Feud between Karl Rove and Rick Perry

Top George W. Bush consultant Karl Rove and Texas Governor Rick Perry have a widely-reported and longstanding feud that originated in 1998 and has extended to open hostility among top campaign operatives in both camps, and even resulted in top Bush allies openly campaigning against Perry in his re-election for Governor of Texas in 2010. While both sides downplay the importance of any remaining tension between Bush and Perry camps, if the rivalry continues it could play an important role in and in Rove's ongoing role as a top Republican fundraiser and strategist.
Early alliance between Rove and Perry
Rick Perry was initially a protégé of Karl Rove, who was already a high-powered Texas political consultant when Perry arrived on the Texas political scene.
Rove "played an integral role" in Perry's switch to the Republican Party in the 1980s, and helped shape Perry's political career in his next two elections. Rove is credited with persuading Perry to run for Agriculture Commissioner, and then consulted on his successful bid for Lieutenant Governor.
Rove also helped bring Dave Carney, Perry's strategist for his Lieutenant Governor campaign, to Texas
and linked him with Rick Perry.
Falling out during Perry's 1998 Lieutenant Governor's Race
The falling-out between Rove and Perry occurred during Perry's 1998 race for Lieutenant Governor, which he barely won, 50.0% to 48.2%. Perry strategists, including Carney, believed that Rove gave them bad political advice in order to help his other client, then-Governor George W. Bush -- and that Perry would have lost the race had his campaign followed Rove's advice.

In 1998, Rove’s star client, then Texas Gov. George Bush, was coasting into a second term when Perry and his team wanted to wage a negative campaign against Perry’s Democratic opponent, John Sharp. Rove talked Perry and Carney out of it. The most logical reason being that Rove wanted to keep the peace in Texas as best he could knowing that Bush would be running for president in the very near future. Perry went on to win, but only by a narrow margin.
At the conclusion of the election, Perry and his aides felt that Rove had been willing to throw him under the bus to help Bush's future political ambitions:

The feeling in Perry’s camp was that Rove’s real motivation was concern that negative ads would cut into Bush’s margin of victory, particularly among Hispanic voters, and undermine his efforts to build momentum for Bush’s planned 2000 presidential campaign.

After one particularly contentious phone call, one Perry campaign operative punched a hole in a wall in Arnold’s office. Perry’s campaign eventually went up with negative ads, and squeaked out a narrow victory. Rove offered a “most memorable” election night apology, Perry pollster Mike Baselice told the Houston Chronicle in 2006.
While Dave Carney stayed with Perry for subsequent elections and is now the key strategist of Perry's presidential campaign,
The disdain was described as "visceral."
During the later years of the Bush presidency, the hostility burst into the open, as Rick Perry openly criticized Bush on government spending, immigration, education
and the TARP bank bailouts,
and a number of other signature policy initiatives.
Perry described No Child Left Behind as a "monstrous intrusion into our affairs" and said "Medicare Part D was not good public policy."
His harsh criticisms were not limited to specific policies, but also at Bush's underlying philosophy. He saw Bush's trademark "Compassionate Conservatism" as another form of big government,
saying "we made an error with that phrase ‘compassionate conservative’"
Some of this criticism is a natural part of the political process. Bush left office with a 22% approval rating -- one of the most unpopular presidents in history—and so at the time Perry had a natural desire to distance himself. Additionally, highlighting differences helped to establish his own legacy in Texas by distancing himself from his predecessor.
and Bush-affiliated politicos judged Hutchison more electable.
as did George W. Bush's Vice President Dick Cheney, Secretary of Education Margaret Spellings, and longtime Bush family insider James Baker.
Some of Rove's statements amount to defending Bush's record in office as Perry claims credit for Texas' success. While giving much credit to Perry, Rove also highlighted Bush's role in job creation in Texas, saying, "Texas has become a magnet for jobs. And you're right, it existed before Gov. Perry... have helped keep the Texas progress going. What we've got in Texas is not the result of one man or one administration."
Perhaps more importantly than televised remarks, Perry backers are concerned that Rove and his allies are steering money to support other presidential candidates. Although Rove has insisted that he and his Super PAC American Crossroads are neutral in the 2012 Republican primary, Carl Forti, American Crossroads' political director, launched a pro-Romney super PAC called Restore our Honor. Perry backers also believe that the pro-Romney PAC was initiated with Rove's blessing and influence.
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Feud could be dangerous for both Perry and Rove
Going forward, the feud could be dangerous for both, because each depends on and influences the same group of major Republican donors, especially donors from Texas.
If Perry becomes the nominee or wins the presidency, he will almost certainly have more sway over the donors than his rival Karl Rove. “If Perry wins and he has the sense that Rove was somehow undermining him in the process, then there could be payback” said R.G. Ratcliffe, a reporter working on a book about Perry.

One person who has sent checks to both American Crossroads and Perry’s campaigns predicted that if Perry wins the nomination, his donors will cut off the spigot to Rove. “Perry winning would be a deathblow for Rove,” said this person, who did not want to be identified talking about political contribution strategies.<ref name=politico />
In the meantime, though, because of Rove's sway with big donors, Perry "has nothing to gain by stoking an intraparty war," remaining silent about Rove and disclaiming any hostility between the two camps.
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