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uring the recent 2006 election 140 wealthy individuals donated more than $100,000 apiece to Texas state PACs and candidates. This is up 63 percent from the 86 individuals who cleared $100,000 in 2004.

With many “$100,000 Club” members spending much more than 100 grand the 140 elite donors dropped $52 million on the last election, accounting for 27 percent of the $191 million total raised by state PACs and candidates. The word on Texas’ gated streets is that you can beat the S&P 500 by investing in the state’s ingratiating politicians.

Meanwhile barbarians at the gates are trying to put a lid on the country-club set. A bill by Rep. Mike Villarreal (D-San Antonio) would bar any individual from contributing an aggregate total of more than $100,000 to state candidates and PACs in a given election (HB 111).

The $100,000 Club’s burgeoning membership accounts for only part of the club’s $23 million spending increase. The almost $13 million that longtime club pacesetters Bob Perry and James Leininger spent on the 2006 election more than doubled what this dynamic duo spent in 2004. Perry and Leininger accounted for a stunning 30 percent of the spending hike by all club members in this period.

The contributions by Republicans Perry and Leininger were partially offset by $2.1 million from club newcomer Fred Baron. This recently retired trial lawyer has been trying to resuscitate the ailing Texas Democratic Party. 

The accompanying table breaks down $100,000 Club members by their underlying industries and compares the 2006 industry breakdown to that of 2004. This comparison reveals the biggest industry shifts in the $100,000 Club’s membership and contributions.

While Construction moved up a notch to become the club’s top-spending industry in 2006, this increase is almost entirely the result of homebuilder Bob Perry, who contributed an additional $2.6 million in 2006.

A more interesting shift occurred in the Miscellaneous Business sector, which jumped to second place from its No. 6 ranking in 2004. Contributions from club members in this sector increased more than 300 percent as the club signed up a net increase of 16 new members from this sector in 2006.

Seven of this sector’s 16 new recruits made fortunes as alcohol distributors. Republic Beverage (which includes Block Distributing and Magnolia Marketing) now boasts four $100,000 Club members. Rival Glazer’s Distributing has three.

These booze wholesalers served politicos triple shots in 2006 in an effort (HB 2266) to repeal rules that force bars and restaurants to buy hooch from package liquor stores. Yet those who demand free markets must beware what they ask for. Package stores retaliated by urging the legislature to allow liquor manufacturers to sell directly to package stores—thereby bypassing the wholesalers (HB 2525).

Another dynamic sector for the $100,000 Club is Health, which moved up to No. 4 from its seventh-place ranking in 2004. Although members in the Health sector increased their contributions $5 million, this was almost entirely the handiwork of Dr. James Leininger, who made a fortune selling hi-tech hospital beds. Leininger spent $4 million more in 2006 than he did in the preceding election.

The Energy & Natural Resources industry was the only sector in which contributions by club members plummeted. This industry dropped from No. 1 in 2004 to sixth place. The more than  $5 million drop in spending by these members resulted from oil billionaire Tony Sanchez’s retirement from the $100,000 Club. Sanchez belonged in 2004 when he still was paying off some of the tens of millions of dollars that he had loaned himself for his failed 2002 Democratic campaign to be governor.

Some newcomers to the $100,000 Club in 2006 joined as a result of one-horse bets on Texas’ bizarre four-way gubernatorial race.¹ The candidacy of independent Kinky Friedman prompted his friends John McCall ($1.2 million), Barbara Bowman ($264,025) and Jimmy Buffet ($219,700) to join the club for perhaps the first and only time.

Chris Bell’s Democratic candidacy brought newcomer Ricardo Weitz ($555,956) into the fold and prompted veteran John O’Quinn ($1.1 million) to almost quadruple what he spent in 2004.

Similarly, independent Carole Keeton Strayhorn had much to do with increased expenditures by Ryan & Co. partners in the $100,000 Club.  Ryan & Co.—which dunned Strayhorn for corporate tax breaks when she was comptroller—went from three to four club members in 2006. Meanwhile, chief George Ryan more than quadrupled his spending in 2006 to $1.4 million, with most of it benefiting Strayhorn.

View list of 140 donors who contributed more than $100,000 in 2006.

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 ¹ See Keeping Texas Weird 2006, Texans for Public Justice, September 25, 2006 and the report update, 30 Days Before the Election, published October 11, 2006.