This coverage is part of the Center's extensive campaign research on the Presidential Election 2000. For more information, see
The Buying of the President 2000.

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The Advisers

Three Texas aides -- Karl Rove, Joe Allbaugh and Karen Hughes -- have formed Bush's inner circle since he ran for governor in 1994. Despite their lack of experience in presidential campaigns, Bush has shown no doubts about their place in the campaign.

Karl Rove, the campaign's chief political strategist, is probably the best-known Republican consultant in Texas. After years in the political wilderness, Republicans now hold all statewide offices, and Rove was responsible for engineering many of those wins. He also masterminded the high-visibility �yellow garden campaign� in 1998 when many national Republican figures traveled to Austin to meet with Bush as he considered a presidential run. As Bush media adviser Mark McKinnon once put it, ''Karl Rove is the Republican Party in Texas.� He's also consulted with GOP candidates in more than 20 states.

Rove has had long ties to the Bush family, working for the father at the Republican National Committee in the 1970s and helping him in his unsuccessful race for Congress in 1978. He helped the son in his two gubernatorial campaigns. He is said to dominate Bush's presidential race, having a say over everything from advertisements to fund raising. He also has set up a direct-mail and phone-banking operation in all states.

At Bush's request, Rove sold his firm, Rove & Company, and his direct mailing outfit, Praxis. Bush had reason to be wary after Rove admitted in a 1999 deposition that he had worked for the tobacco industry at the same time he was advising the governor. The deposition was part of former Texas Attorney General Dan Morales' lawsuit against the tobacco industry to win reimbursement for state Medicaid money spent on smoking-related illnesses. According to the deposition, Philip Morris paid Rove $3,000 a month between 1991 and 1996 �to basically advise them on elections, to give them my best feelings about what was going to happen in elections, what was shaping up in terms of candidates, political gossip [about] who was likely to get elected." He was not registered as a lobbyist. He claimed he didn�t discuss tobacco-related issues with Bush �unless I'm asked.� However, Rove did play a major role in crafting a tort reform proposal to limit consumers' access to the court system -- which was supported by tobacco companies.

Joe Allbaugh is campaign manager in charge of the day-to-day operations, including a staff of about 180 and the campaign's purse strings. He is one of a handful of aides who speak with Bush several times a day. "There isn't anything more important than protecting him and the first lady," he told the Washington Post. "I'm the heavy, in the literal sense of the word." He has described his role as �the enforcer of the governor's will and mediator of staff egos.�

Allbaugh has been with Bush since he managed Bush's first race for governor in 1994. After Bush won, Allbaugh became chief of staff. He left that post in 1999 to run Bush's White House bid. Allbaugh met Bush in the mid-1980s while working for former Oklahoma Gov. Henry Bellmon as his Cabinet and legislative director. In 1994, Bush asked him to take over his gubernatorial campaign. Allbaugh had some prior Texas experience, working for Sen. Phil Gramm of Texas' re-election bid after he quit the Democratic Party in 1983, and then serving as deputy regional director for the 1984 Reagan-Bush ticket.

Playing the heavy has thrust Allbaugh into the spotlight. In a 1999 lawsuit, Eliza May, the former executive director of the Texas Funeral Service Commission, accused Bush and Allbaugh of trying to squash her agency's investigation of Houston-based Service Corporation International, the world's largest death-care services provider. The suit accused the company of conducting unlicensed embalmings at some of its facilities. May alleged that Bush did so at the behest of SCI founder and CEO Robert Waltrip, a longtime financial supporter of Bush's father. After the commission raided several funeral homes, Waltrip met with Allbaugh and gave him a letter complaining about the agency's probe. Several weeks later, May claimed she was called to the governor's office. The governor was not present, though Allbaugh, Waltrip and state Senator John Whitmire were among those who were. May claims that Allbaugh stood by while Whitmire grilled her about her agency's investigation of SCI. Allbaugh denies he did anything more than try to get both sides of the story. The commission eventually recommended that the company be fined $445,000, but SCI appealed, got the legislature to intervene, and has not paid.

Karen Parfitt Hughes is communications director. Few people can anticipate George W. Bush's reactions better than Hughes, a one-time television news reporter and former executive director of the Texas GOP. Bush consults �the High Prophet,� his nickname for Hughes, on just about every policy issue. On the windowsill in her at campaign headquarters in Austin are two photos of Hughes and Bush together: On one, Bush signed, "Without you, it could not happen," and on the other, "By my side--always right." 

Hughes is responsible for shaping the Bush message, and choosing the handful of themes that he has focused on during his gubernatorial bids and his presidential campaign. Hughes keeps a tight rein on the governor's contact with the press and has been known to cut Bush off to make sure he doesn�t get off message. Jay Root, Austin bureau chief of the Fort Worth Star-Telegram, once described Hughes as "surgically attached to message."

Hughes began as a television news reporter and anchor for NBC affiliate KXAS in Fort Worth. She covered the 1980 presidential campaign. In 1984, she left journalism to become Texas press coordinator for the 1984 Reagan-Bush campaign. In 1991, Texas GOP chairman Fred Meyer tapped her to be the party's executive director. She quickly became an oft-quoted thorn in the side of then-Gov. Ann Richards, a Democrat. She was a natural fit for the job of communications director for Richards' 1994 opponent, George W. Bush.

 
Pols and K Street

The Washington fund-raisers are just a fraction of well-heeled friends who have helped Bush raise a record-breaking $68 million. At the core is an elite group of more than 150 fund-raisers known as �Pioneers,� a number of state finance chairs, and a cadre of other well-connected corporate executives. The group represents a cross-section of Corporate America, including the oil, real estate, insurance, financial services, and pharmaceuticals industries. The campaign released a list of the Pioneers, who had committed to raise at least $100,000 by last June, in response to pressure from public interest groups and several news organizations. According to the Dallas Morning News, each Pioneer was assigned an identification number, which appears on each donor's check.

A large share of the fund-raisers live in Texas, including Kenneth Lay, chairman of Enron Corp., and Erle Nye, chairman of TXU Electric and Gas Co., who were raising money for Bush while the legislature was deregulating the electric industry. Also on the list is Steve Hicks, an Austin radio-station chain executive, whose brother, Thomas Hicks, bought the Texas Rangers from Bush. A number of the Texas money men have been appointed by Bush to state boards and commissions. Several of the fund-raisers were members of President Bush's Team 100, including Heinz Prechter of Michigan, whose company American Sunroof Co., won a lucrative contract after traveling with President Bush to Japan as a member of his Export Council, according to Common Cause. �Bush has to sell his soul to do this,� Craig McDonald, director of Texans for Public Justice told the Dallas Morning News. �He's going to be the leading candidate in history with special-interest money. If he's elected, we�ll need to put bunk beds in the Lincoln Bedroom.� 

The following are just a few of the fund-raisers:

Donald Evans is chairman of the campaign's finance committee, overseeing the campaign's astounding fund-raising operation. Evans is chief executive officer of Tom Brown Inc., an oil and gas company based in Midland, Texas. As reported in the Center's Buying of the President 2000, Bush joined the company's board as an outside director in 1989, receiving $12,000 a year, plus stock options, for attending several meetings and participating in conference calls. He also raised Evans' salary while he sat on the company's compensation board. After Bush was elected governor, he sold his Tom Brown holdings for a profit of $297,550. He appointed Evans to a seat on the prestigious University of Texas Board of Regents.

Charles Cawley: One of Bush's key fund-raisers has been Charles M. Cawley, the president of MBNA Corporation and CEO of its banking subsidiary, MBNA America Bank, N.A. MBNA is the third largest issuer of Visa and MasterCard credit cards, and is perhaps best well-known for its "affinity" cards that are related to some 4,600 professional, recreational and charitable organizations, including the National Association for Stock Car Auto Racing (NASCAR) and the National Wildlife Federation.

While Cawley has been a successful businessman in propelling MBNA's revenue upward (sales were up more than 14% in 1999), he's also been a big-time fund-raiser for Gov. George W. Bush. The banking executive personally held two $1,000 fund-raisers for Bush in 1999, one at his house in Maine during the summer, and a second at his home in Delaware (where the company is headquartered) during the fall. On top of that, MBNA executives and the company PAC were the largest contributors to Bush's campaign through the fourth quarter of 1999. According to the Center for Responsive Politics, company interests gave Bush $208,150.

Cawley, who is the finance chairman of Bush's Delaware campaign, isn't the only MBNA executive with an official role in the campaign. The Texas governor can also count on John McKernan, the former governor of Maine, who is now a consultant to MBNA. McKernan is Bush's New England campaign director. Lance Weaver, chief administrative officer with the bank, is also a co-finance chair of the Delaware Bush campaign.

MBNA's support of Bush didn't start with the 2000 presidential campaign. Cawley has known Bush since 1993, and was reportedly introduced to the future presidential aspirant by his parents, George and Barbara. Cawley held a fund-raiser for Governor Bush in 1997, and two years ago, MBNA Corp. and the Cawley family were listed as donors to the George Bush Presidential Library and Museum, giving more than $1 million.

In Bush's 1998 race for re-election, MBNA executives donated $50,000 to the Republican incumbent, including $16,000 from Cawley himself. Since 1994, when Bush took office in Texas, MBNA executives and the company PAC have contributed well over $250,000 to the governor and presidential hopeful.

MBNA, known by some in Delaware as "The Firm" for its secretive nature and cult-like executive brotherhood, has come under fire in the past for its campaign contributions. In 1995, the Wilmington News-Journal obtained internal MBNA documents showing that the company circulated a memo to top executives suggesting, depending on their seniority, how much to give to certain candidates in key 1994 elections. Among the identified candidates was Governor Bush of Texas. The company's actions bordered on illegality, but since the memo was not written on company stationery and did not explicitly require the executives to donate, it managed to skirt federal elections laws that prohibit an employer from pressuring employees to give political donations.

Cawley's and MBNA's support of Bush continues into 2000. Bush was in Delaware campaigning on Jan. 12, and attended a Delaware State GOP fund-raiser at the ritzy Hotel DuPont in downtown Wilmington. A private reception before the main lunch featured the chance, for $1,000, to take one's picture with the candidate. Besides the 60 or so people who paid for that private reception (Cawley and around 10 MBNA executives were among them), 400 more came for the $100-a-plate luncheon, bringing the afternoon's take to at least $100,000. While the money ostensibly goes to the state Republican Party for "party building," a spokesman for the Delaware GOP told the Center for Public Integrity that no other GOP candidates have participated in such fund-raisers, nor were there plans for future fundraisers with other candidates. Come the general election in the fall, assuming George W. Bush wins the Republican nomination, the Delaware State Republican Party will have plenty of cash on hand to help the governor out with grass roots mobilization and issue ads.

Later in the day, Bush visited a homeless facility to which Cawley has given more than $5 million, and the evening was capped by Cawley and his wife being awarded the Delaware State Chamber of Commerce's annual award. The featured speaker at that event was none other than George W. Bush. In his remarks to the crowd of over 1,000, Bush said that, "the role of government is to create an environment in which the Cawley's of the world can prosper." Cawley is certainly betting on that.

Bob Malone is state campaign co-chair in Alaska. He is chief executive officer of the Alyeska Pipeline Service Co., a consortium owned by major oil companies active in the North Slope of Alaska and which manages the 800-mile trans-Alaska pipeline. A Texas native, Malone has faced numerous headaches at the company since he came on board in 1996 from BP Amoco. Environmentalists and a number of whistleblowers, who identify themselves as senior employees at the company, have warned about unsafe and environmentally hazardous conditions at the marine terminal in Valdez. The pipeline is under the scrutiny of several federal agencies. During a meeting with Malone, Bush asked him about the decades-long effort by oil companies, including BP Amoco, to open up the Arctic National Wildlife Refuge to oil and gas exploration, according to the Anchorage Daily News. Bush made no commitments to Malone. The Clinton administration has opposed opening up the refuge.

  
Conservative Compassion for Business

It should come as no surprise that so many with so much are supporting Bush. As governor of Texas, Bush has advocated a pro-business agenda of deregulation, tax relief and protection of companies against lawsuits. And if the campaign is a guide, it's likely that a Bush administration will take care of business.

One of the best examples of Bush's pro-business conservatism is his position on the environment. Texas cities suffer from among the worst air pollution in the country. But in late 1996, when the Texas environmental agency started talking about eliminating a provision in the state's clean-air law that exempted older plants, the energy industry balked. Executives from oil refining, chemical and electrical companies went directly to the governor's office for relief. Bush then tapped two oil industry executives to come up with a plan for voluntary compliance with state clean-air standards. Less than a year later, the government put the voluntary plan into effect, though last year, facing public pressure, he signed a bill to force some older plants to cut emissions. Many executives from the energy industry were only too pleased to join his Pioneer club.

As governor, Bush also followed through on campaign promises by signing a number of bills that limit the access of victims to the court system and the amount of damage awards they can receive. Not only did those bills benefit manufacturers, but they also reduced the payouts for insurance companies. Insurers also benefited in 1995, when Bush vetoed the Patient Protection Act, which would have required health-maintenance organizations to let patients see doctors outside their network. He eventually compromised in 1997 by allowing a bill become law (without his signature) that allowed patients to file suit against their HMOs for malpractice.

In his campaign for the presidency, Bush is advocating many of the same policy positions that have made him so popular among Texas' business elite. Though he's rejected supply-side beliefs and wants to reduce tax rates for moderate-income families, he has proposed a $483 billion tax cut plan that cuts the highest marginal rate to 33 percent, from the current 39.6 percent. Bushonomics would also eliminate the estate tax. On environmental issues, his Web site notes that he opposes the Kyoto accords on global warming and 'supports protection of private property rights.�

Bush has chosen a coterie of economic, environmental and high-tech advisers who share much of his support for corporate interests. Many on his economic team served with his father or with President Reagan. The campaign's informal policy coordinator is Allan Hubbard, an Indianapolis businessman who was executive director of Vice President Dan Quayle's Council on Competitiveness, an ad hoc White House panel that sought to free businesses from overwhelming costs and greater regulation. Economic aides include Lawrence Lindsey, appointed by President Bush to the Federal Reserve Board and an advocate of across-the-board tax cuts, and Timothy Muris, a law professor at George Mason University who's an outspoken critic of aggressive antitrust actions. On Bush's health team is Deborah Steelman, a respected health-care lobbyist whose clients include some of the largest insurance companies, and John Goodman, head of a Dallas-based think tank that advocates tax credits for the insured to buy private insurance (see In Search of a New Domestic Ideology). And included on Bush's environment team is Terry Anderson, whose Bozeman, Montana think tank advocates auctioning off all federal lands over the next few decades and allowing private citizens, organizations and business interests to bid for them. And his high-technology advisory council includes the executives of some of the nation's leading tech companies.

Allan B. Hubbard plays an informal role recruiting policy advisers and arranging meetings and telephone conferences between the governor and his staff and the economic team. It was Hubbard, a Harvard Business School classmate of Bush, who introduced Lindsey to the governor in Austin in the summer of 1998. Hubbard worked with Lindsey when Hubbard was Quayle's deputy chief of staff and Lindsey was at the White House Council of Economic Advisers. Hubbard is the head of E&A Industries Inc., which owns several chemical manufacturing companies in Indianapolis. Hubbard is no stranger to politics. He managed the 1988 presidential campaign of Republican Pierre S. �Pete� DuPont, was vice chairman of Dan Coats' successful 1990 Senate race in Indiana, and was chairman of the Indiana GOP.

Hubbard met his share of controversy while he served as executive director of the White House Council on Competitiveness. Watchdog groups and Hill Democrats accused Hubbard of violating federal law by working to change regulations that affected companies in which he was an investor. According to the Washington Post, in 1990 Hubbard pushed to relax rules on sulfide dioxide emissions at the same time he owned $18,000 in stock of PSI Resources Inc., a holding company that owns 15 utility companies in Indiana. PSI, then listed by the EPA as a large polluter, had been advocating the changes.

The council's actions to weaken emissions regulations also benefited World Wide Chemicals Inc., an Indiana company that makes chemicals that go into auto waxing and other car products. At the time, Hubbard owned a 50 percent stake in World Wide Chemicals. According to his financial disclosure form as reported by the Associated Press in 1991, World Wide paid Hubbard $786,000 in dividends and nearly $1.6 million in 1989. Hill Democrats investigated Hubbard for possible conflicts of interest and violations of federal ethics rules and conducted hearings. In July 1992, the House voted to cut funding to the Council. In the wake of the probes, Hubbard said he would donate his stock to charity, though he eventually put his holdings into a blind trust. 

  
The Economic Team

Most members of the economic team go back to the Reagan and Bush administrations. Headed by Lawrence Lindsey, the team meets several times monthly, and a handful meet with Bush about once a month. �From the get-go, the governor has been clear on his priorities, such as tax policy,� John Cogan, deputy director of the White House Office of Management and Budget in the Bush administration, told the Center. Cogan said that the tax plan was part of a process that took the team 11 months to develop. Martin Anderson of the Hoover Institution told the Center that in 1998 and 1999, before Bush stepped up his traveling, he would meet at the governor's mansion all day with policy people who flew in to Austin. Anderson said that after hours of discussions, Bush would say, �Do more work, have something written up.� And J.D. Foster, executive director of the Tax Foundation, said that Bush �wanted the biggest tax cut possible.� Though there are goodies for moderate income families, the top earners get most of them. According to an analysis by the Center on Budget and Policy Priorities, two-thirds of the plan's benefits go to the top 10% of taxpayers, while only 1% go to the bottom 20%. And George W. Bush also has decided to take �the pledge�: Read my lips, no new taxes.

Lawrence Lindsey heads the economic team. Although he worked for President Bush, he didn�t meet George W. Bush until the summer of 1998, when he was introduced to him by Al Hubbard. Lindsey has recruited most of Bush's economic team. Considered more of a pragmatist than an ideologue, Lindsey worked on a plan that defines �compassionate conservatism� without alienating those who favor conventional Republican economic tenets of tax and spending cuts. He believes that tax cuts will raise productivity, and he has advocated across-the-board cuts in tax rates, softened with targeted breaks for children, charitable giving and educational saving. Lindsey has committed GOP heresy by retaining capital gains taxes, but believes that income-tax cuts for at the top marginal rates will reap even bigger rewards. He also favors personal savings accounts for Social Security -- a position Bush favors as well.

Lindsey started out as a senior staff economist for tax policy with the Council of Economic Advisers under Reagan. After teaching economics at Harvard, he became a special assistant to President Bush for policy development. In 1991, Bush appointed him a governor of the Federal Reserve Board, where he served until 1997. He's now a scholar at the American Enterprise Institute. 

Timothy Adams is an unpaid adviser and a former aide to Lindsey in the White House. Adams is a Washington consultant and works as an independent newsletter publisher.

Martin Anderson is a fellow at the Hoover Institution. He worked as an assistant to President Reagan for policy development. He was director of research for Richard Nixon's 1968 presidential campaign and later was a special assistant to President Nixon. He was a senior policy adviser in Reagan's presidential campaigns in 1976 and 1980. In 1996, he was a policy adviser to Bob Dole's presidential campaign. Anderson is a trustee of the Ronald Reagan Presidential Foundation.

Michael J. Boskin served as chairman of President Bush's Council of Economic Advisers from 1989 to 1993. Anderson is now a fellow at the Hoover Institution and a professor at Stanford University who specializes in fiscal, trade, and regulatory policy. He's a scholar at the American Enterprise Institute and a research associate at the National Bureau of Economic Research. He is also an adviser to the Congressional Joint Committee on Taxation, and sits on the advisory board of the Congressional Budget Office. 

John F. Cogan advises on taxes, Social Security, the budget and health care. He is a fellow at the Hoover Institution at Stanford and was recruited for the economic team by a Hoover associate, former Secretary of State George Shultz. Cogan advocates lower tax rates to promote economic growth and to ease the ability of lower-income families to join the middle class. He believes that at the upper income levels, higher tax rates discourage savings and entrepreneurial efforts. He believes the Medicare program should be restructured so individuals can choose their own health plan -- for instance, giving up long-term care in exchange for paid prescriptions. On Social Security, he favors allowing a portion of Social Security payroll taxes to be used by individuals to establish personal retirement accounts.

Cogan was assistant secretary for policy in the Labor Department in 1981. In 1983, he went to the White House Office of Management and Budget as associate director for economics and government. In 1988, he became deputy director of OMB under President Bush.

Martin Feldstein was chairman of the Council of Economic Advisers for three years under President Reagan. He is currently an economics professor at Harvard.

J.D. Foster is executive director of the Tax Foundation, a research outfit in Washington that advocates a neutral tax system that is designed to raise money and not to favor any type of investment or consumption. Foster advocates tax cuts, the privatization of Social Security, and less spending on pork projects. He opposes higher excise taxes on cigarettes, saying such taxes are regressive, and also opposes the Justice Department's lawsuit against the tobacco industry to recoup Medicare costs, arguing that tobacco taxes already are a financial boon to the government. Sponsors of a November Tax Foundation conference included Exxon, Koch Industries, Georgia-Pacific, Caterpillar, Philip Morris, and Microsoft. Before joining the foundation, Foster spent a year as a special assistant to Michael Boskin, chairman of President Bush's Council of Economic Advisers. He was also a staff economist with the Senate Republican Policy Committee and economic counsel to Sen. Steve Symms, R-Ind.

In an interview with the Center, Foster downplayed his participation on the Bush team, saying, �If it's a solar system and the candidate is the sun, then I�m the moon on Pluto.� Still, Foster said that he had been to Austin �a couple of times' and had been on a number of conference calls with the tax and budget group. �I�m the most junior person on the calls,� he said. He also filled in for Lindsey at a January symposium at the American Enterprise Institute on the candidates' tax plans. 

R. Glenn Hubbard is a Columbia University professor of economics and finance and director of the program on tax policy at the American Enterprise Institute. He was deputy assistant Treasury secretary for tax analysis in the Bush administration, and a consultant to the Federal Reserve Board and the Federal Reserve Bank of New York. He's a specialist in public finance, financial markets and institutions, corporate finance, banking and energy economics. He's a consultant on taxation and corporate finance to many corporations.

In a recent book, he writes that U.S. tax policy significantly affects investment decisions of multinational corporations and argues that U.S. financial markets are constrained by obsolete regulatory policies. In addition to economic policy, he's also advising the Bush campaign on health care issues. He was deputy assistant Treasury secretary for tax analysis in the Bush administration, and a consultant to the Federal Reserve and the Federal Reserve Bank of New York.

Edward Lazear is a Stanford Business School professor who specializes in labor economics. Lazear has been an adviser to the governments of Czechoslovakia, Romania, Russia and Ukraine, on privatization, pricing policies, and labor issues such as wages, unions, and unemployment. 

Timothy J. Muris heads up a working group on regulatory reform issues. He's an expert on the federal budget process, antitrust issues, and contract and consumer law. Muris is interim dean of the George Mason University School of Law. During the Reagan administration he served a stint as director of the Federal Trade Commission's Bureau of Competition at a time when antitrust enforcement was virtually moribund.

John B. Taylor is a Stanford University economist who is the author of best-selling textbooks on introductory economics. He was a senior economic policy adviser to Bob Dole's 1996 presidential campaign and is a member now of California's Council of Economic Advisers. He was a member of President Bush's Council of Economic Advisers.

Robert Walker heads a working group on science, research and development. A former congressman from Pennsylvania from 1977 to 1996, and former chairman of the House Science Committee, he is now with the Washington lobbying firm the Wexler Group. Last year, Walker lobbied on behalf of Edison International, Oracle, Lockheed Martin, Foothills Pipeline (Yukon) Ltd., American Airlines, ARCO, General Motors, the Business Roundtable and several public utility companies.

 
High-Tech Policy

Silicon Valley, the Northern Virginia corridor and other high-tech centers have become key battlegrounds for votes and money among the candidates. Despite Gore's reputation as Vice President Techie, it's Bush who's creating a lot of the excitement because his opposition to business regulation appeals to libertarian, self-made millionaires. On July 7, 1999, Bush appointed an Information Technology Advisory Council, which includes top executives from Microsoft, Dell Computer, Autodesk and Cisco Systems. They give advice to the campaign, help Bush with his speeches on high-tech issues, and help recruit other industry leaders. A handful of them joined him at an event in New Hampshire, which is experiencing its own high-tech boom. The council has conference calls and meetings, and members e-mail or speak with the campaign frequently. But their help goes beyond advice: A number of the executives on the Council are raising money for Bush. 

Texas is the home to Dell, Compaq Computer, Agillion and Texas Instruments, and Bush has won kudos from industry executives there. He created a technology council of corporate executives, which successfully pressed the state legislature to pass a research- and-development tax credit and an improved technology curriculum in community colleges. High-tech executives also praise Bush's longtime support of tort reform and his support in the Texas legislature of a Y2K bill that limited the liability of computer companies if their products didn�t work on Jan. 1, 2000.

The campaign's tech group has reaped big payoffs so far. Ted Heidinger, a Dell Computer Corp. spokesman in Round Rock, Texas, told the Center that at the prodding of the high-technology council, Bush came out against a section in rival John McCain's tax plan that would limit the deductibility of corporations' advertising. �Our products have a shelf life of six to 12 months, and advertising is a business expense that we need to deduct now, not in the future,� Heidinger said. And the rest of Bush's agenda dovetails with that of the industry. He supports the industry's position that the federal R&D tax credit, now worth about $2.5 billion, should be made permanent rather than renewed annually. Bush also supports raising the limits on the numbers of visas for skilled workers from overseas. He supports loosening regulations that limit the export of civilian computer technology, and maintaining the Internet a tax- and tariff-free zone. The following are the key tech advisers:

Michael Dell is chairman and CEO of Dell Computer Corp. in Round Rock, Texas, the leading direct-sales computer company. He is chairman of Bush's high-technology council. 

James Barksdale is managing partner of the Barksdale Group, an investment advisory group he founded in April 1999. He recently donated $100 million to the University of Mississippi, his alma mater, to develop reading programs for underprivileged children. He was CEO of Netscape Communications Corp. until it merged with America Online Inc. He was a key witness for the Justice Department in its antitrust lawsuit against Microsoft Corp. 

Carol Bartz is chairman and CEO of Autodesk Inc. in San Rafael, Calif., the world's leading supplier of design software. The Clinton administration appointed her to the President's Export Council.

John Chambers is president and CEO of Cisco Systems in San Jose, Calif., worldwide leader of Internet networking systems and the fastest-growing company in the computer industry, with a market cap of $100 billion. In September 1997, Cisco launched an �academy� program to certify high-school and community college students in computer networking.

Richard Egan is chairman of EMC Corp. in Hopkinton, Mass., the world's leading supplier of mainframe computer disk memory hardware and software. Egan is a fund-raising Pioneer for Bush.

Robert Herbold is executive vice president and chief operating officer of Microsoft Corp. In the wake of the Justice Department's antitrust lawsuit, Microsoft has stepped up its political giving, especially to Republicans, and its lobbying presence in Washington. The company is hoping that a new Bush administration would call off the lawsuit, which is likely to drag on through the courts well past Inauguration Day. During a campaign swing through Washington state last July, Bush met privately with Bill Gates, who recently stepped down as CEO but remains chairman and �chief software architect.�

E. Floyd Kvamme is a partner at Kleiner Perkins Caufield & Byers, a venture capital firm in Menlo Park, Calif. He is a co-founder of Technology Network, a bipartisan political lobbying group of 190 high-tech CEOs and venture capitalists. Kvamme develops high-tech companies from start-up to their public phase. On the high-tech industry's traditional resistance to involvement in politics, he told a Palo Alto newspaper in September 1998: �We might as well influence what kind of regulation or legislation (lawmakers) roll out on us, because there's no doubt they will.� Kvamme sits on the boards of a number of high-technology companies.

Steve Papermaster is the 34-year-old CEO of Agillion, an Austin company that offers specialized record-keeping and communications services to small and mid-sized businesses. He co-founded the company in January 1999. 

  
Environmental Policy

Bush doesn�t want to cede the green issue to Gore, but he's looking for a new approach that depends more on conservative, market-based approaches than on government intervention. His team is eclectic, ranging from those who would privatize public lands to those who are willing to give business a freer hand as long as such non-governmental approaches lead to real environmental protection. The team of about a dozen experts communicate by e-mail and occasionally by teleconference. But so far their role is minor and the issue is not rising to the top of the campaign agenda.

Christopher DeMuth heads the environmental policy team. He is president of the American Enterprise Institute. He served in both the Nixon and Reagan administrations. During the latter, he was executive director of the Presidential Task Force on Regulatory Relief, headed by then-Vice President Bush. While at the White House, he led efforts to block the phase-out of lead from gasoline. In June 1999, he applauded a decision by a federal appeals court that had blocked the Clinton administration's air quality standards for ozone and particulate matter. He called the ruling �a victory for democracy over costs,� and said that air-quality standards shouldn�t be tightened until the benefits of incremental improvements balance the costs.

Mary Gade is an unpaid adviser. A highly respected Republican moderate, she served eight years as director of the Illinois Environmental Protection Agency. She also worked for 13 years at the federal EPA. In 1997, when the federal government threatened to withhold highway funds if Illinois did not meet tough new emission standards, Gade responded by targeting power plants. She also has helped combat ozone depletion in novel ways. In 1998, Illinois for the first time allowed Chicago-area businesses to trade emission credits. The program, which aimed for a 12% reduction in ground-level ozone by 2010, was supported by environmental and industry groups and approved by federal regulators.

Terry L. Anderson is executive director of the Political Economy Research Center, a think tank based in Bozeman, Mont., that offers "free market solutions to environmental problems." He also is a professor of economics at Montana State University and a senior fellow at the Hoover Institution. In a 1999 article he co-authored for the libertarian Cato Institute, Anderson, claiming the federal government has mismanaged federal resources, posited the idea of the divestiture of all federal lands over the next 20 to 40 years, including national parks. �Probably the best way to transfer ownership would be to sell the lands to the highest bidders and use the revenues to pay off the national debt,� he writes.

Under his plan, land would be auctioned off not for dollars but for �public land share certificates,� similar to stock certificates, that would be distributed equally to all Americans, who could freely transfer deed rights. �What special provisions, if any, should the divestiture plan make for the Grand Canyon and similar national parks, monuments, forests, and wilderness areas? One possibility would be to specify no restrictions at all,� says Anderson, who believes that land should be allocated to �the highest-value use.� His proposal, which is posted on his Web site, says owners of surface rights to the Grand Canyon, �whether it is the Nature Conservancy or Atlantic Richfield, would have an incentive to seek donations or charge visitors fees, or both, to manage the scenic resources of the Grand Canyon.� 

Gale Norton is a conservative environment expert who served two terms as Colorado's attorney general. She was appointed by President Bush to the Western Water Policy Commission and was an associate solicitor for the Interior Department. She sits on the board of the Independence Institute, a free-market think tank in Golden, Colo. She also is a lawyer with the firm of Brownstein, Hyatt, Farber, and Strickland, where she specializes in business regulation and the environment. Norton was a strong advocate of Colorado's 'self-audit� law, which allows companies to conduct voluntary audits to determine whether they are complying with environmental requirements. The law gives businesses immunity from litigation and fines if they report the violations and correct them. The federal EPA has objected to these self-audit laws. 

Lynn Scarlett is executive director of the Reason Public Policy Institute, a libertarian think tank in Los Angeles. She has spent the last five years studying state innovations in pollution policy, including the use of incentives for business. She told the Center that at a May meeting with Bush she suggested that he emphasize these innovations to appeal to the 85% of voters who consider themselves environmentalists.

Scarlett told the Center that the May meeting with Bush was to help him understand the issues and policy options. She says she was contributing to a �vision,� not a specific policy. As a specific issue emerges, she gets e-mail from the campaign office and gives her thoughts. She says that the environment is not on the top of voters' minds but that that will begin to change. 

Richard L. Schmalensee advises on global warming issues. Schmalensee is dean of the Massachusetts Institute of Technology Sloan School of Management and was Microsoft Corp.'s chief witness on economics in the Justice Department's antitrust suit. He argued that Microsoft did not have a monopoly in personal-computing operating systems. Formerly a member of President Bush's Council of Economic Advisers, he favors market-based approaches to climate-change problems. He would like to see EPA change its focus from directing companies on how to treat environmental problems to taking more of a monitoring role. He would also like to see the states, rather than the federal government, conduct more of the inspections of industrial discharges. Schmalensee told the Center that his belief that global warming is an important matter but not a scientific certainty is not universally shared by other team members.

James M. Seif is secretary of the Pennsylvania Department of Environmental Protection. He was regional administrator for EPA during Reagan's second term. At the May meeting with Bush, he told the governor that the EPA should shift its focus from giving out orders to educating businesses about environmentally sound techniques, according to National Journal. Seif has come under attack from environmental groups that have accused his department of failing to report Clean Air Act violations to the EPA, according to the Pittsburgh Post-Gazette. Seif denied the charges. In February 1996, Seif tried to persuade Allegheny County commissioners to let the state take over the county's aggressive air-quality control program. Seif's efforts were supported by local businesses, including USX Corp., which operates the world's largest coke-producing operation, in Clariton, Pa. A month earlier, USX had complained to Seif that local regulations had put its coke operations at a disadvantage.

John F. Turner is president of the Conservation Fund, an Arlington, Va.-based group that forges partnerships between business and government to protect natural habitats. He told the Center that he discusses issues with Bush related to wildlife and water and land conservation. The director of the U.S. Fish and Wildlife Service during the Bush administration, he said he has known the family for years and has gone fishing with members of the Bush family. He said he met the younger Bush two years ago while doing land protection projects for state park and wildlife refuges in Texas.

Turner is viewed as a pragmatist and believes that working with private landowners is essential. The Conservation Fund promotes the land and water trust concept, which involves granting tax breaks to landowners and buyers who promise not to develop property.

Bruce Yandle is professor of economics and legal studies at Clemson University in South Carolina. He also is a senior adviser at Anderson's think tank (see above). According to National Journal, Yandle believes that companies' compliance should be based on whether they reduce pollution rather than on whether they implement specific steps.

  
In Search of a New Domestic Ideology

At the start of his campaign, George W. Bush talked up �compassionate conservatism,� a philosophy that rejects the idea that money will solve social problems as well as the notion that the market will take care of the poor. In many speeches, he talks about �prosperity with a purpose��that the American Dream must �touch every willing heart.� Now his campaign is trying to come up with ideas that will turn a philosophy into an action plan. 

The Bush effort is tapping into a network of conservative domestic policy thinkers who believe in a more activist style of conservative governance. The wonk search has been left in the hands of Stephen Goldsmith, who was known as a reformer as Indianapolis mayor, and Joshua Bolten, a campaign staffer who is policy director. In an interview with the Center, Goldsmith said the dozen or so teams are coming up with policy positions that hew to Bush's general philosophy. �A conservative government has an obligation to those left behind,� says Goldsmith, noting that Bush wants �to address issues in new ways.� One new way would be for the federal government to help fund local groups, including faith-based organizations, to distribute help to those in need. In education, successful programs, not failing ones, should be funded, according to Goldsmith. Bush already has proposed that federal money that now goes to the poorest school districts should be given to parents to hire tutors if the schools perform badly. Bush also is pushing $8 billion in tax credits for charitable donations to private and religious groups that fight poverty in their own communities.

Goldsmith said that Bush has met with many leading think-tank and academic scholars. Goldsmith speaks daily with Bolten and meets weekly with Bush and Bolten. Other advisers send memos and papers to Goldsmith. He said there are no one or two policy advisers who represent Bush's view. They give Bush several options from which to choose, he said.

Stephen Goldsmith heads Bush's domestic policy advisory team. Last year, he ended his term as Indianapolis mayor, where he had earned the reputation among Republicans and Democrats as a public-policy innovator. He is among a group of reform-minded mayors from both parties, including Democrats John Norquist of Milwaukee, Richard Daley of Chicago, and former mayor Ed Rendell of Philadelphia; and Republicans Rudolph Guiliani of New York, Richard Riordan of Los Angeles, and Susan Golding of San Diego. Goldsmith turned Indianapolis into a laboratory of market-based solutions for urban problems. A champion of privatizing government services, Goldsmith forced city agencies to cut their budgets to compete against private companies for city contracts. He also allowed religious organizations to provide government social programs in tough neighborhoods, and encouraged welfare mothers to enter the workforce.

Goldsmith told the Center that he met Bush in 1997 after writing the book The Twenty-First Century City, which described his approach to city problems, and was giving lectures in Texas. Bush invited him to dinner, and they later talked occasionally about the role of conservative Republicans in helping the poor in inner cities. One indication of Goldsmith's influence is that Bush chose Indianapolis as the place to give his �Duty of Hope� speech last July, a paean to the role of faith-based organizations in ameliorating social ills. Goldsmith is now with the law firm of Baker & Daniels in Indianapolis and lives part-time in Austin.

 
Health Policy

Health care could be the real test of Bush's compassionate conservatism. One-fourth of all Texans do not have health insurance -- one of the worst indicators in the country. Goldsmith has put together a team of health care experts that include several who have had ties to the insurance industry. Bush has endorsed a restructuring of the Medicare program that would pay the premiums for seniors to choose among managed care plans.

Deborah Steelman is considered a moderate and a proponent of market-oriented solutions to health-care problems. She heads her own lobbying and political consulting shop, Steelman Health Strategies, counting among her clients managed-care companies, pharmaceutical firms and trade associations. They have included Aetna/US Healthcare; Prudential Insurance; Cigna; Bristol-Myers Squibb; Pfizer; Wyeth-Ayerst International; the Health Industry Manufacturers Association, a trade group of companies that make medical devices; Johnson & Johnson; the Healthcare Leadership Council, a trade group of managed-care and drug companies; National Association of Psychiatric Health Systems; and the Pharmaceutical Research and Manufacturers of America.

Steelman was a member of the National Bipartisan Commission on the Future of Medicare, which in March 1999 fell two votes short of endorsing a plan to restructure Medicare. The only plan to get a bare majority called for the government to help seniors pay the premiums for their choice of government-approved private health-insurance plans, predominantly managed-care plans, and to set up a prescription-drug benefit program. In early 1999, Public Citizen, a Ralph Nader watchdog group, accused Steelman of a 'serious conflict of interest� by representing clients with a major stake in the issues on which the commission would be taking positions.

Steelman is a former director of domestic policy for the senior Bush's 1988 presidential campaign. From 1986 to 1987, she was associate director for human resources in the Office of Management and Budget. During the Bush administration, she chaired a 13-member commission that proposed changes to Medicare and Social Security.

Sally Canfield is the campaign deputy issues adviser. Canfield was recruited for Bush's team because of her work on health care and as a tax aide for Rep. Jim McCrery, R-La.

John Goodman is president of the National Center for Public Policy, a conservative think tank in Dallas. He's a regular adviser to House Majority Leader Dick Armey of Texas. He had been pressing Bush to advocate a tax credit for every American who wants one to buy health insurance and a federally funded state safety-net program for others, but that idea was considered too costly. The Center advocates on many issues beyond health care. It's a proponent of charter schools and opposes U.S. participation in the global warming treaty.

Goodman is considered the father of medical savings accounts, which allow people to spend tax-free dollars on health care services and then buy high-deductible policies to cover catastrophic expenses. The insurance industry likes MSAs, though many health-care advocates worry that only healthier people buy them, driving up health-care costs for group insurance. (If all the healthy people buy MSAs, then the only people buying group insurance are sick, and therefore premiums go up for those plans). Congress passed an experimental plan several years ago, but there have been relatively few takers. Bush supports a broadening of the MSA program.

Goodman's advocacy of MSAs got a boost a decade ago when J. Patrick Rooney, chairman of Golden Rule Insurance, a family-owned company, decided to back the idea as a way to salvage his company. Golden Rule sells individual policies and had found itself squeezed by the growing popularity of HMOs. In 1990, Rooney joined the National Center for Public Policy board. Golden Rule, a major contributor to the Republican National Committee, is the biggest seller of MSAs. 

Representative Bill Thomas, R-Calif., advises on health care and on international trade issues. He has flown to Austin several times to meet with Bush in person. One of the most respected Republicans on health care issues, Thomas is chairman of the House Ways and Means health subcommittee. He co-chaired, along with Democratic Sen. John Breaux, D-La., the National Bipartisan Commission on the Future of Medicare, which proposed health care related policy to the administration.

Dr. William L. Roper is dean of the University of North Carolina at Chapel Hill School of Public Health. During the Bush administration, he headed the Health Care Financing Administration, which runs the Medicare and Medicaid programs. He left to become the director of the national Centers for Disease Control and Prevention in Atlanta. Before taking on the job at UNC, Roper was senior vice president of Prudential HealthCare in Roseland, N.J., and president of the Prudential Center for Health Care Research in Atlanta.

Donald Moran is a president of the D. Moran Group, a health-care consulting firm in Fairfax, Va. For about 15 years before that, Moran had a top position with the highly respected Lewin Group, which conducts market research. In the late 1970s, as legislative director for then-Rep. David Stockman, R-Mich., Moran drafted legislation signed into law that helped HMOs flourish, according to National Journal. When Stockman became head of Reagan's White House Office of Management and Budget, Moran was his associate director for budget.

  
Foreign Policy: Bush Senior Redux

Bush has assembled a foreign policy team that reads like a Who's Who of the Bush and Reagan administrations. As a Texas governor with little experience in foreign policy matters, Bush is relying heavily on his experts, a tight-knit group led by Condoleeza Rice, a Russian specialist on President Bush's National Security Council, and Paul D. Wolfowitz, a senior Pentagon official in the Bush administration. According to the New York Times, the foreign policy team had its genesis in August 1998, when the elder Bush set up a meeting between his son and Rice. As a group, the advisers are pushing a pro-trade and internationalist role for the U.S. and a harder line against China and Russia. Every Sunday evening, Bush speaks by conference call with Rice, Wolfowitz and other aides to review global hot spots and other issues, according to the Times.

Condoleeza Rice is an unpaid adviser who coordinates, along with Paul Wolfowitz, the foreign policy advising team. Until she joined the campaign, she had been provost at Stanford University since 1993 and a professor of political science before that. She's a senior fellow at Stanford's Hoover Institution. Between 1989 and 1991, she was a Russian and Eastern European affairs specialist at the National Security Council. She sits on the board of directors of Chevron Corp. the Hewlett Foundation, and Charles Schwab Corp. She also sits on J.P. Morgan's International Council, which comprises leaders from business and public affairs and offers counsel to management, according to the J.P. Morgan Web site.

George P. Shultz was secretary of state during the Reagan administration. He's a senior fellow at Stanford University's Hoover Institution. In 1996, he was economic policy adviser to Bob Dole's presidential campaign. According to SEC filings, Shultz sits on the board of directors of Airtouch Communications Inc., Bechtel Group, Gilead Sciences Inc., Maxtor Corp., Gulfstream Aerospace Corp., and Charles Schwab Corp. He is also the chairman of J.P. Morgan's International Council.

Richard B. Cheney was President Bush's defense secretary, and is now CEO of Halliburton Co., a $9 billion dollar oil services firm based in Dallas. After a February 1999 meeting with Cheney in Austin, Bush told reporters, "Dick Cheney is a friend of mine. It's not the first time he has been down here. It won't be the last time he is down here. He is a person whose judgment I rely upon a lot." As defense secretary, Cheney directed the U.S. invasion of Panama and Operation Desert Storm, the Persian Gulf War. He also oversaw a restructuring of the Pentagon. 

In 1995, after a stint at the American Enterprise Institute, Cheney became the CEO of Halliburton, which does business in at least 100 countries. In 1998, Business Week reported that Cheney had been "courting politicians and business leaders through the booming Caspian Sea region in an all-out effort to secure key political ties with Azerbaijan and Kazakstan. Accounting for the world's third-largest oil reserves, the region is Cheney's best hope to secure big contracts for a long time to come." Cheney has succeeded. Along with the heads of Chevron and Texaco Inc., Cheney sits on Kazakstan's Oil Advisory Board, which serves as a sounding board for the country's president. As Halliburton President David J. Lesar told Business Week, "Dick gives us a level of access that I doubt anyone else in the oil sector can duplicate." 

Most recently, Cheney lobbied in favor of a U.S. Export-Import Bank loan to Tyumen Oil, an upstart Siberian oil company, which has hired Halliburton to upgrade the giant Samotlor field in the Caspian region. The loan is controversial because Russians were pounding Chechnya at the time the loan would have been made. It was denied in December. As CEO of Halliburton, Cheney has been a staunch critic of unilateral sanctions against Libya, Iran and Nigeria, which prevent oil and gas companies from doing business in those countries.

Cheney also sits on the boards of EDS (consulting), Hunt Oil Co., Procter & Gamble (household products), and TRW (systems integrator).

Richard L. Armitage is president of Armitage Associates, a consulting firm. He was assistant secretary of defense for international security affairs in the Reagan administration and was the U.S. ambassador to the newly independent Soviet states during the Bush administration.

Robert D. Blackwill is a lecturer at Harvard's John F. Kennedy School of Government and an adjunct senior fellow at the Council on Foreign Relations. During the Bush administration, he was a specialist in European and Soviet affairs with the National Security Council and Rice's boss. In the mid-1980s, he was chief negotiator with the Warsaw Pact on conventional forces in Europe.

Stephen J. Hadley is an international lawyer with Shea & Gardner and was assistant secretary of defense for international security policy in the Bush administration. 

Richard N. Perle is chief executive officer and chairman of Hollinger Digital Inc., a new-media investment outfit, and a director of the Jerusalem Post, both of which are owned by New York-based Hollinger International Inc., a global newspaper publisher. Perle is also director of the American Enterprise Institute's Commission on Future Defense. He was assistant secretary of defense for international security policy in the Reagan administration. Perle has advocated that the U.S. withdraw from the 1972 Anti-Ballistic Treaty if Russia refuses to agree to allow both countries to employ systems to protect against long-range missile attacks -- a position that Bush embraces.

Paul D. Wolfowitz is the dean of the Johns Hopkins School of Advanced International Studies. In the Bush administration's Pentagon, he worked for Cheney as undersecretary of defense. During the Reagan administration, he was assistant secretary of state for East Asian and Pacific affairs and the U.S. ambassador to Indonesia. Wolfowitz sits on the boards of directors of Dreyfus Funds and Hasbro Inc. According to the New York Times, Wolfowitz argued that the U.S. should support NATO military action to protect Kosovar Albanians -- and Bush agreed.

Dov Zakheim is president of System Planning Corp. International, a high-technology research and manufacturing firm in Arlington, Va. The company helps U.S. and foreign companies obtain licenses to export technology. Zakheim was deputy defense secretary for planning and resources in the Reagan administration. He played "a key role in weapons procurement issues and strategic planning," according to National Journal. In the 1970s, he was a national security analyst with the Congressional Budget Office. 

Robert B. Zoellick is advising on international economics. He was White House deputy chief of staff to President Bush. Before that, he was undersecretary of state for economic and agricultural affairs and counselor to the State Department. He was also counselor to Treasury Secretary James A. Baker and deputy assistant secretary for financial institution policy. After leaving government, he was executive vice president for housing and law at Fannie Mae Corp. He is now a fellow at the German Marshall Fund of the U.S. and a research scholar at Harvard University. Zoellick sits on the boards of directors of Jones Interactive Cable Inc., Alliance Global Environment Fund Inc., Said Holdings, and Enron Corp.'s Advisory Council.

  
Other Paid Campaign Advisers

Policy

Joshua Bolten is the paid policy director. He's been called the �administrator of GWB,� the array of advising teams assembled to educate Bush on an array of policy matters. Besides working directly with policy advisers, Bolten feeds Bush a steady diet of information on issues and current events, often compiled in binders labeled �Airplane Reading.� He joined the Bush campaign in March 1999 after Bush had already assembled his core policy team of Goldsmith, Condoleeza Rice and George Shultz on foreign policy, and Lawrence Lindsey on economics. Bolten helped assemble clusters of dozens of advisers on various issues.

Before joining the Bush campaign, Bolten was executive director of legal and government affairs at Goldman Sachs International in London. In 1992, he became deputy assistant to President Bush for legislative affairs. Before that, he spent three years as general counsel for U.S. Trade Representative Carla Hills and had been a minority trade counsel for the Senate Finance Committee. Earlier, he was a international trade lawyer in private practice in the Washington office of O�Melveny & Myers.

Media

Mark McKinnon is a paid media consultant who produces the campaign's television ads. Prior to working for Bush, he worked mostly for Democratic candidates in Texas. 

Pollsters

Frederick Steeper is a paid pollster and principal at Market Strategies Inc., a GOP polling firm based in Southfield, Mich.

Jan van Lohuizen is a paid pollster and a principal at Voter Consumer Research, a Republican survey firm based in Bethesda, Md. According to National Journal, Lohuizen worked on a successful 1991 ballot-initiative campaign in Arlington, Texas, to raise the local sales tax to finance a new baseball stadium for the Texas Rangers, of which Bush was co-general managing partner. 

Finance

Jack Oliver is the former administrative assistant to Sen. John Ashcroft and director of his leadership political action committee. He was campaign and finance director for Sen. Kit Bond of Missouri's 1994 re-election campaign and executive director of the Missouri Republican Party during the 1996 presidential race.

Speechwriter

Michael Gerson is chief speechwriter. He was senior editor covering national politics for U.S. News & World Report. He was also a speechwriter for Bob Dole's 1996 presidential campaign, former policy director for Sen. Dan Coats, R-Ind., and senior policy adviser to former Republican congressman and Cabinet member Jack Kemp at the Heritage Foundation. 

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George W. Bush: Pragmatic,
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