Category Archives: Campaign finance

Sorrell caves (updated)

I can explain everything

I can explain everything

It’s rare when a journalist can draw a straight line from his/her news story to a significant event. Such is the case today for Seven Days’ Paul Heintz, whose reporting on Attorney General Bill Sorrell started the ball rolling — with ever-quickening speed — to today’s events. Because after several days of blithe assurances that there was no need for an independent investigation of Bill Sorrell because Bill Sorrell had looked into Bill Sorrell’s activities and determined that Bill Sorrell did nothing wrong, Bill Sorrell reversed course today.

It’s hard to imagine this would have ever come to pass without Heintz’ stories about sloppy campaign finance reporting by Sorrell, questions about a big out-of-state donation that helped him win the 2012 Democratic primary, and questionably cozy relationships between Sorrell and some big national law firms that do business with the state.

Throughout last week, Sorrell denied he’d done anything wrong and insisted an investigation would be a waste of money. Today, in a statement to the Senate Government Operations Committee, he acknowledged the need for an independent probe. Further, he heartily endorsed the creation of an independent commission to oversee election law, which would remove that authority from his own office.

When asked about his change of heart, he said:

What I realized was that this was a distraction here in the building and certainly a distraction in my office. I didn’t want the appearance that I had something to hide, so even though it will cost money, the integrity of the office of Attorney General and my personal integrity are too important. If we have to spend some taxpayer moneys to clear my name — or see that justice is done, either way — it’s worth it.

Nice stick save, General.

Continue reading →

The Eternal General Strikes Back (Warning: SATIRE)

Y'know, this picture works with almost any song lyric.

Y’know, this picture works with almost any song lyric.

Vermont Attorney General Bill Sorrell, having come under intense criticism for his handling of campaign finance prosecutions and his own questionable compliance with the law, came out in true Two-Fisted Attorney General fashion late Friday.

(Warning: SATIRE.)

In a hastily-called news conference, Sorrell announced the filing of several new accusations against Dean Corren, last year’s Democratic and Progressive candidate for Lieutenant Governor.

Sorrell had previously charged Corren with violating the state’s public financing law by accepting tangible assistance from the Democratic Party, namely an email blast with an estimated value of $255. Sorrell’s proposed punishment for this crime: a total of $72,000 in fines and reimbursements.

“I have been accused of excessive zeal in this prosecution,” said Sorrell, a brace of assistant and deputy Attorneys General forming a semi-circle behind him. “To the contrary, I have uncovered even more violations by Mr. Corren. Taken together, they paint a clear and unmistakable picture of a rogue campaign.”

Among the new charges against Corren:

— At a Democratic State Committee meeting, Corren sneezed and a party official loaned him a handkerchief. “A tissue would have been within the bounds of the law,” noted Sorrell, “but a piece of haberdashery is clearly a significant gift that Mr. Corren could have potentially used throughout the remainder of his campaign.”

(Warning: more SATIRE… after the jump.)
Continue reading →

Have we just reached the tipping point on Bill Sorrell?

SorrellBlindersSurprising, and rather shocking, news out of the Statehouse today, courtesy of Paul Heintz:

The Vermont Senate is considering stripping Attorney General Bill Sorrell of his powers to prosecute campaign finance violations. Replacing him, according to lawmakers who support the idea, would be an independent elections oversight commission.

… “The fact that the attorney general is charged with investigating him or herself is clearly ridiculous,” says Sen. Anthony Pollina (P/D-Washington), a member of the committee.

Those wanting to strip Sorrell of his authority include Dems, Repubs and Progs. No partisan witch hunt here. Two thoughts:

— This shows the breadth and depth of the Sorrell-hatred among the political class. To even propose such a slap in his face is a big deal. For all this to happen in a matter of days is pretty extraordinary. It’s like a dam breaking under pent-up pressure.

— If the Legislature has time to think about this and even write a bill, how can Governor Shumlin go on saying he’s too busy to think about it?

Sorry, a third thought: Continue reading →

One Neat Trick To Investigate Bill Sorrell (two, actually)

SorrellZevonThe cloud of questionable campaign finance activities hangs heavy around the head of Our Eternal General Bill Sorrell. Fortunately for himself, his peripheral vision isn’t so great, so he’s blissfully unaware that the storm is gathering and everyone around him is scurrying for cover.

Today brings an editorial from Vermont’s best daily newspaper, the Valley News (okay, technically a bi-state newspaper), calling for an independent probe of Sorrell’s iffy doings.

The editorial quotes Sorrell’s heartwarming assurances: “It’s unfortunately that there are questions about whether there was undue influence. I know there was no undue influence.” The News has a stiletto-sharp rejoinder:

We guess it’s reassuring that in his heart, Sorrell knows he’s right. … On the other hand, the allegations are not so far-fetched that “take my word for it” is an adequate response from the state’s chief law enforcement officer, whose position and power are such that his or her integrity needs to be above reproach.

However, in the absence of any action by Governor Shumlin — or any semblance of concern, frankly — the only folks who could mount an independent investigation are our State’s Attorneys. Well, one or more of them.

There are two problems with that scenario. Continue reading →

Letting a sleeping dog lie

When last we left The Mystery Of The Ineffective But Long-Tenured Attorney General, the state’s top executive was backing away from any sort of involvement. Governor Shumlin said he hadn’t read the complaint against Bill Sorrell, and gosh darn it, he wouldn’t be able to until sometime after adjournment.

Reminded me of the old joke about the guy at the sold-out hotel. “If the Pope showed up, would you have a room for him?” “Of course.” “Well, His Holiness isn’t coming, so give me his room.”

The point being, if Shumlin thought Sorrell’s adventures with campaign finance law were a big deal, he’d damn well find the time, toot suite.

As a matter of ethics and good government, I think he’s wrong. Even if he believes Sorrell to be innocent, there are big and numerous enough questions that we can’t just take Sorrell’s word for it anymore. The Governor should call for an independent counsel.

However… as a matter of politics, I see what he’s doing. Continue reading →

Don’t expect the Governor to do anything about Bill Sorrell

Went to Governor Shumlin’s news conference today, planning to ask about the Bill Sorrell situation. Which, as you might recall, featured Our Eternal General facing questions about possible campaign finance violations (and VTGOP Vice Chair Brady Toensing formally requesting an independent counsel), and Our Eternal General assuring us all that Our Eternal General is above reproach and an independent probe would be a waste of money, Trust Me On This.

And a couple days ago, I rhetorically asked the state’s top elected Democrats what they planned to do about it.

Shumlin4.21.15The answer from Governor Shumlin? Nothing anytime soon. Maybe nothing ever. Because he’s just too busy doing the people’s business.

(If the press corps had been playing the Governor Shumlin Drinking Game, in which everyone has to take a swig every time he repeats certain catchphrases, we all would have been falling-down drunk within a few minutes. The rhetorical bag of tricks was emptied in an effort to evade responsibility.)

I threw out the first Sorrell question: Does the Governor think there should be an independent counsel to look into the allegations?

You know, as you can imagine, I am really focused on trying to get my agenda through the legislature. It’s the most ambitious agenda that I’e set out. And these things have to succeed. Balancing $112M budget shortfall. Getting out of hear with a clean water bill that actually cleans up our polluted waters. Making sure that we finally address both the cost and quality issues in our education system. Getting out of here with my energy bill. That’s what I’m focused on.

I have not had a chance to read the complaint. When the Legislature is all done, I suppose I’ll have time to do that, but I’m focused on my job.

Even by Shumlin standards, that was a rapid-fire pivot away from the question at hand. Continue reading →

It’s time for an outside probe of our Eternal General

Brady Toensing, D.C. attorney and vice chair of the VTGOP, has sometimes operated as the political equivalent of an ambulance chaser — taking legal actions with an obvious partisan motive. He comes by it honestly; his mother and stepdad are notorious conservative attack dogs.

But this time, I’m with him 100%. Toensing has sent a letter to Eternal General Bill Sorrell, asking him to appoint an independent counsel to investigate Sorrell’s campaign activities.

SorrellRehabThis is the second time Toensing has made this request. The first was in October 2012, in the midst of the election campaign — which was reason enough to dismiss it as a partisan stunt. But now, the time has come. There’s enough smoke around Sorrell’s campaign activities to warrant an objective fireman. Especially since Vermont’s campaign finance law makes Bill Sorrell the sole judge and arbiter of whether Bill Sorrell has violated the law. Which Bill Sorrell assures us is not the case. Indeed, he has already rejected Toensing’s request, insisting again that he’s done nothing wrong. We just have to take his word for it, I guess.

This stinks, and if any situation required an outside probe, it’s this one.

Toensing cites four allegations:

— “Coordinated expenditures” in the hotly-contested 2012 primary. Sorrell received a late blast of money (200 G’s) from the Democratic Attorneys General Association (by way of a third party superPAC). As Toensing’s letter says: “This record-setting expenditure was controlled and directed by former Governor Howard Dean, who, at the same time, was an active, high-level agent of your campaign.”

That money was almost certainly the deciding factor in Sorrell’s whisker-thin victory over TJ Donovan. And as Toensing notes in his complaint, one month before the primary, Sorrell “revers[ed] his office policy to allow PACS to accept contributions in excess of the state limit of $2000 and still make unlimited campaign expenditures in Vermont. This action cleared the way for the unprecedented expenditures made on General Sorrell’s behalf during the primary.”

— Failure to comply with campaign finance disclosure laws mandating that a candidate report “each expenditure listed by amount, date, to whom paid, for what purpose.” As Paul Heintz has reported, Sorrell’s reports for personal-expense reimbursement have included numerous vague and incomplete entries.

— A joint appearance with Dean Corren, candidate for Lieutenant Governor, on September 15, 2014. While Sorrell has aggressively pursued Corren for accepting an email blast from the Vermont Democratic Party, he has denied any wrongdoing in his appearance with Corren. He has, in fact, claimed that the appearance was not a campaign event — which is laughable to the point of bitter tears.

— Sorrell has routinely given state business to outside law firms that have contributed heavily to his re-election campaigns. Sorrell denies any quid pro quo, but Toensing cites legal precedent that indicates “In cases involving government officials, a jury can infer guilt from evidence of benefits received and subsequent favorable treatment.”

By that standard, Sorrell’s own denials are clearly inadequate. Given his refusal to investigate himself, as Toensing says, “the appointment of an independent counsel is necessary to restore and maintain the integrity of your office.”

I fully expect Bill Sorrell to refuse this very reasonable request for an objective probe of Bill Sorrell. At that point, we will turn to other Democratic officeholders for leadership. Governor Shumlin has repeatedly ducked questions about Sorrell’s activities, while Secretary of State Jim Condos has said his office lacks the standing to investigate.

Well, standing or no, Shumlin and Condos have their bully pulpits. It’s time to put them to use. They don’t have to throw Sorrell under the bus; all they have to do is say “There are questions that deserve answers, and the only way to restore public trust is through an independent counsel.”

Heck, if they want to, they can even throw in a gratuitous “I’m sure the investigation will show that General Sorrell acted properly.” The important thing is, it’s time to put the heat to Sorrell’s backside and get answers to all of these questions.

Governor? Mr. Secretary? Mr. Speaker? Mr. Pro Tem? We’re waiting.

Let’s go to the 990

Okay, so I spent part of Monday (maybe five, ten minutes all told) in a slow-motion Tweetchat with the fine folks at the Ethan Allen Institute. At one point, whoever Tweets on behalf of EAI accused me of lying about its connection with the Koch empire. And I pointed out that it wasn’t a lie, just a mistake.

Then came the following exchange:

Dunno what they mean by “solution” there, but the whole Tweet is kind of inartful. Anyway, @EAIVT asked if I had consulted its IRS Form 990, the annual filing required of nonprofit organizations.

Well, I hadn’t checked the 990 because I knew it was irrelevant to my assertion. Nonprofits aren’t required to disclose revenue sources, so nothing in EAI’s form would prove or disprove any Koch connection.

But hey, I’m open to suggestion, so I found EAI’s latest 990 — for tax year 2013 — as posted by the journalistic nonprofit ProPublica. (Where you can find the last several years’ worth, in fact.)

And as I thought, there’s no information about where the money comes from. But there are some interesting numbers to be found, and here’s a sampling.

In 2013, EAI took in $140,690 in “contributions, gifts, grants and similar amounts received,” plus another $60,000 in membership dues. Add in a bit here and there, and EAI revenue was $201,018.

Not bad, not bad. There’s no further information about the sources of that $201, 018, nothing to prove or disprove any financial dependence on the Kochs or the State Policy Network or other out-of-state corporate interests.

Unfortunately, EAI was a deficit spender in 2013. It racked up expenses of $224,290. Fortunately, it began the year with a positive balance of $43,021, so it ended the year in the black.

Yay!

On to Part III, “Statement of Program Service Accomplishments,” a.k.a. EAI’s nonprofit fig leaf. The IRS requires a list of the organization’s three primary programs. Here’s the EAI list:

— $72,200 for “Two daily radio programs on WDEV Radio Vermont.” This includes John McClaughry’s Daily Diatribe (I think that’s what they call it); and the hour-long “Common Sense Radio,” which causes massive tuneout at the end of the Mark Johnson Show every weekday at 11.

Well, now we know why the folks at WDEV put up with that drivel. They are well paid to put up with that drivel. And they get a better deal than we do; thanks to EAI’s tax-exempt status, we are all paying, indirectly, for the glories of “Common Sense Radio.”

— $44,205 for something called the Energy Education Project, which “promotes intelligent energy choices in Vermont through a daily blog, a website and educational events.” Gee, I’d never heard of this endeavor before. So I searched for “Energy Education Project Vermont,” and there it was.

However, it hasn’t been updated in a very long time. The top item on its homepage is entitled “Entergy Announces That Vermont Yankee Will Close in October 2014.” Checking the Google, I see that Entergy made that announcement in August of 2013.

Pretty sad, for EAI’s number-two Service Accomplishment.

— $47,000 for a variety of programs, not a single entry. These include the montlhly Ethan Allen Letter; a series of opinion pieces offered gratis to Vermont media outlets; “public meetings and educational seminars”; and a transparency website jointly maintained with the Public Assets Institute. Now there’s an odd couple.

On to Part IV, a list of officers and key employees. Oh boy, salary disclosure!

EAI President Rob Roper pulled down $50,000 last year, slightly under Vermont’s median income. Hey look, he’s middle class!

Vice President John McClaughry made $24,000 and his wife Anne made $18,000 as Secretary/Treasurer, plus another $5500 combined for “Health benefits, contributions to employee benefit plans, and deferred compensation.”

Bill Sayre, member of the Board of Directors, made $9600, presumably for hosting Common Sense Radio. None of the other directors (Wendy Wilton, Jack McMullen, Catherine Clark, John Cueman, Milt Eaton) was paid.

Finally, the caboose on EAI’s very short gravy train is occupied by Shayne Spence, who was paid $6000 to serve as “Outreach Coordinator.” I don’t know whether this includes the compensation he received as a Koch Summer Fellow in 2013, but that’s a thing that exists.

I’ll skip over several boring pages, which brings me to Schedule A, Part III, which lists total “Public Support” for the five preceding years. During that time, EAI took in a total of $784,910. The totals for 2009 through 2013 go:

$151,775; $155,225; $171,565; $105,345; and $201,000.

Don’t know what happened in 2012, but there you are. In addition to the “public support,” EAI has made a few hundred bucks every year from “interest, dividends” and other non-donor sources.

Well, that was fun. It did nothing to illuminate the sources of EAI’s money or to settle the question of whether it has financial ties to the State Policy Network and other Koch- and Koch-like operations, or whether its ties are purely ideological.

Too bad, as I wrote earlier: we really need more transparency in the nonprofit world. If EAI could show that it really is a home-grown organization that gets the bulk of its financing from Vermonters, that would lend it some credibility.

The hidden world of nonprofit advocacy

Okay, so today I Tweeted this:

It’s something I’ve been thinking for a long time. There are more and more “nonprofit organizations” whose official mission is “educational” or some such, but whose actual purpose is political advocacy, including activity that ought to be classified as lobbying but it’s not.

This is one reason I’m less exercised than some about the proposed cap on itemized deductions: a lot of “charitable contributions” are being spent politically. Many wealthy people set up their own nonprofit foundations for the purpose of spreading their political beliefs. The Koch Empire is the prime example of this, but there are lots of others. In Vermont, their number includes the Vermont Workers’ Center, VPIRG, Campaign for Vermont, Energize Vermont, Vermonters for a Clean Environment, Vermonters for Health Care Freedom, the Ethan Allen Institute, and the late unlamented Vermonters First.

That’s a heavy-hitting list of groups trying to influence our politics, and they range from far left to far right. Nobody’s got a patent on this. Although I will say that the quantity of money on the right is much greater than on the lieft. Although although I will say that Vermont is an exception to this rule; our nonprofits lean leftward.

Some of these groups do report direct lobbying activities, but because they are nonprofits, they are not legally obligated to report the source of their revenue. Some voluntarily report to some extent, but as far as I know, none of them provide full donor disclosure. Which would include name, town and state of residence, and amount of donation. (If any group does so, please let me know and I will amend this post.)

I say “Ive been thinking about this for a long time,” so what made me write about it today? Actually, the inspiration was a mistake I made on Twitter, in replying to a Tweet from the corporate-funded folks at “Stop the Vermont Beverage Tax.”

Which brought a quick response from, well, a ready chorus of right-wingers, but let’s stick with the Ethan Allen Institute, Tweeting as @EAIVT:

They’re right. At least they’re partly right. “SPN” is the State Policy Network, which is part of the Koch nonprofit empire. I didn’t lie, though; I mistakenly believed that EAI is Koch-funded. I picked this up from the Center for Media and Democracy’s “Sourcewatch,” which describes SPN thusly:

The State Policy Network (SPN) has franchised, funded, and fostered a growing number of “mini Heritage Foundations” at the state level since the early 1990s.[1] SPN is a web of right-wing “think tanks” in every state across the country. It is an $83 million right-wing empire as of the 2011 funding documents from SPN itself and each of its state “think tank” members.

Sourcewatch lists the Ethan Allen Institute as the SPN’s Vermont affiliate. There’s where I made my leap of faith. I’ll take EAI’s word for it that they don’t get money from SPN or the Kochs; too bad for them, since a lot of their fellow SPNers are ridin’ that gravy train.

Still, for EAI to pay for the privilege of SPN affilliation… it’s not correct to call them “Koch-funded,” but they’re definitely “Koch-friendly.”

I will freely admit that I sometimes shoot from the hip, as I did in this case. I try to own up when I’m wrong; this isn’t the first time and I’m sure it won’t be the last. But I could have avoided my mistake if we had better disclosure laws; I could have gone to the source instead of poking around for indirect scraps of information.

But the real point isn’t a matter of my convenience. It’s openness and transparency in our politics.

Organized political parties (and the Democrats, haha) will tell you that campaign finance laws are stacked against them. It’s better in a number of ways for donors to go through their own organizations than through parties: there are effectlvely no limits and few disclosure requirements, and they retain control over how their money is spent. That’s why the Kochs and Sheldon Adelson and Foster Friess and all those people don’t give much money to the Republican Party; they funnel their wealth through their own organizations. And when those groups are nonprofits, We, the Taxpayers, are underwriting their political activities. Nice work if you can get it.

The point is, in this modern world of political nonprofits, we need better disclosure rules. We need to know who’s spending money for what political purpose, whether they’re going through the Ethan Allen Institute or the Vermont Workers’ Center.

The punishment fit the crime

Here’s something that’s by-the-books, letter of the law… but makes absolutely not a bit of sense.

Our dogged hero of law enforcement, Eternal General BIll Sorrell, is in hot pursuit of the scoundrel Dean Corren for a campaign violation. Seems the Democratic Party sent an email blast supporting Corren’s candidacy for Lieutenant Governor, and Sorrell deems this a violation of the public financing law.

Estimated value of the blast: $255.

The penalty Sorrell seeks: $72,000.

Sorrell says, and I understand, that he is simply following the law. which requires repayment of public funds still in Corren’s kitty at the time of the violation, plus a $10,000 fine for each of two violations (accepting the email, and failing to report it).

But holy Hell, I don’t care what the law says. $72,000 for a $255 violation is like a ten-year sentence for a speeding ticket. Does Sorrell have no flexibility whatsoever, or is he choosing to be a right bastard about this?

Also, this: I know for a fact that there was an ongoing, vigorous discussion within Democratic Party circles and the Corren campaign over what the party could do and couldn’t do on his behalf. The Democrats were very careful about it — so much so, that some liberals (including yours truly) wondered if they really wanted him to succeed. It’s hard for me to imagine that the Dems suddenly abandoned their caution in a spasm of Corren-love and sent out that email in a moment of blind passion, followed by headaches and regret the next morning.

Maybe so, because the Dems have responded to Sorrell’s onslaught like an abashed libertine trying to reform:

“To avoid the cost of litigation and move forward, both for the benefit of the Party and the State, the VDP decided to settle with the Attorney General’s Office,” the statement said.

As part of the settlement, VDP will agree to cooperate with Sorrell’s office in its investigation and litigation against Corren.

That’s nice. I’m sure it only appears that the Dems are throwing Corren under the bus.

Given the party’s SOP in dealing with Corren, I’m sure the email blast had to have been vetted by its legal staff. But that won’t do Corren any good now; he’s facing Mr. Prosecutor all by his lonesome.