommend a hired hand, but, boy, is this a step in the right direction! They recognize what the citizens do, that TxDOT is corrupt, fiscally irresponsible, broken, and unaccountable beyond repair. There is no fixing it. Wipe it out completely and start over from the ground up with accountability, transparency and an end to toll roads!

Panel to call for axing Texas’ transportation board
By GORDON DICKSON
Star-Telegram staff writer
Sat, May. 31, 2008

A legislative group will recommend next week that a conservator take over the Texas Department of Transportation, an agency under fire for planning toll roads in areas that don’t want them and failing to keep track of its finances properly, officials said.The staff of the Sunset Advisory Commission, which periodically reviews state agencies to see whether they’re still functioning properly, is expected to release a report on the department next week.

The Transportation Department has been overseen by a three- or five-member commission with members appointed by the governor throughout its 91-year history. But several people who have reviewed drafts of the sunset report say one of the key recommendations is to replace the current five-member transportation commission with a single commissioner who would serve a two-year, paid term and report to the Legislature.

“TxDOT has become an agency that is focused on making money and deciding policy, and they need to get back to the business of building roads,” said state Rep. Linda Harper-Brown, R-Irving, who serves on the sunset commission.

Harper-Brown declined to comment on the report itself. But she said better communication with Texans — especially lawmakers — is crucial to the Transportation Department restoring its credibility.

“Whatever tools we give them, that’s what they need to work with,” she said.

Background

Since 2003, transportation commissioners have succeeded in having laws changed, creating alternatives to the state’s gas tax, including private investment in toll roads.

Opposition to those changes surfaced during the 2006 gubernatorial race, when three challengers attacked Gov. Rick Perry’s vision for the Trans-Texas Corridor, a proposal to build a network of mega-wide toll roads.

Many lawmakers in 2007 said they regretted giving the Transportation Department more power in previous sessions, and the Legislature passed a bill that put a moratorium on toll projects.

Also last year, transportation officials were forced to cancel many construction projects statewide after realizing they’d overestimated their funds by $1.1 billion. They blamed miscommunication between the agency’s planning and financial staffs, and promised to reorganize the department to prevent more mistakes.

What’s next

The Sunset Advisory Commission will debate the Transportation Department’s management during a hearing in Austin. Some recommendations could become state law during the 2009 legislative session, which begins in January.

Transportation commissioners and staff members say they’re ready for a tense hearing.

“I’m sure the agency will be roundly criticized, and you know what? It’s part of the public process,” said Commissioner Bill Meadows of Fort Worth. “The sunset process is not something you should be afraid of. It’s something you really should welcome.”

No shift away from current toll policy or Trans Texas Corridor despite spin

Link to article here.

TxDOT’s new chief vows state will own toll roads
Trans-Texas Corridor plan still has skeptics
By KELLEY SHANNON
Associated Press
May 30, 2008
AUSTIN — Transportation Commission Chair Deirdre Delisi, whose political ties to Gov. Rick Perry drew criticism when he appointed her, led her first meeting Thursday and expressed a desire to build public trust in the transportation agency.

The commissioners adopted an order governing toll projects and the Trans-Texas Corridor and set out to improve citizen and legislative access to Texas Department of Transportation’s financial data.

The commission unanimously agreed that all Texas highways will be owned by the state, not private developers; that the state may buy back the interest of a private road developer; that only expansions to existing highways will be tolled and existing free lanes won’t be reduced; and that “non-compete clauses” will be banned, meaning no state contract will limit improvements to nearby existing roads.

The order also calls for an attempt to minimize disturbing private property and to consider using existing rights of way.

The clarifying statement came in response to public criticism during the early planning stages of the Trans Texas Corridor, Perry’s plan to contract with private companies to build toll roads throughout the state.

Opponents remained skeptical. Terri Hall, director of Texans Uniting for Reform and Freedom said that if TxDOT expands or builds a competing road, the toll contractor could require compensation from taxpayers for any resulting loss in toll revenue.

David Stall, who operates the CorridorWatch.org with his wife, Linda, said the state had always intended to own the toll roads that it leased to private operators.

The new rules also call for only new lanes to be tolled, but Stall said that if TxDOT continues to rely on toll financing for new projects, it means “that they are not intending to expand existing free highways beyond the current expansion plans.”

Initial phases of the Trans Texas Corridor are a toll highway that would run roughly parallel to part of Interstate 35, and Interstate 69, a road that would be constructed from Northeast Texas to the Rio Grande Valley.

Delisi takes over a job formerly held by another close Perry ally, the late Ric Williamson.

Chronicle reporter Rad Sallee contributed to this story.

All talk, no teeth as Transportation Commission attempts to quell opposition

Don’t believe the hype. Today the Texas Transportation Commission adopted a Minute Order designed to fool people into thinking they’ve changed their stripes. The reality? It’s all posturing. New Chairwoman Deirdre Delisi (who has no transportation experience only running political campaigns for Perry then becoming his Chief of Staff) wants the Senate to confirm her, and the Commission knows the Sunset Review will bring serious legislatively mandated changes they want to avoid. There’s nothing about a Minute Order that is even binding. TxDOT can change this at their whim and violate it anytime. Add to that, many of these provisions are already not allowed or required by state law.

Here’s a summary of the gaping holes and inadequacies of this Minute Order:

They don’t mention that a competing facility could require compensation (taxpayer payments to investors if TxDOT expands or builds a competing road), and there’s no mention of stripping non-competes from bond agreements (they only addressed CDAs or PPPs contracts here). Bond companies require non-competes and create the same guaranteed congestion on non-toll routes.

Also, there’s no prohibition against taking existing highway lanes and tolling them leaving the only non-toll lanes frontage roads (totally different in function and speed and stop light times can be manipulated to drive traffic to the toll lanes, etc.). That’s the crux of much of the angst on urban toll projects. They also failed to address their illegal ad campaign and lobbying. If they seriously wanted to build trust, they would have moved to cease those practices unconditionally.

Until the Legislature takes the power of decision-making of this type AWAY from an un-elected, unaccountable agency run amok and gives it back to the PEOPLE and their representatives, this whole exercise is a non-starter.

______________________________

Associated Press Newswire

May 29, 2008

AUSTIN (AP) – Transportation Commission Chair Deirdre Delisi led
her first meeting today and expressed a desire to build public
trust in the transportation agency.
The commissioners adopted an order governing toll projects and
the Trans-Texas Corridor. They also set out to improve citizen and
legislative access to Texas Department of Transportation’s
financial data.
The commission unanimously agreed that:
– all Texas highways will be owned by the state, not private
developers;
– the state may buy back the interest of a private road
developer;
– only expansions to existing highways will be tolled and
existing free lanes won’t be reduced;
– and that “non-compete clauses” will be banned, meaning no
state contract will limit improvements to nearby existing roads.
Transportation Chair Delisi’s political ties to Gov. Rick Perry
drew criticism when he appointed her.

Steepest decline in driving EVER RECORDED!

Link to article here.

“Figures show… the steepest decline in driving ever recorded.”

That statement says it all. This is not the time to add toll taxes to our freeways or to proliferate toll roads in general. It’s simple economics. People’s wallets aren’t an endless cash cow for government and road contractors to pilfer at will. There’s a limit to the family budget, and there’s only so much money consumers can sink into transportation before radical changes in behavior ensue, including changes to where people live, work, and play. And most changes driven by severe economic times aren’t for the better.

As gas goes up, driving goes down
CNN.com
May 26, 2008

  • March figures show steepest decline in driving since 1942
  • Compared with last year, drivers have logged 11 billion fewer miles, the DOT says
  • Americans planned to drive less over Memorial Day weekend, AAA reports
  • Public transportation ridership on rise, in part because of gas prices, group says
    (CNN) — At a time when gas prices are at an all-time high, Americans have curtailed their driving at a historic rate.

    art.gas.pump.gi.jpg

    Americans are not driving as much as they did a year ago as gas prices skyrocket.

    The Department of Transportation said figures from March show the steepest decrease in driving ever recorded.

    Compared with March a year earlier, Americans drove an estimated 4.3 percent less — that’s 11 billion fewer miles, the DOT’s Federal Highway Administration said Monday, calling it “the sharpest yearly drop for any month in FHWA history.” Records have been kept since 1942.

    According to AAA, for the first time since 2002, Americans said they were planning to drive less over the Memorial Day weekend than they did the year before.

    Tracy and Adam Crews posted on iReport that their annual Memorial Day weekend has traditionally involved camping and fishing.

    “Well, due to the continual rise in gas, we felt our only recourse was to nix the idea this year and stay home” in Jacksonville, Florida, they wrote.

    Instead, the couple said they “decided to camp out in the backyard. We set the tent up, just finished installing our above ground pool, and cleaned up the grill. … We have ourselves a campsite! It’s been a blast!”

    Nakeisha Easterwood of Smyrna, Georgia, said with gas prices on the rise, she sometimes catches rides with friends, and doesn’t drive into town more than once a day. “It’s crazy,” she said.

    According to AAA, the national average price for a gallon of regular gas rose to a record $3.936. That compares with an average price per gallon of $3.23 last Memorial Day.

    “With it being near $4 a gallon, you definitely have to drive slower and pick and choose when you’re going to do it,” said Steve Kahn of Roswell, Georgia, at a Memorial Day festival in Atlanta.

    Some Americans have turned to public transportation. Ridership increased by 2.1 percent in 2007, in part because of rising gas prices, according to the American Public Transportation Association.

    Americans took 10.3 billion trips on public transportation in 2007, the highest level in 50 years, the group said.

    The Energy Information Administration says gas consumption for the first three months of 2008 is estimated to be down about 0.6 percent from the same time period in 2007.

    For the summer season, gas consumption is expected to be down 0.4 percent from last year.

  • TxDOT brings lobbyists in-house

    IMMEDIATE RELEASE

    TxDOT still engaging in illegal lobbying with impunity
    Chronicle reports TxDOT hired former lobbyist to lobby Democrats in Congress

    Houston, TX, May 27, 2008 – A May 25 Houston Chronicle article reveals that while TxDOT ceased hiring OUTSIDE lobbyists, it hired Rebecca Reyes using taxpayer money to work in TxDOT’s Washington office. Reyes is the daughter of Rep. Silvestre Reyes, D-El Paso.

    TxDOT spokesman Chris Lippincott expressly stated she was hired because she has a background in “lobbying.” TURF filed a lawsuit against the Texas Department of Transportation (TxDOT) for its taxpayer-funded political ad campaign to advocate toll roads and the Trans Texas Corridor (in violation of Texas Government Code Chapter 556), and it found evidence TxDOT had also illegally hired registered lobbyists. Lippincott tried to spin it by claiming they stopped hiring outside lobbyists due to budget cuts.

    “TxDOT has ceased hiring outside lobbyists in response to being caught red-handed in violation of the law, but now it’s obviously still engaging in lobbying members of Congress by bringing a former lobbyist in-house. Both the Texas Government Code (Chapter 556.004) and federal law prohibit a government agency from engaging in lobbying and using taxpayer money for a political purpose. TxDOT is just getting more sneaky in how they do it,” says an incredulous Terri Hall, Founder of Texans Uniting for Reform and Freedom (or TURF).

    “Where is the OUTRAGE from lawmakers and where is the Travis County District Attorney to put a stop to this illegal activity at taxpayer expense?” asks Hall.

    The applicable federal law is found in the Hatch Act:

    5 C.F.R. 151.121 – “a state or local officer or employee may not…directly or indirectly…command…a state or local officer or employee to pay, lend, or contribute anything of value to a political party, committee, organization, agency or person for a political purpose.”

    What TxDOT calls “outreach” and “education” is, in reality, an advocacy and political ad campaign (www.KeepTexasMoving.com) using public relations firms and political strategists to “sell” the public on a privatized, toll roads, and this sales job includes members of Congress as evidenced in TxDOT’s Forward Momentum report asking them to relax federal legislation in order to buy back existing interstates in order to toll them.

    Through TURF’s lawsuit, it uncovered detailed logs showing a concerted campaign to lobby politicians, particularly newly elected officials, which is a BIG no-no for a state agency that must remain apolitical. Alliance for I-69 Lobbyist Gary Bushell was hired by TxDOT to personally lobby more than two-dozen elected officials in the path of TTC-69 prior to the Town Hall meetings.

    Houghton admits TxDOT violated the law!
    At the packed Town Hall meeting in Hempstead last February, Transportation Commissioner Ted Houghton said he also personally met with every county judge in the path of the Trans Texas Corridor TTC-69 as he defended the necessity of TxDOT hiring lobbyists to lobby elected officials.

    This action is in DIRECT VIOLATION OF THE LAW!

    Texas Government Code:

    § 556.005. Employment of Lobbyist

    (a) A state agency may not use appropriated money to employ, as a regular full-time or part-time or contract employee, a person who is required by Chapter 305 to register as a lobbyist. Except for an institution of higher education as defined by Section 61.003, Education Code, a state agency may not use any money under its control to employ or contract with an individual who is required by Chapter 305 to register as a lobbyist.

    “TxDOT has now publicly admitted, on camera, that it has violated the LAW! Are government agencies under the rule of law or not? Who is going to step in and prosecute this rogue agency?” asks an outraged Hall.

    TURF also discovered in a memo to TxDOT dated November 8, 2007, that Rodman & Co. marketing gurus drafted positive, pro-TTC quotes on behalf of elected officials in order to place them as positive quotes in press releases about the TTC-69 project.

    Political Poll conducted on taxpayers’ dime
    TxDOT also hired Governor Rick Perry’s political polling outfit, Bacelice & Associates, to conduct a poll that included asking one’s political party affiliation in its questions.

    “What does a person’s political party have to do with a supposed ‘public information’ campaign? Nothing, it’s clear this ad campaign is about pushing a political agenda and brainwashing the public with pro-toll talking points like ‘tolls are better than gas taxes to fund roads.’ C’mon, this is politics run amok and an agency run amok. Who’s going to rein them in?” criticizes Hall.

    TxDOT’s behavior demonstrates why there are laws prohibiting the government from using its power and OUR money against the taxpayer. The citizens have the deck stacked against them when their own government forcibly takes their money and uses it to clobber them.

    Like TTC-35, TTC-69 plans to convert some existing highways into privately controlled toll roads, making Texas taxpayers pay twice for the same stretch of road as well as to force Texas landowners to give-up their farms and ranches for a massive new stretch of road in order to complete the entire Trans Texas Corridor project.

    Read more about TURF’s lawsuit against TxDOT’s misuse of taxpayer money for an ad campaign advocating tolls and against its lobbying activities here.

    Read TURF’s formal complaint against TxDOT’s illegal use of taxpayer money filed with Travis County District Attorney Ronnie Earle here.

    -30-

    TxDOT hires former lobbyist to lobby Dems in Congress

    Link to article here.

    This article demonstrates how both TxDOT and lawmakers ignore the law. Once again, TxDOT admits they’re lobbying, this time members of Congress specifically, and no one in the Legislature, Congress or law enforcement is doing a single thing about it! TxDOT leaves out the fact that they stopped hiring outside lobbyists because they got hauled into court by TURF to enforce the law prohibiting them from doing so. Read our press release laying out the laws TxDOT is breaking with impunity, despite our lawsuit!

    TxDOT tries to bridge rifts with Texans in Congress

    By BENNETT ROTH and STEWART POWELL

    WASHINGTON — The Texas Department of Transportation, long viewed as hyperpartisan and arrogant by some members of the state’s congressional delegation, has been trying to soften its image by reaching out to lawmakers of both parties in the nation’s capital.

    But while state transportation officials are having some success in easing the personal animus, they still face a stiff challenge in selling their policy agenda to the state’s elected officials in Washington.

    Many Texans on the Potomac cringe at the agency’s embrace of toll roads, the controversies surrounding the Trans-Texas Corridor and TxDOT’s resistance to many of the highway earmarks they deliver to constituents.

    “I think it’s a marriage that’s on the rocks,” said Rep. Ted Poe, R-Humble, who sits on the House Transportation and Infrastructure Committee. “TxDOT has burned some bridges with the Texas delegation.”

    The charm offensive comes as Congress begins work on the reauthorization of the massive transportation legislation that expires in 2009. The reauthorization effort will chart priorities for federal highway spending and for programs into the next decade.

    Transportation officials in Texas, who have been warning of highway funding shortfalls, hope to increase their share of federal dollars, which amounted to $3.6 billion in 2006. But they also want the flexibility to tap other sources of revenue, such as toll roads and private leasing of highways.

    TxDOT has a lot of animosity to overcome. Democrats hold a grudge against the agency for ignoring them during the years of GOP dominance in the House and for using state taxpayer dollars to hire a lobbyist linked to former House Majority Leader Tom DeLay, R-Sugar Land.

    “They bought the Kool Aid and thought Republicans would be in the permanent majority,” said Rep. Gene Green, D-Houston, referring to the GOP lobbyists hired by TxDOT. “It is no secret they didn’t talk to Democrats.”

    Thawing relations

    Lawmakers say the thaw in relations with state highway officials began last fall when the late Ric Williamson, the hard-charging and very partisan chairman of the state Transportation Commission, flew to Washington to make peace with the delegation after Democrats regained control of Congress. That effort continued after Williamson’s death in December.”There may be hard feelings about things that happened in the past, but we have significant challenges in the future,” said Deirdre Delisi, appointed by Gov. Rick Perry to lead the five-member Transportation Commission, which oversees TxDOT and the state’s extensive highway and bridge system,

    TxDOT also has taken action that appears to be aimed at placating Texas Democrats and acknowledging the party will likely remain in control of Congress for the near future.

    In February, the agency quietly ended outside lobbying contracts, worth $117,692 a month, including one held by the Federalist Group, which is run by Drew Maloney, DeLay’s former chief of staff.

    Democrats had been miffed at the contract in part because Maloney had contributed $15,500 to Republican congressional candidates — including $5,500 to DeLay — since 2003, according to Federal Election Commission records.

    Maloney also gave $750 to an opponent of Rep. Chet Edwards, D-Waco, the top Texas Democrat on the House Appropriations Committee.

    The same month it canceled the outside contracts, the transportation agency hired Rebecca Reyes, the daughter of Rep. Silvestre Reyes, D-El Paso, as one of its two staffers in its Washington office. Silvestre Reyes is an ally of House Speaker Nancy Pelosi, D-Calif, who named the Texan to head the House Intelligence Committee.

    The moves, said Chris Lippincott, a TxDOT spokesman, were not taken for political reasons. He said that the outside contracts were terminated because of budget cuts and that Rebecca Reyes was hired because she has a background in lobbying.

    Silvestre Reyes defended the hiring of his daughter, saying she “went through the same rigorous hiring process as every other applicant who applies to work for the state of Texas.”

    Rep. Nick Lampson, D-Stafford, said it was “probably true” that TxDOT had experienced problems adapting to the new Democratic congressional leadership.

    “There has been an expression of interest in coming here and building relationships,” he said, “but I (still) haven’t seen that happen at this point.”

    Lawmakers from both parties have a litany of grievances about the transportation agency’s approach to Congress.

    Edwards complained that agency officials “have been instructed to blame Congress for the inability to improve highway projects.” In reality, he said, federal spending for highways in Texas has risen faster than state spending.

    The friction with state highway officials came about, Poe said, “when TxDOT wanted to tell us what should be built in Texas. It doesn’t work that way.”

    The Trans-Texas Corridor

    Many lawmakers do not support plans for the Trans-Texas Corridor, envisioned by Perry as a project stretching from Texarkana to Mexico that would be operated by a private consortium. The corridor would include toll lanes for cars and trucks; tracks for freight and passenger trains; and space for pipelines, power lines and communications.Landowners and local governments whose property would be affected by the project have angrily protested the routes in a series of town hall meetings.

    “It is public enemy number one in my district,” said Rep. Kevin Brady, R-The Woodlands.

    Some lawmakers have signaled a willingness to meddle with plans for the corridor.

    Rep. Ron Paul, R-Lake Jackson, has introduced a bill that would prohibit federal funding for the project. The proposal is backed by Republican Rep. Michael McCaul, whose district runs from Austin to western Harris County and is a hotbed of opposition to the corridor.

    As a pre-emptive move, Sen. Kay Bailey Hutchison, R-Texas, inserted a provision in an appropriations bill that barred the state from putting tolls on existing highways for a year. The bill subsequently became law.

    Texas’ other senator, Republican John Cornyn, who is up for re-election, said he doesn’t believe the corridor is a good idea.

    “Obviously, we need more transportation infrastructure in Texas,” he said. “But I don’t think we need to plow up a bunch of new ground on private property across the state to get there.”

    Earmarks criticized

    Another area of dispute has been the willingness of lawmakers to insert earmarks — orders funding projects — into transportation bills.Lippincott said the earmarks, totaling $208 million for the state, often force the delay of other projects.

    But some Democrats, such as Rep. Eddie Bernice Johnson of Dallas, believe the earmarks are necessary to ensure a fair distribution of state highway funds.

    “I’m going to support earmarks as long as I am here breathing,” Johnson said.

    Ned Holmes, a transportation commissioner and Houston businessman, said he believes the rift between TxDOT and the Democrats can be repaired through better communication.

    Although he is a Republican, Holmes said he has remained on good terms with congressional Democrats and noted that he contributed $2,000 to Edwards’ re-election campaign in March.

    For years, Holmes said, “TxDOT was one of the most respected state agencies.

    “I think it will be again.”

    McCain tied to lobbyist for Trans Texas Corridor, toll roads

    Link to article here.

    The Loeffler Tuggey (et al) law firm represents Zachry Construction, the major toll road player in Texas who partnered with Cintra to win the development rights to the Trans Texas Corridor and landed the first privatized toll road contract in Texas for SH 130. So the connection to McCain is clear just as it was with Giuliani before him.

    A Top McCain Aide Quits
    Departure Over Ties To Lobbying Group Is Fourth in 2 Weeks
    By ELIZABETH HOLMES
    May 19, 2008

    The McCain campaign lost another top aide Sunday over ties to lobbying, the fourth such departure in less than two weeks.

    Thomas Loeffler, a former U.S. representative from Texas, resigned from his post as a national finance committee and campaign co-chairman, a campaign spokesman confirmed Sunday.

    Mr. Loeffler is the founder of The Loeffler Group, a San Antonio lobbying shop that has worked on behalf of AT&T Inc. and Southwest Airlines Co. as well as foreign interests, including Saudi Arabia.

    Mr. Loeffler’s resignation continues the fallout from a new policy that John McCain, the likely Republican nominee, instituted last week requiring full disclosure of involvement with lobbying firms and other independent political groups.

    The policy bans staffers and aides from being registered lobbyists or working on behalf of foreign interests. It allows unpaid volunteers to continue as registered lobbyists as long as they disclose those interests and don’t lobby or advise Sen. McCain on behalf of those interests.

    Although Mr. Loeffler qualified under the latter terms, his high rank at the campaign forced him to make a decision, said Charlie Black, a senior aide to Sen. McCain and a former lobbyist.

    “Senior staff people cannot be registered to lobby,” said Mr. Black. Mr. Loeffler didn’t answer requests for comment.

    Mr. Black severed his ties to the lobbying firm BKSH & Associates Worldwide this year. Campaign manager Rick Davis still owns a stake in his lobbying organization, Davis Manafort Inc., but is no longer paid by the firm.

    “Everybody’s making decisions to see if they can live with [the new policy],” said Mark Salter, a senior McCain adviser.

    Mr. Loeffler’s resignation follows that of three other advisers. Doug Goodyear and Doug Davenport left on May 10 and 11, respectively, because of their involvement with DCI Group, a firm that once worked for Myanmar’s military junta. Last week, Eric Burgeson, a McCain adviser on energy policy, was jettisoned from the campaign because he was a registered lobbyist on the same topic.

    Mr. Loeffler’s departure is arguably the most significant because of his reputation as a successful fund-raiser. He was named to his finance-committee position in December 2006 and is credited with helping the campaign limp through its cash-strapped implosion last summer.

    Mr. Loeffler has a long history with Republican presidential campaigns. He served as Texas co-chairman for former President George H.W. Bush in 1988 and was national deputy finance chairman for Bob Dole’s failed bid in 1996. Mr. Loeffler was also a major fund-raiser for the current President Bush, serving as a “Pioneer” in 2000 and a “Super-Ranger” in 2004, meaning he raised more than $100,000 and more than $300,000, respectively, in those elections.

    In a release dated March 8, 2007, that announced Mr. Loeffler’s position of general chairman of the campaign, Sen. McCain called Mr. Loeffler “a good friend” and said he would play a “very important role in our campaign.”

    The policy, dubbed “McCain Campaign Conflict Policy,” was made mandatory last week after questions arose about the ties to lobbying firms by staff and volunteers.

    The policy also bans involvement with so-called 527s — independent groups named for a section of the tax code that are able to accept limitless donations — and other such groups.