Bush money machine raised huge money in gubernatorial campaigns

In-depth Los Angeles Times probe looks at fund-raising history

By Judy Woodruff/CNN

July 13, 1999
Web posted at: 6:39 p.m. EDT (2239 GMT)

WASHINGTON (July 13) -- When Texas Gov. George W. Bush announced his record-shattering $36 million take from the first six months of 1999, the shock was felt throughout the political community. But to close observers of his fund-raising record as Texas governor, the news was less of a surprise.

Where did Bush get the money? Partly by turning to Texas. A third of his war chest was generated by Bush's home state fund-raising machine -- the same machine that powered his two runs for governor.

According to a new in-depth Los Angeles Times investigation, to be published Wednesday in its newspaper and its Web site, Bush raised more money than any other governor in U.S. history -- a staggering $41 million in his two runs for governor and some of it came from controversial sources.

Using data compiled for the Times and CNN by the Campaign Study Group, an independent research firm that analyzes campaign finance, the newspaper undertook the most detailed examination to date of Bush's fund-raising in his 1994 and 1998 gubernatorial campaigns.

The analysis identified the employers and occupations of more than 14,000 large donors, grouped them by industry and interest, and checked that against the governor's legislative record.

According to that survey, the financial sector gave the most with a total of $4.6 million. Energy and mining were next with $3.7 million followed by real estate and developers at $2.2 million.

In Texas elections, individual donors also play a major role -- much greater than in presidential elections, where individual contributions are limited to $1,000.

"Texas is a place where there are no limits on individual or political committee contributions and donations can and do exceed $100,000," The Times' Alan Miller told CNN.

One of Bush's biggest donors was Lonnie "Bo" Pilgrim, the founder of an East Texas chicken processing company who gave Bush $125,500 for his two campaigns, and another $100,000 for the governor's inaugurations.

According to Miller, Pilgrim is "one of the more controversial and colorful figures in Texas. His company has been fined hundreds of thousands of dollars over the years for violating state environmental laws. And a decade ago, Pilgrim appeared on the floor of the state Senate dispensing $10,000 checks to lawmakers as they debated a workers compensation bill."

As governor, Bush took positions on hot-button issues that drew controversy but also attracted major financial support from interest groups and firms -- among them, oil and energy companies that rank among Texas's biggest polluters.

The Times found that Bush received $1.5 million from companies that operate older high-polluting oil refineries and power plants -- the kind of facilities that have helped make Houston the nations' second smoggiest city.

"Texas is failing to meet federal environmental clean air standards and therefore there is pressure to lower pollution from these facilities. Gov. Bush has taken a position that they should do so through a voluntary program," Miller explains.

The oil and power firms like the Bush approach, which is not surprising, since they worked with the governor's office to help formulate the policy.

During the last Texas legislative session, Bush signed two anti-pollution bills, both supported by industry.

"Gov. Bush says his approach to this issue is working. Environmentalists say that he has been captive to financial backers at the expense of the citizens of Texas," Miller said.

On two other issues, tort reform and school vouchers, the Times found that the governors' positions have drawn sizable contributions, almost $5 million in all.

On both issues Bush's backers have been happy with the governor's performance but Bush's office insists there is no "quid pro quo".

"The governor's spokeswoman says there is no relationship between the campaign contributions and any of the governor's policies. She says he has core commitments, which he lays out and has laid out and he follows in office, and he is not influenced by the money in any way," Miller said.

The Times also found some of Bush's top donors were given highly valued state appointments.

"We looked at Gov. Bush's appointments to the University of Texas Board of Regents, which is a particularly coveted post. It's valued because the university produces many of the state's leaders, the position is prestigious and high profile -- and it doesn't hurt that it comes with tickets to the 50-yard line of football games, which is no small consideration in football crazy Texas," Miller said.

The Times found that eight of Bush's nine appointments to the board were major donors who gave a total of $419,000 to his gubernatorial campaigns.

The governor's office says the contributions had no influence on his appointments.

"We asked Karen Hughes, the Governor's spokeswoman about this pattern. She said that it is difficult to find conservative and successful people in Texas who are not contributors to Governor Bush," Miller said.

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