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The $20 Million Reasons Ben Barnes Betrayed Texas Democrats


by: SmartyPants

Mon Jan 08, 2007 at 11:08 AM CST


(A continuation of one of the most important discussions we must have this year. - promoted by Burnt Orange Report)

cross-posted at What's The Matter with Texas Democrats

A few weeks ago one of my readers sent me this Houston Chronicle article from 2002 (pdf file) headlined "Investment may equal endorsement" by R.G. Ratcliffe, Houston Chronicle April 22, 2002

The article shows the reason Ben Barnes has been backing Carole Keeton Rylander Strayhorn at the expense of Texas Democrats since fall of 2000.

Former Lt. GOY, Ben Barnes is known at the Capitol as Mr. Democrat, but he may be, backing Republican Comptroller Carole Keeton Rylander's re-election because she has made a $12 million state investment in one his affiliated companies.

Democratic comptroller nominee Marty Akins said Barnes told him last fall that a business relationship with the comptroller's office would prevent him from supporting Akins in his challenge to Rylander. Akins, who had announced as a candidate for governor, said he called Barnes after deciding to run instead for comptroller.

"He (Barnes) was most gracious. He would eagerly support me for any other race other than comptroller because he had a business relationship with Carole Keeton Rylander and the comptroller's office." Akins said in response to questions from the Houston Chronicle.

Barnes, who helped build this year's statewide Democratic ticket, said Akins is wrong.

Barnes said he supported Democrat Paul Hobby in the 1998 comptroller race because Hobby asked first. Barnes said he pledged support for Rylander's re-election three years ago because she is an old family friend.

"I've got no ongoing relationship with the comptroller's office," Barnes said in an interview.

But Barnes sits on the board of advisers of Techxas Ventures, a high-tech venture capital firm that invests in Texas companies. Barnes said his investment in the company amounts to less than 1 percent of its total worth.

Rylander's office in the fall of 2000 committed to invest $20 million of the state's tobacco settlement money with Techxas Ventures II L.P., one of the firm's investment funds.

"Oh, yeah, I remember that, now that you mention it," Barnes said.

The comptroller's office transferred the first $4 million of its promised investment to Techxas on Dec. 5, 2000.

Three days later, Barnes' adult son, Greg, gave Rylander $7,500, and Techxas board member Richard Salwen donated $25,000.

Barnes said his son is not involved in Techxas in any way.

Rylander and Bames said they never discussed the Techxas investment.

Rylander said the contributions from Greg Barnes and Salwen were coincidental because she was raising money to beat a Dec. 10 deadline. After that date, no statewide officeholder could raise political money until the 2001 legislative session was over.

Two days after the deadline passed, Techxas general partners Bruce Ezell and Michael LaVigna each donated $10,000 to the Associated Republicans of Texas. One of Rylander's personal aides is the son of the association's executive director.
Since then, Techxas has drawn another $8 million from the tobacco fund. Rylander's campaign has received another $15,000 from Greg Barnes and Salwen. [NOTE any typos occurred in transferring the text from the pdf which is apparently based on a printout from a Lexus Nexus search]

For the record I have immense respect for Governor Barnes (as a former Lt. Governor of Texas he is addressed as Governor) but agree with much of this note from reader:

There is one thing that strikes me in this ongoing debate about the Democratic Party.

The real targets are left untouched.

Who am I talking about?  Ben Barnes is at the top of the list.  A power broker par excellence and charter member of the Me First school of self-centered politics, Barnes long ago stopped letting the greater good stand in the way of his own personal ambition or financial gain.  For him public service and partisan politics are all about which candidates can help him line his pockets - period.

As Lt. Governor in the early 1970s, he fell all over himself to help a young George W. Bush escape dangerous military service and instead get a coveted spot in the Texas National Guard.  Then, Barnes spent the next quarter-century refusing to talk publicly (privately, he told anyone next to him on a bar stool who was willing to listen) about the favor his did for the Bush Family while first Pappy, then Jebby, then W. rose to power and did irreparable harm to the ideals Democrats like Barnes claim to hold dear.

Along the way, Barnes has repeatedly sold out his party and its principles when the price was right, which it often has been.  He kept quiet about George W.'s military service when Bush made sure that the lucrative Texas Lottery contract would remain his.  He has worked behind the scenes to keep good candidates out of statewide races by cutting off their funds.  And this year, he supported Republican-turned-Independent Carole Keeton Strayhorn over potential Democratic gubernatorial candidates - including the eventual nominee, Chris Bell - to safeguard his personal business interests, which include a major contract with the State Comptroller and controlled by Strayhorn.

Don't get me wrong.  Soulless lobbyists are commonplace in D.C. and in Austin.  It's just that most them don't simultaneously dictate Democratic Party decisions at the highest level, from Harry Reid to Boyd Richie.  Barnes does.

There are plenty of villains who make the goal of "crashing the gates" and turning the current Democratic Party structure on its head a worthy one.  But none is more destructive to our long-term ideals than Ben Barnes.

And I want to make it clear that while I disagree with his actions and question his motives, I would never presume to question his service to Texas, his service to the Democratic Party or this country in the course of his lifetime.
What I am questioning is his support of Rylander Strayhorn since 2000 and his motivations for that.
[UPDATE] I just got off the phone with Governor Barnes and he has agreed to sit down with me for a video interview on February 9. Stay tuned.

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Thank you (4.00 / 2)
Having just returned from New York, where a good friend advised me to get back to writing about what's happening here, nothing could be more welcome than knowing that I am not alone in believing that this is the next great story and mission. Everyday, I am more outraged by what Ben Barnes has wrought and by the complicit silence of most Texas Democrats.

If you want to know what makes for permanent Republican rule in Texas, look no farther than the Strayhorn Defection of 2006. And, no, we are not fighting the wrong people on this one. We are fighting for our party, our state, and the people who need Democrats to win because their actual lives depend on it.

 


And your point is --? (0.00 / 0)
Having supported Cissy Farenthold for governor against Barnes in 1972, I saw nothing surprising or even revealing in the article.  Much more revealing is the fact that you do indeed love the MSM when it suits your purposes.

as i always say (0.00 / 0)
even a broken clock is right twice a day.
And I've never said a word about the "MSM". I think the corporate media sucks compared to what it used to be but that's because they don't do enough reporting.
When they actually do report something I'm just grateful.

Any comments I make are my own personal opinion and do not reflect the opinions of any client or consulting firm I may be associated with.

[ Parent ]
Sour grapes? (0.00 / 0)
"Rylander's office in the fall of 2000 committed to invest $20 million of the state's tobacco settlement money with Techxas Ventures II L.P., one of the firm's investment funds."

The real conflict of interest, if there is one, would lie in who Ben Barnes supported for comptroller. He, or she, who controls the gold dispenses the gold. Obviously.

This seems to be tied into the same old question of "Democratic loyalty" with regard to the governor's race and the belief that everey Democrat had some "moral obligation" to support the Democratic candidate.  Quite a few didn't.  Quite a few didn't support the party itself.  Instead of constantly looking without with fingers pointed, some Democrats would do better to look within with fingers pointed. 

Get a list of all the Democratic supporters of Strayhorn and then compare their ethics to the ethics of some of Chris Bell's supporters.  And then move on to something more productive.

"I would never presume to question his service to Texas, his service to the Democratic Party or this country in the course of his lifetime."

And yet that is exactly what you are doing. 


investment? (0.00 / 0)
What happened to the conservative Republican ideal of returning money to the people? So instead of refunding that 20 million to the taxpayers it was invested? Interesting.

[ Parent ]
the money had to be invested... (0.00 / 0)
it was from the tobacco settlement.

[ Parent ]
Just cause I'm bored... (0.00 / 0)
From the Houston Chronicle 9/20/01:

"Akins' switch to a comptroller's race that likely will pit him against incumbent Republican Carole Keeton Rylander has an ironic twist.

Just four years ago, Akins was on Rylander's statewide steering committee, contributed $ 1,000 to her campaign and introduced her at four campaign events. Akins traveled with Rylander to Tyler for one political appearance.

At the time, Akins was a Republican and was hoping to get an appointment to the Texas Railroad Commission from then-Gov. George W. Bush. Akins did not get the appointment.

Akins said he became a Democrat because he came to believe that Republicans were not for average working people in Texas."


I couldn't disagree more... (5.00 / 2)
I know that a lot of dems around the country are continually frustrated with what seems to be a disjointed Party, but this article endorses some sort of inquisition against long-standing and proven Democrats that exhibit any sort of conservative behavior (i.e. Joe Lieberman). 
The fact of the matter is that the Democratic Party is traditionally a factious one, grouping together a broad range of ideologies under a single banner for common goals.  I, for one, am totally against polarizing the Party by attacking those members with differing opinions about what is best in a particular situation. 
You forget to mention, as well, that Carole Keeton Strayhorn was a Democrat when she was mayor of Austin, which may explain a lengthy and friendly relationship with Barnes and other Democrats. 
Barnes, too, continues to advocate for a variety of Democratic initiatives and donated large sums of money to people such as Claire McCaskill and Jon Tester, who now account for the Democratic majority in the Senate.  Also, Bell stood absolutely no chance in the Texas gubernatorial election and the only reason he showed so well in the polls was an excellent performance in the debates compared to implosions by both Friedman and Strayhorn, as well as a last ditch contribution from a pretty shady Houston lawyer. 
I like Bell and I voted for him, but he's not completely absent from the cash game either.  Don't be so quick to draw up conspiracy theories about people who've done so much for the Democratic cause, just because they don't always agree with you.

Couldn't agree more with lmachic (0.00 / 0)
Barnes is clearly a Democrat. Barnes maxed out to a very long list of Democrats all over the country in the 2006 cycle. I didn't find one single registered Republican candidate that he gave money to. Look it up on tray.com or opensecrets.com.

I'm tired of all the going after Democrats who chose to back Strayhorn. Most of them made the decision to do so in light of the fact that Bell was way behind in fundraising at the beginning of his campaign, and felt like Strayhorn, a moderate, had a better chance of ousting Rick Perry. Perhaps they were wrong to do so, but that does not make them all Republicans.


[ Parent ]
Could you please help me here? (0.00 / 0)
I'm wondering where "all the going after Democrats who chose to back Strayhorn" has been going on. I've been trying to listen to other people's opinions, rather than simply air my own, so I can begin to get over what feels to me like a serious failure of the Texas Democratic Party to function as, well, a state-wide political party. So far, this journal is the first public thing I've found.

Please tell me what to read, who to listen to, where to go--sounds like you've encountered a different discussion than I have--one that you're ready to leave and I'm hoping to hear.


[ Parent ]
While I haven't seen that discussion (3.00 / 1)
Both here on BOR and on Texas Kaos we've been talking about the need to change the way the Democrats in Texas function on a lot of levels.

And not just in SmartyPants' crossposted diaries.

If you haven't visited us at TK, please consider this an invitation to do so.

Before you win, you have to fight. Come fight along with us at TexasKaos.


[ Parent ]
A question about 2006 (3.00 / 2)
Do you believe that the big money defection to CKRS in 2006 was just one of those "factious" Democrat things that happen from time to time? Do you think we have a responsibility to deal with the fact of the lack of support for Bell so we don't repeat it in 2008 and 2010?

"Bell stood absolutely no chance..." you write. Why? Because nobody knew who he was because he had no money to run a media-saturating summer-long campaign.

If I hear the Bell-never-had-a-chance theory one more time... He was a long shot, but so is every state-wide Democrat at this point.


[ Parent ]
Well I hope you're right (0.00 / 0)
More correct at least than your only other contribution to this blog: nasty prediction about State Rep. Valinda Bolton's chances in the 2006 primary.
Bolton... a snowball's chance  (0.00 / 0)
Because I don't necessarily dislike Valinda Bolton, I will try to be as delicate and respectful as possible in espousing my beliefs about her chances of victory in November:
She is a shoe-in for the losers' lounge.  Her lack of name recognition coupled with that awe-inspiring wooden personality and lackluster public speaking ability makes her a prime candidate for a landslide defeat in the general elections.  Bolton gets me about as excited as a 3-hour concert with her namesake, Michael Bolton. At least Jason Earle can point at his daddy and say, "Everybody knows who he is, right?"  I don't particularly like either of these candidates' chances in November, but Earle has the name and the dollars to make a decent run against Republican favorites.
by: lmachic  @ Mon Mar 27, 2006 at 13:33:40 PM CST


Any comments I make are my own personal opinion and do not reflect the opinions of any client or consulting firm I may be associated with.

[ Parent ]
Keep at it (0.00 / 0)
I applaud you for pursuing this.  Gov. Barnes is clearly experienced enough to handle the scrutiny.  Examining past mistakes and trying to correct them in the future is a good thing.  Ben Barnes made a big mistake.  Not everything he does is a mistake, but this was and we shouldn't pretend otherwise.  Ask him who he will support next time.

thanks (0.00 / 0)
I have immense respect for Governor Barnes -- I mean he knew Kennedy and LBJ and Nixon thought he was worth destroying! -- so I just want to know why he did what he did from 2000 to 2006 and hopefully from here on Texas Democrats will unite their full potential and start saving this state. It's a disaster.

Any comments I make are my own personal opinion and do not reflect the opinions of any client or consulting firm I may be associated with.

[ Parent ]
didn't realize i had a stalker (0.00 / 0)
wow, i'm really glad that my last post was worth repeating.  i'll admit it, i was surprised by bolton, but i was also extremely surprised by welch, who ran an absolutely horrible campaign in a republican-leaning district. that prediction has nothing, however, to do with the topic at hand. it was simply a poor reading of the outcome of an election that hadn't yet occurred, a mistake which i'm sure we've all been guilty of making.  i'm not afraid to admit it when i make a mistake, even though i did vote for bolton and contributed to her campaign.  this is just another example, i think, of some democrats trying to chase other successful democrats from their parties for petty ideological differences.  that, i believe, is bad for the party and good for the republicans.

Just a heads up... (0.00 / 0)
Not a stalker. All BOR users can click on a name in the comments and take a look at all the past diaries, comments, and ratings made by that user. Since you have only made three comments, I doubt SP had to search very far...

That being said, we all make bad predictions from time to time, so no worries about that. :)

Now, a very great man once said that some people rob you with a fountain pen.


[ Parent ]
thanks Phillip (0.00 / 0)
imachic we all make mistakes -- and this has nothing to do with Gov Barne's ideology this has to do with his support of Strayhorn from 2000 to 2006 and the questions surrounding his motivations.
My goal is to make sure that Texas Democrats field the strongest teams possible in 2008 and 2010.

Any comments I make are my own personal opinion and do not reflect the opinions of any client or consulting firm I may be associated with.

[ Parent ]
The principles of reforming (3.00 / 2)
for a more visible, accountable, and effective Democratic Party in Texas are not ideological.

It's interesting to me that the split in ideological wings of the TDP is of longstanding-as witnessed by Gov Barnes in his memoir. 

What's more pertinent currently, though it seems to have its roots in the Yarborough/Connally wars is how the compromise called for always seems to be to squash more liberal voices and kowtow to Republican power plays in the interest of a false sense of bipartisanship.

That's not bipartisanship, that's feudalism.

Before you win, you have to fight. Come fight along with us at TexasKaos.


[ Parent ]
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