Kudos to Mayor and Board for Closing Campaign Finance Loophole

George Wenschhof

Last night, during The City of Frederick mayor and board meeting, they passed an amendment to close the loophole that allowed individuals who also control entities to exceed the amount of campaign contributions allowed under the law.

The vote was 4-0 was alderman Shelley Aloi (R) abstaining.  The law will go into effect December 6, 2013.

Under the law, mayoral candidates are allowed contributions up to $2,500 and alderman candidates $1,000.

I was the first to report, after the candidates had filed their first campaign finance report on August 12, that Democratic mayoral candidate Galen Clagett had received a total of $30,000 from entities controlled by two people and that Democratic mayoral candidate Karen Young had received $7,500 via entitles controlled by one person.

This had been done legally by using multiple LLC’s with donations from each not exceeding the $2,500 limit.

 

Realizing, a law could not be passed in time to impact the remainder of the election, I asked candidates to pledge to not accept donations that exceeded "the intent or spirit of the law".

 

All of the candidates responded and agreed, with only Republican alderman candidate Katie Nash providing a convoluted and confusing answer to my question.

 

The city moved quickly to address these concerns and during a mayor and board workshop held on October 9, agreed the "loophole" should be closed. City attorney Rachel Depo presented them with a proposal modeled after a recently passed state of Maryland campaign finance law.

 

After, reviewing the law, I recommended a change in the definition of what constitutes a contribution from one contributor in Sec. 7-22. Limit on contributions. (d) (ii) which read "the business entities are owned or controlled by at least 80% of the same individuals or business entities.

In a conversation with assistant city attorney Rachel Depo, she informed me the state committee had recommended 50% and it evidently had been changed to 80% by the state legislature. 

 

In a column published on October 13, I expressed my hope the city would go with the 50% level to further restrict influence by a single contributor.

 

Last night, Democratic alderman Michael O'Connor made the motion, that passed 4-0, to approve the proposal presented by the city attorney with a change to "business entities owned or controlled by at least 51% of the same individuals or business entities.

 

The mayor and board should be commended for moving quickly to close this campaign finance loophole.

 

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City Agrees to Change Campaign Finance Law

George Wenschhof

During The City of Frederick mayor and board of aldermen workshop yesterday, there was unanimous agreement to move forward with proposed changes to the city's campaign finance law.

Assistant city attorney Rachel  Depot submitted a proposal modeled after the recently passed state of Maryland campaign finance law.

Alderman Michael O'Connor(D), said during the city mayor and board workshop discussion "this loophole should be closed" and requested this amendment be presented during the first mayor and board meeting in November. Alderman Kelly Russell concurred with O'Connor and added her desire to rectify this prior to the end of their term.

The proposed change will not affect the current election and is scheduled to go into effect on December 6, 2013.

The proposed changes are designed to close some of the loopholes that allow individuals to make multiple donations from business entities owned by an individual, whose aggregate total contribution exceed the limit established by law.

The campaign contribution limits are $2,500 for mayor and $1,000 for alderman.

This is a welcomed move in the right direction by the city. 

However, I would recommend a change in the definition of what constitutes a contribution from one contributor in Sec. 7-22. Limit on contributions. (d) (ii) which reads "the business entities are owned or controlled by at least 80% of the same individuals or business entities.

In a conversation with assistant city attorney Rachel Depot, she informed me the state committee had recommended 50% and it evidently had been changed to 80% by the state legislature.  I would hope the city would go with the 50% level to further restrict influence by a single contributor. 

I  first pointed out the loophole after my review of the first candidate campaign finance reports revealed mayoral candidate Maryland state delegate Galen Clagett had received $20,000 from entities associated with local developer Marvin Ausherman and $10,000 from entities associated with Pleasants Construction. Also mayoral candidate Karen Young had received $7,500 from entities associated with local businessman John Fitzgerald.

In regard to the current election, I did request and received a response from all candidates in the General Election to abide by the "spirit of the law" on contribution limits for the remainder of this election.

Stay tuned.

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Clagett, Young Spend Most in City Election

George Wenschhof

The second candidate campaign finance reports submitted yesterday showed Maryland delegate Galen Clagett spent $82,000 in his losing effort to win the Democratic Party nomination for mayor of The City of Frederick. His contributions included a late $5,000 donation from himself.  The balance in his campaign account was $1,771.

Karen Young, who won the Democratic Party nomination, reported raising a total of $71,000, spending $53,000 and led all candidates moving on to the General Election with $18,535 in the all important cash on hand.

Republican Mayor Randy McClement reported raising a total of $27,310, spending $12,500, with a balance of $14,753.

Unaffiliated mayoral candidate Jennifer Dougherty, who did not participate in a primary, reported raising a total of $12,890, spent $6,604 with a balance of $6,235.

In the first finance report, Clagett reported receiving $20,000 from entities associated with Marvin Ausherman and $10,000 from entities associated with Pleasants Constructions.  Young reported receiving $7,500 from entities associated with local businessman John Fitzgerald.

I was the first to report this and call for an amendment to the candidate contribution law to close the loopholes that allowed candidates to receive greater funds than the amount ($2,500 for mayor, $1,000 for alderman) allowed by law.

In addition, I sent a pledge request to all of the General Election candidates for them to abide to the “spirit of the law” for the remainder of the campaign.  In my first review of the second finance reports, it appears none of the candidates used any of the loopholes available to them, which is a good sign.

On Wednesday, the city mayor and board workshop will discuss changes to the law to eliminate these loopholes.

Republican Phil Dacey ($18,000) and Democrat John Daniels ($13,000) led the alderman candidates in funds received.  Dacey had $8,801 cash on hand and Daniels $6,525.

Interestingly, Dacey was the only candidate to report paying individuals to go door-to-door for him.  This is an allowable expense, but not one that has been used by candidates in previous city elections.

Daniels and Dacey were also the top alderman candidate fundraisers in the first candidate finance report.

Incumbent aldermen Kelly Russell(D) and Michael O’Connor(D), who are heavily favored to win reelection, reported $3,255 and $5,253 cash on hand.

Josh Bokee, who came in third in the Democratic alderman primary, reported raising $9,756, spending $7,019 with a balance of $2,729.

Fraternal Order of Police FSK Lodge #91 followed up their endorsement of Democratic aldermen candidates Michael O’Connor, Kelly Russell, Josh Bokee and John Daniels with a $500 contribution to each.

All of the candidate campaign finance reports may be read online at The City of Frederick website.

The next candidate campaign finance reports are due Tuesday October 29, one week prior to the election on November 5.

Stay tuned.

 

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Candidates Respond To Pledge to Honor Contribution Limits

George Wenschhof

A week ago I published a column where I stated “It is the “spirit of the law”, not the letter of the law, that should be followed by candidates in The City of Frederick election.”

Presently, contributions to city aldermen candidates are limited to $1,000 per person/entity and $2,500 per person/entity for mayoral candidates.

I reported the day the first candidate campaign finance reports were filed, a loophole in the law had been used to get around these limits reflected in the reports filed by the Karen Young and Galen Clagett campaigns for mayor.

$20,000 had been funneled into Democratic Maryland state delegate Galen Clagett’s mayoral campaign via multiple entities associated with local developer Marvin Ausherman. Another $10,000 was received via entities associated with Pleasants construction, another local developer. The $30,000 in contributions was half of what the Clagett campaign received in the first report.

Democratic alderman Karen Young, who won the Democratic primary for mayor, received $7,500 from three entities associated with local businessman John Fitzgerald.

There did not appear to be any illegal contributions.  Yet, the potential influence on an elected official by one who has arranged for a large donation to a campaign, is unsettling to voters, who already feel their voices are lost to big business, corporations and well organized interest groups.

I sent all the candidates links to the columns written on this issue and asked them if they would follow the spirit of the law. 

 

The aldermen candidates were asked “Would you pledge to honor the $1,000 contribution limit intent of the law, to the best of your knowledge from this point on in the campaign.”

The mayoral candidates were asked “to pledge to the best of their knowledge, to not accept more than $2,500 from any one person or entities associated with any one person, from this point on in the campaign”.

I received responses from all of the candidates with the overwhelming majority of them agreeing to abide by the “intent /spirit of the law”.  Their responses follow below.

Jennifer Dougherty, unaffiliated candidate for mayor said "I will take the pledge, no problem".

Democratic mayoral candidate Karen Young responded in an email to me "Yes".

Republican mayor Randy McClement said “I have never asked for bundled contributions. I will continue, as I always have, to follow all City campaign finance disclosure laws and disclose all contributions and donors”.

Alderman Michael O'Connor (D) stated "he will comply with both the intent and letter of the law".

Democratic alderman candidate John Daniels responded in an email to me: "George, I have every intention of honoring the intent of the law and have not and will not accept contributions that may be questionable. Please consider this my pledge."

Democratic alderman candidate Donna Kuzemchak responded with "Yes, I commit to complying with both the letter and spirit of the law, as I have always done so."

Alderman Kelly Russell (D) responded with "Yes."

Democratic alderman candidate Josh Bokee responded with "Yes".

Republican alderman candidate Alan Imhoff emailed me saying "I have no problem with adhering to the spirit of the “contribution limit intent of the law”.

Republican alderman candidate Dan Cowell responded with "I will honor the law as written. I will not work the loophole accepting more than $1000 from any individual, family, and/or business."

Republican alderman Dave Schmidt responded with "I think the contribution limits are important to prevent anyone from having undue influence on candidates. I pledge that looking forward in this election, I won't accept any contributions from LLC's owned by anyone who has already reached their $1000 limit to my campaign."

Republican alderman candidate Katie Nash’s initially responded with "You're asking me to pledge to follow the law - yes. I'm not being facetious when I ask if you believe I have somehow not followed this law? (If so I want to return the money)."

I responded to her with "I would suggest you read the article and the numerous one that preceded it to more fully understand the question.

The issue is that the law does not appear to have been broken in regard to exceeded the limits. However there are loopholes that allow contributions to exceed the "intent" of the law."

I added in an email saying, in part, "To follow up with you, I have not suggested any city candidate broke the law."

To which she followed with a long response that can be read here.

 

In an interview, Republican alderman candidate Phil Dacey responded with he was “okay with the “spirit of the law”, particularly with limiting influence of individuals.”  Dacey added, “He would like to see this issue looked at and appropriate revisions made by the next board.”

It is encouraging, that clearly an overwhelming number of candidates have agreed to honor the “intent/spirit of the law” for the remainder of the campaign.

What needs to happen next is for the new mayor and board to move quickly, following being sworn into office, to appoint a committee to review the existing campaign contribution law.

 

This committee should be charged with making recommendations on revisions to current law to eliminate these existing loopholes. After, receiving public input, a vote at a mayor and board meeting should be taken to amend the candidate contribution guidelines.

The next candidate campaign finance reports are due October 7.

Stay tuned.

 

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City Candidates Should Pledge to Honor Contribution Limits

George Wenschhof

It is the “spirit of the law”, not the letter of the law, that should be followed by candidates in The City of Frederick election.

On the night the first candidate campaign finance reports were due, I reported $20,000 had been funneled into Democratic Maryland state delegate Galen Clagett’s mayoral campaign via multiple entities associated with local developer Marvin Ausherman.  Another $10,000 was received via entities associated with Pleasants construction, another local developer.  The $30,000 in contributions was half of what the campaign received in the first report.

In addition, alderman Karen Young, who won the Democratic primary for mayor, received $7,500 from three entities associated with local businessman John Fitzgerald.

 

None of the contributions appeared to violate the campaign contribution limit of $2,500 per individual or entity for mayoral candidates.

I followed up with another article on August 30 and The Frederick News Post published a well written piece by reporter Jen Bondeson on September 7, three days prior to the primary election.

 

The Frederick News Post added an excellent editorial today.

Whether the articles had any influence on the outcome of the primary election will never be known. 

However, it is important for voters to know if the candidates running in the general election for mayor and the five seats on the board of alderman will follow the intent of the law.

The undue influence of money in politics has been the scourge of voters for quite some time, who often feel their voice to elected officials is drowned out by those with much deeper pockets.

It will take time to amend the law to prohibit multiple donations from a single person coming from numerous entities associated with them.

What may also be disturbing, is I have even heard it said, the present $2,500 contribution limit per person can also be skirted around by a husband and wife each separately donating $2,500 and then together issuing a donation for $2,500, equaling a total of $7,500.

This is obviously not the intent or “spirit of the law” and hopefully, the law will soon be amended to correct the existing loopholes.

In the meantime, city candidates for mayor and alderman should commit to receiving, from this point on, to the best of their knowledge, no more than $2,500 from any one person or entity.

Updated: 11:39 AM - city alderman Michael O'Connor corrected me, when he answered he "would comply with both the letter and the spirit", by pointing out the limit for alderman candidates is $1,000 and it is $2,500 for mayoral candidates.

It would be a good thing for the remaining candidates to do and would help restore the faith of the voters.

Stay Tuned.

 

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Obama Weekly Address 9-18-2010

George Wenschhof

Today, President Obama discusses the Supreme Court "Citizens United" narrow 5-4 ruling on campaign finance. The decision allows for unlimited corporate spending on political campaigns with little to no public disclosure.

The president rails against Republicans who have blocked passage of legislation by Congress which would provide for full disclosure to stock holders of ads run and money spent by corporation on political campaigns.



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Obama Weekly Address 8-21-2010

Today, the president talks about the bill blocked in the Senate by Republicans that would reign in corporate spending in elections. The campaign finance reform bill narrowly passed the House after revisions were made allowing exemptions for the NRA and other large interest groups.

Senate Republicans has been successful in blocking the bill from coming to a vote in the Senate. The bill pushed by Representative Chris Van Hollen (D-Md.) and Senator Chuck Shumer (D-NY) s in response to the 5-4 Supreme Court "Citizens United" decision which open the floodgates to corporate spending in political elections.



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