Campaign Finance, Idaho Politics

A Black Box of Questions…

My Lewiston Tribune column of October 19, 2018 

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Paulette Jordan, the Democratic candidate for governor of Idaho, has created in a way rarely seen in the state’s recent political history a small donor fundraising juggernaut. Jordan has tapped into thousands of small donors in Idaho and across the country. From Clinton, New York to Longview, Washington from Aiken, South Carolina to Denver, Colorado people have been sending her money and in the process she has raised more than $1 million, a respectable figure for an underdog Democrat in Idaho.

Idaho Democratic candidate Paulette Jordan

A substantial percentage of Jordan’s fundraising haul has come from small, individual contributions, some as small as $5 and many less than $100. And many donors have given to her campaign multiple times. It is the kind of broad based fundraising that candidates dream about. Jordan’s contribution profile differs dramatically from her opponent, Lt. Governor Brad Little, who has mostly relied on the standard sources of GOP campaign cash – industry PACs, businesses, lobbyists and well-heeled supporters from across the state. As a result Little has outraised the Democrat by a lot and in the home stretch has held on to more cash for a final push.

Yet there is a confounding mystery at the heart of Jordan’s campaign: little of her cash seems to have made its way into what you might call a real campaign – direct mail, billboards, TV, radio, newspapers and social media. Rather hundreds of thousands of dollars have been spent on out of state consultants and, as the Idaho Statesman’s Cynthia Sewell documented recently, on food, travel and lodging – much of it out of state – by the candidate.

Jordan’s pre-election campaign finance disclosure report is simply one of the most unusual, which is to say unprecedented, documents of its type since Idaho voters mandated campaign finance disclosure 1974. To say the least the report raises more questions than it answers, while the campaign refuses to provide answers to basic questions about how and why it has spent its money. Consider a just few questionable details from Jordan’s October 10 report:

The campaign has paid at least four out-of-state companies in Wyoming, Vermont and Minnesota nearly $50,000 for what it says are various consulting services. Yet the companies appear to be “shells” with no actual place of business only a mailing address and a contact listed as a “registered agent.” One company is identified by the campaign as a Limited Liability Company with a post office box in Peru, Vermont, but the Vermont Secretary of State has no record of the company existing. Another company that has received payments from Jordan’s campaign lists its address as an apartment in Minneapolis.

One company with a Cheyenne, Wyoming address, lists Jordan’s campaign manager, Nathanial Kelly, as its president, secretary, treasurer and only director. Kelly is the same guy who recently tried to explain away why the campaign required its staffers to sign non-disclosure agreements. Kelly’s Wyoming firm only became active in August just about the time Kelly has said he was helping the Coeur d’Alene Tribe, with Jordan’s encouragement, to establish a federal super PAC.

A second Wyoming firm that received two $10,000 payments from Jordan since August is registered at the same Sheridan, Wyoming address as the federal PAC. This firm has not filed more complete information, including the names of incorporators, with the state of Wyoming because it isn’t required to do so until a year after it is formally registered. Meanwhile, the campaign insists that none of its resources have gone to helping establish the federal PAC, which Jordan has refused to discuss beyond criticizing the reporting that disclosed its existence.

The Jordan campaign has employed two different digital fundraising firms both located in Washington, D.C. and paid them more than $110,000. One firm started work after Jordan won the May primary. The campaign also reports payments to two separate campaign reporting and compliance firms with one firm joining post-primary. The campaign, which has had two high profile staff shake ups since May declined to provide information on how many different employees it has paid – it appears upwards of a dozen – has also utilized two different payroll services firms, but has also paid staff directly. (The campaign refused my request to provide information on who has been paid and how.) These set ups beg the question: why are two firms doing what appears essentially to be the same job.

The campaign also reported a $1,000 “contribution” to a California entity that lists the same Novato, California address as one of the reporting and compliance firms. When I asked who received the contribution I was told the money went to “an elected official who is consulting for the campaign as well.” A spokeswoman at the Idaho Secretary of State’s office says failure to disclose the recipient of a contribution from an Idaho campaign committee is a violation of Idaho law. That obviously is a problem for Jordan’s campaign, but her small dollar donors might also be justified in asking why would an Idaho campaign scraping for every dollar make any contribution to a candidate in California?

Campaigns, we all know, cost money. Personnel, technology, advertising and travel require money, the kind of money Jordan has been raising. But the real question for the candidate – and her thousands of small donors – is why so little of the more than one million dollars she has raised has been spent in a way that might actually reach, inform and motivate Idaho voters?

The campaign has talked about the importance of transparency and accountability in state government, but that clearly doesn’t extend to her campaign. Jordan’s latest campaign finance report is a black box of questions, contradictions and head scratching inconsistencies. It all begs another question: where has all the money gone and why?

 

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