U.S. Sen. Kay Bailey Hutchison took the first formal step Thursday toward a run for Texas governor, accelerating an already contentious prelude to what is expected to be a bruising Republican primary battle in 2010 between her and Gov. Rick Perry.

Hutchison released a statement that she was establishing a gubernatorial exploratory committee, as required by law, and transferring $1 million into it from her federal account.

Hutchison reported to the Federal Election Commission in October that she had about $8.7 million in her federal campaign account through Sep. 30. Perry reported having almost $3 million at the end of June. He is not required to file another report until January and a spokesman declined to release an updated total.

Perry has already said he's in the race, and the move was likely to trigger a tough campaign for the GOP nomination.

In a written statement, Hutchison took several swipes at Perry, saying there's "too much bitterness, too much anger, too little trust, too little consensus and too much infighting" in Austin.

"The tone comes from the top," she said. "Texans are looking for leadership and results."
Perry's staff wasted no time swiping back.

"Kay Bailout has been talking about running for governor and passing legislation for years and neither has ever happened," said Mark Miner, a spokesman for Perry. "Today she continues her streak of indecision."

The play on Hutchison's middle name was a reference to the senator's vote in favor of the $700 financial bailout.

Hutchison's written statement noted that Texas is faring better economically than other states, "but a positive future in not guaranteed."

"It will take leaders who look ahead to meet the economic and budgetary challenges that are coming.

Patrick Oxford, a Houston energy lawyer and longtime friend and adviser to Hutchison, said the senator is not "undecided" and he expects her next year to make an official announcement that she is running.

Todd Olsen, a Republican strategist in Austin who is working for Hutchison, said forming the exploratory committee allows the senator to start talking to friends and supporters about her possible campaign and start work on logistics of campaign travel and staff.

"She'll talk to people who have been old friends and people in the past who supported Rick about what they want her to do and what's best for the party and who have been calling her now and saying we want you to run for governor, we want leadership," Olsen said.

Among those advising her now are Oxford; former Texas GOP chairman Fred Meyer and former House Majority Leader Dick Armey.

Oxford dismissed any effect a Perry-Hutchison primary might have on the Texas GOP. He said the worst thing that might happen to the party in 2010 would be for the GOP to lose the governor's office. Perry will have been in office 10 years by the 2010 election, to "get Texas off of petty politics and move the state forward" and hasn't, he said.

"Kay will win, polls show that Perry may not. He only garnered 39 percent of the vote against a weak field the last time out," Oxford said.

Perry defeated Democrat Chris Bell and indpendents Kinky Friedman and Carole Keeton Strayhorn in 2006. He is the longest serving Texas governor.

Hutchison first joined the Senate in 1993 in a special election to fill the seat left empty by former Sen. Lloyd Bentsen, who became Treasury secretary. She won her first full six-year term in 1994 and re-election in 2000 and 2006, garnering more than 60 percent of the vote in each election.

She is often considered one of the state's most popular politicians, but she has in the past run into opposition within her own party for her support of abortion rights.