AUSTIN—The state of Texas has agreed to pay $300,000 to a woman who claimed her outdoor foster camp was unfairly shut down just to make a politician look good.

Betty Lou Gaines, former director of the Woodside Trails Therapeutic Camp in Bastrop County, had accused former state Comptroller Carole Keeton Strayhorn of pressuing Texas authorities to shut down the facility after making unproven charges of child abuse and neglect.

Gaines claimed Strayhorn made the allegations against the troubled boys, in a 2004 state report about foster care, to boost her chances in the 2006 Texas governor’s race. Gaines then sued Strayhorn, the former state comptroller, and nine other state officials.

Strayhorn lost the 2006 governor’s race and was eventually dropped from the suit. The Austin American-Statesman reported in Thursday’s editions that Gaines settled with the state on Wednesday before closing arguments began in the federal trial.

Gaines said she was pleased with the $300,000 settlement, which included a requirement that the Department of Family and Protective Services write a letter stating that Gaines is a licensed chid care administrator with a blemish-free record. In 2006, two state judges found there was no evidence of sexual abuse at Woodside Trails.

“It’s taken us four years to get here,” Gaines was quoted as saying.

Patrick Crimmins, a spokesman for Family and Protective Services, said the settlement makes sense financially and legally. He said ongoing litigation and appeals would have incurred “additional public expense” and noted the settlement does not fault the department for its actions in the matter.