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Sen. Kay Bailey Hutchison Plans To Retire & Midday Roundup

By KERA News & Wire Services

Dallas, TX – Republican U.S. Sen. Kay Bailey Hutchison of Texas has announced that she will retire after her current term expires next year.

In a letter released Thursday, Hutchison said she will not run for re-election in 2012. Hutchison has signaled she might retire and then changed her mind several times in the last few years. In 2010, she challenged Gov. Rick Perry in the GOP primary for governor, but lost.

Hutchison has been in the Senate since 1993.

In her letter, Hutchison said she had intended to leave office sooner but was persuaded to stay on to "avoid disadvantage to our state."

DFW airport official in scholarship flap resigns

The head of minority contracting at Dallas-Fort Worth International Airport has resigned in the aftermath of ethical questions over scholarships awarded by U.S. Rep. Eddie Bernice Johnson.

Don O'Bannon was placed on paid leave from his position as vice president over minority-owned businesses at the airport in October. The Dallas Morning News reports he resigned Wednesday "to pursue other opportunities."

O'Bannon's daughter, Danielle, was one of several people Johnson chose to receive $1,000 in college aid from the Congressional Black Caucus Foundation.

The congresswoman also drew criticism for awarding scholarships to her relatives and children of an aide against the foundation's rules.

Johnson has since repaid the foundation more than $31,000. She is part owner of two newspaper stands at the airport.

DeLay says he was victim of political prosecution

Former House Republican leader Tom DeLay says his conviction on money laundering charges was a politically-inspired case brought by prosecutors in "the most liberal county in Texas."

DeLay tells NBC's "Today" show that prosecutors "never proved" their case against him. DeLay is free on bond after being sentenced to three years in prison and 10 years' probation on a conviction of scheming to illegally influence Texas elections.

On Thursday, he again denied the charges.

Appearing with DeLay, defense attorney Dick DeGuerin called it "a political prosecution." He said his appeal will be based partly on a 2009 Supreme Court ruling that overturned a longtime ban on political activities by corporations and unions. DeGuerin says DeLay was prosecuted "because he was so successful in bringing about redistricting in Texas."

Texas governor slams Illinois tax hike

Gov. Rick Perry is criticizing Illinois for raising taxes and predicts the hikes will be a recruiting boom for Texas.

Perry on Thursday said he was troubled by the Illinois Legislature's move to "tax the rich without talking about how to make the thoughtful prioritized decisions on how to govern."

Illinois Democrats backed the measure to help erase a deficit as high as $15 billion.

Texas has a similar shortfall but Perry promises not to raise taxes to pay for it, leading to fears of massive cuts to vital programs - fears the Texas governor calls unjustified "doom and gloom." Perry says nothing stifles innovation" more than tax hikes.

Illinois lawmakers Wednesday passed the increase to raise the personal income tax rate from 3 percent to 5 percent for four years.