08:55 PM CDT on Friday, June 2, 2006

By BYRON HARRIS / WFAA-TV

WFAA

The TRCC resolves disputes between home builders and home buyers.

When it comes to questionable government spending, most of us have heard of the $600 toilet seat bought by the defense department a few years ago.

Here's one from Austin that may top it - the $1,000 lunch.

News 8 has been looking into the startup expenses of the Texas Residential Construction Commission (TRCC).

The TRCC, built three years ago, is designed to resolve disputes between home builders and home buyers.

But if contractors spent money the way the TRCC did as it started up, they'd have plenty of unhappy owners.

A recent audit by the Texas comptroller found in its first two years, the TRCC spent $573,000 on public relations, including more than $90,000 for a Washington based PR firm and another $483,000 for an Austin PR firm.

The executive director of the agency, Stephen Thomas, used TRCC money on Washington PR firm Burson-Marsteller which charged as much as $358 an hour.

Records show that Burson-Marsteller charged the TRCC more than $1,000 to review a speech over lunch, $645 to write a letter to the editor of the Austin American Statesman, nearly $2,500 to write an op ed column for the Austin paper and $1,400 to write a speech for delivery in San Antonio.

Janet Ahmad of watchdog group Homeowners for Better Building saw the speech.

"He did it in less than two minutes," she said.

"It's unconscionable that we have paid taxpayer money to fund this kind of behavior."

For a public service announcement, the TRCC paid former Texas Ranger baseball player, Alfonso Soriano, $25,000. He appeared in two TV spots and two radio commercials.

Stephen Thomas resigned last August as criticism of the agency mounted.

"I can't imagine that I would ever use those services again at this point," he says.

Duane Waddill his replacement writes his own speeches and has no PR consultant but he refused to talk about his predecessor.

As new homes go up in Texas at a record pace, new home warranties are still only good for a year, less than a new car.

The TRCC has expanded its staff of investigators, and hopes to quell its critics.

But the house the legislature built remains unfinished.