Democrats in Texas Fear Losing Bentsen : Transition: Officials are worried that state will have less political clout if senator joins new Cabinet. Governor has conveyed concerns to Clinton.

The prospect that Sen. Lloyd Bentsen could be named secretary of the Treasury in the Clinton Administration triggers alarm in the Texas Democratic Party, where leaders fear they would lose the veteran Democrat’s Senate seat to the GOP, according to political sources.

Besides the potential political setback, Texas Gov. Ann Richards is known to be worried that if Bentsen resigns his position as chairman of the Senate Finance Committee, Texas would lose its key congressional advocate on major government projects, such as the superconducting super collider.

Though allies of the Democratic governor insist that she is not trying to block Bentsen’s appointment to the Cabinet, sources said Richards has conveyed her concerns directly to President-elect Bill Clinton.

“Ann is concerned about losing that powerful position,” said one source in the Clinton camp. “Several of the big projects that Texas has on top of its agenda have something to do with that committee.”

Speculation about Bentsen and the Treasury job has been intense in Texas and Little Rock, Ark., since last Tuesday, when the 71-year-old senator met with Clinton for two hours. In Texas, the belief is so strong that Bentsen may be chosen that Richards already has begun discussions about possible replacements, sources said.

It is uncertain whether Clinton has offered Bentsen the job formally, though political sources in Texas said the two men have at least discussed the conditions under which the senator would accept the appointment. Others who have been prominently mentioned for the position include former Federal Reserve Board Chairman Paul A. Volcker and New York investment bankers Robert E. Rubin and Roger Altman.

Clinton could announce his choice for the job, and perhaps other economic positions, sometime this week.

Observers offer different interpretations of Richards’ motivations in raising concerns about Bentsen’s possible selection for the Treasury job.

Aides said she is not attempting to impede Bentsen’s appointment. “If this is something Sen. Bentsen wants to do, she would not try to stop that,” said Chuck McDonald, a spokesman for the governor.

One Richards ally said she may be raising these issues to pressure Clinton to make other concessions to the state if he selects Bentsen, such as naming another Texan to the Cabinet or assuring funding for Texas-based projects.

But others close to Richards, as well as sources in Clinton’s camp, said she has indicated strongly that she would prefer keeping Bentsen in his current position. “She has been opposed to (Clinton) naming Bentsen for reasons more associated with what it would do to Texas’ power in the Senate,” said a source in the transition effort.

In Texas, a growing number of Democrats are eyeing the Senate seat that would open up if Bentsen joins the new Cabinet. But many Democrats worry that none of the potential candidates is strong enough to guarantee that the party can hold Bentsen’s seat in a special election.

If Bentsen resigns, Richards would first make a temporary appointment to his Senate seat. Democrats close to Richards consider former Lt. Gov. Bill Hobby and former San Antonio Mayor Henry G. Cisneros, who also may be in line for a Clinton Cabinet appointment, as the leading contenders if the seat becomes available.

After she makes her selection, Richards would be required to call a special election to fill the vacancy--most probably for the first Saturday in May.

Under Texas law, the election would be an “open primary,” with candidates from both parties competing and the top two finishers meeting in a runoff election 30 days later. The winner would have to stand for reelection again in a March, 1994, primary.

Times staff writer David Lauter in Little Rock contributed to this story.