Bill White's tax returns and The Houston Way (updated)

THE AP'S JAY ROOT has reported an interesting finding in the tax returns finally released by former Mayor Bill White yesterday.

In preparation for Hurricane Rita, Mayor White lined up several companies whose services might be needed for emergency response, including Btec Turbines, a private company that would be able to supply generators to ensure the operation of the water system in the event of widespread power outages.

After one year, according to Root, White invested $1 million in the company. His tax records show that he has profited by about $500,000 from that investment.

Critics have pounced on the arrangement because of the potential conflict of interest, but White defends the investment:

White says he made the investment for the same reason that he called the company during a crisis.

"I thought the company was good at what it did," White said. He said he considered keeping the water supply flowing to refineries a "matter of national importance." While acknowledging he has made money from Btec, White said he saw no conflict of interest in the arrangement.

That rationale seems fair enough on its face, right?

Here's where The Houston Way comes into play. As noted by Root in his reporting (and above), Btec Turbines is a private company. That means small-time investors like you and me don't generally have any ability to invest in the company, no matter how impressed we might be with their performance during a regional weather event or otherwise. It also means that even while serving as an elected public official, Mayor Bill White was actively building his personal wealth in part from knowledge gained as a public official and in part by taking advantage of an apparently fantastic investment opportunity that most members of the public could not.

That arrogant little exercise in investing may not shock locals familiar with The Houston Way (by which Houston's elites sometimes do "bidness"), but perhaps it does explain why the White campaign resisted for so long releasing the candidate's tax records. The way Houston's elites sometimes do "bidness" may not appeal to a statewide audience!

UPDATE (06/10/2010): In a press conference today, Bill White petulantly told reporters, "I didn't stop investing because I was mayor."

That's kind of the problem, isn't it? I prefer my elected officials to be tending to the public's business, not profiteering through knowledge and connections directly related to the office they currently hold.

Incidentally, the AP report (linked above) and KTRK-13's Tom Abrahams (no link available yet) both reported that comment. Most media outlets apparently decided it was not worth reporting.

BLOGVERSATION: Texas Watchdog, Harris County Almanac, Campos Communications, Perry vs World.

Posted by Kevin Whited @ 06/09/10 12:59 PM | Print |

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