Perry cozy: state outsourced disaster fund (mis)management to major donor [Politics]

by Greg Haley

Rick Perry is quickly learning about the dangers of running for national public office in an era of anything goes politics. The additional scrutiny of the governor by friends and foes alike has uncovered increasingly uncomfortable relationships between Perry's administration and corporations that conduct business with the state in what appears to be quid pro quo politics at its worst.

The latest revelation reported by Businessweek and the Associated Press involves an engineering company called HNTB based in Kansas City, Mo. that was awarded a no-bid, $144 million contract to manage more than $1 billion in disaster recovery funds from the federal government to help Texas rebuild after Hurricanes Dolly and Ike. HNTB contributed more than half a million dollars to the Republican Governor's Association, for which Perry has twice been the chair, and that association has sent $4 million to Perry's political campaigns. In addition, the communications director for Perry's presidential campaign, Ray Sullivan, has been a lobbyist for HNTB.

According to the Austin American Statesman, the Texas General Land Office cancelled the HNTB contract as of August 31. The Land Office says HNTB will continue to run the infrastructure program on a temporary basis. So far the state has paid HNTB more than $45 million to process the infrastructure program that is significantly behind schedule according to federal officials. It's been three years since those storms hit Texas, yet only 20 percent of the $1.3 billion in first round has been spent. Federal officials point out that at least half of the projects were scheduled to be completed by now based on the state's own timeline.

This is the latest in a string of merry-go-round style politics in which corporations or individuals closely tied to the governor received contracts or appointments following donations to Perry's political campaigns. Perry has taken heat from other Republican presidential contenders for his cozy relationship with Merck, the company that manufactures the HPV vaccine that became a mandatory requirement for Texas girls. Merck has contributed $28,500 directly to Perry's gubernatorial campaigns since 2001 and $377,500 to the same Republican Governor's Association that sent Perry money. In addition, Perry's former chief of staff Mike Toomey became a lobbyist for Merck in Texas, and he held that position at the time of Perry's executive order requiring the vaccinations.

Just a few weeks ago, Perry led all contenders for the Republican Presidential polling by double digits, but charges of "crony capitalism," wobbly debate performances, and his stance on in-state tuition for the children of illegal immigrants have caused his poll numbers to collapse.