11:10 AM CST on Wednesday, December 14, 2005

By LEE MCGUIRE / KVUE News

There were new questions Tuesday in the race for governor. Is Comptroller Carole Keeton Strayhorn using taxpayer dollars in her run against incumbent Governor Rick Perry?

Campaign watchdog groups are concerned about a series of newsletters, mailed from the comptroller's state office, at taxpayer expense, that include letters from Strayhorn that are critical of Governor Perry.

Strayhorn launched her gubernatorial campaign in June. Since then, the outspoken critic of Governor Perry has gone virtually silent.

But now some newsletters sent by her state office are raising some eyebrows: the "Texas Innovator" and "Fiscal Notes" are mailed free to subscribers every two months. Since September, each has contained a commentary from Strayhorn that's critical of Governor Perry.

In one, she urges him to use a special session to send $200 million from the Texas Enterprise Fund to help victims of Hurricane Katrina. In another, she criticizes Perry for not calling a special session, then proposes sending a billion dollars in tax relief to property owners.

Tom Smith runs "Public Citizen," a political watchdog group.

"I think it strays over the line and into a campaign piece," he said. "If you're an elected official you have to be very careful not to use state funds and the state office to promote your candidacy, and that's what it looks like is going on here.

A Perry spokesman says the newsletters cross way over the line.

"Carole Strayhorn is running her political campaign out of her state office. That's unethical and it's illegal," said Robert Black, with Perry's campaign.

Strayhorn herself was not available for comment, but Deputy Comptroller Billy Hamilton says the comptroller's remarks were clearly labeled as commentary -- and dealt with financial issues -- exactly what the newsletters, and the comptroller's office, are for.

"When you have a significant surplus, which I think is one of the issues you're talking about, that that is a significant fiscal issue. It's not a political issue. It's something the state government should do," Hamilton said.

This year the comptroller's office spent $279,668 printing and mailing those newsletters. All of that money came out of the state agency's budget.